The Cost Of Environmental Directives By Four Mechanical And Electrical Exports, Guangdong Has Been

Electrical

Electrical

Guangdong's exports to the EU products is the most important commodity. According to

Customs

Statistics, from January to September this year, Guangdong exported electromechanical products to the EU total of 18.14 billion U.S. dollars, accounting for the same period of Guangdong's total exports to the EU 77.9%. Currently, two new EU environmental directives "Waste Electrical and Electronic Equipment Directive" (WEEE) and "electrical and electronic equipment on the Restriction of the Use of Certain Hazardous Substances Directive" (ROHS) has entered into force. Insiders pointed out that these two commands will allow export of electromechanical products in Guangdong is facing enormous challenges.

Under the EU environmental protection order two, since August 13, 2005, the European Union market, the circulation of electrical and electronic equipment manufacturers in the legal sense, must assume their end of life product recycling costs. July 1, 2006 after the EU market of electrical and electronic products shall not contain lead, mercury, cadmium, hexavalent chromium, polybrominated biphenyls and polybrominated diphenyl ethers six kinds of hazardous substances. These directives include 10 categories of products involved nearly 200 thousand kinds, many of which belong to strong export machinery and electronic products in Guangdong, the Guangdong mechanical and electrical products exports to the EU

Trading

Guangdong export of electromechanical products accounted for 20.3% of annual exports directly affected will exceed 20 billion U.S. dollars.

Customs statistics show that in August, Guangdong exported electromechanical products to the EU 2.2 billion, over last year (below) increased 17.1%, an increase over the previous July, Guangdong exported electromechanical products increased 22.9% to the EU dropped by 5.8 percentage points; 9 month, Guangdong mechanical and electrical products exports to the EU 2.25 billion U.S. dollars, increased further to 14.6% this year, Guangdong exported electromechanical products to the EU growth factors than by the Chinese New Year outside of the minimum rate of increase in February. EU Directives on export of electromechanical products in Guangdong will be the negative impact of gradually. These two commands will not only significantly increase the manufacturing costs of Guangdong enterprises and export costs, but also to some of the products were substandard enterprises face the threat of exclusion from EU market.

According to analysis, the two EU environmental directives will "Guangdong to create" four major cost increase:

First, due to mechanical and electrical products

waste recycling and processing fees increased costs. August 13, 2005 after market products, producers should pay all their own products for recycling, treatment, and then

Cycle

And environmental costs of processing discarded. Meanwhile, the EU provides recovery and re-utilization of 70% to 80%. After the two commands start, electronic recycling costs will be passed on to manufacturers who, due to high labor costs in Europe, cost recovery may lose Guangdong manufacturing cost advantage, thus reducing the related exports

Competition

Force.

Second, costs for hazardous substances increased costs. The EU has developed corresponding laws requiring inspection by the necessary means to determine whether the product meets the requirements, manufacturers should constitute all the raw materials and products

Parts

Identified one by one, to ensure that non-harmful substances, which require manufacturers to pay a certain test costs, thus increasing export costs.

Third, the use of alternative materials and increased costs. Guangdong produced most of the electrical and electronic products using six kinds of hazardous substances banned to find alternatives to increase the cost of the product, require the use of alternatives related to the manufacturing process and equipment to improve production processes, and present some of the proscribed hazardous substances is difficult to find suitable alternatives.

In addition,

TNC

Transfer of the supply chain, local

Spare Parts

Production Company

Pressure

Increase. Export of electromechanical products in Guangdong is a major force in foreign

Investment

Business, but parts of its commitment to supporting local SMEs, but mostly for multinational companies, control of the parts can be brought to avoid ROHS Directive

Risk

And matching firms must make their products meet the requirements to become a qualified supplier of transnational corporations, so that the pressure for the two directives and the impact on SMEs who were transferred to. The lack of testing methods and Guangdong enterprises R & D capabilities, difficult to replace harmful substances with technical and technological. As China's manufacturing industry has been taking the low road, environmental protection, material supply chain to build and easy.

Expert

Pointed out that Guangdong enterprises, particularly to strengthen research in four areas: first, to strengthen the understanding and study of the European market, particularly the social resources can be borrowed, shared by cooperative means of cost recovery, to reduce the cost of a single enterprise; followed strengthen the research on raw materials and manufacturing equipment, improvement of production of the necessary ability, to avoid excessive dependence on international market supply; Third, the "Green Product" concept will be the ultimate consumer demand, manufacturers should strengthen environmental protection into product development ; Fourth, electronic waste recycling is the focus of the content of the world's environment, Guangdong enterprises should establish the correct environmental awareness, can we truly with the world, encountered repeatedly in the export field Bu Zhiyu "green barrier." In the long run, if the responses are effective, the two directives limiting the mechanical and electrical products, Guangdong favor of technological innovation and upgrading, so as to enhance mechanical and electrical products, Guangdong's overall competitiveness.

by: gaga

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