TC New Regulations Overview | Textile Exchange Releases Blockbuster Transaction Certificate Application Verification Checklist! Authenticity, Consistency, and Compliance Are the Core Red Lines
Recently, Textile Exchange (TE) officially released the "TE-TXL-TEM-209-V1.0 Transaction Certificate Application Checklist", which establishes new audit rules for the application of Transaction Certificates (TC) in the global textile industry.
This list will officially take effect and be put into immediate use from June 1, 2026,
It will be fully enforced from April 1, 2027. By then, the issuance of all TC certificates must strictly adhere to this checklist, with the audit threshold being comprehensively raised. Authenticity, consistency, and compliance will become the three core red lines that run through the entire audit process.
The editor has compiled relevant key points for your reference. If you have any questions, please contact the ASCP team in a timely manner.
TC Verification Checklist - Mandatory Requirements Overview
As shown in the figure, please refer to the latest TC application verification checklist.
For a more detailed interpretation, please continue reading below.
1. TC Application Verification Checklist - Authenticity
This checklist sets forth comprehensive and traceable mandatory requirements for the authenticity of application materials, encompassing all aspects including subject qualifications, transaction documents, certificates and vouchers, and original records.
Zero tolerance for the authenticity of transaction documents
All TC applications must provide official government invoices/electronic invoices that meet legal requirements.
For applications in the China region, it is mandatory to provide invoices and verify their authenticity through official channels.
All attachments must be clear, complete, and have all pages present to ensure that the reviewer can read and verify them clearly. Cropped or blurred attachments will be directly rejected.
The authenticity of qualification certificates can be verified throughout the entire process
The seller's SC certificate must be traceable in the Trackit™ system, and the transaction date must fall within the validity period of the SC certificate.
All raw material TC entries must be completed in the Trackit system and be accessible for real-time querying.
For high-risk scenarios such as OCS organic cotton, additional authenticity verification is required.
The authenticity of the original records can be traced back
For key supply chain links such as ginning plants and recyclers, the checklist sets specific authenticity verification requirements. Recyclers must complete the compliant upload of the RMDF file on the Trackit™ platform within 7 calendar days after receiving the buyer's documents.
II. TC Application Verification Checklist - Consistency
The checklist specifies that the core information in all application materials must achieve 100% matching; otherwise, the application will be rejected.
01 Consistency of subject information
The seller's factory information must fully match the information in the invoice and Scope Certificate (SC), with a focus on verifying the consistency of the SC record in the Trackit™ system.
The name and address of the factory applied for must fully match the registration information in TE-ID, with emphasis on verifying the consistency of city, province, and postal code.
The subject information of the buyer and seller, Ship To TE-ID, and the registered name and address of the TE-ID must be completely consistent in all supporting documents and TC applications.
02 Consistency of transaction information
The certified product information in the invoice must fully match the product quantity, description, batch/batch number, and item number in the TC application.
The currency and amount specified in invoices, purchase orders (POs), and transportation documents must be completely consistent. If the currencies are different, an exchange rate description document must be provided.
For purchase orders (POs), it is necessary to complete the information verification between the PO, invoice, and TC application to ensure consistency of information.
III. TC Application Verification Checklist - Compliance
01 Time compliance
A complete and valid TC application must be submitted within 180 calendar days after the earliest shipment date. Applications exceeding 180 days may also be accepted if they meet the standard terms and conditions. Applications exceeding the deadline without compliance basis will be directly rejected.
The seller's SC certificate must remain valid throughout the entire lifecycle of product labeling, shipping, and sales, and the transaction date must fall within the validity period of the SC.
02 Compliance of the subject
Screen the list of prohibited entities and conduct relevant verification.
03 Subcontracting Compliance
Relevant documents of subcontractors, such as processing invoices and transportation documents, must be fully verified, and subcontractors must be recorded in the seller's Scope Certificate (SC).
04 System Compliance
All relevant SC, TC, and RMDF files must be traceable and verifiable on the Trackit platform.
05 Regional differentiated compliance
China region: It is mandatory to provide official and formal invoices and verify their authenticity. All applications must comply with China's tax and trade regulatory requirements, while also meeting the general compliance standards of TE.
06 Compliance in high-risk scenarios
For high-risk scenarios such as OCS organic cotton, recycled materials, and ginning processing, the checklist sets out specific compliance control requirements.
For this new regulation, industry entities need to prepare in advance, fully implement the requirements of the checklist, strictly adhere to the compliance bottom line, and jointly maintain a healthy development environment for the textile industry. For more information, please contact the ASCP team.
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