Recently, the European Union issued a new regulation on the Registration, Evaluation, Licensing and Restriction of Chemicals (REACH) regulation. Any chemical that has been listed in the SVHC exceeds the threshold must be notified to the European Chemicals Agency before June 1, 2011. The products involved in the notification will not be able to enter the EU market.

It is understood that the new regulations added 8 new types to the original list of 13 textile-related substances of very high concern.

Industry analysts believe that the new REACH regulation will form new barriers to the export of China's textile and clothing industry. The declaration and testing of the new regulations will increase the cost of China's textile and clothing exports, and cause great resistance to the export of SMEs.

The so-called leakage of the house leaked overnight. There were rumors that there was a significant increase in costs, and there were rumors that export tax rebates were lowered. China's textile and apparel exports are again facing the “barriers” of the new EU REACH regulations. Recently, the European Union issued a new regulation on the Registration, Evaluation, Licensing and Restriction of Chemicals (REACH) regulation. Any chemical that has been listed in the SVHC exceeds the threshold must be notified to the European Chemicals Agency before June 1, 2011. The products involved in the notification will not be able to enter the EU market.

Constantly raised "barriers"

The EU REACH Regulation, which came into effect on June 1, 2007, is the "Registration, Evaluation, Licensing, and Restriction of Chemicals," and it is the world's most widely regulated law to date and it is also a technical trade barrier. In the past four years, four batches of substances have been listed as substances of high concern. 46 substances of high concern (SVHC) including phthalates, quinazones, and chromium trioxide have been included in the list.

According to the new regulations, articles contain more than 0.1% of SVHC substances, and the total amount of substances entering the EU market exceeds 1/t/y per year. Manufacturers or importers of articles need to go to the European Chemicals Agency (ECHA). Notice. The deadline for notification is related to the time when the substance is listed in the list of authorized candidates (SVHC list). The SVHC substances listed on the authorized candidate list before December 1, 2010 must be notified before June 1, 2011, December 2010. SVHC substances listed after the date must be notified within 6 months from the date of inclusion. So far, ECHA has issued 4 batches of 46 SVHC substances, of which the first three batches must be completed before June 1, 2011, and the fourth batch must be completed before June 15, 2011.

“We must declare before June 1st, otherwise products that have been exported to the EU market will be subject to penalties for non-compliance. Products that have not yet been exported cannot be exported afterwards,” said Chen Bin, Trade Development Department of Jiangsu Guotai Group. They have already paid attention to the specific content of the EU's new REACH regulation and will strictly test it in accordance with regulations.

Since last year, there have been many cases of trade remedy initiated against China's textile products. “Recall” has become the main form of trade friction between developed countries and China.

Chen Bin said that the EU’s inspections have become increasingly stringent, and some of them are very demanding. Companies are also helpless and the future prospects are difficult to predict. What needs to be done now is that Chinese textile companies must be aware of whether the newly added eight kinds of substances will appear in the products and inform the suppliers to strictly control the production process. Otherwise, the product will be recalled and the entire industry will suffer great losses.

The main way for expensive test companies to respond to REACH regulations is to pass tests to ensure that their products do not contain illegal chemical components. However, the reporter learned from the interview that product testing is far less imaginary than it is. Product testing is generally conducted through a third-party testing organization designated by the customer. It is not only expensive, but also has no choice. The testing organization can only be specified by the customer. "Of course, the fees are very expensive and expensive!" When it comes to testing costs, Xu Youyan, deputy general manager of Shanghai Zhensheng International Trade Co., Ltd., issued such a lament. He told reporters that chemical materials should be used for textile and apparel raw materials, accessories and their production process. This is not a product issue but a chain issue. Each additional substance in the REACH regulation requires companies to measure the same substance.

Each product must be tested in the range of tens to hundreds of items. The test cost for each item is a few thousand dollars.

"Some of the orders were made, and hundreds of thousands of test fees were simply incurred. As a result, our costs were forced to rise. Now that the costs of raw materials and labor are rising, this part of the test costs will greatly increase the cost pressure. Businesses that are already difficult to do will be even more difficult, said Xu Youyan.

Excessive testing costs are the pain of many companies. Wang Hao, general manager of Shanghai Shangde Garment Co., Ltd., said that they do not have the right to choose a testing organization. They must be the customer's designated European testing agency or be tested by their branch offices in Shanghai, Hong Kong and other places in China. For example, SGS and Intertek Group (ITS) are testing organizations generally designated by European customers. Since the test is monopolized, companies can only accept it completely on the price. This part of the cost cannot be borne by the customer and can only be absorbed by the company itself.

SMEs face challenges The costly testing costs are the price that companies have to pay to retain the European market. However, whether or not it can pass inspections is closely related to the size, capital, and technological capabilities of the company.

In order to be able to export smoothly, some companies also introduced testing equipment to ensure the passage of testing. Chen Bin told reporters that different accessories for each piece of clothing, such as buttons and zippers, came from different suppliers, which brought great challenges to quality supervision. In order to pass the test, Cathay Pacific introduced expensive testing equipment, imported testing equipment from abroad, and set up a testing center.

In response to REACH regulations, Inner Mongolia Luwang Cashmere Co., Ltd. also expressed great confidence. Zhou Zhengzhong, head of the European and American Trade Department of the company, said that the EU has always been highly demanding in terms of environmental protection and safety. Zhou Zhengzhong stated that since the company’s main export market is Europe, it strictly controlled the products from the very beginning and strictly controlled the source of the raw materials purchased. For this purpose, it also requested a dedicated consulting company to monitor the list of sensitive substances, and Declared by the agent.

Most large companies have a certain understanding of the new REACH regulations and have more experience and confidence in testing. In contrast, SMEs do not know much about the new REACH regulations, and they rarely test or report on their own initiative.

Zhou Zhengzhong said that the EU's new regulations will have a great impact on low-end small businesses. On the one hand, the risk of being recalled increases. On the other hand, small companies that compete on the basis of price advantage reduce the scope of raw material procurement and increase their costs. With the overlapping of multiple cost negative factors, small and medium-sized spinning and clothing enterprises with the EU as the main market will face great difficulties.

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