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Contact Us:
Tel: 03-7804 2664
Fax: 03-7804 2863
Email: prer@peresearch.com.my
Tel: 03-7804 2664
Fax: 03-7804 2863
Email: prer@peresearch.com.my
Product-related environmental regulations (PRERs) such as REACH and RoHS, and other voluntary requirements were introduced to mitigate health and environmental threats from the use
of hazardous substances. They were first introduced in the European Union, and later other parts of the world, including Asia.
The PRERs aim at protecting consumers' health, safety as well as the environment by requiring an extensive life-cycle management of products through supply chains involving procurement of raw materials, production, transportation, consumption and ultimately waste.
PRERs are a new type of regulation aimed at firms supplying goods, regardless of their geographic location. Thus the PRERs could become a trade barrier for exporting countries as their budding export firms would have to dispense additional resources to implement the supply chain management required by these regulations.
If firms, even suppliers to MNCs, do not have capacity to comply with PRERs by collecting information and searching for technologies, market access would be lost. Therefore, an ability in adapting to PRERs is an additional key to continue exporting.
PRERs also involve chemicals which make up a product. In Asia, the impact of PRERs seems significant. Globalization has enabled manufacturing firms to procure parts of products from different countries based on comparative advantage and such activities have led to a formation of extensive supply chain networks in the Asian region. However, such a long supply chain might create adverse effects under PRERs as each supplier in all the production stages needs to comply with the PRERs which make the product accessible to the market.
Some large multinational lead firms have already started to prefer suppliers who are able to adopt the related PRERs as well as to give credible information on their environmental performance. However for a majority of SMEs in developed as well as in developing countries, collecting information and adopting the regulations requires additional capability and imposes a cost burden, thus creating a new barrier to exports.
The PRERs aim at protecting consumers' health, safety as well as the environment by requiring an extensive life-cycle management of products through supply chains involving procurement of raw materials, production, transportation, consumption and ultimately waste.
PRERs are a new type of regulation aimed at firms supplying goods, regardless of their geographic location. Thus the PRERs could become a trade barrier for exporting countries as their budding export firms would have to dispense additional resources to implement the supply chain management required by these regulations.
If firms, even suppliers to MNCs, do not have capacity to comply with PRERs by collecting information and searching for technologies, market access would be lost. Therefore, an ability in adapting to PRERs is an additional key to continue exporting.
PRERs also involve chemicals which make up a product. In Asia, the impact of PRERs seems significant. Globalization has enabled manufacturing firms to procure parts of products from different countries based on comparative advantage and such activities have led to a formation of extensive supply chain networks in the Asian region. However, such a long supply chain might create adverse effects under PRERs as each supplier in all the production stages needs to comply with the PRERs which make the product accessible to the market.
Some large multinational lead firms have already started to prefer suppliers who are able to adopt the related PRERs as well as to give credible information on their environmental performance. However for a majority of SMEs in developed as well as in developing countries, collecting information and adopting the regulations requires additional capability and imposes a cost burden, thus creating a new barrier to exports.
PRER's will impact on exporters, suppliers, and all other SME's involved in the supply chain.
Poison in Cosmetics
KUALA LUMPUR: Six cosmetic products found to contain poisonous chemicals must be removed from the shelves as soon as possible. In issuing the warning, Health Minister Datuk Seri Liow Tiong Lai said he would give companies 30 days to recall the banned products. "Those with stock should immediately stop the sale, distribution and use of the products," he told reporters.
http://thestar.com.my/news/story.asp?file=/2010/3/7/nation/5813894&sec=nation
Hazardous Clothing
BEIJING - Tests reveal clothes by well-known sportswear brands contain a hazardous chemical that can inhibit male sexual development and cause early female development. The non-governmental organization, Greenpeace, purchased 78 pieces of clothing and shoes manufactured by 15 brands from 18 countries, and tests revealed that two-thirds of them, contained the chemical nonylphenol ethoxylates (NPE). The items were produced in 13 countries, including China, Thailand and Indonesia. NPE transforms into nonylphenol (NP), which interferes with sexual development by simulating estrogen.
http://www.chinapress.com.my/node/245739
http://www.chinadaily.com.cn/business/2011-08/25/content_13190707.htm
Dangerous Toys
MADE-in-China toys may be cheap, but not all are safe for children. 16 of the toys were found to contain higher than permitted levels of phthalates, three had lead exceeding permitted levels and four had a combination of both. Seventeens pupils who had played with a bean toy suffered food poisoning when they did not wash their hands before having their meals.
http://thestar.com.my/news/story.asp?file=/2010/8/19/nation/6880289&sec=nation
China seen As Dangerous Source of Goods
China is the main source of dangerous goods in Europe, according to a safety report by the European Commission. Toys were identified as the product most likely to pose a danger to European consumers. The report said that there had been a 50% increase in the number of dangerous products removed from European markets.
http://news.bbc.co.uk/2/hi/europe/7353118.stm
KUALA LUMPUR: Six cosmetic products found to contain poisonous chemicals must be removed from the shelves as soon as possible. In issuing the warning, Health Minister Datuk Seri Liow Tiong Lai said he would give companies 30 days to recall the banned products. "Those with stock should immediately stop the sale, distribution and use of the products," he told reporters.
http://thestar.com.my/news/story.asp?file=/2010/3/7/nation/5813894&sec=nation
Hazardous Clothing
BEIJING - Tests reveal clothes by well-known sportswear brands contain a hazardous chemical that can inhibit male sexual development and cause early female development. The non-governmental organization, Greenpeace, purchased 78 pieces of clothing and shoes manufactured by 15 brands from 18 countries, and tests revealed that two-thirds of them, contained the chemical nonylphenol ethoxylates (NPE). The items were produced in 13 countries, including China, Thailand and Indonesia. NPE transforms into nonylphenol (NP), which interferes with sexual development by simulating estrogen.
http://www.chinapress.com.my/node/245739
http://www.chinadaily.com.cn/business/2011-08/25/content_13190707.htm
Dangerous Toys
MADE-in-China toys may be cheap, but not all are safe for children. 16 of the toys were found to contain higher than permitted levels of phthalates, three had lead exceeding permitted levels and four had a combination of both. Seventeens pupils who had played with a bean toy suffered food poisoning when they did not wash their hands before having their meals.
http://thestar.com.my/news/story.asp?file=/2010/8/19/nation/6880289&sec=nation
China seen As Dangerous Source of Goods
China is the main source of dangerous goods in Europe, according to a safety report by the European Commission. Toys were identified as the product most likely to pose a danger to European consumers. The report said that there had been a 50% increase in the number of dangerous products removed from European markets.
http://news.bbc.co.uk/2/hi/europe/7353118.stm