www.pwc.nl No, it's not a user guide... it's the EU product label! News & developments on labelling in the EU applicable to the fashion industry
Agenda Why this webinar Regulatory framework Amendments Developments Origin CITES Care & Size Environmental Safety Unfair commercial practices Footwear Textile fibers 2
Why this webinar Updated EU legislation on labelling of textiles entered into force transition period recently ended Reviews and withdrawal of product from stores due to lack of compliance need for recap on current legislation and summary on changes Webinar also aims at facilitating relevant experience exchange on the matter amongst the participants 3
Do you know where to look? EU regulatory framework Regulation EU 1007/2011 This regulation consolidates and replaces three Directives: 2008/121/EC (fiber names), 96/74/EC (methods for analysis of binary textile fiber mixtures) and 73/44/EEC (methods for analysis of ternary textile fiber mixtures) Directive 94/11/EC Rules on labelling of the materials used in the main components of footwear. Footwear Textile fibers Labelling requirements Origin CITES Community/Union Customs Code There is still no consensus on country of origin marking. In practice the non-preferential rules of origin and the WTO s harmonized origin working program are followed. Regulation 1320/2014 The EU s Trade Regulation follows the provisions of the Convention on International trade in Endangered Species of Wild Fauna and Flora (CITES). There are many additional implementing regulations related to CITES. Probably the most relevant for importers/exporters is the implementing regulation 792/2012 on permits. Enforcement provisions are included in national legislation. Directive 2005/29/EC Amongst other, the Directive on Unfair Commercial Practices addresses and regulates on misleading actions in commercial practices (e.g. unclear, ambiguous descriptions or hiding information, origin is an example of this). Directive 2001/95/EC Unfair commercial practices The Directive on General Product Safety is a framework that makes CEN standards. Products complying with such standards are presumed safe. This is a kind of safety net for those cases in which products are not covered by a more specific (garment/footwear/accessories) legislation. Safety Environmental Care & Size ISO 3758/GINETEX & EN 13402 The nature of this standards is voluntary. However, these widely applied accepted standards on care & size labelling in the fashion industry.. Regulation EC 66/2010 This is the EU s voluntary environmental Ecolabel regulation. Besides there are other (inter)national voluntary environmental programs as Blue Angel, Öko-tex and GOTS. 4
Origin Origin Community/Union Customs Code There is still no consensus on country of origin marking. In practice the non-preferential rules of origin and the WTO s harmonized origin working program are followed. 5
CITES Regulation 1320 / 2014 CITES The EU s Trade Regulation follows the provisions of the Convention on International trade in Endangered Species of Wild Fauna and Flora (CITES) There are many additional implementing regulations related to CITES Probably the most relevant for importers/exporters is the implementing regulation 792/2012 on permits Enforcement provisions are included in national legislation 6
Care & Size ISO 3758/GINETEX & EN 13402 Care & size standards of voluntary nature Care & Size Widely accepted Pictograms are trademark of GINETEX, only members may use them (against payment for direct membership or through national associations) No major changes expected 7
Environmental & sustainability Regulation EC 66/2010 Environmental & sustainability EU s voluntary environmental Ecolabel regulation. Scope: all products subject to distribution / consumption against payment of offered for free (exception of medicinal products) Concentrates on environmental impact, reduction of us hazardous materials, etc. There are other (inter)national voluntary environmental / sustainability programs as Blue Angel, Öko-tex and GOTS 8
Environmental & sustainability Telegraph.co.uk Company X underpays workers in Cambodia Swedish TV documentary program Kalla Fakta has revealed that [Company X] is not paying its Cambodian garment workers a living wage The miminum wage for these workers is currently $61 per month, which is 25% of what constitutes a living wage in the country 9
Safety Directive 2001/95/EC Safety The Directive on General Product Safety is a framework that makes CEN standards. Products complying with such standards are presumed safe. This is a kind of safety net for those cases in which products are not covered by a more specific (garment/footwear/accessories) legislation. 10
Safety REACH (Regulation 1907/2006) Many restrictions nowadays under REACH framework Substances of Very High Concern (SVHCs) Restricted substances Requirements depend on qualification (SVHC or restricted) Azo Dyes (Directive 2002/61) Only limited number of products banned Containing aromatic amines Testing methods harmonized 11
Safety Biocidal products (Regulation 528/2012) Protection against harmful organisms Used to be governed by Directive - Replaced by Regulation Background: - Protection for humans and environment. but also functioning of the internal market Use of biocidal products: authorization needed - Product needs to be approved 12
Safety Articles treated with biocidal products Import restricted Only active substances that are approved (ECHA)! i.e. no longer allowed to use arsenic or DMF Need to provide detailed info on the treatment to consumers (when asked for) In some cases (i.e. when biocidal properties are claimed) Info on label (easily understandable and visible) 13
Safety Nanomaterial No explicit requirements under REACH or under CLP (Classification, Labelling and Packaging) Substance definition (to catch all...) Nanomaterial working group (within ECHA) 14
Unfair commercial practices Directive 2005/29/EC Amongst others, the Directive on Unfair Commercial Practices addresses and regulates on misleading actions in commercial practices (e.g. unclear, ambiguous descriptions or hiding information, origin is an example of this). Unfair commercial practices 15
Do you know where to look? EU regulatory framework Directive 94/11/EC Rules on labelling of the materials used in the main components of footwear. Footwear The current directive on footwear labelling was last amended in 2007 and as such, no direct changes have been implemented ever since. However, it is important to bear in mind that the amendments on the regulation on textile fiber names & labelling might impact the footwear labelling directive. The concept of textile to determine the textile content in footwear is linked to the regulation on textile fiber names & labelling.
Do you know where to look? EU regulatory framework Regulation EU 1007/2011 Replaces three textile Directives 2008/121/EC (fiber names) 96/74/EC (methods for analysis of binary textile fiber mixtures) 73/44/EEC (methods for analysis of ternary textile fiber mixtures) Textile fibres 17
Regulation 1007/2011 on textile fibre names & labelling May 8, 2012. November 9, 2014. New regulation on textile labelling Entry into force Transition period New rules are Compulsory to all stakeholders! Published in the EU s Official Journal in October 18, 2011. Products already marketed prior to the entry into force could still use the labels according to the old legislation Today, items are being taken off shops floors in the EU due to improper labelling! Are you compliant? If not, do you know what needs to be amended? 18
Amended regulation on textile fibre names & labelling FAQs Which language should I use? 19
Amended regulation on textile fibre names & labelling FAQs I am not lying, it is 100% Australian pure wool, can I say it so? 20
Amended regulation on textile fibre names & labelling FAQs Can I state Lycra? 21
Amended regulation on textile fibre names & labelling FAQs Do I need to label bags made out of textiles? 22
Amended regulation on textile fibre names & labelling FAQs What about these? 23
Amended regulation on textile fibre names & labelling Key items What s new? The previous 3 textile directives are consolidated and replaced by this regulation Updated list of textile fibre names The use of fibre names for other fibres is prohibited Additional information must be stated separately (e.g. 100% wool Merino instead of 100% Merino wool) A more detailed description of wool Description of procedure to apply for a new fibre name The language of the Member State in which the products will be marketed is compulsory unless such Member State requires otherwise Updated methods of analysis to check information on labels or markings Exemption applicable to customized products made by self-employed tailors Requirement to indicate content of non-textile parts of animal origin (e.g. feather, bone, leather, pearl, horn): contains non-textile parts of animal origin Are your labels ready? 24
New developments Will origin marking will ever become mandatory? Proposal - Obligatory origin marking has been long in discussion - A first proposal in 2010 did not make it through the Council - A new proposal amending the consumer product safety directive was voted favorably by the Parliament in April, conclusion pending - Until then, origin marking remains non-obligatory although many EU companies choose to use origin marking based upon the EU non-originating rules of origin and the harmonized working program of the WTO 25
Do s & Don t Can you tell these labels are compliant? 26
To consider Suggestions Is my product subject to textile labelling requirements? Which language should I use? How do I show the fiber content? (check wording, e.g. 100 wool merino) Is there any non-textile animal content? Does this product fall under CITES scope? Do I need to ask for import/export permits/registrations? To which Member State/entity should I address my queries? Can I / do I wish to use made in marking? What are the rules? Overall, avoid misleading information! 27
Thank you Contacts: Jos Verstraten Claudia Buysing Damste Director Senior Manager Customs & International Trade Customs & International Trade +31 88 792 34 74 +31 88 792 38 11 jos.verstraten@nl.pwc.com claudia.buysing.damste@nl.pwc.com Domenick Gambardella Anthony Tennariello Maytee Pereira Partner Partner Director Customs & International Trade Customs & International Trade Customs & International Trade +1 646 471-3791 +1 646 471-4087 +1 646 471-0810 domenick.gambardella@us.pwc.com anthony.tennariello@us.pwc.com maytee.pereira@us.pwc.com WARNING: The following disclaimer and copyright notices must be customised for your local territory - if you need assistance with appropriate wording, contact your local Risk Management or Office of General Counsel. 2015. All rights reserved. Not for further distribution without the permission of. "" refers to the network of member firms of PricewaterhouseCoopers International Limited (IL), or, as the context requires, individual member firms of the network. Each member firm is a separate legal entity and does not act as agent of IL or any other member firm. IL does not provide any services to clients. IL is not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professional judgment or bind them in any way. No member firm is responsible or liable for the acts or omissions of any other member firm nor can it control the exercise of another member firm's professional judgment or bind another member firm or IL in any way. 28