HS Codes Boost Sustainability in Global Textile Trade

A World Customs Organization seminar explored the role of HS codes in fostering sustainable development within the textile industry. Key issues highlighted included the identification of environmentally friendly textiles, value chain transparency, and the standardization of the circular economy. The seminar aimed to promote the adaptation of HS codes to environmental needs and contribute to the construction of a green textile trade system. Discussions focused on how updated HS classifications can better track and incentivize sustainable practices throughout the textile supply chain, ultimately supporting a more environmentally responsible industry.
HS Codes Boost Sustainability in Global Textile Trade

Imagine a worn-out pair of jeans not ending up in a landfill but being transformed into new textile materials through an efficient recycling system. This is not just an environmental vision but an ongoing industrial transformation—one increasingly supported by global customs classification systems.

The Role of HS Codes in Green Textile Trade

On November 8, 2022, the World Customs Organization (WCO) hosted the third installment of its workshop series, "Visualizing a Greener HS to Support Environmentally Sustainable Trade," focusing on the textile industry. Sponsored by the European Union, the event explored how the Harmonized System (HS)—the international standard for trade classification—could help identify and promote environmentally significant textiles at borders. Participants included international agencies, private sector representatives, civil society groups, and customs officials.

Key Discussions and Proposals

1. HS as a Tool for Sustainability: WCO’s Konstantinos Kaiopoulos emphasized the need to adapt HS codes to distinguish between eco-friendly and conventional textiles, noting the sector’s heavy environmental footprint in water use, pollution, and waste.

2. Traceability in Fashion: Maria Teresa Pisani of UNECE highlighted blockchain technology’s potential to enhance transparency in recycled textiles, urging HS updates to reflect circular economy principles.

3. Industry-Led Initiatives: EURATEX’s Dirk Vantyghem outlined efforts to align HS classifications with sustainable production trends, while the European Environment Agency’s Lars Fogh Mortensen presented data on textile waste exports.

4. Standardization Efforts: ISO’s Catherine Chevauché discussed new circular economy standards, stressing the importance of uniform metrics for recycling processes and materials.

Challenges and Next Steps

Participants raised practical concerns, including difficulties in classifying textile waste and the lack of universal sustainability certifications. Gael Grooby of WCO concluded that the dialogue underscored the urgency of updating HS codes to support circular textile economies, with findings to be reviewed by the Harmonized System Committee.