Exports to the EU increase barriers

â—† Core Tips From June onwards, Island City exports to EU products have met with new regulations: All products that have been listed in the European Union's REACH Regulation as a substance of very high concern (SVHC) to a certain concentration and total amount must be reported in accordance with prescribed procedures. Otherwise, it will not be able to enter the EU market. This undoubtedly erected a new trade barrier in the face of export enterprises, and the cost of expensive testing became the price that companies had to pay to retain the European market.

Constantly raised "threshold"

Qingdao Yuandong Xinyuan Garment Co., Ltd., located in Jiaozhou, has been operating in the European market for more than 10 years. Currently, 40% of the company's leather garments are exported to the EU, and nearly 100,000 finished leather garments enter Europe every year.

Talking about the new EU REACH regulations, the company's deputy general manager Ji Qiang told reporters that they have been concerned about the specific content of the new regulations, and will strictly follow the rules for testing. "The standard is not like price. It has no room for negotiation. If you want to gain a foothold in the European market, you must declare according to regulations. Otherwise products that have been exported to the EU market will be subject to penalties for violations and products that have not been exported. Afterwards, it cannot be exported.” Keunggung has a sober understanding of this new “threshold”.

REACH regulations are affecting the survival of European companies. The companies interviewed by reporters have the same feelings as Keung Keung: The inspections in the EU have become increasingly stringent, and some of them are even harsh.

It is understood that REACH has a wide range of influence and will affect companies including textile and clothing, chemicals, toys and furniture. The European Union has always been a traditional market relied on by Daocheng enterprises. Take textiles and garments as an example. From January to April of this year, the city’s textile and clothing companies exported 390 million U.S. dollars to EU countries, an increase of 43.5% year-on-year. This new regulation adds 8 new types to the original list of 13 textile-related substances of very high concern, which will undoubtedly cause a significant impact on the enterprises that have taken the EU as the main export direction.

The cost of testing is often more than 100,000 yuan At present, the main way for companies to respond to REACH regulations is to ensure that their products do not contain illegal chemical components. However, the reporter found in the interview that product testing is far less simple than imagined. The inspection fees for the declared chemicals and the related maintenance costs in the future are very expensive. The number of testing projects and the high testing costs are tantamount to aggravation of foreign trade companies that are trapped in the rise of raw materials and labor costs.

When it comes to testing costs, Qiangqiang frankly stated: “Every one substance added to the EU REACH regulations requires companies to measure more than one substance. Sometimes we make a list, and only a test fee will cost tens of thousands of dollars. The cost of the enterprise is virtually It has been lifted a lot, but this part of the money is worth spending. If it fails to meet the standards, the product will be recalled and will be rejected by the European Union. The company will suffer even greater losses due to the loss of the European market."

Not only is the cost expensive, but domestic companies do not have the right to choose. Testing organizations can only be designated by customers. Li Haihong, general manager of Qingdao Ouhua Lace Weaving Co., Ltd., told the reporter: “The testing institutions in the entire industry have been monopolized. We must select a qualified third-party testing agency designated by the customer. Our products have more than ten substances that need to be tested. A test cost varies from a few hundred to a few thousand dollars. This part of the cost cannot be borne by the customer and can only be absorbed by the company itself."

During the interview, the reporter learned that each company's product must be tested in the range of tens to hundreds of items. The test cost for each item is more than one thousand yuan. Become an unbearable enterprise. However, the cost of expensive testing is the price that companies have to pay to retain the European market.

The passive response of enterprises to the REACH regulations has gradually become apparent. However, many export companies, especially small and medium-sized ones, still lack comprehensive solutions.

A survey by the reporter found that most companies are currently not paying enough attention to the REACH regulations, and a considerable number of companies are passively conducting tests. Generally, testing is arranged only when customers have mandatory requirements.

It is understood that in order to help enterprises deal with all problems, Qingdao City has organized a training course on REACH regulations. “But these are only promoting the role of responding to the main body of the REACH regulation or the enterprise. A large number of raw material safety data questionnaires sent by buyers will fall into a very passive situation,” said the person in charge of the Qingdao Municipal Bureau of Commerce.

For enterprises, they have deeper concerns, in addition to lack of awareness. “How can we protect our trade secrets when we provide registration information to certification bodies or partners such as EU importers? How can we prevent organizations or partners from “robing”?” said Li Zhen, general manager of Qingdao Jintian Textile Co., Ltd., Represents the voice of some of the interviewed companies.

Despite this concern, industry sources reminded European companies that they should take the initiative to understand whether the chemical substances they belong to belong to SVHC, follow the stipulated procedures and apply for notification, and constantly pay attention to the SVHC list and candidate list updates of the regulations, so as to avoid Economic losses.

Related companies should also strengthen contact and communication with their counterparts at home and abroad, and use industry association platforms to share some information resources. For example, since a single company cannot bear the high cost of testing, it can carry out joint registration through industry associations and other methods in accordance with the REACH regulation of “one substance, one registration” to achieve cost sharing.

■ Related Links The full name of the EU REACH legislation is the “Regulations on Chemicals Registration, Evaluation, Licensing, and Restriction”. It is the world’s most widely-influenced regulation, and it is also a technical barrier to trade. It came into effect on June 1, 2007.

In the four years since the implementation of the law, the list of substances of very high concern (SVHC) has been updated several times. Accumulatively, 4 batches and 46 substances have been listed by the European Chemicals Agency. According to the new regulations, the first 38 kinds of SVHC with a mass percentage concentration of more than 0.1% in articles and a total amount of more than 1 ton per year must be notified to the European Chemicals Agency before June 1, 2011; For 1 ton, the manufacturer or importer must pass the relevant information free of charge within 45 days if requested by the consumer. In addition, there are 8 SVHCs that must be notified before June 15, 2011. (Reporter Bai Xiao intern Chen Kai)