Fujian Exports To Europe Will Increase Export Costs By 5%

The EU's chemicals management regulations, chemical registration, assessment, licensing and restriction (REACH), is a system of registration, evaluation, licensing and restriction of chemicals, but its influence is not only in the chemical industry, textile dyes, electroplating products, desiccant, and scented wet napkins.

They are all included in the regulation of the REACH regulations. Once the standards are not met, the relevant products will not be sold in the European Union.

Recently, on the roving training jointly organized by the Fujian Provincial Department of foreign trade and economic cooperation and the Provincial Quality Supervision Bureau, experts attending the meeting said that compared with the previous technical trade measures, the REACH regulations cover a wide range of products, and may even affect all products exported to Europe by our province, and involve most export enterprises.

Export costs increase by 5%. It is understood that, on the surface, the REACH regulation is a chemical act which affects the export of chemical products. In fact, this is just the tip of the iceberg. It affects almost all commodities, because there are few commodities that do not use chemical products.

The European Union is the second largest trading partner of our province.

The first to bear the brunt of the impact of the REACH regulation is directly related chemical products, our province exported to the EU last year, a total of 185 million yuan of these categories of commodities, but direct related chemicals export enterprises in the province 245.

The impact of REACH regulations is much greater.

In addition to the requirements for chemicals themselves, all chemicals, such as household appliances, textiles, clothing, footwear, toys, light industry, electronics, automobiles, etc., must enter into the EU market to prove that the chemicals they contain have been registered, otherwise they will not be able to enter the EU market. These commodities account for more than 70% of the commodities exported to Europe by our province.

According to the industry estimates, with the implementation of the EU REACH regulations, the registration and evaluation of chemical substances will generate a lot of expenses, resulting in an increase in the cost of downstream chemicals in our province, and the export cost will increase by more than 5%.

The experts do not miss the pre registration procedure. Experts also say that the REACH regulations have little impact on enterprises in the near future, but enterprises must not miss the pre registration procedures for half a year from June 1, 2008 to November 30th. This procedure requires enterprises to report only a chemical file including the registered chemical substances and their technical documents.

According to the current policy, pre registration chemicals can get a pitional period of 3 to 11 years.

During this period, exports will not be significantly affected.

According to the introduction, if sales of goods contain chemicals that release substances, such as scented wet napkins and candles, producers or importers who produce or import more than 1 tons of chemical products each year need to fulfil their obligations to register and pmit information to downstream businesses.

For those products that have no material release, their chemical composition has been listed as a highly concerned category. Enterprises need to fulfill their obligations to inform and pmit information.

Of course, the process of notification may lead the EU to require enterprises to take registration measures.

In the process of dealing with REACH regulations, enterprises can submit applications for registration by importers, which is more convenient.

However, if the export products involve unique formulations, in order to avoid leakage of secret recipe, export enterprises can also set up offices in the European Union, apply for registration by themselves, or apply to the third party agents.