Fujian Shoe Exporting Enterprises Will Face REACH Regulations

Reporters recently learned from the relevant departments.

The relevant departments remind relevant enterprises to familiarise themselves with REACH regulations as soon as possible and to cope with them ahead of schedule, and intensify efforts to develop new potential markets and reduce dependence on exports to the EU.

The cost of only one inspection fee will increase the cost of exporting shoes to Fujian by more than 5%, which does not include the cost increase of new materials for enterprises to meet the new environmental requirements.

It is reported that according to the EU REACH regulations, the first batch of export chemical enterprises (annual export volume is greater than 1000 tons) must be registered before November 30, 2010, otherwise they will be rejected by the European Union.

At the same time, various restrictive measures for downstream products of REACH regulations have been gradually launched. As of March 8, 2010, 38 high attention substances (SVHC) came into effect.

Shoemaking involves more chemical species and complex material components. From raw materials to finished products, chemicals are used in almost every production process, and the production process may involve multiple enterprises, and the sources of chemical raw materials also involve different channels.

In accordance with the provisions of the REACH regulations,

"Conservative estimates, the increased cost will increase the export cost of footwear enterprises by more than 5%."

An official of Fujian inspection and Quarantine Bureau told the times.

The implementation of the new regulations will also force enterprises to seek higher standard raw materials and lead to higher production costs.

Xu Zhihua, general manager of Fujian PEAK group, told reporters that due to environmental protection requirements for footwear, shoes and other products, enterprises must choose more environmentally-friendly materials and better quality production processes, which will increase the cost of footwear exports, which will make some small export enterprises unable to undertake, and seriously may cause their products to be forced to withdraw from the EU market, or even business failures.

Wu Hui, general manager of Quanzhou Nan Qi Shoes Co., Ltd. roughly calculates that the cost of each pair of shoes will rise by at least 2 yuan.

Zhang Xiaoqi, executive vice chairman of Fujian Shishi Lin Sen shoes and clothing Development Co., Ltd. predicts that the cost of each pair of shoes will increase by 3 to 5 yuan.

The EU is the second largest market for footwear exports in Putian.

Putian inspection and Quarantine Bureau said, "at present, Putian's shoe-making enterprises are basically private enterprises, with small profits. If we increase the relevant testing efforts, we will increase the cost and cause a decline in competitiveness, which is likely to cause their products to be forced to withdraw from the EU market."

This statement actually reflects the serious impact of REACH regulations on the footwear industry of Fujian as a whole.

The best way to overcome REACH barriers

As soon as the relevant footwear companies are familiar with the contents of REACH regulations and carry out relevant data detection, we should actively explore potential markets such as ASEAN and the Americas.

Related links

REACH refers to the registration, evaluation, licensing and restriction of chemicals. It is a chemical management law governing the preventive management of all chemicals entering the market in the European Union.

It is similar to the registration, authorization and license system of special products (commodities), which pfers the responsibility of the proof of chemical safety information to enterprises, and advocates that there is no market without data.

REACH not only covers a wide range, including almost all chemicals and downstream products, its detection system is complete, and the cost is very high.

The high cost and the introduction of testing data into intellectual property rights will seriously impede the export trade of chemicals and their downstream products and become a technical trade barrier.