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New REACH regulation can impact apparel exports
Aug '09
A new European Union regulation coming in to effect from December 2011 may have far reaching implications for the Indian textile and apparel sector. This new regulation deals with banning harmful chemicals contained by products exported to the EU.

Under a new law “Registration, Evaluation, Authorisation and Restriction of Chemical Substances” (REACH), the exporters and producers will have to notify the European Chemical Agency (ECHA) if at all their goods contain chemicals banned under REACH.

In the previous fiscal year (2008-09) exports of clothing to the EU touched US $5 billion accounting for nearly 47 percent of all clothing exports and it is this very figure which could come under strain of the new REACH act.

The penalties will be country-specific and member-states will impose a penalty for non-compliance, which will be effective and proportionate. The penalties could be as high as €75,000 or having the entire consignment confiscated and burnt.

Fibre2fashion News Desk - India

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