NATIONAL INSTITUTE OF FASHION TECHNOLOGY

Export Merchandising and EXIM Documentation

“Social Compliance Standards”

In Guidance of:-
Proff. Sakshi Rathore
Submitted By:
Anju Saroha
Sonali Priya
Tanushree Baghel
Submitted To:-
MFM Department, Semester -2
National Institute of Fashion Technology, Bhopal
 Social Compliance Standards

Social compliance refers to how a business treats its employees, the

environment and their perspective on social responsibility. To ensure that
your company meets standards of social compliance, it may be necessary
to conduct a social compliance audit.

Compliance standards used in Export and Imports

o AEPC
o ECGC
o SA8000
o OHSAS
o OEKO TAX
o WRAP

AEPC
Incorporated in 1978, AEPC is the official body of apparel exporters in India
that provides invaluable assistance to Indian exporters as well as
importers/international buyers who choose India as their preferred sourcing
destination for garments.
In recent years AEPC has worked tirelessly in integrating the entire industry -
starting at the grass root level of training the workforce and supplying a
steady stream of man power to the industry; identifying the best countries to
source machinery and other infrastructure and brokering several path
breaking deals for its members and finally helping exporters to showcase their
 best at home fairs as well as be highly visible at international fairs the world
over.
What is AEPC certificate?

AEPC is registered under section 25 of the Companies' Act 1956 and has two
categories of Members: Member Exporter and Registered Exporter. ... The
aggregate export performance of garments of the firm/company is more than
Rs. 1 crore during previous three financial years.

Vision
To promote, support and facilitate Indian apparel industry to enhance its
competitive advantage and global positioning in a holistic and sustainable
way that is beneficial to all stakeholders of the industry.

Mission
AEPC attains the vision by facilitating industry to achieve national targets on
export promotion, employment generation, productivity enhancement and
brand creation in a responsible and progressive manner and thereby
providing enhanced value to the consumers in specific and society at large.
AEPC's main objectives

1. To undertake all export promotion measures, particularly to undertake market

research, provide inputs for budgets and Foreign Trade Policy, Provide inputs
for various FTAs, PTAs and Bilateral agreements, to monitor tariff and other
restrictive practices of importing countries, to find out the product range and
export prices of garments of other countries, to develop new designs and
patterns of garments, to undertake marketing in individual foreign markets, to
send trade delegations and missions to foreign countries as well as to survey
export potential of readymade garments from the country.

2. To publicize and highlight to importers and the public in foreign countries the
advantages of trade and commerce with India and to create a liking for the
 various types of garments markets for the purpose of continuously and
regularly reporting to manufacturers, traders and exporters of garments.

3. To assist members, especially, in the small scale sector by giving assistance

in the matter of understanding and implementation of the drawback, rules and
procedures, import license facilities provided and how to apply for the
facilities.
4. To establish design centers, to evolve improved design and patterns and
garments suitable for export, to improve the qualities and standards of the
fabrics and garments by importing technical knowhow, to encourage export
production of quality garments and to undertake necessary research in
fashions, designs and techniques and to encourage manufacture of garments
for exports

5. To undertake training of workers and technical personnel, to improve the skill

of workers engaged in garment manufacturing in India and to assist in the
technological base of the garment industry.

6. To obtain from members of the Council and to prepare for the council as a
whole, action plans for promotion of exports, development of export markets,
generation of production for exports, setting of export targets generally and in
relation to specific countries and commodities on an annual basis and for
such medium and longer terms as may be considered desirable and to
ensure/ undertake execution of such plans.

How does AEPC help in export promotion?

o Rebate in training
o Productivity Improvement Programme
o Subsidy in Overseas Training
o Duty Drawback
o Export Performance Certificate
o Covering item
o Certificate of Origin
 ECGC
The ECGC Limited (Formerly Export Credit Guarantee Corporation of India
Ltd) is a company wholly owned by the Government of India based in
Mumbai, Maharashtra. It provides export credit insurance support to Indian
exporters and is controlled by the Ministry of Commerce. Government of India
had initially set up Export Risks Insurance Corporation (ERIC) in July 1957. It
was transformed into Export Credit and Guarantee Corporation Limited
(ECGC) in 1964 and to Export Credit Guarantee Corporation of India in 1983.
ECGC Ltd is the seventh largest credit insurer of the world in terms of
coverage of national exports. The present paid-up capital of the company is
Rs. 1200 crores and authorized capital Rs.5000 crores.

What does an ECGC do?

1. It offers an array of credit risk insurance covers to the Indian exporters
against the loss with respect to the export of their goods and services.
2. It provides Export Credit Insurance covers to the banks and other financial
institutions for enabling exporters to find better services from them.

3. It offers Overseas Investment Insurance to the Indian companies investing

in Joint Ventures (JVs) abroad in the form of loan or equity.

Facilities by ECGC

o Offers insurance protection to exporters against payment risk

o Provides guidance in export-related activities
o Makes available information on different countries with its own credit ratings
o Makes it easy to obtain export finance from banks/financial institutions
o Assists exporters in recovering bad debt
o Provides information on credit-worthiness of overseas buyers
 How does ECGC help the exporters?
ECGC provides the insurance protection to Indian exporters against the
payment risks. It helps the exporters in a number of ways which include:
1. Guiding export-related activities
2. Making information available with respect to various countries with its credit
ratings
3. Making it easy to get export finance from the banks and other financial
institutions
4. Helping Indian exporters recover bad debts
5. Providing information on the credit-worthiness of foreign buyers

ECGC offers several types of insurance covers and these could be

classified into the following groups:
I. Standard policies that protect Indian exporters against overseas credit risks
II. Construction works and services policies
III. Financial Guarantees
IV. Special policies

ECGC offers following types of guarantees to the exporters:

I. Export finance guarantee
II. Packing credit guarantee
III. Post-shipment export credit guarantee
IV. Export production finance guarantee
V. Transfer guarantee
VI. Export performance guarantee
 SA8000
The SA8000 Standard is the leading social certification standard for
factories and organizations across the globe. It was established by Social
Accountability International in 1997 as a multi-stakeholder initiative. Over
the years, the Standard has evolved into an overall framework that helps
certified organizations demonstrate their dedication to the fair treatment of
workers across industries and in any country.

Characteristics of an SA8000 certified organization are:

o Holistic management system to maintain compliance to the standard

o Work engagement and collaboration
o Cross-functional internal collaboration
o Collaboration in the supply chain

ELEMENTS OF SA8000:-

1. Child Labour:-

 Young workers meet compulsory education laws and do not work doing
school hours
 Young workers do not work more than eight hours per day; and
 Children or young workers are not subject to unsafe working conditions

2. Forced or Compulsory Labour:-

This requirement ensures that a supplier is not employing forced or slave

labour and not withholding personal documents, salary or benefits from
workers. It also requires that staff have the right to leave the workplace at
the end of each workday.
3. Health and Safety:-

 Organizations must assess health risks for new, expectant and nursing
mothers
 Staff must be provided with appropriate protective equipment (e.g.
hardhats, gloves, respirators); and
 Staff must have free access to clean toilet facilities, potable water and
sanitary facilities for food storage

4. freedom of Association and Right to Collective Bargaining:-

The point of freedom of association and collective bargaining is one that

can be somewhat contended by local or national law. The requirement
allows workers the right to organize trade unions of their choosing. But
then there are countries like China, which restricts membership to those
trade unions that fall under the All-China Federation of Trade Unions. It
also protects workers belonging to unions from discrimination, harassment
or intimidation.

5. Discrimination:-

 The SA8000 standard protects workers from discrimination on the basis of

race, origin, caste, gender, religion, political affiliation and many other
attributes.
 Suppliers that meet this requirement cannot interfere with exercises of
worker’s rights to certain practices related to religion, such as prayer.
 Suppliers cannot allow abusive, threatening or coercive behavior in the
workplace. And suppliers cannot force staff to take pregnancy or virginity
tests.

6. Disciplinary Practices:-

This standard requires that suppliers treat staff with “dignity and respect”.
This forbids inhumane treatment, corporal punishment, coercion or verbal
abuse.
7. Working Hours:-

Standard working hours, SA8000 touches on overtime as well. Suppliers

must make overtime voluntary, and overtime hours cannot exceed 12
hours per week.
8. Remuneration:-

o Wages paid by your supplier need to be enough to cover basic needs of

the staff and allow for discretionary income.
o The standard dictates that the supplier cannot withhold or deduct wages
for disciplinary reasons, unless permitted by national law or collective
bargaining agreement.
o Suppliers must also reimburse workers for overtime at a premium rate
defined by national law or collective bargaining agreement.

9. Management System:-

o Senior management must inform staff of their intention to comply with

SA8000 with a written policy statement.
o Your supplier must appropriately document conformance and
implementation of the standard.
o Your supplier must set up a Social Performance Team (SPT) to oversee
implementation of the SA8000 standard, as well as identify and assess
risks.
o Your supplier must develop a written grievance procedure that is
confidential and non-retaliatory.
o Your supplier must train staff to implement the SA8000 standard.
 OHSAS
OHSAS 18001 is one of the International Standard for Occupational
Health and Safety Management Systems. It provides a framework for the
effective management of OH&S including all aspects of risk management
and legal compliance. It addresses occupational health and safety rather
than any specific product safety matters.

The OHSAS 18001 challenge

Organizations of all kinds are increasingly concerned by achieving and

demonstrating sound Occupational Health and Safety performance to
their shareholders, employees, clients and other stakeholders by
managing the hazards and improving the beneficial effects of their
activities, products and services.
Increasingly, stringent legislation, the development of economic policies,
human resources management and other measures are used to
foster Occupational Health and Safety protection and welfare.
OHSAS 18001 is the internationally recognized standard for
occupational health and safety management systems.

Why choose BUREAU VERITAS for OHSAS 18001 Certification?

Recognition
Bureau Veritas Certification has more than 10 local accreditations
including UKAS. Bureau Veritas Certification was one of the launch
companies for OHSAS 18001.
Network
5,700 skilled auditors operating in more than 100 countries offer a unique
combination of international and local expertise providing consistent
services wherever our clients are.
 Expertise
Bureau Veritas Certification has issued over 6,000 safety related
certificates in all major industry sectors.
Our auditors have an extensive experience in health and safety issues, as
well as in depth knowledge of local regulations, markets and language that
enables them to provide solutions adapted to your needs.
Mark of Global Recognition
The Bureau Veritas Certification mark is a globally recognized symbol of
your organization's ongoing commitment to excellence, sustainability and
reliability.

OHSAS 18001:2007 addresses the following key areas:

 Hazard identification, risk assessment and determining controls

 Legal and other requirements
 Objectives and OHS program(s)
 Resources, roles, responsibility, accountability and authority
 Competence, training and awareness
 Communication, participation and consultation
 Operational control
 Emergency preparedness and response
 Performance measuring, monitoring and improvement

ISO 45001 – A NEW STANDARD FOR OCCUPATIONAL HEALTH

AND SAFETY MANAGEMENT SYSTEMS

The International Organization for Standardization (ISO) is developing a

new standard for Occupational Health and Safety Management Systems,
ISO 45001. The final version of the standard is planned for publication in
Q4, 2016. Contact us for the latest updates and more details.
 OEKO-TEX
Oeko-Tex is a registered trade mark, representing the product labels and
company certifications issued and other services provided by
the International Association for Research and Testing in the Field of
Textile and Leather Ecology (which also calls itself Oeko-Tex for short).
Oeko-Tex labels and certificates confirm the human-ecological safety of
textile products and leather articles from all stages of production (raw
materials and fibres, yarns, fabrics, ready-to-use end products) along the
textile value chain. Some also attest to socially and environmentally sound
conditions in production facilities

Oeko-Tex Certificates

The Standard 100 by Oeko-Tex product label, introduced (as Oeko-Tex

Standard 100) in 1992, certifies adherence to the specifications of the
standard by the same name, a document of testing methods and limit
values for potentially harmful chemicals. This independent testing and
certification system may be applied to textile materials, intermediate
products at all stages of production and ready-made textile articles.
Examples of eligible items for certification are raw and dyed finished
yarns, raw and dyed finished fabrics and knits, and consumer goods (all
types of clothing, home and household textiles, bed linen, terry cloth
items, textile toys and more).

Objective

The Standard 100 by Oeko-Tex aims at making it obvious to consumers

that the labeled textile products have undergone laboratory testing for a
wide range of harmful substances, and that the content of those
substances remains below the limit values established by the Oeko-Tex
Association.

The introduction of the standard established a globally standardized

quality assurance system for manufacturers and retailers, taking into
account the decreased vertical range of manufacture in the individual
facilities of the textile and clothing industry, and compensating for
regionally different evaluation standards for the risk potential of harmful
substances. Use of the Oeko-Tex certificate documents compliance with
human-ecological requirements to subsequent production levels and
consumers.

How do get an Oeko Tex certificate?

The OEKO-TEX® certificate issued by the commissioned institute or the

relevant certification centre is valid for a duration of 12 months. It
documents that the listed items have successfully been tested according
to the STANDARD 100 by OEKO-TEX® and meet the requirements for a
joint product class.

WRAP
Who is WRAP?
Headquartered in Arlington, Virginia, USA, with regional offices in Hong
Kong, SAR, and Dhaka, Bangladesh, full-time staff in India and Southeast
Asia (Indonesia,Thailand and Vietnam), and for Latin America, WRAP is
an independent, objective, non-profit team of global social
compliance experts dedicated to promoting safe, lawful, humane, and
ethical manufacturing around the world through certification and
education.
What does WRAP do?
Our primary activity is our Certification Program, which is the largest
independent facility certification program in the world mainly focused on
the apparel, footwear, and sewn products sectors. We issue three levels
of certification that are valid from six months to two years based on a
facility's compliance with WRAP's 12 Principles. These principles are
based on the rule of law within each individual country and include the
spirit or language of the relevant conventions of the International Labour
Organization (ILO).
WRAP also administers a comprehensive training program throughout the
world and is recognized as an accredited training organization by
the International Register of Certificated Auditors (IRCA). All of our
monitoring partners must undergo our comprehensive Lead Auditor
Training program and follow-up with regular refresher courses. We also
offer an Internal Auditor Course which teaches factory managers and
workers how to make their facilities compliant with our 12 Principles.
Additionally, WRAP has been a pioneer in Factory Fire Safety Training,
offering the course in Bangladesh, Pakistan, China, India, and Southeast
Asia.
WRAP 12 PRINCIPLES
1. Compliance with Laws and Workplace Regulations Facilities will
comply with laws and regulations in all locations where they conduct
business.
2. Prohibition of Forced Labor Facilities will not use involuntary or forced
labor.
3. Prohibition of Child Labor Facilities will not hire any employee under the
age of 14 or under the minimum age established by law for employment,
whichever is greater, or any employee whose employment would interfere
with compulsory schooling.

4. Prohibition of Harassment or Abuse Facilities will provide a work

environment free of supervisory or co-worker harassment or abuse, and free
of corporal punishment in any form.
5. Compensation and Benefits Facilities will pay at least the minimum total
compensation required by local law, including all mandated wages,
allowances & benefits.
6. Hours of Work Hours worked each day, and days worked each week,
shall not exceed the limitations of the country’s law. Facilities will provide at
least one day off in every seven-day period, except as required to meet
urgent business needs.
 7. Prohibition of Discrimination Facilities will employ, pay, promote, and
terminate workers on the basis of their ability to do the job, rather than on the
basis of personal characteristics or beliefs.
8.Health and Safety Facilities will provide a safe and healthy work
environment. Where residential housing is provided for workers, facilities will
provide safe and healthy housing.
9.Freedom of Association and Collective Bargaining Facilities will
recognize and respect the right of employees to exercise their lawful rights of
free association and collective bargaining.

10. Environment Facilities will comply with environmental rules, regulations

and standards applicable to their operations, and will observe environmentally
conscious practices in all locations where they operate.

11. Customs Compliance Facilities will comply with applicable customs

laws, and in particular, will establish and maintain programs to comply with
customs laws regarding illegal transshipment of finished products.

12. Security Facilities will maintain facility security procedures to guard

against the introduction of non-manifested cargo into outbound shipments
(i.e. drugs, explosives biohazards and /or other contraband).

WHY IS WRAP CERTIFICATION IMPORTANT?

An independent, third-party WRAP certification audit offers multiple

benefits to your brand:

 Ensures apparel, footwear and other sewn-goods workers are treated

fairly and humanely
 Improves your brand’s reputation among consumers as a fair employer

 Reduces health and safety hazards in the workplace, as well as industrial

action

 Improves employee engagement and boosts productivity

 Avoids expensive litigation and reputational damage if one of your

factories is found to be breaking relevant laws