Certification Requirements for B2B Trading Companies and Retailer Groups Operating wholly owned B2C subsidiaries

Wholly owned subsidiaries of GOTS certified B2B trading companies
(“parent company”) to whom the parent company sells acquired GOTS certified
consumer goods and who sells those to retailers or other wholly owned
subsidiaries of the parent company, are exempted from the requirement of
being certified (respectively registered), provided they are:
• listed in the parent company’s Scope Certificate as facilities,
• located in low-risk countries, and
• not engaged in any production, repacking, relabelling or warehousing
Further, on-site inspections of such subsidiaries should be carried out once every
3 years (Y3, Y6, Y9….)
*******
Retail companies (“parent company”) which buy finished GOTS certified
consumer goods and sell them only to wholly owned (retail) subsidiaries are
exempt from GOTS certification provided they are:
• not engaged in repacking or relabelling of these finished goods, and
• Located in low-risk countries.

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