National Textile University

Title: Compliances Assignment

Name: Hassaan Shamshad

Reg. no: 16-NTU-1332

Department BS-TMM
:
Semester: 7TH

Submitted Dr. Sajjad Baig

to:
What is Compliance?

The word “compliance” means that an individual or a group conforms with or obeys a set
of rules or regulations determined by the law or any governing body.

When it comes to a business and corporate management, compliance refers to the

company obeying all of the legal laws and regulations in regards to how they manage the
business, their staff, and their treatment towards their consumers. The concept of
compliance is to make sure that corporations act responsibly.

key functions of a Compliance

1. To identify the risks that an organization faces and advise on them (identification)

2. To design and implement controls to protect an organization from those risks

(prevention)

3. To monitor and report on the effectiveness of those controls in the management of

an organizations exposure to risks (monitoring and detection)

4. To resolve compliance difficulties as they occur (resolution)

5. To advise the business on rules and controls (advisory)

Role of compliance in Pakistan’s principal export (textiles)

Global trade has increased manifold in the last 15–20 years with countries such as China,
India, and Bangladesh having increased their exports significantly since 2000. The overall
economic contribution of a country’s export sector should not be underestimated:
Pakistan’s exports, for instance, are a major source of foreign exchange earnings and a key
source of employment.

The opportunities arising from increased global trade are accompanied by numerous
challenges both for manufacturers and exporters. One of these is meeting strict quality and
compliance requirements, not only from a product-specific and technical perspective, but
also from regulatory, social, environmental, performance, and customer-specific
standpoints. Pakistan’s export of textiles (specifically cotton cloth, knitwear, cotton yarn,
readymade garments, and towels) must meet level of compliance with global
requirements, quality standards and certification that are set worldwide and demanded by
the buyers, Some of the main international testing standards for textiles are laid down by
the American Society for Testing and Materials, the American Association of Textile
Chemists and Colorists, the British Standards Institute, the ISO, the European Committee
for Standardization, the Electro technical Commission, and the Technological Association
of the Pulp and Paper Industry in order to gain access to international markets.

Without meeting these compliance Pakistan’s export of textiles is not able to reach
international markets. In fact, compliance provides the pathway to enter the field of
Exports of the textile. For increasing the exports order and number of buyers Pakistan
must pay attention to the compliance. Meeting the standards is now the national regulatory
framework for exporters of Pakistan

My assignment on compliance

Completing my assignment on compliance I decided to go AMTEX textile as I have

references in it Mr .Zahid Asad from Marketing department and Mr. Ali Maqsood
manager quality Assurance department helped me in this regard and provide e the
information that I seek.

INTRODUCTION TO AMTEX TEXTILE

AMTEX Textile Mill is a vertically integrated textile manufacturing specialist of made-

ups working with wholesalers, retailers, distributors and outlets worldwide. At AMTEX
Textile the state of the art equipment from Europe converts 50 tons of cotton per day
through the various stages of manufacture and into the array of products they export
worldwide annually. They have 6 factories and 3000 staff members spread across 120
acres of land in Faisalabad, Pakistan combined with a manufacturing facility in
Manchester, UK to ensure consistent output and the quality AMTEX Textile is known for.
Their teams of over 50 international designers based in Faisalabad and Manchester
consistently monitor trends, techniques and finishes to offer the best designs. At AMTEX
Textile innovation is key and with 40 years of experience in the industry they stay at the
forefront of cutting edge technology and combined with their strict quality, technical and
social compliance policies they ensure that customers’ requirements are met.

AMTEX textiles’ integrated operation was opened in Pakistan in 1990. By 1993 the mill
was producing printed and dyed duvet and sheet sets and filled products. Today the
company is still family owned with a new generation of family members further enhancing
the skills and expertise the founders brought to the loom.

Email: info@AMTEXtextile.com

AMTEX Textile’s workout for Compliances

In striving for continual betterment AMTEX Textile has identified environment aspects of
processes, their impacts and the significance of these, and so developed & implemented
environment management & mitigation plans.

AMTEX Textile meet PNEQS requirements in respect to waste water, air emissions,
noise, heat etc., enforced measures to reduce solid waste, ensuring suitable work
environment, with focus on health and safety of workers and joined hands with SGS for
energy audits and conservation. Multi cyclones & wet scrubbers are installed and a proper
chemical management system is implemented. Regular environment performance
monitoring reports are submitted to government agencies.

In this regard AMTEX Textile has attained ISO 14001:2004, OHSAS 18001 :2007.

All of their products undergo strict quality control procedures. They also have made a
well-equipped, state of the art lab with latest testing equipment’s..

AMTEX Textile is committed to ensuring international quality principles and standards

are adhered to in order to maintain the exacting requirements their reputation is known for.
Expert knowledge and state of the art laboratory accompanied with critical quality checks
during and after the production process ensure that the end product is meeting customers’
requirements their international accreditations are a testament to this.

AMTEX Textile has Oeko tex 100 certificates for processed fabric and home textile
products, further AMTEX Textile is working for STEP certification and Higg Index
which is a self-assessment standard for assessing environmental and social sustainability
throughout the supply chain)

AMTEX Textile is implementing local labor laws as well as required

international retailers code of conducts, further a budget is set aside for a plantation in the
areas where land is unused.

Conclusions & Recommendations:

By studying the role and importance of compliance it can be easily concluded that meeting
the standards is now the mainstream of survival for textile export units. The opportunities
arising from increased global trade come with numerous challenges both for
manufacturers and exporters one of which is compliance without meeting these
compliance Pakistan’s export of textiles is not able to reach international markets. In fact,
compliance provides the pathway to enter the field of Exports of the textile. For increasing
the exports order and number of buyers Pakistan must pay attention to the compliance.

Some recommended steps that can be taken are:

 There is a need to invest in the infrastructure in order to become capable of

achieving certificates of standards which will lead to improved exports and
increase the number of buyers.
 There is a need to encourage textile firms to work for achieving certificates and
following compliance for their own betterment and for social corporate
responsibility.
 There is a need to encourage textile firms to train their employees for a better work
environment.
 Government should implement rules and regulations for making the procedure of
achieving compliance easier.
 Textile sector can improve its compliance with international certification standards
by seeking joint venture with technically advanced and mature players such as
from China, Sri lanka and Turkey.
 The cluster development for sub-sectors within textiles must be promoted to ease
the compliance pathway.
 The government should encourage the export of textiles by offering soft loans and
other incentives in order to get certifications and meeting standards required.
 The textile sector should establish an effective body that deals with compliance
needs of the whole sector and has global outreach. This would facilitate R&D and
help register new varieties. The proposed body should work in coordination with
the public sector to improve awareness at the small industry level and help
formulate a comprehensive code of conduct and/or regulations for the exports.
 National and local testing and inspection facilities should seek globally recognized
accreditation.
 Government should rise awareness about the benefits of following compliance in
order to increase exports and generate revenue which will help to overcome trade
deficit.
AMTEX Compliances Certifications

Statement of Compliance:
A compliance statement is a document used to confirm that a certain business or
organization is compliant to particular rules and regulations set by the government
authorities. The statement provides details and facts about the business or organization on
how they are able to comply with the set requirements. A compliance statement is also
known as a certificate of conformance and certificate of conformity.

The following is the list of Certification Company has achieved over the years:

􀂃 Certificate of Compliance Onecert Certified Organic

Purpose: - For special / pure Cotton use

This Certificate has been earned by very few firms from Pakistan. Certification has very
strict follow up and test to go through. It is because of the maintained standard by the
Company that has managed it to obtain this certificate.
Bureau Veritas Certification (ISO 9001; 2000)

Purpose: For quality management system. (QMS)

Bureau Veritas is among world’s leading certificate provider. The aim of this certificate is
to ensure that businesses worldwide maintain particular standards in order to satisfy the
clientele and Industry in international market. Strict implementation of the certified
practices ensures that the business is meeting the standards and maintains an edge over the
competitor by being able to respond to changing needs in an increasingly competitive
global marketplace.
Bureau Veritas Certification (ISO 14001; 2004)

Purpose: For environment management system

To show the keen interest that Amtex is committed to preserving the planet and its natural
resources is demonstrated through this internationally recognized Environmental
Management System Certification, ISO 14001. This is a valuable certification which
depicts maintenance of the standards and ensures that companies control and successful
manage emissions and waste handling, use natural resources and energy efficiently, and
constantly pursue excellence through regular audits and improvements.
Certificate of Conformity

Purpose: Fair trade certificate

Flo-Cert is a well-known independent Certification Company that offers fair trade

certification services to clients in about 70 countries. Certified Fairtrade is a Product
certification system where social, economic and environmental aspects of Production are
matched and certified against the Standards set by Fairtrade. The buying and selling is
certified against Fairtrade Standards for Trade. The Flo-Cert system monitors the buying
and the selling of the Product until it is consumer packaged and labeled. Certificates are
only issued after a physical inspection has confirmed that all relevant Fairtrade Standards
are complied with. Flo-Cert supervises the continued compliance with Fairtrade Standards
through a series of Surveillance activities.1
Certificate of Compliance – B Level (WRAP)

Purpose: For implementation of labor laws (Garments)

It is a one-year certificate that is awarded to a factory that has demonstrated full

compliance with all WRAP principles during the first audit. There are twelve principles of
WRAP:

􀀹 Compliance with Laws and Workplace Regulations

􀀹 Prohibition of Forced Labor

􀀹 Prohibition of Child Labor

􀀹 Prohibition of Harassment or Abuse

􀀹 Compensation and Benefits

􀀹 Hours of Work

􀀹 Prohibition of Discrimination

􀀹 Health and Safety

􀀹 Environment

􀀹 Customs Compliance

􀀹 Security
Amtex is fully complying with all the above mentioned principles which have assisted
Amtex in obtaining this valuable certification.

SGS (SA 8000: 2008)

Purpose: For social accountability (labor issues)

SA 8000 certification enables Company to demonstrate its commitment to social

accountability standards as well as employee and customer satisfaction. SA 8000 is an
international certification standard that encourages organizations to develop, maintain and
apply socially acceptable practices in the workplace. It is viewed as the most globally
accepted independent workplace standard. The areas it addresses include forced and child
labor, health and safety, freedom of association and collective bargaining, discrimination,
disciplinary practices, working hours, compensation and management systems.

Oeko – Tex Standard 100 Test – No. 4734

Purpose: For the purpose of tested harmful substances according to OEKO – TEX
standard 100

The Oeko-Tex Standard 100 is a globally uniform testing and certification system for
Textile raw materials, intermediate and end Products at all stages of Production. The
Oeko- Tex Standard 100 was introduced as a response to the needs of the general public
for Textiles which posed no risk to health. There are currently over 9,000 Textile and
clothing manufacturers throughout the Textile processing chain in more than 80 countries
certified according to the Oeko-Tex Standard 100.