How to Become Licensed by GoodWeave
When U.S. importers become licensed by GoodWeave, they enter into an agreement with GoodWeave USA. While the impact of becoming certified by GoodWeave is profound, the process of becoming certified is straightforward. To become certified, carpet and rug manufacturers sign a legally binding contract to:
- produce carpets without illegal child labor;
- register all looms in India and Nepal through supplier licensing with local GoodWeave offices;
- allow access to looms for unannounced inspections; and
- pay associated license fees.
For an importer to become licensed, exporters/suppliers in India and Nepal must first be licensed with GoodWeave’s local offices in New Delhi and Kathmandu. If exporters are already licensed and in good standing, an importer may immediately licensed. If the exporter(s) are not licensed, the importer should notify their exporter about their intent to become licensed and request that the exporter contact the appropriate GoodWeave office to initiate licensing.
At the same time, the GoodWeave USA office will notify its local office and request permission to facilitate an initial inspection with the exporter(s). Once all exporters are licensed, the importer may then sign the agreement and become licensed to import GoodWeave certified carpets that bear the GoodWeave label.
Exporter License Fee
The Exporter License Agreement stipulates that suppliers register all looms with GoodWeave, pass an initial inspection, agree to ongoing inspections, and pay license fees of .25% of the export or FOB value of all shipments to help finance monitoring and inspection.
Importer License Fee
The Importer License Agreement outlines that GoodWeave importers pay a 1.75% royalty on the net import value (FOB price) of carpet shipments on a quarterly basis. GoodWeave USA returns 60% of this amount to its overseas offices to educate and rehabilitate former child laborers. The additional amount covers the licensing and marketing expenses of GoodWeave USA to continue to build market share of GoodWeave certified, child-labor-free rugs.
To ensure compliance, carpet looms are monitored regularly by inspectors trained and supervised by GoodWeave. To protect against counterfeiting, each labeled carpet is individually numbered, enabling its origin to be traced back to the production site. As an extra assurance that children will not be employed, nonprofit child welfare organizations not affiliated with GoodWeave are given access to looms and factories inspected by GoodWeave. In the U.S., only licensed GoodWeave importers are legally permitted to sell carpets carrying the GoodWeave label.
License Agreement Overview
The GoodWeave Importer License Agreement governs the relationship between GoodWeave and an importer that sells GoodWeave certified carpets. It outlines a variety of issues regarding the relationship, balancing clear guidelines with a mutual commitment to ending the use of illegal child labor in carpet production and improving the lives of former child laborers.
The contract preamble describes GoodWeave’s objectives and the GoodWeave trademark ownership terms. In addition, the License Agreement covers the following:
- Subject of the License and License product
- Reservation of Rights; Ownership
- Sources of Supply
- Restrictions on Use of Licensed Products and Licensed Marks
- Intellectual Property Rights
- Monitoring and Information Rights
- Confidential Information
- Governing Law and Jurisdiction
- Term of the Agreement
To receive a complete, customized GoodWeave License Agreement, call Scott Welker at 202-234-9050.
You can help us end child labor and transform the lives of the thousands of children trapped in carpet work by making a tax-deductible (USA only) donation today. Every dollar makes a difference.
At the age of five, Manju was already working on the rug looms. While she has since been found and freed from illegal carpet work, some 250,000 children throughout South Asia still toil in obscurity. Through GoodWeave nearly 3,600 kids like Manju have been rescued, rehabilitated and educated, and thousands more deterred from entering the work force.More Stories »
GoodWeave is a full-member of the ISEAL Alliance, the global association for sustainability standards whose Codes of Good Practice are seen as global references for developing and implementing credible standards.