CIRCULARITY GUIDE

The EU Ban on Destroying Unsold Clothing and Footwear: What Applies Since 19 July 2026

Published 03.10.2026 · Updated 20.10.2026 · Reading time ~12 min · by Lior Gabriel Graetz · LG Fashion Labs

Since 19 July 2026, Article 25(1) of the Ecodesign for Sustainable Products Regulation (ESPR) has prohibited the destruction of unsold apparel, clothing accessories and footwear. Micro and small enterprises are not covered and medium-sized enterprises follow on 19 July 2030, so for now the ban binds large enterprises. Two Commission acts of 9 February 2026 complete it: Delegated Regulation (EU) 2026/296 sets out the ten circumstances in which destruction is still allowed, and Implementing Regulation (EU) 2026/2 sets a common disclosure format, applicable from 2 March 2027.

This guide covers the products and companies in scope, what counts as "destruction", the derogations and the evidence each needs, the wider disclosure duty and how compliance is checked. The European Environment Agency estimates that 4–9% of all textile products put on the market in Europe are destroyed before use. The ban is separate from the Digital Product Passport and needs no product-specific delegated act.

19 Jul 2026

The date from which ESPR Article 25(1) prohibits destroying the apparel, clothing accessories and footwear listed in Annex VII. Medium-sized enterprises follow on 19 July 2030; micro and small enterprises are not covered.

10 derogations

Article 2 of Delegated Regulation (EU) 2026/296 lists ten circumstances, points (a) to (j), in which destruction is still allowed, each tied to documentation to be kept for five years (Article 3).

2 Mar 2027

Implementing Regulation (EU) 2026/2 applies from this date. Its common disclosure format covers each financial year from the first full financial year after that date; disclosure is due within 12 months of the year's end.

1. What the ban covers

Annex VII to ESPR, headed "Consumer products of which the destruction by economic operators is prohibited", lists the products by Combined Nomenclature (CN) code, in the version in force on 28 June 2024:

GroupCN codeDescription (abridged from Annex VII)
1. Apparel and clothing accessories4203Articles of apparel and clothing accessories, of leather or composition leather
61Articles of apparel and clothing accessories, knitted or crocheted
62Articles of apparel and clothing accessories, not knitted or crocheted
6504Hats and other headgear, plaited or made by assembling strips of any material
6505Hats and other headgear, knitted or crocheted, or made up from lace, felt or other textile fabric, in the piece; hairnets
2. Footwear6401 to 6405Footwear with outer soles and uppers of rubber or plastics (6401 waterproof, 6402 other); with uppers of leather (6403); with uppers of textile materials (6404); other footwear (6405)

Not on the list: heading 4202 (handbags, wallets, travelling bags, rucksacks and similar containers), heading 4303 (articles of furskin) and the home textiles of Chapter 63, such as blankets, bed linen and curtains. The ban does not reach them, but they still count for the disclosure duty (section 4). Under ESPR recital 59, Member States may introduce or maintain national measures on the destruction of unsold consumer products outside the EU prohibition, provided those measures are in line with Union law.

Three definitions in ESPR Article 2 set the boundaries. An "unsold consumer product" is any consumer product not sold, "including surplus stock, excess inventory and deadstock", and products returned by a consumer under the right of withdrawal of Directive 2011/83/EU or during a longer withdrawal period provided by the trader (point 37). A "consumer product" is a product primarily intended for consumers, excluding components and intermediate products (point 36). "Destruction" means "the intentional damaging or discarding of a product as waste", except discarding solely to deliver the product for preparing for reuse, including refurbishment or remanufacturing (point 34). Recital 55 spells out the consequence: destruction covers "the last three activities on the waste hierarchy, namely recycling, other recovery and disposal". Recycling unsold garments is destruction; preparing them for reuse is not.

The Commission's ESPR FAQ of 25 September 2024, which is guidance rather than legislation, adds that free samples and testers are not unsold consumer products (question 127) and that the provisions apply only to products placed on the EU market (question 126).

2. Who it applies to, and from when

Annex VII refers to destruction "by economic operators": under ESPR Article 2, point 46, the manufacturer, the authorised representative, the importer, the distributor, the dealer and the fulfilment service provider. Brands, retailers and fulfilment service providers can all fall within it; what decides is size. ESPR takes its size categories from Commission Recommendation 2003/361/EC: a microenterprise employs fewer than 10 persons, with turnover and/or balance sheet total of no more than EUR 2 million; a small enterprise fewer than 50 persons and EUR 10 million; and an SME as a whole fewer than 250 persons, with turnover of no more than EUR 50 million and/or balance sheet total of no more than EUR 43 million. The Recommendation's Annex calculates headcount and financial figures including the data of partner and linked enterprises (Articles 3 to 6), so a brand inside a larger group should check the group's figures, not only its own; see our SME thresholds comparison.

ESPR obligationLarge enterprisesMedium-sized enterprisesMicro and small enterprises
Take necessary measures which can reasonably be expected to prevent the need to destroy unsold consumer products (Article 23)AppliesAppliesApplies
Annual disclosure of discarded unsold consumer products (Article 24(1))From the first full financial year during which ESPR is in forceFrom 19 July 2030Does not apply
Ban on destroying Annex VII products (Article 25(1))From 19 July 2026From 19 July 2030Does not apply
No destruction of unsold consumer products supplied to them to circumvent the ban (Article 25(2))— (subject to the ban itself)Applies while not subject to the banApplies

Two points follow. First, the disclosure duty already runs for large enterprises: ESPR entered into force on 18 July 2024, and the first disclosure covers products discarded "during the first full financial year during which this Regulation is in force" (Article 24(1)). The Commission's FAQ (question 128) reads this as the first financial year starting after entry into force, disclosed in the following financial year; on that reading, a company whose financial year is the calendar year reports its 2025 discards in 2026. Second, the exemption has a limit: operators not subject to the ban must not destroy unsold consumer products supplied to them "with the purpose of circumventing that prohibition" (Article 25(2)). Article 25(5) also allows the Commission, where relevant, to extend the ban or the disclosure duty to micro and small enterprises by delegated act where there is sufficient evidence that they could be used for circumvention; Delegated Regulation (EU) 2026/296 does not do so.

3. The ten situations in which destruction is still allowed

Article 25(5) ESPR named seven grounds for derogations, from health, hygiene and safety to intellectual property and, last, environmental impact. Delegated Regulation (EU) 2026/296, published on 22 April 2026 and applicable from 19 July 2026, turns the first six into ten circumstances in which Annex VII products may be destroyed, "provided that the documentation referred to in Article 3 can be presented":

PointWhen destruction is allowed (Article 2)Documentation to keep (Article 3)
(a)The product is a dangerous product within the meaning of the General Product Safety Regulation (EU) 2023/988.A description of the health or safety concern, including a safety assessment under that Regulation, or a test report showing non-compliant chemicals and the applicable Union or national law.
(b)The product is unfit for purpose because it does not comply with Union or national law, for reasons other than those in point (a), and destruction is required by law or is the appropriate and proportionate corrective action.A self-assessment statement giving the type of non-compliance and the applicable law.
(c)The product infringes intellectual property rights, as found by a final judicial decision, an alternative dispute resolution decision, a notification by a right holder, a competent authority or an entity authorised to act on behalf of a right holder, or an internal investigation carried out by the operator, and the operator can duly substantiate the infringement.The decision or notification, or documentation of the internal investigation.
(d)A valid and enforceable licence or similar contractual requirement protecting intellectual property makes any sale or transfer after a specified period an infringement, that period has expired, and the operator can duly substantiate the infringement and demonstrate that destruction is the appropriate and proportionate corrective action.The licence, contract or agreement concluded with the rightsholder that explicitly specifies the restriction on distribution or other transfer after the specified period, with a justification that destruction is appropriate and proportionate.
(e)Labels, logos or recognisable product design or other characteristics that are protected by intellectual property rights, or considered inappropriate, cannot technically be removed or rendered permanently inaccessible, so the product is unsuitable for preparing for reuse or remanufacturing.An inspection report or supporting documentation showing that the technical options were assessed and found unfeasible.
(f)The product can reasonably be considered unacceptable for consumer use due to damage, deterioration or contamination (including hygiene issues), whether caused by consumers or in the supply chain, and repair and refurbishment are not technically feasible or cost-effective.Evidence that the product went through quality assessment procedures, including visual inspection and sorting that prioritises restocking and repairs, with a description of the procedure, standardised remediation plans for specific types of damage and a description of the cases in which repair and refurbishment are not possible for technical or cost-effectiveness reasons; or an inspection record documenting the type and severity of the damage and why corrective measures are unfeasible.
(g)Design or manufacturing defects make the product unfit for its intended purpose, and repair is not technically feasible.As for point (f), on technical grounds only.
(h)Only where none of points (a) to (g) applies: the product was offered for donation either directly to at least three suitable social economy entities located within the Union or on an easily accessible page of the operator's website, for a period of at least eight weeks, and was not accepted.Evidence of the offer for donation.
(i)A social economy entity located within the Union received the product as a donation, but no recipient could be found for it.A declaration to that effect.
(j)The product was made available on the market after being prepared for reuse by a waste treatment operator, but no recipient could be found for it.Documentation that the product came from a waste treatment operator and that no recipient could be found.

Article 1 defines "cost-effective", the test in point (f): repairing or refurbishing a product must not cost more than destroying it plus the materials, manufacturing, packaging, transport, stocking and other administrative or logistical expenses of replacing it. The documentation must be kept for five years after destruction and supplied in electronic form within 30 days of a request, unless the authority already holds it under another legal act (Article 3), and the waste treatment operator receiving the products must get a statement of the applicable derogation (Article 4). Recital 3 adds that destruction under a derogation is to follow the waste hierarchy, "prioritising recycling over other recovery, including energy recovery, and disposal operations".

One ESPR ground has no counterpart: Article 25(5)(g) allowed a derogation where "destruction is the option with the least negative environmental impacts", and none of the ten circumstances is framed on that ground. Instead, Article 5 asks the Commission to consider in its review, due whenever a product is added to Annex VII and by 12 May 2031 at the latest, whether new scientific data or the state of the art of technology justify a derogation for high-quality recycling technologies.

DPP AUDIT

The derogation evidence and the records behind the disclosure are product data, kept for five years.

Test reports, inspection records, licence terms and donation offers must be kept for five years after destruction and produced within 30 days of a request; once the Implementing Regulation applies, waste operators' reception and treatment statements must be kept for five years after disclosure. We help you set up that record-keeping alongside your passport data. Under NDA.

Start Your DPP Audit

4. The disclosure duty: what to publish, where and when

The disclosure duty in Article 24 is wider than the ban: it covers every unsold consumer product an operator discards, directly or through others. Each year the operator must disclose (a) the number and weight discarded, by type or category; (b) the reasons and any derogation relied on; (c) the proportions delivered to preparing for reuse, recycling, other recovery including energy recovery, and disposal; and (d) the measures taken and planned to prevent destruction. The information goes "in a clear and visible manner at least on an easily accessible page of their website"; operators subject to sustainability reporting under Article 19a or 29a of Directive 2013/34/EU may also include it in that reporting. Once the Implementing Regulation applies, an operator that includes the information in the Annex I format in its sustainability reporting, whether mandatory or voluntary, may instead put a link to that report on its website with a clear mention of where the information is (Article 2(2)).

Implementing Regulation (EU) 2026/2 applies from 2 March 2027, to products discarded in each financial year "as from the first full financial year after the date of application", with disclosure due within 12 months of the end of that financial year (Articles 1 and 7). On that wording, a company whose financial year is the calendar year uses the format first for its 2028 discards, disclosed by the end of 2029. Recital 8 confirms that the ESPR duty itself runs in the meantime. (The Commission's announcement of 9 February 2026 said "February 2027"; the Official Journal text says 2 March 2027.)

The Annex I format asks for the legal entity and its identifier (the EUID or, where none is available, another identifier from an officially recognised scheme in the Member State concerned); standalone or consolidated disclosure, listing the subsidiaries that discard; the financial year; and, per product category and reason, the number of units, the weight in kilograms (stating whether packaging is included) and the percentages, by weight, sent to preparing for reuse, recycling, other recovery, disposal or "unknown". Units may be estimated from an accurately determined weight, or the weight from an accurately determined number of units; estimated values should be marked "±". As the format puts it, "Destruction is the sum of recycling, other recovery and disposal."

Categories use the first two digits of the CN code as the rule (61 for knitted apparel, 64 for footwear) and four digits for the products in Annex II, which for fashion and textiles include 4202 (bags and similar containers), 4203 (apparel and clothing accessories of leather), 4303 (furskin articles), 6301 to 6304, 6306 and 6307 (blankets, household linen, curtains, furnishing articles, tents and camping goods, other made-up articles) and 9404 (mattresses and articles of bedding such as quilts, eiderdowns, cushions and pillows). Donated products are outside the disclosure because, as recital 3 explains, the intention is not to discard them.

5. How compliance is checked, and what comes next

Competent national authorities check compliance. Annex III to the Implementing Regulation sets a risk-based approach, flagging for example missing or unusually low disclosures compared with peers or earlier years, a high percentage of "unknown" waste treatment and a record of non-compliance. Authorities can request records of deliveries to waste treatment operators; if the disclosed figure and the figure calculated from those records differ by less than 10 % of the disclosed figure, the operator is considered as complying with the disclosure requirement. Derogations are presumed applicable when the documentation required by Delegated Regulation (EU) 2026/296 is made available and meets its requirements. Under the Implementing Regulation, delivery and reception records must be kept for five years after disclosure (Article 4); ESPR Article 24(2) already requires the documentation to be provided within 30 days of a request.

Penalties are national: ESPR Article 74 requires effective, proportionate and dissuasive penalties and that Member States be able to impose at least fines and time-limited exclusion from public procurement procedures; see our penalties guide. Two pending Commission proposals touch these rules: COM(2025) 504 would require the Article 24(2) documentation in electronic form only (the provisional agreement announced on 9 June 2026, confirmed by a Coreper letter dated 26 June 2026, was approved in the Parliament's committee on 14 July 2026, and the first-reading plenary is indicatively scheduled for 23 November 2026), and the proposed Public Procurement Act, COM(2026) 590, would delete the procurement-exclusion penalty from ESPR Article 74(3) and cover it through the new Act's own exclusion grounds. Neither had been adopted on 20 October 2026.

By 19 July 2027 and every 36 months after that, the Commission must publish consolidated information on the destruction of unsold consumer products, based on the disclosures (Article 26). It may add products to Annex VII by delegated act (Article 25(3)). ESPR recital 60 named electrical and electronic equipment for consideration in the first working plan, but in the Working Plan 2025–2030 the Commission states that it "does not intend to use this provision" for that plan, because the insights from the mandatory disclosures "are not yet available".

6. Where the Digital Product Passport fits

Neither the ban nor the disclosure duty is a Digital Product Passport requirement. The passport applies to a product group through delegated acts under ESPR Article 4 (Article 9(1)); Chapter VI needs none, because Article 25(1) and Annex VII fix the products and the date themselves. A large brand is therefore already bound by the ban, while the textile passport still awaits its delegated act; see our DPP master timeline. What the two share is the need for well-kept records: the derogation documentation must be kept for five years after destruction (Article 3 of Delegated Regulation (EU) 2026/296) and, under the Implementing Regulation, the delivery and reception records behind the disclosure for five years after disclosure (Article 4 of Implementing Regulation (EU) 2026/2).

7. What to do now

Classify each legal entity under Recommendation 2003/361/EC, taking partner and linked enterprises into account. For a large enterprise, the ban and the disclosure duty apply now; for a medium-sized enterprise, from 19 July 2030.

Map your assortment to Annex VII by CN code. Heading 4203, chapters 61 and 62, headings 6504 and 6505 and headings 6401 to 6405 are covered; 4202, 4303 and Chapter 63 are not, but they count for the disclosure.

Keep unsold stock out of destruction through sale, donation or preparing for reuse. Where destruction is unavoidable, record which of points (a) to (j) applies, keep the Article 3 documentation for five years and give the waste treatment operator the Article 4 statement.

Publish the annual disclosure on an easily accessible page of your website, keep the delivery and reception records (five years after disclosure under the Implementing Regulation), and use the Annex I format from the first full financial year after 2 March 2027.

Frequently asked questions

Does the ban apply to clothes returned by online customers? +
Yes. ESPR's definition of an unsold consumer product (Article 2, point 37) expressly includes products returned by a consumer on the basis of their right of withdrawal under Directive 2011/83/EU, or during any longer withdrawal period provided by the trader. An operator subject to the ban may therefore destroy returned apparel, clothing accessories or footwear listed in Annex VII only under one of the derogations in Delegated Regulation (EU) 2026/296, for example Article 2, point (f), where the product can reasonably be considered unacceptable for consumer use due to damage, deterioration or contamination and repair and refurbishment are not technically feasible or cost-effective.
Is recycling unsold clothing allowed under the ban? +
Not as a way around it. ESPR defines destruction as the intentional damaging or discarding of a product as waste, except discarding for the sole purpose of delivering it for preparing for reuse, including refurbishment or remanufacturing (Article 2, point 34), and recital 55 states that destruction covers recycling, other recovery and disposal. Recycling Annex VII products is therefore possible only where a derogation applies; in that case, recital 3 of Delegated Regulation (EU) 2026/296 gives recycling priority over other recovery and disposal. Preparing products for reuse is not destruction.
Does the ban apply to small fashion brands? +
Not to micro and small enterprises as defined in Commission Recommendation 2003/361/EC, which ESPR uses; a small enterprise employs fewer than 50 persons and has a turnover and/or balance sheet total not exceeding EUR 10 million. Medium-sized enterprises are covered from 19 July 2030. Three caveats: under the Recommendation's Annex, the data of partner and linked enterprises are included in the size calculation; the Commission may, where relevant, extend the ban or the disclosure duty to micro and small enterprises by delegated act where there is sufficient evidence that they could be used for circumvention (Article 25(5)); and under Article 25(2) an operator that is not subject to the ban must not destroy unsold consumer products supplied to it with the purpose of circumventing the ban.
Can we donate unsold stock instead, and do donations have to be disclosed? +
Yes, and no. Donated products are outside the disclosure duty: recital 3 of Implementing Regulation (EU) 2026/2 explains that, in the case of donation, the intention is not to discard the products. If a donation offer is not accepted, Article 2, point (h), of Delegated Regulation (EU) 2026/296 allows destruction, but only where none of points (a) to (g) applies and the product was offered for donation either directly to at least three suitable social economy entities located within the Union or on an easily accessible page of the operator's website, for a period of at least eight weeks. Keep evidence of the offer.
Are handbags and home textiles covered by the ban? +
No. Annex VII lists apparel and clothing accessories (CN 4203, chapters 61 and 62, headings 6504 and 6505) and footwear (headings 6401 to 6405). It does not list heading 4202 (handbags, wallets, travelling bags and similar containers), heading 4303 (furskin articles) or the home textiles of Chapter 63. Discarding them still counts for the annual disclosure under Article 24, and Member States may introduce or maintain national measures on the destruction of products outside the EU ban, provided they are in line with Union law (ESPR recital 59). The Commission can add products to Annex VII by delegated act, but its Ecodesign Working Plan 2025–2030 states that it does not intend to do so in this first working plan.

Sources

ESPR, Delegated Regulation (EU) 2026/296, Implementing Regulation (EU) 2026/2, Recommendation 2003/361/EC and the Commission documents COM(2025) 187, COM(2025) 504 and COM(2026) 590 were read in the versions published by the EU Publications Office (EUR-Lex). ESPR has not been amended; its only consolidated version is dated 28 June 2024 and already incorporates the corrigenda of 7 August 2024 and 28 April 2025. The Commission pages, the Commission's ESPR FAQ and the EEA briefing were accessed on 03.10.2026. This is general information, not legal, financial or investment advice.