From the Sector

The European Apparel and Textile Confederation (EURATEX) is calling for an EU handling fee of around €10 on low-value e-commerce consignments entering the European market. The association argues that the fee should contribute to the costs of customs controls, market surveillance and product-safety enforcement associated with the rapidly growing volume of direct-to-consumer imports.

Low-value e-commerce imports into the European Union have increased sharply in recent years. According to the European Commission, around 5.9 billion low-value e-commerce items entered the EU in 2025, up 26% from 2024. The growth of direct shipments from non-EU online retailers and marketplaces has increased the workload for customs and market-surveillance authorities and intensified the debate about compliance with European product, safety and customs requirements.

Since 1 July 2026, the EU has applied a temporary customs duty of €3 to low-value consignments of up to €150. The measure replaced the previous customs-duty exemption for such imports and is intended as a transitional arrangement until the new EU Customs Data Hub becomes operational. It is separate from the EU-wide handling fee for small e-commerce consignments provided for under the broader reform of the EU customs framework.

Following the latest agreement on the customs reform, the handling fee is to be introduced by 1 November 2026. Its level will be determined by the European Commission before the member states begin applying it.

Against this background, EURATEX used Première Vision in Paris to argue that the handling fee should be set at a level that more closely reflects the actual enforcement costs associated with the large number of individual consignments entering the Single Market.

The association proposes a benchmark of around €10 per parcel. According to EURATEX, the amount should ultimately be based on a detailed assessment of the costs incurred by customs authorities, market-surveillance bodies and other public authorities involved in checking imported goods.

Processing large numbers of small consignments requires customs declarations to be assessed, risks to be analysed and compliance requirements to be checked. Market-surveillance authorities are also responsible for identifying unsafe or non-compliant products and enforcing EU product-safety rules.

EURATEX therefore argues that the handling fee should primarily be viewed as an enforcement instrument rather than simply as a trade or taxation measure. Revenues generated by the fee should, in the association's view, be linked to additional resources for customs controls, market surveillance, product-safety enforcement and risk-analysis systems.

The proposed €10 level is a EURATEX position and has not been adopted by the European Union. The European Commission is responsible for determining the actual amount of the forthcoming EU handling fee.

The customs reform also changes the responsibilities of companies involved in distance selling to EU consumers. Online platforms and sellers covered by the new rules are to be treated as importers for customs purposes and will therefore assume greater responsibility for customs formalities and duty payments rather than leaving these obligations with individual consumers.

EURATEX considers stronger platform responsibility an important element in addressing non-compliant imports but also points to the risk of alternative logistics structures being used to circumvent controls. More intensive checks on individual direct-to-consumer parcels should not, according to the association, result in goods simply being channelled through bulk imports, EU warehouses or fulfilment centres instead.

Effective enforcement would therefore need to cover different logistics models and provide customs and market-surveillance authorities with sufficiently detailed information on both business-to-consumer and business-to-business flows.

The European textile and clothing industry comprises nearly 200,000 companies in the EU-27 and employs around 1.2 million people. The sector generates annual turnover of approximately €166 billion. Most companies are small and medium-sized enterprises.

For EURATEX, the debate about low-value imports is consequently also a question of competitive conditions. The association is calling for companies selling products to European consumers, irrespective of their country of establishment or distribution model, to be identifiable and subject to comparable customs, product-safety and market-surveillance requirements.

DeSL has launched a Digital Product Passport solution built directly on product, material, supplier, quality and certification data managed in Product Lifecycle Management. The approach addresses a central challenge in emerging DPP requirements: companies need to combine information from multiple functions while retaining evidence of where data came from, how it was approved and whether supporting documentation remains valid.

Rather than creating a separate static passport record, DeSL generates the DPP from the current approved information held in PLM. Published information therefore remains connected to its underlying product and supplier records, version history and approvals. This can become particularly important when material composition, suppliers, certifications or quality information change during the product lifecycle.

The platform can combine product specifications, materials, supplier information, declarations, inspections and certifications. DeSL’s AI document intelligence is intended to analyse supporting documents, identify required information and expiry dates, and compare documentation with information maintained in PLM. Passports can be generated at the appropriate product level and delivered via QR codes, portals, retail systems and open APIs. Different audiences can receive different information while still drawing from the same governed product record.

For fashion and textile companies, the important shift is conceptual: DPP compliance becomes a master-data and governance challenge rather than simply a publishing task. The software announcement does not prove automatic compliance with every future regulatory requirement. It does, however, demonstrate a credible architecture in which product passports are generated from the same data used for product development, quality, supplier management and compliance.

bluesign argues that water management in textile wet processing starts with the chemicals and raw materials entering the process. Its core point is that water in dyeing and finishing is not simply a resource but a carrier for chemistry. What enters the process therefore affects water demand, wastewater load, air emissions, workplace exposure and potential residues in the finished textile.

The input-stream-management approach intervenes before wastewater treatment. By selecting appropriate chemical products and controlling the process, substances of concern should ideally be prevented from entering the system in the first place. For mills, the point is operationally important because investment in water and effluent treatment alone does not address the source of many impacts. The article provides useful context as chemical restrictions, water scarcity and supply-chain transparency requirements become more demanding.

The Better Cotton Initiative (BCI) has partnered with agricultural technology company Avalo to accelerate the breeding of more climate-resilient cotton. Avalo uses an AI-enabled platform to identify genetic traits relevant to locally adapted plants that require less water and fertiliser. According to BCI, the approach can shorten the time needed to develop new varieties, an increasingly important factor as heat, water scarcity and shifting rainfall patterns affect cotton-growing regions. Avalo has already worked with BCI to enrol a significant number of new producers for the 2026 season and has tested a digital platform for collecting and reporting programme data. The partnership therefore connects plant breeding, digital data management and the requirements of an international cotton standard.

Indorama Ventures Public Company Limited (IVL), a global sustainable chemical producer, reported significantly stronger first-half 2026 earnings, reflecting favorable market conditions together with continued progress in strengthening the Company’s operating fundamentals. 

For the first half of 2026, the Company reported revenue of THB 245.3 billion, up 4% year-on-year, and EBITDA of THB 29.7 billion, up 61%. Second-quarter EBITDA was particularly strong, with all four business segments delivering year-on-year improvement. Operating cash flow after maintenance capital expenditure increased 78% to THB 25.9 billion. Strong cash generation supported further deleveraging, with Net Debt-to-Equity improving to 1.56x, reaching the Company's Capital Markets Day target for 2026 ahead of schedule. 

Management’s continued execution of IVL 2.0 self-help actions, including Sales & Operations Execution (S&OE), inventory discipline and working capital management, also supported stronger cash conversion, with inventory turnover improving to 5.0x in the second quarter from 4.7x at the end of 2025. Operating rates were prudently managed to align production with inventory targets and protect margin quality in a period of volatile pricing. 

Looking ahead, Indorama Ventures expects some of the exceptionally strong second-quarter market tailwinds to normalize. The Company’s priorities for the remainder of 2026 are to deliver sustainable earnings under normalized spreads, convert those earnings into free cash flow, reduce absolute net debt, and improve returns on capital. 

Mr. Aloke Lohia, Group CEO of Indorama Ventures, said, “Our first-half performance reflects both supportive market conditions and the progress we are making through the self-help actions we have taken to strengthen Indorama Ventures. Markets will normalize, so the more important test is whether we can convert the advantages of the platform we have built over three decades - our scale, integration, global footprint, local-for-local operating model and customer positions, into more consistent earnings, stronger cash generation and higher returns through the cycle. 
We are beginning to see that translation in our performance. Greater discipline in how we manage our operations, inventory and working capital is improving cash generation, while our portfolio actions are strengthening the quality of the business and improving returns on capital. Together, these actions are building a more agile and financially resilient Indorama Ventures. 
We remain confident in our 2026 expectations and 2028 ambitions. Our focus is to continue executing on what we can control, strengthen our balance sheet and improve returns, while retaining the flexibility to capture growth opportunities as markets evolve.” 

The earnings improvement was led by Combined PET, supported by favorable market conditions and the benefits of Indorama Ventures’ integrated global platform and local-for-local operating model. Indovida continued its growth momentum, supported by its market-leading packaging position, customer intimacy and organic growth initiatives. Indovinya delivered strong performance across both High Value Applications and Essentials, supported by commercial excellence initiatives. Fibers improved sequentially in the second quarter supported by stable Hygiene demand and transformation efforts, despite continued weakness in Lifestyle and Mobility end markets.