Chemical products entering the EU threshold will increase export costs

Starting in 2007, the EU will implement a new registration, evaluation, and licensing management system for about 30,000 chemicals—the “Registration, Evaluation, Authorization, and Restriction System for Chemicals” (REACH Directive). Once implemented, the system will greatly increase the entry barrier for chemical products and their downstream products into the EU. The EU is the largest trading partner of China's export products. The city's exports to the EU account for more than one-third of the city's total exports. After the implementation of the directive, the city's textiles, clothing, shoes, toys, furniture, electronics and other industries due to the extensive use of chemicals will be "involved" for this, the export cost of the product will be greatly increased.

The direct result of the increase in exporter's costs is the registration system under the REACH Directive. According to the directive, the annual production and import of more than one ton of chemicals in the EU market requires registration in the REACH central database, ie, the chemical producer or importer. The relevant REACH registration information must be submitted to the REACH central database. The registration will be implemented in different phases by product type and import volume (production). The registration costs are roughly as follows, where the registration cost for chemicals with a production volume of 1 to 10 tons is estimated at 30,000 Euros, between 10 and 100 to 1,500 to 350,000 Euros, and between 100 and 1,000 tones between 40,000 and 850,000 Euros. , more than 1,000 tons of about 40 to 1 million euros.

At the same time, in order to obtain the data information required for registration, the Directive also stipulates strict testing standards and requires high testing costs, and these costs will all be borne by the company. According to the EU estimates, the basic testing cost for each chemical is 85,000 Euros; for each new substance, it takes 250,000 Euros for the first level test, and 325,000 Euros for the second level test, that is, the two new substances. A total of about 570,000 Euros will be required for the testing of the sub-level tests.

Due to the wide range of products covered by the REACH Directive and the large number of products involved, the chemical product registration requirements imposed by the REACH directive are strict, the contents are numerous, the quantity of detection is large, and the cost is high. After the implementation of this Directive, many small and medium-sized enterprises may be unbearable. The elevated market access threshold will have a huge impact on the overall export of chemical products and downstream products from the city to the EU. At present, the inspection and quarantine department has started a response work program in a timely manner, through the translation study of the REACH directive technical documents, carried out the REACH directive training propaganda, and improved several chemical emission testing technologies to maximize the protection of the city's chemicals. The interests of enterprises and downstream related companies (especially SMEs) promote the export of chemicals to Europe.

At the same time, the inspection and quarantine departments reminded the vast majority of exporting companies that responded to the need to fully recognize the importance and urgency of responding to the REACH system and actively prepare for the response.

(A) Small businesses bundled with customs. Several peer companies, joint testing, sharing of costs, sharing information, sharing results, and avoiding duplicate testing, are also permitted by REACH regulations.

(b) Strengthen the competitiveness of enterprises. Manufacturers of chemicals and downstream products must work hard to cooperate with foreign counterparts, learn their advanced production and management experience, improve production processes, research and collect technical regulations and technical standards in various countries, and improve product quality and safety.

(3) The company establishes specific management mechanisms that ensure the operation in accordance with REACH regulations. Enterprises should pay attention to all aspects from production to distribution, including the source of raw materials, production data provided in the supply chain, testing, and data flow, etc., in compliance with REACH regulations.

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