Export Enterprises: Abandon REACH Registration Insurance Market

According to a survey of several chemical export enterprises participating in the 108th Canton Fair, many enterprises have known to some extent about the information and operation methods of the REACH registration. However, most enterprises still stay in the waiting stage, do not pay attention to the registration deadline, and some companies have not even prepared the relevant registration procedures.

Regarding this, Guo Hongjun, director of the comprehensive business department of the China Minmetals Import and Export Chamber of Commerce, is worried.

According to him, the European Commission has made it clear that the deadline for the first batch of REACH registration will not be changed, and the enterprises failing to complete the registration in time will not be able to export to Europe according to the "NoData, nomarket" principle of REACH regulations.

"ECHA expects to have 4500~5000 substances before November 30th.

The EU REACH regulation is the largest technical barrier to trade after China's accession to the WTO. This regulation has a huge impact. It includes 3 kinds of management and monitoring systems, namely, the registration of the 30 thousand chemical products in the EU market and the about 5000000 finished products of textile, light industry and pharmaceuticals.

Shandong provincial chamber of Commerce said that the REACH regulations are the most complex and influential technology regulations in China so far.

Statistics show that the bilateral trade volume between China and the EU in the chemical sector is more than 23 billion dollars a year, and the EU has become China's largest trading partner.

By conservative estimation, the cost that our enterprises need to pay for the REACH regulations is 500 million to 1 billion US dollars per year, so that the cost of China's export to EU products will be increased by 5%, and the cost of importing EU products will increase by 6%.

At the same time, the REACH regulations will also affect more than 90% of trade between China and Europe, and the total import and export volume will drop by 10%.

In the face of the surging REACH regulations, professional analysts believe that the proposed legislation provides toxic and ecological safety requirements for tens of thousands of chemicals exported to Europe. It is currently a "green regulation" which is highly concerned by the global chemical industry, and it is conducive to the establishment of China's chemical toxicity standard.

But on the other hand, its expensive testing cost is indeed difficult for small and medium-sized chemical enterprises to accept.

In this regard, Guo Hongjun suggested that chemical products enterprises should actively complete the registration work, and the enterprises that have not yet registered should deal with the registration progress of their own business when they deal with the EU merchants, so as to avoid affecting the export to Europe.