The EU releases new regulations and Cixi textile exports face another big test
Recently, the European Union issued Regulation No. 26 of 2016, requiring that the content of nonylphenol polyoxyethylene ether (NPE) in textile products shall not exceed 0.01% (100ppm). The transition period of the regulations is 5 years, that is, starting from February 2021, products that do not meet the limit requirements will not be allowed to be sold or imported in the EU market.
Data shows that the EU is currently the second largest market for Cixi City’s textile exports. Cixi City currently has more than 300 textile and apparel companies of various types, with an export volume of US$670 million in 2015, of which US$160 million was exported to the EU, accounting for 23.9%. This ban will have a serious impact on the export of key products such as clothing, interior textiles, yarns, and weaving fabrics.
According to analysis by relevant personnel from the Foreign Trade Section of the Municipal Investment Promotion Bureau, the impact of the new regulations on enterprises is mainly reflected in three aspects:
First, more than half of the products may face the risk of being eliminated. Since NPE is the most commonly used detergent and dyeing auxiliary in the textile industry, it accounts for more than 80% of my country’s market share. Currently, more than 50% of textile products on the market will fail to meet the EU NPE limit requirements, especially in printing and dyeing, leather, chemical fiber and other industries.
Second, production and testing costs will increase significantly. In order to comply with the requirements of new EU regulations, production companies need to upgrade scouring, bleaching, dyeing and other processes. The processes are complex and parameter control is difficult, resulting in increased corporate costs. At the same time, raw material and testing costs also need to increase by 10% to 30%.
Third, some textile companies will be eliminated early. Although the EU has given a five-year transition period, according to the investigation, some EU customers have already asked textile companies to use the new version of the directive for product inspection. The actual implementation time of the directive has been greatly advanced, and some products will face the threat of being eliminated early. The Municipal Investment Promotion Bureau reminds relevant enterprises to pay close attention to and track the progress of the new NPE regulations, understand the specific content of the ban, and proactively formulate detailed response strategies; use the transition period of regulations to improve production processes, and conduct research and development of NPE alternative products. Develop and improve the level of clean production technology of enterprises; at the same time, improve the quality management system, strengthen the quality of purchased raw materials and the quality control of the production process, and ensure that the quality of export products meets the laws, regulations and contract requirements of the importing country.
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