Exporters WRAPped in certifications

As export of textiles and clothing to developed countries from developing countries is on the rise, western nations are finding new ways of trade protectionism. Sudha Swaminathan reports.

Apart from regulations pertaining to quality, environment and social standards, country specific and sector specific standards and codes of conduct are coming into practice. Even as these new standards are no different and boil down to the laws of the land, buyers in the developed countries are insisting that all parties in the supply chain comply with them.

Worldwide Responsible Apparel Production or WRAP is a standard exclusive for apparel manufacturers devised by the American garment retailers and stores under the aegis of the American Apparel Manufactures Association.

WRAP as a non-profit organisation has devised a code for labour practices, factory conditions, environment and customs compliance and certificate of compliance for apparel manufacturers. The objective of the apparel certification programme is to independently monitor and certify compliance with certain standards, thus ensuring that a factory produces goods under lawful, humane and ethical conditions.

Now, many American retailers and buyers are insisting their suppliers be WRAP certified in addition to compliance with quality, environment and social standards. Even if an apparel manufacturer is certified for quality, environment and social compliance, he should be WRAP certified if his American buyer insists on it. “It is now advisable for apparel exporters working with US buyers to go for WRAP certification as it makes business easier. People who are already working for US buyers and intend working with them opt for it and are more successful in getting the certificates”, says Mr B N Sandeep of Conquest.

The certification process for WRAP is slightly different compared to other standards. There are select bodies (there are 12 such bodies in India) which do the audits and the certification is given by WRAP. WRAP certification is valid for one year and can be renewed. WRAP reserves the right to conduct surprise audits/visits unlike others. Leading exporters like Eastman Exports, Crav Apparels are WRAP certified. “While the ISO certification are more of systems, WRAP is an approval process for the factory. It is a sort of certification for the factory that certain laid norms are followed. If a factory is WRAP certified most American buyers would not further evaluate the factory”, says Mr Mohan Nair of Eastman Exports.

Another compliance that has come into force is CT Pat or Customs Trade Partnership against terrorism. Under this, US buyers and US customs ensure that the suppliers enforce CT Pat. For suppliers, it is yet another compliance which leans more towards security of consignment, factory and any product transaction.

Likewise, the German Retailers’ Association has initiated steps to make its suppliers comply with social standards. The association urges its suppliers to initiate AVE process, which is divided into Part A, B and C. While Part A creates awareness, Part B is an underscaled version of SA 8000. Part C or On-Top has all the regulations as SA 8000. The suppliers are just audited under the AVE process and are not certified.

The Ethical Trading Initiative (ETI) is an alliance of companies, NGOs and trade union organisations of UK to promote and improve the implementation of corporate code of practice which covers supply chain working conditions.

New codes of conduct and standards come into force every now and then. But the awareness level among the manufacturers seems to remain low. “Given the number of exporters working with American buyers, the awareness level is pretty low compared to industry standards. Even as exporters working with big brands and stores come to know it faster, only the proactive ones implement it. Whether it is WRAP or CT PAT or any kind of compliance, it is undertaken by the suppliers because the buyers insist on it”, say Mr Sandeep. While these measures are looked upon as protectionsm, as such there are no government regulations and implementation depends on individual buyers.

However, every buyer would opt for it as it would enhance their image among customers, he says. Accepts Mr B K Prakash of Premdurai Exports, supplier of Switcher brand in India, which is in the process of initiating cleaner production in the supply chain. “We are certified with SA 8000 and we are involved in a number of social projects. The Fair Trade standard is a next of level of social compliance and a tool to show our customers how our products are superior and in what condition it is produced. The label is a tool to benchmark transparency and traceability in the supply chain starting from cotton growers to end users, thereby ensuring fair wages and good working conditions”.