Are Your Clothes’ “Made in” Label Still Reliable and Relevant?

When I shop for clothes or accessories, the first thing I look at is the label. I look at the materials and the country of origin (CoO). Generally, I prefer to buy items made in Canada or Montreal to support local businesses and the local economy. I also favor items made in Europe like Italy, which signals quality to me, and most likely, fair labor practices. However, is it still relevant to rely on this “Made in” label?

Let’s try to break down and understand this “Made in” label. With international trade, the CoO of an item is generally a requirement. This is due to trade restrictions and regulations between countries, such as quotas, tariffs or duties that need to be applied to the destination country. However, with globalization, it is rare that only one country sources materials for and produces pieces of clothing. So it can be difficult to track exactly where your clothes come from.

How do companies determine their “Made in” label country?

Companies or governments follow the “Rules of Origin” to determine which country to include on their labels.  Specifically, this means the item’s ECONOMIC nationality, not the geographical nationality. Based on the Rules of Origin handbook by the World Customs Organization, under non-preferential rules, there are 2 criteria to consider when determining the CoO:

1. Wholly Obtained Criterion – if the good was fully obtained or produced in one country, then the CoO will be that country.
2. Substantial/sufficient transformation criterion – if a good was produced in more than one country, the CoO will be the country where it was substantially transformed. And a good is considered so if:
   • there is a change of tariff classification;
   • the value added increases to a specific level; OR
   • “the good has undergone specified manufacturing or processing operations.”

Essentially, the “Made in” label can mean different things. For instance, this can mean the last country assembling and finishing up an item, or the in-between country mostly producing the item. It usually all depends on the destination/importing country and which rules it favors. In addition, this does NOT take into consideration the whole supply chain of your clothes.
**The handbook has so much information, so I encourage you to take a look! You can also watch Planet Money’s video series on the makings of a cotton t-shirt to see what goes on in the supply chain. Find it in my sustainability videos list.

My Cashmere Turtleneck

Last year, I took a free online course from Fashion Revolution called “Who Made My Clothes.” Knowing all of this, I’m going to try to find out where my favorite turtleneck comes from based on the label (seen in picture).

I thrifted this simple black cashmere turtleneck, but the original brand is Lord and Taylor. Because there are no additional details like buttons, I simply have to look at the material and the country indicated on the label. So the top is made in China *which can mean a variety of things as shown above* and it is made of 100% cashmere. Thankfully, it’s a simple top that does not have any material blends or many component parts. Finding the countries involved in the supply chain will be easier.

From here, there are 2 things to do – ask the brand directly where it sources its materials and/or research producers and exporters of the material. For the latter, I will have to make some educated guesses. Easy enough, the largest producers of cashmere are China and Mongolia. This makes sense as most cashmere comes from goats found in a desert between Southern Mongolia and Northern China.

Conclusion

In this case, my turtleneck seems like a wholly obtained good from China. The label is relevant and likely presents most of the supply chain. However, if the “Made in” label indicated “Made in Italy,” in this case, both countries will have to be taken into consideration. This would be a substantially transformed good and the label wouldn’t be completely relevant.

That being said, there are still so many factors to consider when it comes to the clothing and fashion industry. For example, not all factories from developing countries have poor labor conditions. Hence, we should not rely on these “Made in” labels. They don’t always consider the whole supply chain and don’t uncover the whole story behind our garments.

Therefore, what can be possible and realistic solutions? Do you think companies are willing to be fully transparent of where their materials and items come from? There do exist companies that disclose each country involved in the making of their products, such as Asket, a menswear brand. However, is that too idealistic considering the current global systems in place?

I would love to know what you think in the comments below!