Economy3economy3

Compliance Engine

15 rules. Facts stored once. Compliance computed at query time.

Regulations change. Records don't. Economy3 stores verified facts — composition, custody, certifications, measurements. When a standard updates, the rules file changes. Your records stay valid.

Architecture

Compliance is never stored in a record. The MCP server receives check_compliance(record_id, framework), loads all linked CustodyEvents and Certifications from the DHT, evaluates against this ruleset, and returns pass / fail / flagged with fix hints. When California adds a clause to SB-253, update the rules file. Records don't change.

Tier 1 — Import Block
Tier 2 — Market Withdrawal
Tier 3 — Civil Penalty

European Union — 10 rules

ESPR-R001Recycled content declarationArt. 7(1)(b)Tier 2 — Market Withdrawal

Products must declare the percentage of recycled content by material type. Must declare even if zero.

Fix: Add recycled_content_pct (number, 0–100) to ProductRecord. Cotton is virgin fibre → value is 0.
ESPR-R002Fibre composition by weightAnnex IIITier 2 — Market Withdrawal

Full fibre composition must be declared by weight percentage. Values must sum to 100.

Fix: Add composition_by_weight: [{fibre: 'Upland Cotton', pct: 100}] to ProductRecord.
ESPR-R003Compliance review custody eventArt. 11Tier 1 — Import Block

Each product must pass a documented ESPR Compliance Review before PutOnMarket events are accepted.

Fix: Add CustodyEvent of type ComplianceReview with reviewer_id, review_date, and espr_checklist_version before any PutOnMarket event.
ESPR-R004Lifecycle GWP — cradle to gateAnnex IITier 2 — Market Withdrawal

Global Warming Potential (GWP) must be declared in kg CO₂e per declared unit, cradle-to-gate.

Fix: Add total_co2e_kg and scope3_methodology to ProductRecord. Methodology must cite an EPD PCR.
ESPR-R005EPD declared unitAnnex II §3Tier 2 — Market Withdrawal

Environmental Product Declaration must specify a declared unit (e.g. '1 kg yarn', '1 garment').

Fix: Add epd_declared_unit field to ProductRecord.
ESPR-R006EPD PCR referenceAnnex II §3Tier 2 — Market Withdrawal

EPD must reference a Product Category Rules (PCR) document. PCR governs how the LCA was conducted.

Fix: Add epd_pcr_reference (URL or identifier) to ProductRecord.
ESPR-R007Transport emission factorsAnnex II §4Tier 2 — Market Withdrawal

Each transport hop must declare a GHG emission factor. Required for Scope 3 Category 4 reporting.

Fix: Add transport_emission_factor_kg_co2e_per_tonne_km to each CustodyEvent of type Transport.
ESPR-R008DPP registry statusArt. 12Tier 1 — Import Block

Product must be registered in an EU DPP registry before PutOnMarket. Registry launches July 2026.

Fix: Set dpp_status to 'registered' and populate dpp_registry_uri with the EU registry URL.
REACH-R001Hazardous substance disclosureArt. 59 — SVHC ListTier 1 — Import Block

Substances of Very High Concern (SVHC) above 0.1% w/w must be disclosed with CAS numbers.

Fix: Add hazardous_substances array. For cotton with no SVHCs, add an empty array and set restricted_substances_assessed: true.
EU-FIBRE-R001Fibre composition labellingArt. 5Tier 2 — Market Withdrawal

Textile labels must use standardised fibre names from Annex I of EU 1007/2011.

Fix: Ensure fibre names in material_composition match EU 1007/2011 Annex I vocabulary (e.g. 'Cotton', not 'Upland Cotton').

California — 5 rules

CA-SB62-R001Subcontractor chain disclosure§2673.1Tier 3 — Civil Penalty

Brands must disclose all production facilities in the supply chain, including subcontractors.

Fix: Ensure all facilities in the custody chain have a CustodyEvent with facility_id and country_of_processing.
CA-SB62-R002Wage disclosure§2673.2Tier 3 — Civil Penalty

Garment manufacturers must disclose piece-rate or hourly wages for workers at each production step.

Fix: Add wage_disclosure Certification entry to each production facility's record.
CA-AB1305-R001GWP data substantiation§44475.2Tier 3 — Civil Penalty up to $2,500/day

Any voluntary carbon market claim must be substantiated with underlying GWP data.

Fix: Ensure total_co2e_kg is present and linked to a third-party verification Certification.
CA-AB1305-R002Calculation methodology cited§44475.3Tier 3 — Civil Penalty up to $2,500/day

Carbon calculations must cite the methodology used (e.g. GHG Protocol, ISO 14064).

Fix: Add scope3_methodology field citing the standard used.
CA-AB1305-R003Third-party verification§44475.4Tier 3 — Civil Penalty up to $2,500/day

Carbon offset claims require third-party verification by an accredited body.

Fix: Add a Certification entry with issued_by set to the accredited verifier and certification_id as the verification reference.

Source: Cotton_Tracing/compliance/espr-2027-rules.json v1.1 — TextileRuleset 2027. Effective 2027-01-01. Not legal advice.