Sweden Delays Chemical Tax on Clothing and Footwear

In October 2020, the Swedish government
announced it was postponing the implementation of its new chemical tax for
clothing and footwear until 2022. The decision follows the impact of the
COVID-19 pandemic.

First announced in May 2020, the tax
is designed to phase out the use of hazardous chemicals in clothing and
footwear. It is hoped the tax will have three effects:

  1. Reduce human health problems from exposure to the chemicals
  2. Reduce environment impact arising from manufacture, washing and
    waste
  3. Improve the quality of recycled materials

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Except for certain protective clothing and toys, the tax will be
applied to all clothing and footwear that are produced or imported into Sweden.
In general, a tax rate of SEK 40 per kilogram of the product’s weight will be
applied. A reduction of up to 95% of the tax may be available, depending on the
chemical content.

Products that contain rubber materials, polyvinyl chloride or
polyurethane may incur an additional tax of SEK 19 per kilogram. There is also another
possible additional tax of SEK 19 per kilogram for all-weather products.

The tax will be liable on taxable products manufactured or
imported into Sweden from other EU countries. The party liable to pay taxes on
imported products will be the party that would have been liable to pay customs
duties. Clothing and footwear involved in distance sales from other EU
countries to Sweden will also be liable.

SGS Softlines Services

SGS has a worldwide network of over 40
state-of-the-art laboratories specializing in testing of apparel, footwear, and
home textiles. Their committed team is drawn from multi-disciplinary
backgrounds, allowing them to carry out a comprehensive range of physical,
chemical, and functional testing services for components, materials and
finished products. SGS helps companies ensure quality, performance, and
compliance with international, industrial, and regulatory standards worldwide.
Learn more about SGS’s Softlines Services.

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Sweden Proposes Chemical Tax on Clothing and Footwear in 2022
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For further information contact:

Louann Spirito
Consumer and Retail — Softlines
US & Canada Softlines Business Head
Tel: +1 973 461 7919

Email: crs.media@sgs.com

Website: www.sgs.com/softlines

LinkedIn: sgs-consumer-goods-&-retail

About SGS

SGS is the world’s leading inspection, verification, testing and
certification company. SGS is recognized as the global benchmark for quality
and integrity. With more than 89,000 employees, SGS operates a network of over
2,600 offices and laboratories around the world.

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