GOVERNMENT INITIATIVES TO PROMOTE EXPORTS AND

SOCIAL COMPLIANCE STANDARDS

EXPORTS

Exports are one component of international trade. The other component is imports. They
are the goods and services bought by a country's residents that are produced in a foreign country.
Combined, they make up a country's trade balance. When the country exports more than it
imports, it has a trade surplus. When it imports more than it exports, it has a trade deficit.
Exports are the goods and services produced in one country and purchased by residents of
another country. Businesses export goods and services where they have a competitive advantage.
That means they are better than any other companies at providing that product.

Most countries want to increase their exports. Their companies want to sell more. If
they've sold all they can to their own country's population, then they want to sell overseas as
well. The more they export, the greater their competitive advantage. They gain expertise in
producing the goods and services. They also gain knowledge about how to sell to foreign
markets. Governments encourage exports. Exports increase jobs, bring in higher wages, and raise
the standard of living for residents. Foreigners pay for exports either in their own currency or the
U.S. dollar. A country with large reserves can use it to manage their own currency's value.

INDIA’S TOP 10 EXPORTS

Strategically located near highly populated trading partners including China, Pakistan and
Bangladesh, the Republic of India shipped US$322.8 billion worth of goods around the globe in
2019.  The following export product groups categorize the highest dollar value in Indian global
shipments during 2019. Also shown is the percentage share each export category represents in
terms of overall exports from India.

 Mineral fuels including oil: US$44.1 billion (13.7% of total exports)

 Gems, precious metals: $36.7 billion (11.4%)
 Machinery including computers: $21.2 billion (6.6%)
 Organic chemicals: $18.3 billion (5.7%)
 Vehicles: $17.2 billion (5.3%)
  Pharmaceuticals: $16.1 billion (5%)
 Electrical machinery, equipment: $14.7 billion (4.5%)
 Iron, steel: $9.7 billion (3%)
 Clothing, accessories (not knit or crochet): $8.6 billion (2.7%)
 Knit or crochet clothing, accessories: $7.9 billion (2.5%)

India’s top 10 exports accounted for roughly three-fifths (60.2%) of the overall value of its
global shipments.

Electrical machinery and equipment represents the fastest growing among the top 10 export
categories, up 23.6% from 2018 to 2019. In second place for improving Indian export sales were
pharmaceuticals which gained 12.5%. India’s shipments of non-knitted and non-crocheted
clothing or accessories recorded the third-fastest gain in value due to a 6.4% increase year over
year.

There were three declining top categories for Indian exports: gems and precious metals via its
-8.7% drop mainly due to India’s plummeting international sales of diamonds, coins and
precious metal scrap; vehicles (down -6%); then iron and steel (down -3.1%).

ADVANTAGES OF EXPORTING

1. Increased Sales and Profits: Selling goods and services to a market the company never
had before boost sales and increases revenues. Additional foreign sales over the long
term, once export development costs have been covered, increase overall profitability.
2. Enhance Domestic Competitiveness: Most companies become competitive in the
domestic market before they venture in the international arena. Being competitive in the
domestic market helps companies to acquire some strategies that can help them in the
international arena.
3. Gain Global Market Shares: By going international companies will participate in the
global market and gain a piece of their share from the huge international marketplace.
4. Diversification: Selling to multiple markets allows companies to diversify their business
and spread their risk. Companies will not be tied to the changes of the business cycle of
domestic market or of one specific country.
5. Lower per Unit Costs: Capturing an additional foreign market will usually expand
production to meet foreign demand. Increased production can often lower per unit costs
and lead to greater use of existing capacities.
6. Compensate for Seasonal Demands: Companies whose products or services are only
used at certain seasons domestically may be able to sell their products or services in
foreign markets during different seasons.
7. Create Potential for Company Expansion: Companies who venture into the exporting
business usually have to have a presence or representation in the foreign market. This
might require additional personnel and thus lead to expansion.
8. Sell Excess Production Capacity: Companies who have excess production for any
reason can probably sell their products in a foreign market and not be forced to give deep
discounts or even dispose of their excess production.
9. Gain New Knowledge and Experience: Going international can yield valuable ideas
and information about new technologies, new marketing techniques and foreign
competitors. The gains can help a company’s domestic as well as foreign businesses.
10. Expand Life Cycle of Product: Many products go through various cycles namely
introduction, growth, maturity and declining stage that is the end of their usefulness in a
specific market. Once the product reaches the final stage, maturity in a given market, the
same product can be introduced in a different market where the product was never
marketed before.

GOVERNMENT SUPPORT TOWARDS EXPORTERS

After the "Make in India" initiative by the Modi government, Indian exports have
increased manifold. There are numerous export schemes, financial aids and other benefits
provided by the Government of India to exporters which have led to this increase in exports.
The export-import policy announced by the government every year specifies the details of
export assistance and incentives.
 Some of the important incentives are given below:

• Customs, central excise, and export duty drawback scheme: In this scheme, the
exporters can get a refund of all duty and taxes which were paid for the inputs against the
exported products. The Duty Drawback is nothing but the refund that is received by the
exporter.

• GST tax rebate: The Government of India also offers rebates on GST to exporters, if
such output services for the export goods are specified.

• Duty-free import authorization: This scheme, which is provided by the Government of

India, is clubbed with the Duty Exemption Entitlement Certificate (DEEC) (Advance
License) and Duty Free Replenishment Certificate (DFRC) so that the exporters can get
free imports on certain products.

• Export Promotion Capital Goods' (EPCG) zero duty scheme: This scheme applies to
all the exporters who are into electronic goods. Zero percent customs duty is to be paid
by the exporter in case the export value is at least six times that of the duty saved on
imports of capital goods for production, pre-production, and post-production.

• Setting up of councils for different categories such as Apparel Export Promotion

Council (AEPC) for apparels: To promote, support and facilitate Indian apparel
industry, the AEPC was set up in 1986 by the GOI.

• Scheme related to Merchandise Exports: This scheme applies to the export of certain
goods to some particular markets. Benefits for exports under this scheme are payable as a
percentage of the realized Freight on Board (FOB) value.

• Credit facilities through Export Credit Guarantee Corporation of India: To

encourage and facilitate India’s global trade and Protect exporters against commercial
and political risks, the ECGC was set up in 1957.

• Rebate of State Levies: This scheme allows the exporters to claim refunds from the
center for all such levies and duties which are paid by the exporters at the state level.
 • Freight Assistance to Exporters: The government has introduced Transport and
Marketing Assistance (TMA) scheme to enhance the exports of agricultural products by
providing a definite amount of freight charges as reimbursement and to provide help to
the exporters for the marketing of agricultural products.

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. It has Head Office in Gurgaon
with Registered Office at Okhla and 10 offices pan India. AEPC today is a powerful body for the
promotion and facilitation of garment manufacturing and their exports.

For Indian exporters, AEPC is a one-stop shop for information advice technical guidance
workforce and market intelligence. Members have access to updated trade statistics potential
markets information on international fairs and assistance in participating at these fairs. It also
plays a large role in identifying new markets and leading trade delegations to various countries.

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.

Twice a year, AEPC showcases the best of India's garment export capabilities through the
prestigious India International Garment Fair, playing host to over 350 exhibitors displaying the
exotic, the haute, the pret, the contemporary and much more.

AEPC 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.
AEPC 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 OBJECTIVES

1. To promote, advance, increase, develop export of all types of readymade garments,

excluding, woolen knitwear and garments of leather, jute and hemp.

2. 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.

3. 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.

4. 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.

5. 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.

6. 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.

7. To co-operate with government and other various organizations in the country and abroad
with a view to further promotion of exports of readymade garments.
EXPORT FINANCE

EXPORT CREDIT GUARANTEE CORPORATION OF INDIA

The ECGC Limited (Formerly Export Credit Guarantee Corporation of India Ltd) is a
company wholly owned by the Government of India based in Mumbai. 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 was established in July,
1957 to strengthen the export promotion by covering the risk of exporting on credit. It functions
under the administrative control of the Ministry of Commerce & Industry, Department of
Commerce, Government of India. It is managed by an Asset Management Company comprising
representatives of the Government, Reserve Bank of India, banking and insurance and exporting
community. ECGC Ltd is the seventh largest credit insurer of the world in terms of coverage of
national exports.
FUNCTIONS OF ECGC

 Provides a range of credit risk insurance covers to exporters against loss in export of
goods and services as well.
 Offers guarantees to banks and financial institutions to enable exporters to obtain better
facilities from them.
 Provides Overseas Investment Insurance to Indian companies investing in joint ventures
abroad in the form of equity or loan and advances

FACILITIES PROVIDED BY ECGC

 Offers insurance protection to exporters against payment risks

 Provides guidance in export-related activities
 Makes available information on different countries with its own credit ratings
 Makes it easy to obtain export finance from banks/financial institutions
 Assists exporters in recovering bad debt
 Provides information on credit-worthiness of overseas buyers

NEED FOR ECGC

Payments for exports are open to risks even at the best of times. The risks have assumed
large proportions today due to the far-reaching political and economic changes that are
sweeping the world. An outbreak of war or civil war may block or delay payment for goods
exported. A coup or an insurrection may also bring about the same result. Economic
difficulties or balance of payment problems may lead a country to impose restrictions on
either import of certain goods or on transfer of payments for goods imported. In addition, the
exporters have to face commercial risks of insolvency or protracted the default of buyers.
The commercial risks of a foreign buyer going bankrupt or losing his capacity to pay are
aggravated due to the political and economic uncertainties. Export credit insurance is
designed to protect exporters from the consequences of the payment risks, both political and
commercial, and to enable them to expand their overseas business without fear of loss.
SOCIAL COMPLIANCE STANDARDS

SA8000

"Social Accountability International 8000" is another name for SA 8000 standard,

which aims to promote continuous improvement for work place conditions and ensures
the ethical sourcing for production of goods and services. It was established by Social
Accountability International in 1997 It sets out basic standards and procedures regarding
Health and Safety, the use of Child Labor, Forced Labor, Discrimination, Trade Union
Rights, Disciplinary Practices, Compensation (Remuneration) and Working Hours, together
with the Management Systems to deliver them.

SA8000 measures social performance in eight areas important to social accountability in

workplaces, anchored by a management system element that drives continuous improvement in
all areas of the Standard. It is appreciated by brands and industry leaders for its rigorous
approach to ensuring the highest quality of social compliance in their supply chains, all the while
without sacrificing business interests.

The Standard reflects labor provisions contained within the Universal Declaration of
Human Rights and International Labor Organization (ILO) conventions. It also respects
complements and supports national labor laws around the world, and currently helps secure
ethical working conditions for two million workers.

Regular revisions ensure the Standard’s continuing applicability in the face of new and
emergent social and human rights issues. Organizational buyers, independent codes of conduct,
and private sector initiatives have all recognized SA8000’s multi-sector applicability and
responded to growing public interest by integrating SA8000 criteria into their compliance
processes. Similarly, governments wishing to encourage and strengthen social performance in
the workplace have created incentive programs specifically recognizing companies with an
accredited SA8000 certification.
 In addition to publishing SA8000 and supporting documents, SAI offers a wide selection
of resources to help organizations maintain and continually improve their social performance,
including capacity building, stakeholder engagement, collaboration between buyers and
suppliers, and the development of tools to ensure continued improvement. SAI views
independent accredited certification to the SA8000 Standard as a critical element contributing to
the company’s broader objectives of improving global labor conditions.

The current version of the SA8000 Standard is SA8000:2014.

Elements of the SA8000 Standard

1. Child Labor

2. Forced or Compulsory Labor

3. Health and Safety

4. Freedom of Association and Right to Collective Bargaining

5. Discrimination

6. Disciplinary Practices

7. Working Hours

8. Remuneration

9. Management System
S.No. Element Standard Requirement
1. Child Labor No employees are less than 15 years of age, unless local law
stipulates a higher age
2. Forced Labor No forced or compulsory Labor under any conditions (i.e.
bonded, forced, and prison labor)

3. Health & Safety  Provide a safe & healthy working environment

 Take adequate steps to prevent accidents & injury to health
 Minimizing causes of hazards inherent in the working
environment
 A representative responsible
for all health & safety activities

4. Freedom of Association  To form and join trade unions of their choice and
& right to collective  To bargain collectively
bargaining
5. Discrimination  To provide equal treatment to all employees in all the
matters like employment, training, promotion & capability
regardless of race, caste, national origin, disability, gender,
sexual
orientation, Union membership etc.
6. Disciplinary practices Not engaged in or support
 Corporal punishment
 Mental or physical coercion
 Verbal abuse
7. Working hours  Working hours not exceed 48 hours per week
 Overtime is restricted to 12 hours per week maximum

8. Remuneration  Ensure the subsistence wage earned by the employees for

the regular hours are sufficient for them including
their dependents to food, cloth & house them selves

9. Management System  To declare company Policy for Social Accountability &

Labor Conditions
BENEFITS

 Achieve best practice in ethical employment, trading and operations

 Engage and motivate your employees with improved morale
 Introduce greater transparency to the way you run your business
 Maintain existing business and attract new customers and investors
 Gain recognition as an socially accountable organization
 Satisfies Customers' Needs,
 Helps National and International Recognition. Improved Efficiency,
 Increased productivity,
 Reduced Waste,
 Enhanced Profitability,
 Allows the Company to Operate Consistently,
 Gives a Competitive Edge,
 Encourages Investment
 Continuous Improvement in Working Conditions

WARP

The WRAP Certification Program’s objective is to independently monitor and certify

compliance with these standards, to ensure that sewn products are being produced under lawful,
humane and ethical conditions. Participating facilities voluntarily commit to ensuring that their
manufacturing practices will meet these standards, and further commit to passing along, on their
part, the expectation that their contractors and suppliers likewise comply with these standards.

12 PRINCIPLES

1. Compliance with Laws and Workplace Regulations

 Facilities will comply with laws and regulations in all locations where they conduct
business. All facilities will comply with the legal requirements and standards of their industry
under the local and national laws of the jurisdictions in which the facilities are doing business,
along with any applicable international laws.

2. Prohibition of Forced Labor

Facilities will not use involuntary, forced or trafficked labor. Facilities will maintain
employment strictly on a voluntary basis. Facilities will not use any forced, prison, indentured,
bonded or trafficked labor. This will include ensuring that any workers they hire will be under
labor contracts that fully comply with all relevant legal requirements and do not impose any form
of coercion (including imposing substantial fines or loss of residency papers by workers leaving
employment or restricting a worker’s ability to voluntarily end his/her employment).

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. Facilities will ensure a workplace that is
respectful of a worker’s rights and dignity. This includes ensuring that no corporal punishment or
physical coercion be used.

5. Compensation and Benefits

Facilities will pay at least the minimum total compensation required by local law,
including all mandated wages, allowances & benefits. Facilities will ensure proper compensation
for their employees for all the work done, by providing in a timely manner all the wages and
benefits that are in compliance with the local and national laws of the jurisdiction in which they
are located.
6. Hours of Work

Hours worked each day, and days worked each week, should 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. Facilities are required by local law to adhere to any
limits set on regular working hours as well as any limits set on overtime work.

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. Facilities will ensure
that all terms and conditions of employment are based on an individual’s ability to do the job,
and not on the basis of any 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. Facilities will respect the freedom of each
employee to choose for him- or her-self whether or not to join a workers’ association.

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. Facilities will ensure compliance with all applicable legally mandated environmental
standards, and should demonstrate a commitment to protecting the environment by actively
monitoring their environmental practices. In particular, facilities will ensure proper waste
management, including monitoring the disposal of any waste material - whether solid, liquid or
gaseous - to ensure such disposal is done safely and in a manner consistent with all relevant laws.
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. Facilities will ensure that all merchandise is accurately marked or labeled in
compliance with all applicable laws. In addition, facilities will keep records for all materials and
orders, as well as maintain detailed production records.

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).

Benefits of WARP

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

CERTIFICATION PROCESS

PLATINUM (Valid for 2 years)

A facility must maintain a Gold certification for at least 3 consecutive years before it can
be considered for Platinum certification. All Platinum-certified facilities must successfully pass
each audit with no corrective actions and maintain continuous certification in order to remain
Platinum (a facility whose certification lapses for any reason must hold a Gold certification for at
least 3 consecutive years before it can regain Platinum status).
GOLD (Valid for 1 year)
Gold certifications are awarded to facilities that demonstrate full compliance with
WRAP's 12 Principles during an audit.
NOTICE: Any facility that cannot show complete and accurate records regarding wages and/or
working hours during ANY audit (initial, re-certification, or post-certification) will automatically
lose eligibility for Platinum and Gold certification for their current period. This includes any
violations of Principles 5 or 6 where WRAP monitors indicate issues with record keeping or
cannot verify them due to inconsistencies.

SILVER (Valid for 6 months)

A facility may request a Silver level certification if an audit finds that it is in substantial
compliance with the WRAP principles, but has minor non-compliances in policies, procedures or
training that need to be addressed. Facilities seeking certification through this route must request
a Silver certificate in writing from a WRAP office at the conclusion of their first formal audit as
a certificate will not be automatically issued.

OHSAS
OHSAS 18001 is an international standard on occupational health and safety which was
designed to help organizations identify, control and minimize their health and safety risks. The
standard provides a framework which specifies the necessary policies and procedures that an
organization should follow in order to establish the best working environment and prioritize the
health and safety of its employees.
Occupational health and safety management needs to be of primary concern for
organizations that are eager to have an incident-free workplace. As such, OHSAS 18001 lists the
requirements for all organizations regardless of their size or nature of business. These
requirements will lead to improved communications, both internally and externally, and will
increase awareness of the health and safety matters in the workplace.
OHSAS 18001:2007 addresses the following key areas:

Hazard – Anything with the potential to cause harm, injury, illness or loss.

Risk – A description of the likelihood and consequence of a hazard causing injury or illness.

Risk assessment – The process of determining the likelihood and consequence of injury, disease
or illness or damage arising from exposure to a hazard

Risk control – Measures that eliminate or reduce the risks associated with hazards

BENEFITS OF USING OHSAS 18001

• Saves time and money in developing a OH&S management system

• Gives confidence to stakeholders

• Opens up international markets and opportunities for growth

• Improves process efficiency and change success

• Staff are more aware of what they should be doing and are more likely to comply – fewer
incidents, fewer fines

• Faster response and recovery – less impact from incidents, less risk of missed delivery
deadlines

• Data upon which important decisions are made is more robust • Health and safety is
embedded into the culture of the organization ensuring behavioral change

• BSI clients have reported the following benefits:

• 64% reduced the number of incidents

• 53% reduced lost hours through sickness and illness

 Certification to OHSAS 18001:2007 lasts for three years and is subject to mandatory
audits every year to ensure that you are compliant. At the end of the three years, you will be
requested to complete a reassessment audit in order to become recertified to the standard

OKEO 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 such as raw materials and fibers, yarns, fabrics,
ready-to-use end products along the textile value chain. Some also attest to socially and
environmentally sound conditions in production facilities.
OBJECTIVE

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.

The variations of Certifications of oeko-tex are writing below:

 STANDARD 100 by OEKO-TEX

 STeP by OEKO-TEX

 MADE IN GREEN by OEKO-TEX

 ECO PASSPORT by OEKO-TEX

 DETOX TO ZERO by OEKO-TEX

 LEATHER STANDARD by OEKO-TEX

 My STeP by OEKO-TEX

First four variations which are directly related with Ready Made Garment, Fabric or
clothing:

STeP
 STeP (Sustainable Textile Production) is a certification where the permanent
implementation of environmental friendly production processes, optimum health and safety and
socially acceptable working conditions. STeP standard and the benchmarks allow certified
companies to continuously improve their environmental protection achievements and their social
responsibility as well as their efficiency.

STANDARD 100

The STANDARD 100 by OEKO-TEX is a worldwide consistent, independent testing and

certification system for raw, semi-finished, and finished textile products at all processing levels,
as well as accessory materials used.

CRITERIA

• Important legal regulations, such as banned azo colorants, formaldehyde, pentachlorophenol,

cadmium, nickel, etc.

• Numerous harmful chemicals, even if they are not yet legally regulated.

• Requirements from the US Consumer Product Safety Improvement Act (CPSIA) regarding
lead.

• Numerous also environmentally relevant substance classes.

PREREQUISITES

Textile products can only be certified according to the Standard 100 by Oeko-Tex if all
components comply with the required criteria – for an item of clothing, in addition to the outer
fabric, this might include threads, linings, prints as well as non-textile accessories such as
buttons, zip fasteners, rivets or any other accessory parts.

Extent and requirements of Oeko-Tex testing for harmful substances depend on the
intended use of a textile product. There are four product classes:
Product class I: Textiles and textile toys for babies and small children up to the age of three, e.g.
underwear, romper suits, bed linen, bedding, soft toys etc.

Product class II: Textiles which, when used as intended, have a large part of their surface in
direct contact with the skin, e.g. underwear, bed linen, terry cloth items, shirts, blouses etc.

Product class III: Textiles which, when used as intended, have no or only a little part of their
surface in direct contact with the skin, e.g. jackets, coats, facing materials etc.

Product class IV: Furnishing materials for decorative purposes such as table linen and curtains,
but also textile wall and floor coverings etc.

Product class I requirements are more rigorous for most potentially harmful substances, and there
is an additional test for saliva resistance

MADE IN GREEN

“Made in Green” is a traceable consumer label for sustainable textiles. Each item with the
“Made in Green” label features a unique product ID and/or a QR code allowing you to trace the
article’s production. Each product ID gives you visibility into the various stages of production as
well as the countries in which textiles were manufactured.

ECO PASSPORT

ECO PASSPORT by OEKO-TEX is an certification system for chemicals, colorants and

auxiliaries used to manufacture textiles. A three-stage verification process analyses whether the
chemical products and each individual ingredient meet specific requirements with regard to
sustainability, safety and compliance with statutory regulations.

• Stage 1: Restricted Substance List (RSL) and Manufacturing Restricted

Substance List (MRSL) screening

• Stage 2: Analytical verification

• Stage 3 (optional): Assessment or On-Site Visit

BENEFITS

 Step-by-step optimization and continual monitoring of chemical management according

to the goals of the detox campaign.
 Establish sustainable production and working conditions in supply chain.
 More efficient production processes through STeP certification enables to obtain
economic advantages and savings.
 Cost savings through the use of raw materials that are already certified (modular system)
– even for complexly created products
 Companies with OEKO-TEX R certificates can advertise themselves for free on an online
portal which is well-visited worldwide.
 Ensure harmful substance conformity with the STANDARD 100 or LEATHER
STANDARD certification
REFERENCES

• http://www.worldstopexports.com/indias-top-10-exports/

• https://economictimes.indiatimes.com/small-biz/trade/exports/pre-exports/trading-with-
the-world-export-promotion-schemes-provided-by-government-of-
india/articleshow/70639514.cms

• https://www.expertbase.org/a238-advantages-and-challenges-of-exporting

• http://aepcmarketplace.aepcindia.com/index.php

• https://www.testex.com/en/downloads/MiG_MySTeP/04_MiG_FAQ_original_en.pdf

• https://www.hohenstein.com/fileadmin/user_upload/Downloads/Brochures/Hohenstein/H
ohenstein_Brochure_OEKO-TEX_Portfolio_EN.pdf#page=4&zoom=70,-127,724
• https://www.forensics.co.ug/ohsas-18001-occupational-health/

• https://www.textiletoday.com.bd/wrap-as-a-social-compliance-certificate/

• http://www.wrapcompliance.org/12-principles

• http://www.sa-intl.org/index.cfm?fuseaction=Page.ViewPage&PageID=1689

SUBMITTED BY

KRISHNA KANTH. C

SHRUTI. R