EU Rules on Unsold Clothes and Shoes: Compliance Implications for Fashion Traders
From the 19th of July 2026, large companies are banned from destroying unsold clothing and footwear under the Ecodesign for Sustainable Products Regulation (ESPR).
Contents:
- What the new rules require
- The products in scope
- The pattern: sustainability compliance measures are increasing
- Why this matters for your business
- How Customs Support Group can help
What the New Rules Require
The ESPR, adopted in February 2026, bans the destruction or disposal of unsold clothing, accessories, and footwear.
The implementation of the ESPR depends on your company’s size:
- 19th July 2026: large companies of 250 or more employees, or with an annual turnover above €50 million
- 2030: medium-sized companies of 50 to 249 employees, with a turnover up to €50 million
- Exempt: small and micro enterprises with fewer than 50 employees, and a balance sheet total below €10 million
Businesses in scope must also report on unsold stock and document how it is disposed of. Where a permitted exemption applies, the reasons must be retained on file.
Donation, resale, recycling, and compliant managed disposal are the options that remain. Each of those routes carries customs and classification implications of its own.
The Products in Scope
Your customs classification determines whether or not the ESPR’s rules are applicable, covering goods classified in Chapter 61 (knitted clothing), Chapter 62 (woven clothing), and Chapter 64 (footwear) of the EU Combined Nomenclature.
Material composition often drives classification within these chapters. In blended fabrics, the dominant fibre by weight can determine the heading.
There are also many technicalities and exceptions in clothing classifications. Working with a specialist to review your Bill of Materials, specifications, and assumed purpose can give you better clarity on whether your goods are classified correctly or not. Contact one of CSG’s fashion classification experts today for assistance.
(Related: Five Common Tariff Classification Pitfalls – and How to Avoid Them)
The Pattern: Sustainability Compliance Measures Are Increasing
The introduction of Ecodesign for Sustainable Products Regulation adds to other green supply chain initiatives in the EU. As a textile and clothing trader, you’ll already be familiar with the Forced Labour regulation and the German Supply Chain Due Diligence Act (LkSG), which supported the industry shift towards moral sourcing.
Other upcoming measures to be aware of are:
Digital Product Passports (DPP)
The Digital Product Passport (DPP) is the next obligation coming for the fashion sector under the ESPR. Initial requirements for textiles are expected from 2027.
Each product will require a verifiable data record covering material composition, country of origin, recycled content, repairability, and end-of-life options. That information must be traceable across the supply chain.
Read more on our dedicated article about Digital Product Passports.
The EU Deforestation Regulation (EUDR)
The EU Deforestation Regulation is due to come into effect from the end of 2026 for large and medium-sized businesses, with small and micro enterprises following in June 2027.
Alongside other commodities, cattle, wood, and rubber – and products of – are included in the EUDR scope. This means that applicable goods must follow reporting measures in line with their EUDR country risk tier.
In the fashion industry, many goods include leather, wood-derived materials such as viscose, rayon, and bamboo viscose, or rubber. The wood-derived materials and many finished products that contain EUDR-applicable goods, such as clothes or shoes, are not currently in scope, but they may be in future.
CSDR and CSDDD
Growing on the foundation of the German Supply Chain Act, the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD) create additional responsibilities:
- CSRD: Harmonised transparency standards and requirements for reporting on sustainability
- CSDDD: A requirement to end or mitigate sustainability issues in the supply chain
As with the Ecodesign for Sustainable Products Regulation (ESPR), these are both being phased in by company size, with full measures expected to be in place by 2029.
Why This Matters for Your Business
Procurement in the fashion industry is under increasing pressure – with key considerations no longer limited to quality, import duty, and lead times. Working practices, data sharing, and a willingness to collaborate on sustainability improvements are now shaping long-term partnerships.
Fashion brands that invest in compliance infrastructure are in the best place to navigate sourcing and regulatory changes. This is what Customs Support Group can help you do.
(Related: Avoiding Customs Misunderstandings: A Checklist for Procurement Officers)
How Customs Support Group Can Help
CSG works with fashion and retail businesses to build the classification accuracy and compliance infrastructure that the ESPR and the wider sustainability regulatory landscape demand.
Our team has direct experience with the classification challenges specific to clothing, accessories, and footwear — including blended fabric composition, Bill of Materials review, and the technical exceptions that affect how goods are headed.
CSG provides practical assistance with:
- Commodity code classification for clothing, accessories, and footwear, including products with complex or blended material composition
- Bill of Materials and product specification review to establish the correct ESPR scope and classification accuracy
- ESPR compliance support, including documentation and reporting frameworks for unsold goods
- Supply chain documentation and audit support for sustainability due diligence requirements
- Guidance on how emerging regulations — the EUDR, the Digital Product Passport, and the CSDDD — affect your product range and sourcing arrangements
It all begins with a customs compliance scan, where our experts assess your operation and return actionable insights. Book yours today.
