Adapting to Change: How Importers and Exporters Can Thrive Under Chile’s New Textile Regulations

1. Chile’s 2025 New Import Policy: Key Highlights and Impacts

On July 4, 2025, Chile officially included textiles in its Extended Producer Responsibility (EPR) Law (Ley REP), through Resolution №3914/2025 issued by the Ministry of Environment. This move marks a historic turning point: for the first time, clothing and textiles are treated as a “priority product,” requiring producers and importers to take responsibility not only for placing goods on the market but also for what happens at the end of their lifecycle.

Under the new regulation:

Mandatory registration: All companies producing or importing clothing must register with the RETC (Registro de Emisiones y Transferencias de Contaminantes).
Annual reporting: Firms must declare the quantity of textiles they place on the Chilean market each year. The first reporting period, covering 2024, will close on September 15, 2025.
Upcoming recycling targets: The government will issue a Supreme Decree to set collection, recycling, and reuse goals for textiles, likely phased in from 2026 through 2029.

What makes this significant is that the policy does not ban imports. Instead, it is designed to encourage sustainable, transparent trade and to push both domestic producers and foreign exporters toward higher-quality, reusable, and recyclable textile flows.

For secondhand clothing, the implications are especially critical:

Importers are legally considered “producers” under the EPR framework, meaning they are directly responsible for reporting and compliance.
Bulk imports of unsorted, low-quality bales that often result in large volumes of waste will face mounting pressure, both from compliance costs and future recycling obligations.
Conversely, suppliers and importers able to guarantee graded, reusable, and traceable clothing will gain a competitive advantage, aligning with Chile’s shift toward a circular economy.

This shift resonates far beyond Chile. It mirrors policy developments in Europe and Asia, positioning Chile as a regional leader in Latin America’s sustainable textile agenda. It also opens opportunities: by improving quality and traceability, businesses can reduce waste, support local recycling and repair industries, and build stronger reputations in international trade.

2. How Should Chilean Secondhand Clothing Importers Respond to the New Policy?

The inclusion of textiles in Chile’s Extended Producer Responsibility (EPR) Law represents both a challenge and an opportunity for local importers. While compliance introduces new administrative and financial burdens, those who adapt early will be well-positioned to thrive in a market shifting toward higher quality, transparency, and sustainability. Below are key strategies for navigating this transformation:

2.1 Ensure Immediate Compliance: Registration and Reporting

The first and most urgent step for all importers is legal compliance.

Register with RETC: Every company importing textiles — including secondhand clothing — must register with Chile’s national emissions and waste tracking system (RETC).
Prepare 2024 data: Importers are required to submit the volume of textiles placed on the market during 2024 by September 15, 2025. This requires gathering invoices, bills of lading, and sales records in a standardized format.
Build traceability systems: Even if the decree on recycling targets has not yet been published, importers should start categorizing imports by type, grade, and weight to streamline future reporting.

👉 Key takeaway: Compliance is non-negotiable. Those who delay registration or fail to report face fines, reputational damage, and potential restrictions on future imports.

2.2 Upgrade Supply Chain Transparency and Quality

The new policy directly penalizes low-quality, unsorted bales that generate excessive waste. Importers must pivot toward higher-quality and traceable supply chains:

Demand pre-sorting at source: Work with overseas suppliers who can provide graded clothing (A/B/C categories) and basic fiber composition data.
Negotiate “quality and traceability agreements”: Make it contractual for suppliers to disclose bale composition, origin, and usable rate.
Invest in documentation: Require suppliers to issue certificates or digital records that can support annual reporting and future recycling targets.

👉 Key takeaway: Importers who prioritize traceability will reduce compliance risks, gain trust from wholesalers and retailers, and build a long-term market advantage.

2.3 Build Local Sorting and Recycling Partnerships

EPR is not only about reporting — it’s about responsibility for what happens to textiles after use. This creates both costs and opportunities:

Sorting and refurbishment hubs: Importers can partner with or invest in local facilities to separate resalable items from waste. This reduces disposal burdens and increases resale margins.
Recycling and valorization channels: Establish links with textile recyclers, upcyclers, and material recovery companies. By proving “valorization capacity,” importers can offset future obligations.
Support community initiatives: Collaborating with local repair shops, sewing cooperatives, or NGOs can help fulfill EPR goals while strengthening social reputation.

👉 Key takeaway: Importers who connect with local recycling ecosystems will spread compliance costs while unlocking new revenue streams.

2.4 Reassess the Business Model and Cost Structure

EPR obligations will inevitably raise costs — both for compliance and waste management. Importers should:

Recalculate profitability of unsorted bales: The margin on low-quality shipments may no longer cover the added costs of reporting, recycling, or disposal.
Shift toward premium categories: Focus on denim, sportswear, children’s clothing, and outerwear with high resale value and longer lifespans.
Pass some costs downstream: Work with wholesalers and retailers to adjust pricing structures, emphasizing the added value of compliant, high-quality products.

👉 Key takeaway: A survival strategy requires moving away from the old “cheap volume” model and embracing a “quality and compliance” business model.

2.5 Anticipate Market Consolidation and Position for Growth

The new rules raise the barrier to entry, which could reshape the industry:

Smaller importers may exit: Those lacking the resources to handle compliance will find it harder to survive.
Stronger players will consolidate: Larger importers with robust reporting systems and recycling partnerships will dominate.
New opportunities in services: Compliance consulting, waste management, and circular textile services will become growth sectors in Chile.

👉 Key takeaway: Importers who adapt early can seize market share as weaker competitors exit, becoming trusted long-term partners for both suppliers and customers.

✅ Overall Guidance for Importers:
The new EPR framework is not a temporary regulation — it is the beginning of a structural shift in Chile’s textile industry. Importers who focus on compliance, transparency, and quality will not only survive but thrive. By embedding sustainability into their business models, they can strengthen partnerships with suppliers, customers, and regulators, ensuring resilience in the years ahead.

3. How Should Export Factories and Traders Supplying Chile (and South America) Respond?

While Chile’s EPR law is applied domestically, its ripple effects extend far beyond its borders. Exporters supplying Chile — or neighboring South American markets with similar restrictions — must adapt their practices to remain competitive and compliant.

3.1 Strengthen Sorting, Grading, and Quality Control

Chile’s new framework punishes imports with high waste ratios. Exporters must upgrade their sorting and grading systems:

Implement stricter classification: Ensure every shipment clearly separates A, A-, B, and C grades, with waste and non-reusable items filtered out before shipping.
Invest in pre-sorting technology: Semi-automated baling, ERP-linked tracking, and fiber detection can raise efficiency and consistency.
Align with Chile’s resale market: Focus shipments on categories with proven demand (denim, sportswear, children’s wear, outerwear) while minimizing unusable or low-value textiles.

👉 Exporters who guarantee “low waste, high resale” bales will become preferred partners for Chilean importers.

3.2 Provide Transparency and Documentation

Compliance is now tied to traceability. Exporters should be ready to deliver:

Certificates of origin and grade: State the country of source, sorting factory location, grade ratios, and estimated reusable rate.
Digital batch records: QR codes, batch IDs, or Excel/CSV files to help importers prepare their RETC submissions.
Sustainability statements: Highlight pre-sorting efforts, recycling practices, and compliance with global circular economy trends (EU, UN, etc.).

👉 The more transparent the export documentation, the easier it becomes for Chilean partners to comply — and the more likely they are to prioritize those exporters.

3.3 Adjust Product Mix for South America’s Market Conditions

Not all countries in South America are as open as Chile. Exporters must balance their portfolios:

Chile: High-quality, traceable bales with documentation support.
Colombia: Imports permitted but with high tariffs/licensing. Exporters should offer higher-margin categories that justify costs.
Peru, Bolivia, Ecuador, Paraguay, Brazil, Argentina: Many maintain bans or strict restrictions. Exporters should explore indirect entry (remanufactured textiles, recycled fibers, or entry via regional hubs like Iquique).

👉 Strategy: Treat Chile as the “gateway market”, and prepare for eventual regional harmonization on circular economy standards.

3.4 Collaborate on Recycling and Post-Sale Solutions

EPR emphasizes not just selling textiles but managing their lifecycle. Exporters can differentiate by:

Offering “take-back” or recycling partnerships: Collaborating with Chilean recycling firms to co-manage unsellable goods.
Co-developing valorization models: E.g., exporting high-quality reusable items while supporting Chile in recycling the residual waste into fibers or rags.
Positioning as a sustainability partner: Not just a supplier, but a contributor to Chile’s circular economy goals.

👉 Exporters who help solve the “unsellable waste problem” will gain trust and long-term contracts.

3.5 Turn Policy into Competitive Advantage

While some exporters may view the policy as a burden, forward-looking ones will seize it as a market differentiator:

Highlight compliance readiness in marketing: Showcase that your bales are pre-sorted, low waste, and documentation-ready.
Build joint branding with importers: Position your supply as a key enabler of Chile’s transition to sustainable textiles.
Anticipate future global alignment: As the EU, US, and other regions adopt similar laws, exporters who adapt now will be ahead of the curve internationally.

✅ Overall Guidance for Exporters:
Export factories and traders must rethink their role in the value chain — from being suppliers of goods to being partners in compliance and sustainability. By focusing on sorting quality, traceability, documentation, and recycling support, exporters will not only keep their access to Chile but also secure long-term competitive advantage across South America and beyond.

4. DoDoBird Used Clothing’s Perspective and Commitment

At DoDoBird Used Clothing, we view Chile’s new EPR framework not as an obstacle, but as an opportunity to reinforce the principles we have always stood for: stable quality, rigorous sorting standards, and multi-category specialization.

From the very beginning, our mission has been to help shape a healthier and more sustainable secondhand clothing industry. Every bale that leaves our facility reflects this commitment:

Strict classification systems (A, A-, B, and beyond) to ensure transparency and reliability.
Multi-category variety that meets the diverse needs of wholesalers and retailers across different climate zones and consumer profiles.
Sustainable operations that minimize waste and maximize reusability, aligning with the circular economy principles now being embedded into Chile’s policies.

We fully understand and support the direction of Chile’s 2025 policy. By emphasizing accountability, transparency, and circularity, it sets the stage for a stronger, more trusted secondhand ecosystem — one where both importers and exporters can thrive on the basis of quality, not volume of waste.

At the same time, we recognize that many local importers, wholesalers, and distributors in Chile may face new challenges during this transition: registration, reporting, cost-sharing, and stricter expectations from regulators and the public.

That is why DoDoBird is committed to standing alongside our partners, offering:

Clear grading and documentation to simplify compliance reporting.
Tailored product mixes designed to maximize resale value and minimize regulatory burdens.
Strategic support for building recycling and valorization channels, ensuring unsellable textiles do not become a liability.

Our goal is simple: to be not just a supplier, but a long-term partner for our clients as they navigate this evolving landscape.

We believe that, together, we can turn these policy shifts into a catalyst for positive change — building a secondhand clothing industry in Chile, and across South America, that is more resilient, transparent, and sustainable.

👉 With cooperation, innovation, and a shared vision, we can ensure that the industry not only adapts, but prospers — delivering benefits to businesses, local communities, and the environment alike.

#UsedClothing #CircularEconomy #SustainableFashion
#TextileRecycling #EPRPolicy #GlobalTrade
#SecondhandMarket #LatinAmericaBusiness #ChileMarket
#ImportExport

搜索此博客

DODOBird：Your Expert for Second-Hand Clothing Sourcing