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R.E.A.C.H. - New legislation for importing chemicals, metals and minerals into the EU
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ChurchillUK
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A friend of mine in the chemical industry is concerned that many chemical factories who are importing chemicals into the EU, will not be able to after 2011 when the REACH legislation comes into affect.

Before I get into a lengthy debate, does anyone else know about REACH?
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30 Jul 2007 19:56
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Geoffreygao
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Replying to [ChurchillUK]:i heard about the rules. it seems some items have effected from this year.
16 Aug 2007 00:12
Post 3 of 3
Replying to [ChurchillUK]:
Hello there,

I got a surprise for you, the Reach is already up and running, since June this year.

I got hit by it badly, I am into scrap export of plastics, unknowingly, I got checked, and ordered to take back my goods and also got fined to not have complied with the new legislation, and that all of a piece of paper that I didn´t file in as per the new regulation, and the rest of my other 10 papers didn´t even account for.

Okay here is what has happened. Chemical items, which is from Acids, Bases, Plastics, to Electronic components fall pretty much under it either in scrap condition or in new condition, are controlled quiet strictly, any other particular items are not as high leveled as the ones I mentioned.

Now what has really changed. Unlike before where you already had to report pretty much everything, and got away with a little mistakes, you can´t do that anymore. Before any shipment, there is for all the items listed in the Reach, a notification procedure, which takes 30 days to be a yes or no, what a waste of time, and only then it can be shipped out or in.

The next problem attached to that is, not only do you have to file it in 30 days ahead, you also have to show a security deposit, if the government feels suspicious about you, and that fee alone at times can be double the value of the goods that you want. And in addition to that the records have to be kept up to 1-2 years, depending on the contract between Eu and the foreign Countries.

So now the cost has already risen, basically anyone who is small businessman or a start up with only so much money to get his goods can forget it, since he will need the triple of it just to be safe not to get fined.

Another thing that has to be mentioned that is the handling, it was quiet strict before as well, but now you also have to have licenses that show you are capable of handling the goods in addition to the already thought regulations. For any companies who are already experienced in it, but don´t have the permit, now have to spend money on a third party who does, just to get their work done.

I could go on with so many other things, but this are the major ones, that come into my mind.

Now how does that effect the builders and construction companies. The prices will go higher up since cost of the goods transportation and punishment in wrong doings has risen to high extent, and the supply ability has dropped which will at the end of the day only favor those who have stocks to sell, at a very high price.

And some construction companies will have to fuse together, since not all of them will have the licenses to import what they need. In turn the constructions cost will go up, so even the Government will have to pay higher prices for the infrarstructure which they will get back from the Civilians through taxes.

Its meant to stop the Enviromental waste, but this is not the solution, infact it is making it worse, since now the problem will arise, the once who actually can reuse the material might not even able to get hold of the goods since import or export is banned or regulated in a way that makes it impossible. So all prices will go up, a lot of builders will go down, since they already calculate on thight margins, but on the other hand there won´t be anything to build on.

Its a devils circle they say, at the end of the day the only person who will get hurt is the civilian (consumer, business), since now the houses will be more expensive and taxes higher, the only one smiling will be the government.

So REACH stands for Rob Every Accounts of Civil Households.
22 Nov 2007 08:58
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