The fashion industry is undergoing a transformation towards circularity, with initiatives like the Kantamanto Market in Ghana leading the way. As part of our ongoing series on circular fashion ecosystems around the world, we take a closer look at how global shipping codes are hindering progress in the circular economy.
A few years ago, The Or Foundation, a Ghanaian American non-profit, attempted to collaborate with a European textile-to-textile recycling startup. The goal was to utilize Ghana’s surplus of used textiles, which are imported at a rate of 15 million garments per week from the Global North. However, they encountered a major obstacle in the form of outdated global shipping codes.
Shipping codes, also known as Harmonised System (HS) codes, were established in 1983 by the World Customs Organization to facilitate international trade. These codes classify products being imported and exported, determining the taxes and duties owed. While there are over 5,000 six-digit codes for various products, the codes for circular fashion products are limited and not conducive to the circular economy.
According to Branson Skinner, co-founder of The Or Foundation, the current HS codes do not adequately account for the nuances of circular fashion. When it comes to secondhand clothing and recycled textiles, there are only a few options available, resulting in a lack of transparency and traceability. This poses a significant challenge for organizations looking to participate in the circular fashion economy.
The Or Foundation faced difficulties when attempting to re-export processed textiles under the same HS code they were imported under. Despite sorting the materials by color and fiber type, as well as pre-processing them for recycling, customs officials viewed them as simply worn articles. This led to increased scrutiny and limited their ability to engage in global partnerships for recycling initiatives.
The implications of outdated shipping codes extend beyond The Or Foundation’s experience, affecting the entire circular fashion ecosystem in Ghana and beyond. Without a dedicated HS code for recycled textiles and upcycled garments, the industry is hindered in its efforts to promote sustainability and circularity.
As we continue to explore the future of fashion through our ‘Made in Ghana’ series, it is clear that addressing the issue of shipping codes is crucial for advancing the circular economy. By advocating for updated codes that reflect the value and potential of recycled textiles, we can pave the way for a more sustainable and efficient global fashion industry.
