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SMEs struggle to cope with EU REACH laws
Jun '08
EU REACH was put into effect from June 1, 2008. Under this law it has become mandatory for exporters to provide specific details of the chemical components in the products. They are required to prove their safety, or else the products are not allowed to enter EU market.

Experts believe that REACH are undoubtedly the most rigid and complicated non-tariff rules at present, and affect the textile and clothing as well as toy industry in a major way.

For these three sectors the Chinese exporters are required to register their products at specified organizations and the cost is also reasonable.

However, for chemical and footwear products, the rules become much more strict and traders need to follow complex procedures.

Reportedly, several leading Chinese enterprises have set up a special department in charge of REACH rules. However, many SMEs are having serious problems, especially due to lack of knowledge and finance.

These domestic enterprises are unable to follow REACH rules and most are seriously considering giving up EU as a market.

Only ray of hope is that US is negotiating with EU regarding the REACH rules. Insiders say that, if talks bring out no result, then, US plans to approach WTO and object to these laws.

Fibre2fashion News Desk - China

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