Presentation by

The Pakistan Permanent Mission to the WTO

Workshop on the role of International Standards

in Economic Development

Use of Standards in the Textile Sector and the Challenges for the

SMEs

HOW THE SYSTEM WORKS? HOW DOES THE SYSTEM WORK?

Pakistan textile industry

Textiles is the premier industry & backbone of Pakistan’s Economy:

� Major Agrarian industrial sector.

� Generates about 60 % of exports

� Constitutes 46 % of Manufacturing Industry

� Employs 38 % of country’s work force

� Contributes 8.5% to the total GDP

� Major products are cotton yarn, fabrics, bed

wear, towels, woven & knit garments.

� Drives Banking, Shipping ,Transport

,Insurance, Machinery, Dyes/Chemicals

,Printing/Packaging & allied sectors.

Other texti les;

274.001

Madeups Incl.

Bedwear ;

2423.723

Art Silk &

Syn.Tex ;

489.982

Cotton; 82.057Yarn ; 1294.195

Fabrics ;

1231.62

Ready Made

Garments ;

1498.499Knitwear

(Hosiery);

1831.178

Towels ;

615.415

Tents & Canvas ;

70.34

Composition of Pakistan textile exports

Textile exports (2007-08) US$10.777 Blns

Role in the Textile Industry:

� Involved at processing, stitching and various

levels of the value chain

� Labour intensive work therefore trained

manpower and quality control mechanisms are

extremely important

� Case study of a Company and two clusters of

SMEs

SMEs the backbone of economy

Desire to connect with

Int. market

Only possible

with full compliance

Buyers Standards Industry specific Standards

International Standards

SME

National Regulatory Framework

Evolution of quality control regime in Pakistan

Quality control and standardization institutional

framework exists since early 50s, few year after

independence in 1947.

The various components of this institutional arrangement were:

� Pakistan Standards Institution (PSI)

� Central Testing Laboratory (CTL)

� Metallurgical and Industrial Research

Development Centre (MIRDC)

Evolution of quality control regime in Pakistan

Current structure established in 1996

M/o Science and Technology

Standards Development Centre (SDC) [former PSI]

PNAC

Quality Control Centre (QCC) [former CTL]

Technical Services Centre (TSC) [former MIRDC]

Signature of MOU’s & MRA’s in the fields of Science &

Technology, Standardization,Quality

Assurance/Management, Product Certification and

exchange of technical information, human resource

development and capacity building to achieve the

objectives of TBT Agreement:

A) Between governments

Pakistan and the sovereign Governments of Saudi Arabia, Morocco, Algeria, Sri Lanka

B) PSQCA and another standardization bodies:

� PSQCA and Turkish Standards Institution (TSE).

� PSQCA and Yemen Authority for Specification,

Standardization and Quality Control (YASSC).

� MRA signed with SASO, ASTM International USA, DIN

Germany, ANSI

Pakistan’s global affiliation

C) Affiliation in progress between :

� Pakistan and the sovereign Governments of Asia

Cooperation Dialogue (ACD) Countries, Brunei

Darussalam, Sultanate of Oman, Republic of South Africa,

Kingdom of Jordan, Republic of India, Malaysia, Russian

Federation, Kingdom of Norway, Peoples Republic of

China

� PSQCA and SIRIM QAS International, Malaysia.

� PSQCA and Bangladesh Standards Testing Institution

(BSTI).

Pakistan’s global affiliation (Continued)

Institutional and regulatory support by the Government to protect environment

� National Conservation Strategy (NCS) adopted in 1992

� The Environmental Protection Ordinance of 1983 was replaced by a new Act of Parliament in 1997 i.e. Pakistan Environmental Protection Act 1997

� The federal government offered incentives of reduction in customs duties on import of anti pollution equipment

Pakistan National Accreditation Council

Mission Statement

PNAC strives for improvement, competence and integrity of conformity assessment bodies by providing them an internationally recognized accreditation service and also promote quality culture, which ultimately benefit the consumers, producers, regulators and other stakeholders.

International Linkages

PNAC represents Pakistan in the following regional and international forum:

► International Laboratory Accreditation Cooperation (ILAC)

► International Accreditation Forum (IAF)

► Asia Pacific Laboratory Accreditation Cooperation (APLAC)

► Pacific Accreditation Cooperation (PAC)

There is cooperation between accreditation bodies in international organisations

Pakistan

PNAC

A case study of a Company looked at the following aspects of quality which can be achieved through ISO 9000 certification

Increase in productivity �Trained manpower �Quality of raw material �Calibration of machines �Maintenance of machines

Quality productivity �Minimum hard waste �Minimum wastage in weaving

�Minimum wastage in processing �Minimum wastage in cutting �Minimum wastage in stitching & packing �Minimum time for tea break �Minimum time for lunch break

�Minimum time waste during prayer �Energy saving

Water wastages �Leakage in pipe & joint �Tap remain open �Collection of condensed water �Use of last treated water for 1st treatment �Re-cycling of water

15

Quality Policies

Review of contracts

11

Equipment

Management

System

Purchasing supplies

Subcontracting of tests

12 Measurement traceability

Document control

Accom. and env. Cond.

15

Assuring the Quality of test results

General 13

Sampling

Test methods

and m.validation

Personnel 14

Handling of test items

Management requirements

AB Pre Audit

Complaints

AB Application

Improvement

Reporting the

results

AB Doc Review

Preventive action

Service to the customer

AB On Site Visit

Internal audits

Corrective Actions

Management

Review

Accreditation

Technical requirements

House of Accreditation

Standards

Accreditation

Corrective Actions and AB Report

AB Document Review AB On Site Visit

AB Application

AB Pre-Audit

22 Management Review (4.15)

21 Internal audits (4.14) 16 Reporting the results (5.10)

Man

ag

em

en

t Re

qu

irem

en

ts

20 Preventive action (4.12) /

records (4.13)

15 Assuring the Quality of test

results (5.9)

Te

ch

nic

al R

eq

uire

ments

19 Improvement (4.10) and corr

action (4.11) 14 Handling of test items (5.8)

18 Complaints (4.8) / non conf.

work (4.9) 13 Sampling (5.7)

17 Service to the customer (4.7) 12 Measurement traceability (5.6)

8 Purchasing supplies (4.6) 11 Equipment (5.5)

5 Subcontracting of tests (4.5) 10 Test methods and m -

validation (5.4)

4 Review of contracts (4.4) 9 Accom. and env. Cond. (5.3)

3 Document control (4.3) 7 Personnel (5.2)

2 Management System (4.2) 6 General (5.1)

1 Quality Policies (Organization) (4.1)

A company before and after ISO9000 certification

Wastages

Before After

Raw material to furnishing 25% 6%

Water 30% 5%

Energy 20% Nil

Man hour loss due to

machinery breakage 15% Nil

Result: Increase in exports 2004-05 US$ 110,539,384

2005-06 US$ 125,360,094 2006-07 US$ 126,068,016

� 28 tests carried on textile products: quality of colour fastness, Ezoyd stuff, shrinking, yarn test, cracking, abri colour etc.

� High level of awareness almost 80%; in house testing facility

available to 37%.

� Foreign laboratories used on the demand of buyer only .

� Use of local laboratories is common

� The level of satisfaction from local laboratories was quite high in terms of infrastructure, affordability, acceptability and service delivery.

� Testing cost and time was a major concern for smaller firms

Testing lab in Pakistan: SGS, ATS, PCSIR, Intertek, Microtech, Tech Dyeing, T.T.I, I.T.S .

Survey of 2 clusters in Lahore and Faisalabad

� Conformity assessment checked for testing, certification, calibration, accreditation.

� Positive co-relation found between percentage share of exports and

deployment of qualified staff for in-house testing and quality control.

Testing

Certification ISO 9000, ISO14000, ISO22000, WRAP, BSCI, OEKO-TEX, EALO, SA8000

High awareness level, ISO 9000 was identified as the most important, ISO 14000 as the second most important. Certifications

were through locally based foreign certification bodies.

Survey of 2 clusters in Lahore and Faisalabad (Continued)

Satisfaction score: (1-5)

Accessibility: 4.78

Technical skill: 4.62

Certification cost: 4.41

Over all cost to business: 4.50

Time taken for certification 4.48

Acceptability by export buyers: 4.75

Calibration Awareness level 88.6 %, time taken was 1.94 however time was around 8-9 days for using facilities outside the city

Joint Branding

50% already involved in joint branding, 43% interested in joint branding- It brings premium price therefore an incentive for ensuring

compliance

A. Care Label Instructions: Many countries have mandatory or voluntary standards for care label instructions that apply to either apparel or soft home furnishing products. � Colourfastness to bleaching � Dimensional stability � Appearance retention � Ironing (EU & US joint proposal on textile labelling in NAMA negotiation is supported by Pakistan)

Fields of determinations requested

B. Performance Testing: To meet specific performance standards that affect end use consumer of textile products, a variety of tests are required. Some of these tests includes: � Dimensional Stability to Washing and/or Dry-cleaning �Colourfastness to Light, Crocking (Rubbing), Washing, Bleaching, etc �Physical tests – Strength, Abrasion, Pilling Resistance, etc �Chemical Tests – Finish Analysis, pH, etc

Fields of determinations requested (continued)

C. Eco – Textile Testing The trend of green consumerism has been extended to textile and apparel products. Major European and USA textile product buyers have responded to this public awareness by viewing their textile products from an ecological viewpoint and are establishing relevant requirements. Chemical analysis for Eco-Testing includes: � Banned Azo Colorants � Formaldehyde Content � Heavy Metal Residues � Dye testing to carcinogenic compounds � Pesticide Residue

Fields of determinations requested (continued)

D. FLAMMABILITY TESTING For apparel, it is especially important that the material used are in compliance with the flammability regulations. In particular, adult apparel and children’s sleeper.

Fields of determinations requested (continued)

� About 3.2 million business establishments exist in Pakistan.

� Out of which 99% are SME’s.

� They contribute 30% to GDP and 25% to export.

ROLE OF SME’S IN PAKISTAN

Recommendations

1. Harmonization of all private standards

2. Harmonization of private standards with

international standards where ever

possible

3. Cluster development of SMEs through 3 C

approach Competitive cluster ����

conformity���� connectivity with the market

4. Incentives from the national governments

to promote compliance, i.e. duty free

import of equipment, tax breaks,

exemption from sales tax, national reward

system and SME of the year etc.

5. Best use of Aid for Trade (Skill development,

mobile vans with training equipment,

strengthening of testing labs-chemicals.

6. Effective participation of SME sector in the

standard setting process

7. Effective implementation of special and

differential treatment provisions (article 12 of

TBT) for developing countries

8. See things in a context, ban on trade is not a

solution . Country specific solutions is another

option.

9. Promote public-private investment in testing

laboratories.

Recommendations (Continued)

Buyers standards Industry specific standards

International standards

SME Technical

Assistance to achieve

compliance

Aid for Trade

National Regulatory Framework

Connected with the

International market

Only possible

with full compliance

WTO Agreement On TBT

THANK YOU

List of Test required by buyers

Test Methods

Colorfastness to Crocking AATCC- 8 ISO- 105 X12

pH of the Water-Extract from wet processed Textiles AATCC- 81 ISO- 3071

Fibfer Analysis: Qualitative AATCC-20 ISO-3072

Fibfer Analysis: Quantitative

AATCC-20A/

ASTM D629

ISO-1833/

ISO-5088

Water Repellency: Spray Test AATCC-22

ISO- 4920 /

BS 3702

Skewness change in fabric and garment twist resulting

from automatic home laundering AATCC-179

Colorfastness to Perspiration AATCC-15 ISO-105 E04

Dimensional Change of Garments after home laundering AATCC-150 ISO-5077/ ISO

6330

Colorfastness to Water: Chlorinated Pool AATCC-162 ISO-105 E03

Colorfastness: Dye Transfer in Storage; Fabric-to-Fabric AATCC-163

Colorfastness to Non-chlorine Bleach in Home laundering AATCC-172

ISO 105 N01/

N02

Antibacterial Finishes on Textile Materials: Assessment of AATCC-100

Colorfastness to Bleaching with Hydrogen Peroxide AATCC-101 ISO-105-N02

Colorfastness to Water AATCC-107 ISO-105 E01

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Test Methods

Formaldehyde Content

Japanese law 112-1973, JIS L

1096-1979 / SFS-4996

Formaldehyde Release from Fabric, Determination of:

sealed Jar Mthod AATCC-112

Colorfastness to Crocking: Rotary Vertical Crockmeter

Method AATCC-116

Oil Repellency: Hydrocarbon Resistance Test AATCC-118

Appearance of Fabrics After Repeated Home laundering AATCC-124 ISO-7768

Colorfastness to Perspiration and Light AATCC-125

Wrinkle Recovery of Fabrics: Appearance Method AATCC-128 ISO-9867

Soil Release: Oily Stain Relese Method AATCC-130

Colorfastness to Drycleaning AATCC-132 ISO 105 D01

Colorfastness to Heat: Hot Pressing AATCC-133 ISO 105-X11

Dimensional Change of Fabrics after home laundering AATCC-135 ISO-3759

Fabric Weight ASTM D 3776 ISO-3801

Wales and Coarses (Stitch Density) ASTM D 3887 BS 5441

List of Test required by buyers

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List of Test required by buyers

Methods

Yarn Twist/Yarn ASTM 1422 / ASTM 1423 ISO 2061

Print Durability AATCC-135 / 150 ISO-6330

Colorfastness to washing AATCC- 61 ISO 105 C01 to C06

Colorfastness to Light AATCC-16 ISO 105-B02

Tensile Strength ASTM D 5034 ISO- 13934-2

Seam Strength ASTM D 1683 / ASTM D 3786 ISO 13935-1 / ISO 13935-2

Bursting Strength ASTM D 3786 ISO 2960 / BS4768

Tearing Strength ASTM 1424 / ASTM 2261 ISO 13937-1 / ISO 9290

Pilling resistance ASTM D 3512

ICI pilling Box ISO 12945-1 / BS

5811

Pilling resistance

(Martindale) ASTM D4966 / ASTM D4970 ISO 12945-2

Stretch & Recovery ASTM D 4964 BS 4952

Flammability

ASTM D 1230 / US CPSC CFR 16 Part

1610

Lead content

Nickle content 33

Besides International Standards some

private Standards are also incorporated

making the things more complicated.

These are as under:

�WALMART

�NIKE

�CARRFOUR

�KOHLS

�JCPENNY etc.

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