From Major Importer To Innovator: Chile Tackles Its Used Clothing Problem

April 27, 2026

From Major Importer To Innovator: Chile Tackles Its Used Clothing Problem

Chile has emerged as one of the world’s largest importers of used clothing, bringing in around 123,000 tonnes each year—but this boom has come with consequences.

Many of these imports arrive through the Iquique Free Trade Zone—known as Zofri—where goods can be imported, stored, and sold without customs duties. While the trade supports local jobs and regional commerce, it has also created a growing environmental challenge.

For years, unsold clothing has been illegally dumped in the arid landscapes surrounding the port city, particularly in the Atacama Desert. As these items are classified as commercial waste, they cannot be disposed of in municipal landfills, leaving importers with limited legal options. Thus, vast piles of discarded garments have accumulated in one of the driest places on Earth.

Efforts are now underway to address the problem. One Chilean company importing around 50 containers of clothing per month is building a recycling facility that will transform textile waste into fibres and felt. These materials can then be used in products such as mattresses, furniture, car interiors, and insulation—offering a more sustainable alternative to dumping.

At the policy level, Chile is also taking action. Authorities have approved changes to include textiles under the Extended Producer Responsibility (Rep) Law. This will require clothing companies to take responsibility for the full lifecycle of their products, including financing and organising proper disposal.

The government is currently working on a draft of the specific details of the law for the clothing sector. Together, industrial innovation and regulatory reform signal a shift toward a more sustainable approach.

 

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