REACH Regulation (Registration, Evaluation, Authorisation and Restriction of Chemicals) is likely to be implemented from June 1, 2007.

According to this regulation, companies and organizations have to transfer chemical risk responsibility from management to enterprises.

Apart from chemical enterprises, other manufacturers, which use more than one ton of chemical each year, will be subject to REACH Regulation.

These enterprises have to register their chemical and list its latency. If the enterprises fail to provide any information regarding safety of products made of chemicals, their products will not be allowed to enter EU markets.

Most Chinese enterprises have not done any preparation for REACH registration.

With REACH regulation, Chinese import cost from EU will go up. China has to import dye, paint and other chemical used in textile industry from EU each year. Total import value is about US $70 million each year.

So, according to REACH regulation, Chinese textile units will have to increase production cost by RMB30 million, and production cost of dye units in China will also go up.
 
Fibre2fashion News Desk - China