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STORY: 091209-EURC
by Bob Vereen, Worldwide DIY Council

EU REGULATORY CHALLENGES

(A digest of a session conducted by the US Commercial Service of Brussels during an exporting seminar at Purdue University)

Although the European Union consists of 500 million consumers making it economically the largest economy in the world with only one set of rules instead of 27, unfortunately, that one set of rules is not in operation all the time.

The challenge is that the EU is a fragmented single market!

EU countries had a tradition of top-down regulation, with decision-making processes often complex and closed. EU's old approach was directives-no CE mark but mandatory standards. Its new approach is CE marking and voluntary standards.

New EU directives apply to more than 25 products or product families and contain "essential requirements" related to safety, health and/or the environment, which would make many of them applicable to products made by Council members.

Products should bear a CE mark, because without it, they are subject to questions by buyers. CE marking is a safety mark, not a quality mark. It is, in effect, an EU-wide "passport" for market access for those 25 products or categories. Among the products or categories requiring CE marking are construction products and low voltage items.

Furthermore, from Jan. 1, 2010, the EU will allow only metric measurement units. Declared US policy says that the metric system of measurement is the preferred system but does not say it is mandatory. Since 1980 when the EU made metric units the only legal units of measure, there have been extensions, which now end 12/31/2009. Thereafter, US customary units will be illegal in the EU. This applies to labels, packaging, advertising, catalogs, technical manuals, user instructions, etc.

What makes this complex is that the U.S. Fair Labeling & Packaging Act (FLPA) requires that consumer package labels be dual, both metric and customary, as now in force, FLPA does NOT allow metric-only labels. However, state laws are different, and 49 of our 50 states DO allow metric-only labels.

The Transatlantic Economic Council is the current driving force behind the CSEU standards program. There are many standards-related TEC items such as electric equipment, bio fuels and the metric labeling. If anyone feels that there are market access barriers developing, one can report barriers to: www.tcc.export.gov

The US government has developed an 8-step CE marketing guide and can provide answers to detailed certification/standards questions.

Members now using RFID or thinking about it should know that privacy is very important in Europe, and data protection is a very hot topic. If you are shipping data electronically, you should check out: www.export.gov/safeharbor/

The WEEE Directive will apply to some members because it aims to limit the landfilling of electrical waste. Producers must pay for the collection and recycling of EEE.

The most far-reaching directive of all is REACH, which deals with chemical substances, and you can be affected if you are producing or using chemicals and exporting to Europe. While non-EU companies do not have direct obligations under REACH, your importer is REACH-obligated and you need to be sure your products comply. For more information about REACH, go to: http://ec.europa.eu/environment/chemicals/reach/reach_intro.htm or http://reach.jrc.it/navigator_en.htm

Registration for REACH began June 1 and is to end Dec. 1 of this year, but does allow for some extended registration deadlines. Foreign firms, including US, cannot pre-register or register directly.

Because of this topic's complexity, non-EU companies may appoint an Only Representative to fulfill the obligations of their EU importer. For more information on this topic, go to: http://reach.jrc.it/docs/guidance_document/registration_en.htm

Other government resources are:
www.buyusa.gov/europeanunion
www.trade.gov
www.useu.be

You can learn much more about these topics by going to:
www.buyusa.gov/northcarolina.bensky.ppt , which leads you to a Power Point presentation

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