Yantai Clothing Europe "Shouting Difficult" &Nbsp; Small And Medium-Sized Enterprises Or Market Cleaning.

"No worries about orders and worry about profits", compared to the gloomy pain of the financial crisis era, Yantai garment enterprises have recently experienced another kind of pain: the top of the head is rising raw materials, manpower costs and technical barriers.

Since June, the EU's new REACH regulation has also sprinkled salt on the wound: according to the EU's new "REACH" regulation, anyone who has been listed as a high standard of concern (SVHC) is required to report to the EU chemicals authority before June 1, 2011. Products that are not notified will not be able to enter the EU market.

What is the share of Yantai garment enterprises that rely heavily on the European market?

"The annual export value is close to US $100 million, occupying 1/7 of all overseas markets."

Yi Yufeng, head of Yantai textile inspection and Quarantine Bureau, said.

A related statistic shows that last year, the total number of garments exported from Yantai port was 669 million USD, of which 92 million were exported to the EU.

Final ultimatum: declaration completed before June 15th

Effective since June 1, 2007

Chief clothing officer told reporters that according to the new regulation, the substance contained more than 0.1% of SVHC substance, and the total quantity of the material entering the EU market every year is more than 1/t/y. The manufacturer or importer of the article needs to inform the European Chemicals authority (ECHA).

The deadline for notification is related to the time when substances are included in the list of authorized candidates (SVHC list). SVHC substances, which are included in the authorized list before December 1, 2010, must be notified before June 1, 2011. The SVHC substances listed after December 1st last year 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 are required to complete the notification before June 1, 2011, and the fourth batch must complete the notification before June 15, 2011.

"This means that violating regulations must be punished, and products that have not been exported will not be exported later.

To this end, we must declare before June 15th, otherwise it will be too passive.

Xu, manager of trade development department in Haiyang, a foreign trade enterprise, said that what we need to do now is to clearly understand the 8 new additions.

More foreign textile enterprises say they have paid attention to the specific contents of the new EU REACH regulations, and will strictly conduct tests according to the regulations.

However, the EU's inspection is becoming more and more stringent. Some of them are demanding and enterprises are very helpless. The future prospects are hard to predict.

Product testing: each cost is several thousand yuan.

"The main way for enterprises to respond to REACH regulations is to ensure that their products do not contain illegal chemicals through testing."

Experts say, however, in an interview, reporters learned that product testing is far from easy.

The high cost of testing is the pain of many enterprises.

When it comes to testing time, a vice president of an international trade company told reporters that textile and clothing raw materials, accessories and their production process all need to use chemical substances. This is not a single product problem, but a whole chain. "Every additional substance in the REACH regulations, enterprises need to measure more than one substance. Each product has to carry out dozens of tests and hundreds of tests, and the cost of testing for each item is almost a few thousand yuan."

"Some of the lists are made. Hundreds of thousands of tests are made.

In this way, our cost will be forced up. "

"Now, raw materials and employment.

At the same time, textile companies complain about the most. "Product testing is usually carried out by third party testing organizations designated by customers. It is not only expensive, but also has no right to choose, and testing institutions can only be designated by customers".

The industry said that they had no right to choose a testing agency. They must be designated by the client to test in Europe or be tested in their branches in Shanghai, Hongkong and other places in China. "Since the test is monopolized, the price can only be accepted by the enterprises.

This part of the cost can not be borne by the customer, it can only be digested by the enterprise itself.

Export restriction: SMEs or market cleaning

The high cost of testing is the price that companies have to pay to retain the European market.

However, whether we can pass the test is closely related to the scale, capital and technological strength of the enterprise.

From the present situation, some small and medium-sized enterprises have begun to be cleaned by the market.

"From 1 to April this year, the value of garments exported to the European Union at Yantai port reached 17 million 900 thousand US dollars, which is 6% lower than last year". Yi Yufeng told reporters that most large enterprises have some understanding of the new REACH regulations and are more experienced and confident in accepting tests.

In contrast, SMEs do not know much about the new rules of REACH, and seldom take the initiative to detect or declare.

During the interview, some foreign trade experts in our city agreed that the new rules promulgated by the European Union will have a great impact on low-end small garment enterprises.

On the one hand, the risk of recall is increasing; on the other hand, the small enterprises that compete by price advantage will narrow the scope of raw material purchase and increase the cost.

Under the superposition of multiple costs and negative factors, the small and medium size garments which are the main markets of the European Union