New Tax on Clothing and Footwear Proposed in Sweden

The Swedish Government has announced proposals to impose a tax on
clothing and footwear that contain Substances of Very High Concern (SVHCs)
under the EU’s REACH regulations.

Under the proposals, there will be a default taxation on all
clothing and footwear that is produced in, or imported into, Sweden. The
default will be SEK 40 (EUR 3.7) per kilogram of the product’s weight. If the
product does not contain specific harmful chemicals, there may a deduction of
up to 95%.

Additional tax proposals include:

  • SEK 19 per kilogram for products containing rubber materials, polyvinyl chloride, or polyurethane
  • SEK 19 per kilogram for all-weather products

In addition to raising tax collection levels, this proposal is
aimed at reducing the amount of SVHCS in clothing and footwear that are harmful
to the environment and human health. The proposal focusses on substances that are
known to be carcinogenic, mutagenic or toxic for reproduction (CMR), substances
with sensitising properties, substances with characteristics of persistent,
bioaccumulative and toxic (PBT), substances that are very persistent and very
bioaccumulative (vPvB), and endocrine disrupting substances. The proposal is
also considering the phasing out of antimicrobial substances (biocides), as it
is believed these are accelerating antibiotic resistance.

Because they are covered by separate EU chemical regulations, the
following products are exempt from the proposal:

  • Personal protective equipment (PPE)
  • Toys

Also exempt are:

  • Chemicals found in electric or electronic components in clothing and footwear
  • Chemicals in non-textile components – e.g. metal or plastic fasteners and no-textile decorations

The proposed tax will apply to manufacturers and importers of
products from another EU country. In some circumstances, it may also apply to distance
sale intermediary companies – if the total value of intermediate sales of
taxable products to Sweden is more than SEK 100,000 during the present or
previous tax year.

According to the
proposal, the new tax will be enforced from April 1, 2021, with the tax
liability arising after June 2021.

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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For further information contact:

Louann Spirito

US & Canada Softlines Business Head

Tel: +1 973 461 7919



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 94,000 employees, SGS operates a network of over
2,600 offices and laboratories around the world.

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