Exports To EU Increase Barriers

Since June, new products have been introduced to the European Union. The products that are classified as highly concerned substances (SVHC) by EU REACH regulations must be applied according to the prescribed procedures, otherwise they will not be able to enter the EU market. This is undoubtedly a new development in the face of export enterprises. Trade Barriers, and expensive testing costs, have become the price that businesses have to pay to retain the European market.

Constantly raising the threshold

It has been operating for more than ten years in the European market. The company currently exports 40% of its leather products to the European Union, and nearly one hundred thousand finished leather garments enter Europe every year.

Talking about EU REACH statute According to the new regulation, the company's deputy general manager Keqiang told reporters that they have been concerned about the specific contents of the new regulation and will strictly test it according to the regulations. "Unlike price, standards do not have room for negotiation. If you want to have a firm foothold in the European market, you must declare according to the regulations. Otherwise, the products that have been exported to the EU market will be punished if they break the rules. Exit The products will not be exported later. " Keqiang has a clear understanding of this new threshold.

REACH regulations are affecting the survival of European enterprises. The companies interviewed by reporters share the same feelings with Keqiang: the EU's tests are getting stricter and stricter, some of which are even demanding.

It is understood that the REACH regulations will have a wider impact and will have an impact on enterprises including textiles, clothing, chemicals, toys and furniture. The European Union has always been the traditional market that the island enterprises rely on. Taking textile and clothing as an example, the export volume of the textile and garment enterprises to the EU countries reached 390 million US dollars from 1 to April this year, an increase of 43.5% over the same period last year. The new regulation adds 8 more to the original list of 13 highly concerned substances related to textiles, which will undoubtedly cause no small impact on the EU oriented export enterprises.

The cost of testing is often more than ten million yuan.

At present, the main way for enterprises to deal with REACH regulations is to ensure that their products do not contain illegal chemical components by testing. However, reporters found in the interview that product testing is far from being so simple. The inspection fees and related maintenance costs of the declared chemicals are quite expensive. The number of testing items and the high cost of testing are just as bad as adding to the foreign trade enterprises stranded in raw materials and labor costs.

When it comes to testing costs, we should say: "every additional substance in the EU REACH regulations, companies need to measure more than one substance. Sometimes we make a list. We only need tens of thousands of dollars for the cost of testing, and the cost of business is virtually elevated. But this part of the money will not be spent. If it fails to meet the standards, the products will be recalled and will be rejected by the European Union. The company will suffer more losses because of losing the European market.

Not only expensive, but also domestic enterprises have no choice, testing agencies can only be designated by customers. Li Haihong, general manager of the company, told reporters: "the testing organizations in the whole industry are monopolized. We have to choose the qualified third party testing organizations designated by the customers. Our products have more than ten kinds of substances to be tested, and the cost of testing for each item ranges from several hundred yuan to several thousand yuan. This part of the cost can not be borne by the customers, it can only be digested by the enterprise itself.

During the interview, the reporters learned that every product of some enterprises had to carry out dozens of tests and hundreds of tests. The cost of testing for each item was over 1000 yuan, and the detection cost of hundreds of thousands of Yuan had become an unbearable burden for enterprises. But the high cost of testing is the price that companies have to pay to retain the European market.

Passive response of enterprises

The impact of REACH regulations is gradually emerging. However, many export enterprises in the island city, especially small and medium-sized enterprises, still lack a comprehensive response plan.

Reporter survey found that at present, most enterprises do not attach enough importance to the REACH regulations, and a large number of enterprises are passive detection. Generally, only when the customer has mandatory requirements, can they arrange the test.

It is understood that, in order to help enterprises fully respond, the city has held training courses for REACH regulations, "but these are all just to promote the role of REACH regulations or enterprises, and do not prepare for early preparation. Enterprises will face a rather passive situation in the face of a large number of raw material safety data questionnaires sent by purchasers." The person in charge of the Bureau of commerce is not worried.

For enterprises, in addition to lack of knowledge, they also have deeper concerns. "How do we protect our business secrets when we provide data to a certification body or a partner, such as the importer of the European Union? How can we prevent the organization or partners from taking the trouble?" Li Zhen, general manager of the gold field Textile Co., Ltd., represents the voice of some of the respondents.

Despite this concern, the industry has reminded the European enterprises to take the initiative to know whether the chemicals involved in their raw materials belong to the SVHC, apply the notification according to the prescribed procedures, and constantly pay attention to the SVHC list and update of the candidate list, so as not to cause economic losses.

Related enterprises should also strengthen their contacts and communication with counterparts at home and abroad, and share some information resources with the platform of trade associations. For example, because a single enterprise can not bear the high cost of testing, it can be jointly registered according to the principle of "one substance, one registration" according to the REACH regulations, so as to achieve cost sharing.

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The European Union's REACH regulation is the "chemical registration, evaluation, licensing and restriction regulations". It is the most widely used regulation in the world and a technical trade barrier which came into force in June 1, 2007.

In the past 4 years since the implementation of the regulation, SVHC list has been updated many times, and 4 batches and 46 substances have been listed in the list by the European Chemicals authority. According to the new regulation of the new regulation, the first 38 kinds of SVHC, whose mass percentage exceeds 0.1%, and the annual gross volume is greater than 1 tons, must be notified to the EU chemical authority before June 1, 2011. If the total amount does not exceed 1 tons, manufacturers or importers must deliver the relevant information free of charge within 45 days if consumers are required. In addition, there are 8 kinds of SVHC that must be completed by June 15, 2011.