WCO Promotes Green Customs for Sustainable Textile Trade

A WCO seminar explored leveraging the Harmonized System (HS) to identify environmentally friendly textiles at borders, promoting textile sustainability. The meeting focused on value chain transparency, industry practices, technological innovation, and standardization. It aimed to provide insights for building a greener HS system and supporting the global textile industry's transformation. Discussions centered on how HS codes can be better utilized to classify and track sustainable textiles, fostering a more environmentally responsible and transparent global textile trade.
WCO Promotes Green Customs for Sustainable Textile Trade

The World Customs Organization (WCO) recently convened a specialized workshop examining the relationship between the textile industry and the environment. The event explored how the Harmonized System (HS) could help identify eco-friendly textiles at borders, paving new pathways for global textile sustainability.

Building a Greener Harmonized System

Supported by the European Union, the WCO hosted the third installment of its workshop series titled "Visualizing a Greener HS to Support Environmentally Sustainable Trade" on November 8, 2022. Focusing on "The Textile Sector: Textiles and Their Interaction with the Environment," the event brought together representatives from international and regional organizations, private sector stakeholders, civil society groups, and customs administrations to exchange ideas.

In his opening remarks, Konstantinos Kaiopoulos, Director of Tariff and Trade Affairs at WCO, emphasized that the workshop served as a platform for constructive debate. "The primary goal is to share ideas and experiences about making the Harmonized System greener and strengthening its support for sustainability and environmental protection," he stated. Kaiopoulos noted that certain textiles adversely impact the environment through water consumption, pollution, pesticide use, CO2 emissions, and textile waste. However, he acknowledged that customs identification of eco-friendly versus conventional textiles remains a nuanced challenge requiring careful consideration of the HS's potential role.

Global Perspectives on Textile Sustainability

Gail Grubby, WCO Deputy Director of Tariff and Trade Affairs, moderated the panel discussion and outlined the HS's critical function in implementing green border policies, including those managed by the United Nations Environment Programme. "This workshop provides the Harmonized System Committee and WCO Secretariat with an opportunity to foster necessary dialogues," Grubby remarked, "developing the HS as a tool to promote trade in environmental goods and contribute to sustainable development."

Maria Teresa Pisani, Chief of the Trade Facilitation Section at UNECE, presented on enhancing transparency and traceability in sustainable value chains for apparel and footwear. "With access to reliable and verifiable information, we all have the right to take measures promoting a more circular and less wasteful economy," Pisani asserted. She highlighted blockchain applications and stressed the importance of creating HS subheadings for recycled materials and garments.

Dirk Vantyghem, Director General of EURATEX, addressed efforts to build a sustainable and competitive textile industry, particularly the EU's strategic initiatives for natural resource management. He urged participants to consider how the HS could better reflect industry trends and stimulate trade in environmentally friendly products.

Measuring Environmental Impact

Lars Fogh Mortensen, Circular Economy Expert at the European Environment Agency, presented data on textiles' disproportionate environmental footprint regarding resource consumption and climate impact. His analysis included EU exports of used textiles and the benefits of more detailed HS classifications for such goods.

Katherine Chevcovich, Chair of ISO Technical Committee 323, discussed standardization in the circular economy, explaining how ISO standards help implement circular principles through terminology, guidelines, and implementation frameworks.

Dr. Christian P. Schindler, Director General of ITMF, contrasted linear and circular economic models while noting rising fiber consumption. He emphasized incorporating sustainability-driven technologies into the HS, including recycling machinery and low-carbon footprint products.

Valerie Boiten, Senior Policy Officer at the Ellen MacArthur Foundation, concluded individual presentations with a case study on circular economy applications in jeans manufacturing, demonstrating sustainable approaches to inputs, production processes, and product use.

Future Directions

Participants raised practical questions for future HS review cycles, focusing on challenges in classifying textile waste and used clothing, current eco-certification methods, and the feasibility of environmental criteria for textile identification.

In closing remarks, Gail Grubby noted that the workshop reinforced the visibility of adapting HS provisions to account for environmental considerations. "Progress in the textile sector provides a reassuring starting point for developing rational proposals to identify textile products from a circular economy perspective," she stated. The WCO Secretariat will report findings to the Harmonized System Committee for member consideration during current and future review cycles.