‘REACH’ to Pose Difficulty for SME Apparel Exporters
The European Union (EU), which had seemed to be a lucrative as well as a burgeoning market for textile and apparel manufacturers in the country will not be the same again. This is because the EU is considering the imposition of tougher laws on chemicals and their safe use, many of which are used in apparel printing and design.
Industry experts believe that the regulation which is proposed to come into effect from December 2011 would deeply impact the business of small and mid-sized textile and apparel companies in India. Import-export ties between the EU and India will also be significantly affected, once the new law comes into force.
From December 1, 2011, it will become mandatory for manufacturers as well as exporters to notify the European Chemicals Agency (ECHA) if their products contain any kind of hazardous element. This will be followed as per the rules mentioned in the new regulation called Registration, Evaluation, Authorisation and Restriction of Chemical Substances (REACH). The prime objective behind this law is to protect people and the environment from the harmful effects of hazardous chemicals.
Matter of concern for SME exporters
Dye and pigment manufacturers will have enough reason to worry, since their products, which are considered to be potentially harmful, will come under the scanner. In this context, Viral Trivedi, Manager at Dyes Sales Corporation in Mumbai, says, 'REACH regulation will create considerable confusion among the small and mid-sized dye and pigment exporters in the country, since most of these manufacturers are less aware of such regulations.'
It is feared that companies that would not comply with the REACH regulation would be heavily penalised. Rajesh Shah, MD of Meera Dyestuff Industries, a mid-sized dye manufacturer in Ahmedabad, comments, 'The government should immediately organise some awareness camps for the benefit of dye and pigment manufacturers in the country. Otherwise, many exporters will turn up paying penalties as high as '75,000 per consignment.'
According to the Apparel Export Promotion Council (AEPC), export costs will double after the implementation of the law, but the manufacturers have to comply with the new regulation in order to grab the large European market.
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About the Author:
David Parks is a well known author and has written articles on IT Companies, B2B Portal, Investment Guide, suppliers, Manufactures and many other subjects.
