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    Chinese Enterprises Ignore EU Chemical Bill

    2008/8/25 14:49:00 18

    EU Chinese Enterprises

    "In another three months, by December 1, 2008, if the enterprises have not pre registered chemicals exported to the EU, the chemicals will be banned from exporting to the EU by January 1, 2009."

    Product safety expert, Chen Daozheng, consultant lawyer of Shanghai Road office in England, told reporters.

    This is a rule abbreviated to REACH, which is in fact the European Union's abbreviation of chemical registration, assessment, licensing and restriction, involving more than 30 thousand chemicals and their related products. This "new regulation" is almost a test of all Chinese exports to the European Union, which is another "barrier" in China's manufacturing industry.


     

    However, due to the abstract complexity of laws and regulations, many industries involved have not yet been highly sensitive, and this is precisely the seriousness of the problem.


     

    Involving many export industries


     

    Chen Daozheng told reporters, "according to the REACH regulations, the vast majority of chemicals in the EU market will be incorporated under the jurisdiction of REACH. Companies that manufacture, import or sell chemicals in the EU market must register or authorize the relevant institutions within the stipulated date."


     

    Reporters learned that the original execution date of REACH was in June 1, 2007, but later, because many enterprises were not well prepared, the EU only extended the pre registration period to December 1, 2008.


     

    "However, if the pre registration can not be completed before the deadline, the export of European products will be restricted. To remove the restriction, it will take a long time after the formal registration is completed. This means that a certain number of products can not be exported to Europe for a long time, which has great impact on the enterprises. It is not only risky but also difficult to predict."

    Chen Daozheng reminded reporters.


     

    Therefore, at this moment, pre registration has become an important guarantee for Chinese enterprises to continue exporting to Europe.


     

    However, for the complicated REACH act, it is widely known that it has a wide range of influence, involving more than 30 thousand kinds of chemicals and related products. However, because of the weak industry direction and the abstract nature of the regulations, many enterprises are still indifferent to this industry, or feel that they have nothing to do with themselves.


     

    Chen Daozheng told reporters that "the existing commercial chemicals" mentioned in the REACH act, in addition to food, medicine and self igniting chemicals (such as petroleum which is not processed to change nature), will be included in almost all industrial products, involving a wide range of industries. Textile, clothing, automobiles, toys, cosmetics, metal materials, building materials, electrical appliances and other export commodities will be included in the management category.


     

    According to the data of the Ministry of Commerce, the total import and export volume of China's foreign trade amounted to more than 2 billion US dollars (21738 billion yuan) in 2007, ranking third in the world and second in exports.

    Among them, the EU as China's largest trading partner, not only occupies a large proportion, but also ranked first in bilateral trade volume and export growth last year, with an increase of 27% and 29.2% respectively.


     

    In addition, the above-mentioned industries are all strong points of China's export, so some people call REACH regulations the "most technical and most influential foreign technical barrier" that China has ever encountered in history.


     

    "Cost barrier" is underestimated.


     

    "The core of the technical barrier is the cost of registration and related inspection, which greatly increases the export cost of Chinese enterprises."

    Wang Jinliang, the China Battery Association Technical Committee, said.


     

    According to the relevant department estimates, the cost of basic testing / testing for each of the existing chemicals is about 85 thousand euros, and the average cost of testing and testing for each new substance is about 570 thousand euros.


     

    Taking textile and clothing as an example, the industry is a key export industry. However, due to the adverse effects of exports in 2008, many textile enterprises are facing losses and failures. If the cost pressure of REACH is added, most enterprises will be overburdened.


     

    "In fact, the European Union, the United States and South Korea have already begun to prepare for the measures in the drafting stage of the EU's REACH regulations. However, in China, due to the lack of relevant publicity, many customers are only reflecting a little bit of impressions, but there is not much consideration."

    Chen Daozheng said.


     

    In the case of a number of enterprises involved in the press, their answer is "our products are not chemicals, and this legislation has nothing to do with us."

    According to reporters, in addition to the petrochemical industry believes that will be greatly affected, more industry enterprises are still not expected to have the risk and consequences.


     

    According to Wang Jinliang, even the long-term focus on REACH, the battery industry association and its subordinate enterprises, such as double deer, South Fu, leopard king, tiger head, Changhong, and so on, the main demand is the further training of laws and regulations.


     

    "We are also considering whether to register in the form of associations or alliances, so that each enterprise can separate the registration and authorization of different chemicals, not only improving the efficiency of registration, but also apportionment of costs."

    Wang Jinliang said.


     

    The response was right then.


     

    The first aspect of the enterprise's response is to find out whether the product is within the jurisdiction of REACH.

    For small and medium-sized enterprises, it is also necessary to confirm whether the European export strategy of enterprise products is worth the high cost of registration, and whether it is possible to adjust the corresponding strategy.

    Chen Daozheng explained.


     

    He also believes that, secondly, we should design a set of compliance mechanisms within the enterprise, accurately assess the intensity of registration work, decide whether to prepare for or participate in the alliance, and the corresponding cost assessment and responsibility allocation.


     

    Last but not least, it is also a very important work in this period. It is necessary for exporters to discuss the apportionment of the cost of REACH between the two parties when they negotiate with EU importers for next year's export negotiations, or all of them, script src=>

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