June 17

Transaction Certificates

Producing high-quality, Textile Exchange Standard certified material is no easy task. On top of that, the journey from raw material to finished product is often long and complex. To ensure that these products maintain their integrity and certification as they move through the supply chain, Transaction Certificates are used.

What is a Transaction Certificate?

According to Textile Exchange, a Transaction Certificate “… is a document issued by a certification body that verifies that products being sold or shipped from one organization to another conform to a given Standard and may be treated as claimed materials by the receiver”.

In other words, the Transaction Certificate is the industry standard used to prove that any goods sold are indeed responsibly sourced and meet the Standards that they are claiming to. These Transaction Certificates contain information regarding the product itself, all of the pertinent shipping information as well as information about the supply chain up until that point.

These are important because they verify that the shipment and product information is both true and accurate and that the flow of goods is documented properly. Everything from the seller and buyer, product weights and certified components are listed on Transaction Certificates.

Why Are Transaction Certificates Important?

Transaction Certificates are the foundational element that allows a product to receive and maintain certification for any particular Standard. Without Transaction Certificates (TC), there would be no way to ensure that the product received at the end of the supply chain (the product that goes into the hands of the consumer) is made from or contains the material that is claimed by the manufacturers. 

Consumers and manufacturers want assurances that their products are traceable back to the source. TC’s provide that desired transparency through a fully visible and certified supply chain all the way back to the farm. 

How Do I Receive Transaction Certificates?

If you are purchasing a product and wish to receive a Transaction Certificate, you will be provided one from the supplier that sold you the product. The official documents are provided to your supplier from the certification body that ensures they qualify for the stated Standards. After your products have been shipped, if that seller is approved, their documents will be given to them and should then be passed on to you. 

Is the Process Different If I am Selling Material?

If you are looking to acquire a Transaction Certificate for a material you are selling, you must follow these steps. 

  1. You must be issued a scope certificate from an accredited certification body for the product that you are selling.
  1. With a scope certificate you can then claim the material that you have been certified for.
  1. When you sell your product, you apply for a Transaction Certificate from your certification body.

Products that adhere to Textile Exchange Standards are extremely valuable in the marketplace and being able to provide substantiating documentation is key to maximizing that value for your consumers and your company.

How Can I Get Started?

IDFL is a leader in the certification of products and materials. Reach out to IDFL today at audits@idfl.com and see how IDFL audits can help you today.

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