National Council of Textile Organizations’ Post

https://lnkd.in/e-9E8eZJ France is introducing restricted advertising and a tax on fast fashion garments sold, this is a legislative move which could reduce the environmental and social #supplychain negatives of some of the worst offending companies. It is a positive move and one the UK and other countries could replicate. I think this needs to be paired with consumer awareness - we should teach our children in schools the true #environmental and #social cost of poor quality, low cost purchases.

The European Union has escalated its scrutiny of SHEIN, the Chinese fast-fashion behemoth, signaling a critical pivot in how #globaltrade and #compliance standards are evolving. This scrutiny underscores the necessity for multinational corporations to navigate increasingly complex regulatory landscapes, particularly in sectors with rapid digital and global expansion. 📖 https://lnkd.in/gbaDEh6n As #CFOs, the challenge is to integrate robust compliance frameworks that are both agile and forward-looking, ensuring that global expansion does not outpace our ability to manage regulatory risks. What strategies do you employ to maintain this balance in your operations? #GlobalTrade #Compliance #CorporateGovernance

CNBC reports that US senators are lining up in opposition to SHEIN being permitted by the SEC to file an IPO in the United States. Lawmakers point to potential forced labor in its supply chain, banned cotton products from Xinjiang and exploiting U.S. trade laws. Others point to recent failed Chinese businesses that quickly went bust after IPO filing with a lot of American money realized by their owners in filing and then lost quickly through further mismanagement. #shein #fashionretail #fashionindustry #fashionnews #ipo #iponews #chinabusiness #stockmarketnews

The filing with the Finacial Conduct Authority is a necessary first step but doesn't guarantee that a float will go ahead, as SHEIN may face some difficulties over claims about how it conducts business, due to claims that Uyghur forced labour is used to make some of the clothes it sells. SHEIN - OneTrust Ethics & Compliance Cloud is used by the world's most ethical companies, as a readily available platform to enhance the group's Ethics and Compliance Programme, helping the group to demonstrate continuous improvement and mitigate risks across internal and external stakeholder relationships. #ethics #compliance #conduct #listing #IPO

From Runway to Regulation: Will Fast Fashion be Taxed like Cigarettes? Has your shopping become a bad habit? Are you buying more than you need? Are you wearing it less than you should? French politicians think so; and that fast fashion is to blame. The country’s lower house unanimously voted in favour of a bill that would impose hefty surcharges on fashion products based on their environmental impact. Firmly in the crosshairs: ultra-fast-moving and uber low-priced fashion disruptors like China’s Shein, which has helped turbo-charge consumption and stolen market share from French businesses. Much about the policy proposal still needs to be ironed out and it must pass through France’s Senate before it can become law. But with penalties that could mount as high as €10 ($10.90) per item by 2030, it significantly ups the stakes compared to other regulatory efforts. If passed, it would put fast fashion in a bracket alongside products like tobacco — subject to a “sin tax” intended to be so steep that it discourages consumption.

Retail Today / Retail Renaissance: Who’s that knocking on my door? Tax Man! The US government takes a hard look at Fast-Fashion. How this multi-billion dollar sector is skirting import tariffs and taxes. How do they get away with it? By shipping small packages, directly to customers, under the current $800. level. Last year over 685 million packages were shipped this way, SHEIN and Temu accounted for 30% of that number. Daily it’s 600,000 packages! There are tremendous environmental issues, 100 billion items of clothing are produced annually. Bottomline: “change is in the air”, “FREE ISN’T FREE”. As Harry Flaris explains “CHEAP ISN’T CHEAP”. Harry Flaris #retail #temu #shein #fastfashion #apparelindustry #retailtrends #retailindustry #retailstrategy #ecommerce #environmentalimpact #environmentalsustainability #free #cheap #usgovernment #taxes #customerexperience

Shein's business practices have been under a lot more scrutiny since the company filed for IPO #shein #ipo #business #ethics https://buff.ly/3ReqNs1 US lawmakers are urging the SEC to require Shein, a Chinese e-commerce giant, to disclose potential forced labor practices ahead of its possible IPO in the US. The fast-fashion brand is accused of selling clothes made by forced labor in China and has been under fire for the mistreatment of Uyghurs. The lawmakers demand that Shein verify it does not use forced labor before issuing securities in the US. Some of the company's supplier factories are allegedly located in Xinjiang, where forced labor practices have been reported, violating the 2021 Uyghur Forced Labor Prevention Act. Shein has denied having any suppliers in the region.

In France, they have passed the first bill to penalise fast fashion and its low-cost clothes, in an attempt to limit the environmental and social impacts resulting from it. What does the new law consist of? Firstly in the inclusion in all e-commerce of fast fashion clothes and accessories, of messages encouraging reuse and repair and providing information on the environmental impact of the products. The second article that makes up the law, on the other hand, introduces the tax based on the principle of EPR, i.e. the extended responsibility of the producer to manage the entire life cycle of the product - from the raw materials used to its disposal - in compliance with the regulations, thus establishing how the taxes imposed on clothes and accessories also depend on the environmental impact, the carbon emissions of their production and whether they are fast fashion or not. The third and last article then restricts advertising that encourages the purchase of clothes and accessories produced by companies specialising in fast fashion, explicitly mentioning Shein whose 7,200 new clothing models per day, totalling 470,000 products made available to the consumer, leads the Chinese company to offer '900 times more products than a traditional French retailer'. #fastfashion #francia #law #shein #temu #eu #sustainability #fashion

The spotlight is back on Shein in this FT article, but are you aware of the risks hidden behind their budget-friendly deals? https://buff.ly/49BC51L Shein uses the de minimis loophole to bypass inspections and US taxes. Revisit our blog from earlier this year, discussing the bipartisan solutions: https://buff.ly/3XTZPc3

Ultra Global and Publican CEO Ram Ben Tzion spoke with Robert Bowman at SupplyChainBrain to discuss Shein's exploitation of the de minimis rule and the need for accurate data as well as technology to ensure compliance with trade laws.   “There are technologies today that are able to automatically vet and verify the legitimacy, authenticity and quality of each and every item at scale,” Ben Tzion says. “If a package from Shein [arrives] with clear indication of the manufacturer, we will be able to say within seconds if it’s all right.” For more information about Publican, visit: https://lnkd.in/dddZMWN4   #supplychain #ultraglobal #publican #vetting #laborlaws #economy #Shein #deminimis