China's Chemical Products Entering the EU Must Face the Challenge of REACH Regulations

—— China's large-scale petrochemical enterprises complete regulatory pre-registration


Since China's accession to the WTO, the petroleum and petrochemical market has been fully open, and the diversified competition landscape of market players has gradually taken shape. On June 1st last year, a comprehensive regulation concerning the safety of the production, trade, and use of chemicals - the REACH regulation came into effect. All chemicals sold and used in the European market should be included in the management system for registration, evaluation, and licensing. Without registration or approval, it cannot be sold in the European market.
Pre-registration on time and positive challenges In accordance with the EU REACH Regulation, the pre-registration period is from June 1 to November 30 this year. On December 4, the reporter learned from related departments that at present, a group of companies that produce chemical products, including PetroChina, Sinopec, etc., completed pre-registration on time. The reporter also learned that in order to help Chinese export companies register, the China Petroleum and Chemical Industry Association established the “China Petroleum and Chemical Industry REACH Technical Service Center” in accordance with the authorization of the Ministry of Commerce, actively assisting enterprises with registration and pre-registration, and working hard to make REACH regulations. The impact on the export of chemical products in China is minimized.
It is reported that last year the China Petroleum and Chemical Industry Association held four training courses in Shanghai, Nanjing, Chengdu, and Guangzhou to solve the problem of the spread of knowledge on REACH regulations. In March of this year, the EU pre-registration meeting for REACH regulations was held to resolve practical operational issues. The main contents included the pre-registration procedures for REACH regulations, the collection of information materials, the preparation of registration materials, and the application of IT registration software.
Authorities in the industry believe that the REACH regulation has the tendency of trade technical barriers and trade protectionism and will have a major impact on China's oil and chemical industry. Due to the implementation of the REACH regulations, registration, testing, evaluation and market access are required. After the implementation of the REACH Regulation, the cost of thousands of chemical products exported by the petrochemical enterprises to the EU each year will increase by 5%. Some companies may even Will exit the EU market.
Accelerating Structural Adjustment and Improving Environmental Protection Requirements Experts analyzed that the implementation of the REACH regulations has a certain degree of positive significance for China's petrochemical industry. Because the REACH regulation starts from the protection of human health and environmental safety, it strictly stipulates the development, production, sales, use, and waste disposal of chemicals, and puts forward higher requirements. Therefore, it can promote chemicals. The production enterprises will carry out structural adjustments, adopt cleaner production processes, and accelerate the process of integration with the international advanced level.
At present, China's petrochemical products exported to the European Union are mostly bulky, low value-added, products with raw materials, and the discharge pressure of pollutants during the production process is relatively high. However, after the implementation of the REACH regulation, these products will face problems such as registration, evaluation and licensing, and must provide the necessary data. The products produced by Chinese companies often lack relevant data. Although large companies have specialized R&D departments, most SMEs do not have R&D institutions.
So what about the import of petrochemical products? It is understood that China’s imports of petrochemical products are dominated by high-end products, and the trade deficit has increased year by year in recent years. After the implementation of the REACH regulation, due to the increase in production costs of European companies, the price of imported chemicals in China will increase by 6%. In this way, not only the benefits of chemical import companies will be affected, but downstream companies will also be affected by the increase in costs.
Integrate with international standards and increase market competitiveness The implementation of REACH regulations will have an unavoidable impact on China's oil industry and chemical companies. How do Chinese chemical companies deal with REACH regulations?
The relevant departments of the China Petroleum and Chemical Industry Association recommend that although REACH regulations tend to have technical barriers, with the improvement of environmental protection requirements in various countries, some polluting chemical companies and products will certainly be eliminated. The Chinese chemical industry must accelerate the adjustment of product structure. Enterprises must also constantly improve product quality, improve environmental protection requirements, and enhance product innovation capabilities. At the same time, we should pay more attention to the dynamics of the international market, strengthen trade skills, and constantly improve our international competitiveness.
It is understood that in order to manage the implementation of the REACH Regulations, the European Chemicals Agency established in Helsinki, Finland, has started work on June 1, 2007, and the new EU Chemicals Management Law came into effect on the same day. The European Chemicals Agency is an institution established specifically for the implementation of REACH regulations. Its main responsibility is to accept registrations. The European Chemicals Agency also establishes and maintains a database. Some non-confidential information of the database is public. Chinese companies can pay more attention to the information published on the database, increase the sensitivity in this area, and actively request and access relevant information.
In addition, after China's accession to the WTO, several state-level consultation points have also been established to provide enterprises with trade policies, technical barriers, sanitary and phytosanitary quarantine, and food safety services.

Related Links The REACH Regulation is a comprehensive regulation concerning the safety of the production, trade, and use of chemicals. About 30,000 chemical products produced in or exported from the European Union to the EU market, as well as downstream products involving all chemical products, such as textiles, light industry, toys, and electromechanical products, were separately registered (about 80%) and assessed ( About 15%), license (about 5%) of three management and monitoring systems to regulate the manufacture, use, and circulation of chemicals on the EU market. According to the timetable set by the European Union, companies that produce more than 1,000 tons of chemical substances must complete registration within three years of the implementation of the REACH Regulation, and must register within 11 years at the latest. Products that fail to be included in the management monitoring system on schedule cannot be on the EU market. On sale.
The REACH regulation is very extensive. The products involved include not only chemical substances but also articles containing these chemical substances, ie downstream products.

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