More than one in five fashion brands selling into the US have experienced shipment detention by US Customs and Border Protection (CBP), highlighting gaps in supply chain traceability and regulatory compliance, according to a new report from TrusTrace.
The report, ‘The Enforcement Era: Fashion’s Compliance Readiness in Numbers’, draws on responses from 57 sustainability, compliance and supply chain professionals across 24 countries. Published alongside the Textile Exchange Conference in Vancouver, which is taking place this week, the research examines how prepared fashion businesses are to meet increasingly demanding supply chain requirements.
Only 20% of respondents hold trusted data at tier 4, covering raw materials and farm-level sourcing, while 75% report reliable information about their tier 1 factories. Visibility falls to 33% at tier 3, which covers yarn and fibre.
The findings highlight a significant challenge for brands facing growing demands to demonstrate where materials originate and how products move through supply chains. Of the brands selling into the US that have not experienced shipment detention, 58% consider it a realistic near-term risk.
Regulatory preparedness also remains uneven. Although 69% of respondents are actively preparing for Digital Product Passport (DPP) requirements, they rate the accuracy of their supply chain data at a median of three out of five.
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Meanwhile, only 21% of brands run continuous, automated compliance monitoring across suppliers, while 17% still rely on spreadsheets and email. Nearly half (48%) of US-selling respondents have yet to screen suppliers against US government forced labour entity lists.
The findings come as businesses prepare for evolving requirements, including the EU Deforestation Regulation (EUDR), Packaging and Packaging Waste Regulation (PPWR), and forthcoming EU Forced Labour Regulation and DPP obligations.
Shameek Ghosh, CEO & co-founder of TrusTrace, commented: “Enforcement is no longer on the horizon. It is here.”
He added that while brands had made progress in tracing Tier 1 suppliers, regulators increasingly require evidence from deeper supply chain levels.
Supplier engagement remains a key obstacle, with 60% identifying supplier resistance or limited capability as their main barrier. Meanwhile, 63% said industry-wide supplier data standards would help accelerate progress.
The report recommends a five-stage approach to improving readiness: mapping supply chains, extending visibility to raw materials, connecting data across business functions, automating compliance monitoring and preparing documentation.
It also outlines a 90-day action plan, including assessing supply chain visibility, screening suppliers against relevant government lists and testing documentation against a simulated CBP inquiry.
The research was authored by sustainable fashion journalist Megan Doyle and edited by Pauline God, industry and policy expert at TrusTrace. It includes perspectives from Brooks Running, Komar, UNECE and PIP Global Safety. Download the full report.
[image credit: Green Retail World]
