The RugMark labelling initiative operates through a network of licensed rug exporters and importers. All licensed exporters and importers are charged a licence fee for the use of our product labels, and the fees generated are used to fund our system of random inspections, and welfare, education and rehabilitation projects.

Each of our three exporting countries (India, Nepal, Pakistan) has a RugMark office which signs agreements with licensed exporters. They agree to the following terms:

• not to illegally employ children
• to allow unannounced, random inspections by RugMark inspectors
• to pay fair adult wages
• to notify RugMark of all sales of labelled carpets

RugMark's trained inspection teams carry out random unannounced inspections of village looms and factories to make sure that the conditions of the licence agreement are being adhered to. (Read about Jyoti Raj, an inspector with Nepal RugMark Foundation).

Each exported rug is individually numbered, enabling its origin to be traced back to the loom where it was produced. This also helps to prevent counterfeit labelling.

RugMark labelled rugs can only be imported by traders who have signed a licence agreement with one of our three importer country offices (Germany, UK, USA). The rugs are then sold on to retailers.