Manufacture of knitted and crocheted fabrics

Qualifying · 0% eligible

Forensic Analysis

DZ requiredSubstance: HIGHAI-derived

Activity falls under 'Manufacturing of goods or materials'. Forensic focus is on the 'substantial transformation' test. Auditors will verify electricity consumption, machinery depreciation, and shop-floor headcount to ensure the fabric was actually knitted/crocheted on-site rather than imported as finished rolls.

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Legal Reference

Ministerial Decision No. 229 of 2025, Article 2, Clause 1(a)

Audit Red Flag

Misclassification of 'Trading' as 'Manufacturing' where only packaging or minor assembly occurs without substantial transformation of yarn into fabric.

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