Indian textile and apparel manufacturers could face hurdles in exporting to the European Union when a tough law on chemicals use is fully implemented by December 2011, the Apparel Exports Promotion Council (AEPC) said on Monday. The EU accounted for close to 47% of garment exports from India in 2008-09 at $5 billion.
The legislation called “Registration, Evaluation, Authorisation and Restriction of Chemical Substances” (REACH) came into effect in June 2007 and by December 1, 2011 apparel producers or exporters will have to compulsorily notify the European Chemicals Agency (ECHA) if their goods contain hazardous matters listed in the new law.
Textiles processors and manufacturers use a number of chemical substances like solvents, pigments and dyes that need to undergo the process of registration, evaluation and authorisation under the legislation.
Pointing out that companies may face severe penalties of up to 75,000 euros per consignment if the norms are not followed, AEPC executive committee member Hari Kapoor said the country is not capable of carrying out the required testing at present. The testing capability of Indian firms may fall short once the law is fully in operation, Kapoor said. At present, there are 10 major laboratories in the country with capacity to test 20,000-30,000 samples a year, which is half of China’s capacity.
AEPC committee on export promotion’s chairman Sudhir Sekri said, “Complying with the new law will increase costs but the industry must move forward quickly as the REACH is aimed at being eco-friendly and sustainable.”
