The KYB standard, written out in full.
Twelve checks, six on the seller and six on the buyer, and one rule about names. This page is the standard itself, not a summary of it. If something here is unclear, it's unclear in our process too, and we want to know.
- Standard
- RT-STD-01, Ragtrail KYB Standard
- Version
- 1.0, effective October 2026
- Applies to
- Every supplier and every buyer, before the first contract and on every contract after.
- Owner
- Compliance lead, Ragtrail
Four rules the checks exist to serve.
Both sides, same depth
A seller is held to the same standard of evidence as a buyer. Verification isn't something one side does to the other.
Names must match
Contract, bill of lading, goods declaration and bank transfer name the same verified companies.
Every contract, not once
Sanctions, PEP and registry status are re-screened per contract. A clean file last year is not a clean file today.
Evidence over assurance
We hold documents, photographs and visit reports, not references and promises.
Six on the seller. Six on the buyer.
Each check lists what we look at and what we keep on file.
Supplier-side checks · S1 to S6
- S1
Legal entity
The selling entity is checked against its home registry: Companies House and the Charity Commission, OSCR or CCNI in the UK; state registries and IRS determination letters in the US; Corporations Canada or provincial registries and CRA charity status in Canada; ASIC and the ACNC in Australia. Charity shops sell through their trading subsidiary, so we contract with that subsidiary, not the charity.
On file
- Registry extract dated within 30 days
- Registered office and trading address
- Charity / trading-subsidiary relationship where relevant
- S2
Directors, trustees and beneficial owners
Directors, trustees with signing authority, and anyone holding 25% or more are identified, ID-verified and screened against UK (OFSI), US (OFAC), UN and EU sanctions lists and for politically exposed persons. Screening is re-run on every contract, not just at onboarding.
On file
- Certified ID for signatories
- Sanctions and PEP screening record
- Ownership chart for corporate collectors
- S3
Authority to sell
A board minute or letter of authority naming who can commit stock and sign contracts, plus evidence that the stock is the seller's to sell: collection contracts, textile-bank agreements, or purchase records for sorting houses buying in.
On file
- Letter of authority or board minute
- Source-of-stock evidence
- S4
Export and waste compliance
Confirmation that goods are reuse-grade textiles under the origin jurisdiction's rules, with any waste-carrier or broker registration and export-notification requirement met. These rules differ by country and are changing, so we check them per shipment, not once.
On file
- Waste carrier / broker registration where applicable
- Seller declaration on reuse grade
- S5
Bank account in the seller's own name
Payment goes only to an account held by the verified entity, confirmed by bank letter or verification service. We do not pay third parties, agents or personal accounts, whatever the instruction.
On file
- Bank confirmation letter or account verification
- Account name match to registry
- S6
Stock and site
A yard visit or a live video walkthrough of the stock to be sold, including at least one bale opened on camera. For new suppliers we see the first load before it is pressed.
On file
- Visit or walkthrough record
- Opened-bale photographs and video
Buyer-side checks · B1 to B6
- B1
Registration and tax status
SECP incorporation (or registered partnership / proprietorship) and FBR registration (NTN and sales-tax registration) with Active Taxpayer List status for domestic importers. Freezone buyers also hold an Export Processing Zones Authority licence and a unit allotment within the zone.
On file
- SECP certificate
- NTN / STRN and ATL status
- EPZA licence and allotment letter (EPZ buyers)
- B2
Importer of record
The buyer is the importer of record and is registered on the Pakistan Single Window for customs clearance. The consignee on the bill of lading, the importer on the goods declaration and the payer must be the same verified company.
On file
- Pakistan Single Window registration
- Consignee and payer name match
- B3
Directors and beneficial owners
Directors, partners and owners of 25% or more are identified against their CNIC and screened against sanctions and PEP lists, on onboarding and on every contract.
On file
- CNIC verification
- Sanctions and PEP screening record
- B4
Site inspection
A physical visit to the sorting floor: address matches the licence, sorting capacity matches the volumes the buyer is asking for, and the worker-welfare baseline in our Compliance & Impact standard is met.
On file
- Inspection report with photographs
- Capacity estimate
- Worker-welfare checklist
- B5
Duty and zone compliance history
Domestic buyers show goods declarations with duties and taxes paid on previous used-clothing imports. EPZ buyers show their re-export record and that domestic sales, if any, stay inside the zone's permitted share with duty paid.
On file
- Sample goods declarations (domestic)
- Re-export record and zone returns (EPZ)
- B6
Financial standing
A bank reference, the bank that will issue letters of credit where LC terms are used, and two trade references from previous suppliers that we contact ourselves.
On file
- Bank reference
- Issuing-bank details
- Two trade references, contacted directly
One company in four places.
The buyer on the contract, the consignee on the bill of lading, the importer on the goods declaration and the account the money comes from must be the same verified company. The same applies to the seller and the account the money goes to.
If anything doesn't match
- 01
Documents held
Original documents or telex release are held until the mismatch is resolved.
- 02
Trade suspended
No further loading against the contract while we establish why.
- 03
Re-verification
A new party in any of the four places is verified to the full standard, or the trade does not proceed.
- 04
Recorded
Mismatches are recorded on both counterparties' files. Repeat mismatches end the relationship.
The document pack, the evidence, and the record that ties them together.
- 01Commercial invoice Issued by the verified seller to the verified buyer. Grade, net weight, unit price, Incoterm (usually CIF Karachi).
- 02Packing list Bale count, bale weights, grade per bale, container and seal number.
- 03Bill of lading Consignee is the KYB-verified buyer. Never a broker, an agent or "to order" without our agreement.
- 04Certificate of origin From the relevant chamber of commerce in the country of export.
- 05Fumigation / disinfection certificate Issued before shipment wherever Pakistan's import rules for used clothing require it.
- 06Loading evidence Time-stamped photographs and video of loading, an opened sample bale, the weighbridge ticket, and the seal going on.
- 07Ragtrail trade record KYB references for both parties, the agreed buying specification, payment terms, and the claim window.
Verification doesn't end at onboarding.
We re-check when
- A new contract is signed: sanctions, PEP and registry status, every time
- Ownership, directors, licence or bank details change
- A claim is upheld against a counterparty
- Adverse media, a customs action or a zone-compliance issue comes to our attention
- Annually in any case, with a fresh site visit for buyers
We suspend when
- Evidence of duty evasion, misdeclaration or diversion from bond
- A name mismatch that isn't explained and corrected
- Refusal of a site visit or a worker-welfare remediation plan
- Payments from, or requests to pay, third parties
Suspended counterparties are told why in writing and can respond with evidence. Decisions are reviewed by someone not involved in the original finding.
Collected for one purpose, shared on a need-to-know basis.
- Purpose
- Verifying counterparties, meeting our own legal obligations, and resolving disputes.
- Shared with
- Your counterparty sees your company name, verification status and buyer or supplier type. Not personal ID documents.
- Law
- Processed under UK GDPR and the Data Protection Act 2018
- Retention
- Kept for the life of the relationship plus a fixed period after the last trade
- Your rights
- Access, correction and, where the law allows, deletion. Write to our compliance lead.