In the organic textile supply chain, Transaction Certificates (TCs) play a decisive role in proving that products sold as organic truly meet certification requirements. While many organisations hold valid certifications, only Transaction Certificates verify that a specific shipment contains certified goods.
To strengthen transparency, prevent misuse, and ensure global consistency, GOTS introduced a structured policy governing how Transaction Certificates are issued, managed, and verified. This guide explains the key takeaways, rules, and compliance expectations in a clear and practical way.
What Is a GOTS Transaction Certificate?
A Transaction Certificate is an official document issued for a specific shipment or group of shipments of certified textile products. It confirms that the goods sold comply with organic and social criteria under the certification system.
Transaction Certificates:
Apply to products and shipments, not organisations.
Are mandatory for business-to-business trade.
Serve as proof of chain-of-custody and material integrity.
Support buyer due diligence and regulatory compliance.
Without a Transaction Certificate, organic claims for traded goods cannot be verified.
Who Can Receive a Transaction Certificate?
Transaction Certificates can only be issued when strict eligibility conditions are met:
The seller must hold a valid certification covering the products sold
The certification must be valid on the shipment date
The same Certification Body must issue both the organisation’s certification and the Transaction Certificate
Certificates cannot be issued if certification is suspended, withdrawn, or expired
This ensures accountability and prevents retroactive certification misuse.
Why Transaction Certificates Are Confidential
Transaction Certificates contain sensitive commercial and traceability data. For this reason, they are treated as confidential documents and shared only with:
The seller.
The buyer.
Their respective certification and accreditation bodies.
This protects business interests while still allowing full verification during audits and inspections.
Standard Format and Digital Integrity
To ensure trust and global acceptance, Transaction Certificates must follow a strict structure:
Issued only in English.
Generated using an official template.
Provided as a digitally signed PDF.
Editing and modification are disabled after issuance.
Authentication methods must be available to verify validity.
These safeguards protect against fraud and unauthorised alterations.
Multiple Shipments Under One Transaction Certificate
A single Transaction Certificate may cover multiple shipments, but only under controlled conditions:
Prior agreement between seller, buyer, and Certification Body
Written approval from the Certification Body
All shipments must:
Originate from the same seller location
Be sold to the same buyer
Maximum limits apply:
Up to 100 shipments
Up to 1,000 product types
Coverage period cannot exceed 90 calendar days
The certificate cannot remain open beyond certification validity
This option helps reduce administrative effort while maintaining traceability.
When Transaction Certificates Are Not Required
There are limited, well-defined exceptions:
Transfers Within the Same Corporate Group
Transaction Certificates are not required when products move between wholly owned subsidiaries under the same certification, provided:
No processing, relabelling, or repacking occurs
Ownership changes are fully documented and verified
Certified Retailers
Certified retailers may be exempt from maintaining Transaction Certificates if:
Products are correctly labelled
Supplier or manufacturer licence numbers appear on the label
These exceptions are narrowly applied to prevent abuse.
Mandatory Timelines for Issuance
Timeliness is a critical compliance factor:
Certification Bodies must issue Transaction Certificates within 14 days of receiving a complete application
Certificates are generally not issued more than 180 days after shipment
Late issuance may occur only after risk assessment
No Transaction Certificate may be issued if certification is suspended due to major non-compliance
Delayed applications can lead to trade disruptions and compliance risks.
What Information Does a Transaction Certificate Contain?
Each Transaction Certificate provides comprehensive shipment-level transparency, including:
Seller and Buyer Details
Legal names and addresses
Certification and licence numbers
“Selling on behalf of” or “Buying on behalf of” details, where applicable
Shipment Information
Shipment dates
Invoice and shipping document references
Consignee details
Gross and net shipping weights
Product-Level Traceability
Product categories and descriptions.
Exact material composition percentages.
Certified and non-certified weight breakdowns.
Label grade classification.
Production dates (where applicable).
Last processing country.
Raw Material Origin
Certified raw materials used.
Countries and regions of origin.
Weight consistency across inputs and outputs.
This depth ensures full traceability from raw material to finished goods.
Why Transaction Certificates Are Essential for Compliance
Transaction Certificates are critical for:
Buyer verification and sourcing decisions.
Supply chain due diligence.
Customs clearance and documentation.
Sustainability reporting.
Risk management and brand protection.
Regulatory inspections and audits.
They provide the only verifiable proof that organic textile claims are legitimate.
Common Compliance Mistakes to Avoid
Organisations often face issues due to:
Treating certification documents as proof of certified goods.
Applying for Transaction Certificates after certification suspension.
Including products not covered by certification.
Incorrect weight calculations.
Missing origin or processing details.
Using Transaction Certificates for consumer marketing.
Avoiding these mistakes protects certification status and commercial relationships.
Final Takeaway
Transaction Certificates are the cornerstone of traceability in the organic textile supply chain. They transform certification from a static status into a verifiable, shipment-specific proof of compliance. For manufacturers, traders, brands, and retailers, understanding and correctly managing Transaction Certificates is essential—not only for certification compliance, but also for credibility in an increasingly regulated and transparency-driven global market.