“Green regulations” come into effect, China’s toy exports face major exams in 2009
The severe impact of the economic recession will continue, and trade protectionism will intensify. Some experts predict that China’s export products will encounter more trade frictions in 2009, and trade frictions will become increasingly diversified, integrated and hidden.
Reporters recently learned that two regulations (CARB and CPSIA) in the United States will officially take effect this year, involving consumer products such as furniture, toys, and children’s products. In addition, the EU’s new toy safety directive will be officially released soon. In addition to traditional tariff protection and other means, the United States and Europe are likely to build high “green barriers”, and China’s related export companies may face a new round of “big tests.”
“New examination regulations” are being introduced one after another
The reporter learned from SGS-CSTC that the CARB regulations were officially promulgated by the California Air Resources Board on April 18, 2008, and are applicable to the state of California, aiming to control formaldehyde emissions from composite wood products. The CARB phase implementation officially came into effect on January 1, 2009.
According to SGS, CARB regulations strictly limit formaldehyde emissions from composite wood products produced, sold or imported in California, as well as finished products containing composite wood products. The above-mentioned products exported to the United States must be third-party certified and clearly marked to show compliance with California requirements. “If the product is exported to the United States without CARB certification, there will be a risk of being recalled, which will also cause serious economic losses to the company.” SGS experts pointed out.
CARB is by far the most stringent regulation on formaldehyde emissions in composite wood products, and California, which has always been a “vane” for legislation in the United States, will soon apply its bill to other states in the United States. “CARB will likely change the existing international trade pattern of the panel industry, furniture industry and other related industries. As a large furniture exporter, China will inevitably bear the brunt.”
In addition, the CPSIA regulations were promulgated on August 14, 2008 and apply to the entire United States. The regulation applies to almost all consumer products, such as toys, textiles, clothing and furniture, and is intended to control the content of substances such as lead and phthalates. Some evaluations call this act “the most far-reaching federal act on consumer safety since 1970.” The phase will take effect on February 10, 2009.
The EU is not taking it lightly. On December 18, 2008, the European Parliament passed the new toy safety directive proposed by the European Commission, which covers various issues such as production materials, testing and market supervision of children’s toys. It is understood that the new directive will come into effect 20 days after the official text is released, and EU member states will need to start implementing it within the next 18 months.
Trapped in the “standards battle”
Xu Jianping from Office Depot China told reporters that their company is mainly engaged in the sales of office supplies, and the market is mainly in the United States. In addition to being affected by the financial crisis, exports are becoming more and more difficult. “The United States has strict requirements on imports. The scope of product spot checks has begun to increase, and the enforcement of relevant laws and regulations has also been strengthened.”
“Currently, the export of consumer goods made in China is facing increasingly strict technical barriers, and the environmental compliance of products will be a development trend.” Zeng Xiaohu, director of SGS Toys and Light Industrial Products Department, said.
“According to the model argument, the economic prosperity index is inversely proportional to trade disputes. When the economy is booming, there are fewer trade disputes; when the economy is down, trade disputes increase.” Wu Changhai, a researcher at the Law and Economics Research Center of China University of Political Science and Law, believes that in Under the current economic crisis, countries may “operate” on imported products from other countries based on their own economic interests. Since the United States fell into economic recession, concerns about China’s imports have been increasing.
Jia Jinsi, a professor at Capital University of Economics and Business, said that not only will the number of trade frictions increase this year, but also new changes will occur in the means of trade protection in various countries – the establishment of strict standards. Export enterprises such as food processing and mechanical and electrical production are most affected by the “standards war”. In order to protect their own industries under the crisis, all countries will speed up the formulation of new standards.
Enterprises should “look up and look at the road ahead”
“Export risks have increased!” Mr. Xu, a toy manufacturer in Guangdong, told reporters that if the products do not comply with the importing country’s regulatory requirements, once they are randomly inspected, it will be difficult to bear the ensuing losses. “Everything worth 1 RMB in China is worth 1 USD when sold in the United States. However, if it is found to be substandard, if it is serious, you will be forced to recall them all, and the recall price will still be 1 USD! If you encounter a small business, it is easy to go bankrupt! ”
Xu Jianping said, “We must urge suppliers to pay attention, and provide them with guidance. Products that do not meet the requirements must be rejected!”
“Enterprises cannot just immerse themselves in production, but also have to look up and see the road clearly!” Li Youhuan emphasized that under the current background, export enterprises must increase their awareness of prevention, strengthen tracking and docking of the international market, ensure product quality, and actively adjust. Achieve compliance with the standards and regulations of the importing country.
Zeng Xiaohu believes that the introduction or entry into force of a series of regulations requires enterprises to not only pay close attention to changes in international technical regulations, but also to start from the internal production process and strengthen quality and safety in the process from raw and auxiliary materials to processed products. Control to ensure that exported products meet the requirements of various environmental protection regulations. “This also sets a higher threshold. Some companies with low technical content and substandard quality will be eliminated from these markets. This is not necessarily the case.”�Bad things. A new round of industry reshuffle may be coming. ”
“The severe foreign trade situation will force export companies to adjust their production structures and accelerate the upgrading of the entire industry, especially those industries with unclear export advantages and fierce competition.” Jia Jinsi believes that our country’s government departments and industry associations should play more roles service responsibilities, a group of professional intermediary service agencies may also be generated during this period. “For example, the standards faced by the export of light textile products are very complex and vary from country to country, and some companies do not even understand the domestic standards. This requires some institutions to provide training and guidance to the companies.”
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