The high standards that the European Union (EU) have imposed on products, particularly those containing chemical substances, entering its area have been a cause of serious concern to the national palm oil exporters - among others. The EU’s high import standards under the ‘Registration, Evaluation, Authorization, and Restriction of Chemicals’ (REACH) legislation was regarded as a barrier by palm oil exporters, specifically due to the regulation’s lack of clarity as to whether palm oil products are one of the products that are regulated under the REACH legislation.
It was not until recently that this lingering question was clarified by the EU. In a statement released by the Ministry of Trade yesterday (22/6), the Minister of Trade, Marie Elka Pangestu reported that the EU’s legislation, which took force on 1 June 2008, actually regards palm oil products as one of the exempted products. Consequently, the Minister said, as cited from the press release, that Indonesian palm oil exporters are not bound to follow the stringent procedural process required by the REACH legislation when exporting their goods to the EU countries.
It must be noted that the exemption to palm oil products also extend to the products’ derivatives, such as palm oil fatty acid and glycerin.
REACH legislation was designed to promote the usage of safe chemical substances, especially within the EU countries. The legislation, No. 1907/2006 (as amended by No. 987/2008), requires anyone producing or trading chemical substances within the EU to register with the European Chemicals Agency (ECHA). The products’ chemical components, upon evaluation by the ECHA, will be authorized, not authorized, or authorized with a limited on the quantity imported or produced.
The REACH legislation lists over 30,000 chemical substances that must comply with the REACH mechanism; the list is contained in the ‘Substances of Very High Concern List.’ However, the REACH provides exemptions to the stated list, which are listed in Annexes IV and V of the legislation, the contents of which the EU Trade Commission reviews once in every two years.
Local businesses that have been exporting goods to the EU were concerned since the implementation of the REACH legislation; they feared the high standard that the legislation requires would hamper their business activities. As the Ministry of Trade had observed, only 42% of 522 Indonesian exporters to the EU are currently able to meet the program’s requirements. The government would therefore have to support the remaining 58% of exporters in any possible means so that they could meet the REACH requirements, if it still wanted them to compete in the EU market.
For a brief overview of the issues that Indonesian exporters are facing with respect to their compliance to the REACH, see ILB No. 1348 11/3/2010.
The Indonesian Legal Brief is based upon research conducted by the hukumonline team.
The high standards that the European Union (EU) have imposed on products, particularly those containing chemical substances, entering its area have been a cause of serious concern to the national palm oil exporters - among others. The EU’s high import standards under the ‘Registration, Evaluation, Authorization, and Restriction of Chemicals’ (REACH) legislation was regarded as a barrier by palm oil exporters, specifically due to the regulation’s lack of clarity as to whether palm oil products are one of the products that are regulated under the REACH legislation.
It was not until recently that this lingering question was clarified by the EU. In a statement released by the Ministry of Trade yesterday (22/6), the Minister of Trade, Marie Elka Pangestu reported that the EU’s legislation, which took force on 1 June 2008, actually regards palm oil products as one of the exempted products. Consequently, the Minister said, as cited from the press release, that Indonesian palm oil exporters are not bound to follow the stringent procedural process required by the REACH legislation when exporting their goods to the EU countries.
It must be noted that the exemption to palm oil products also extend to the products’ derivatives, such as palm oil fatty acid and glycerin.
REACH legislation was designed to promote the usage of safe chemical substances, especially within the EU countries. The legislation, No. 1907/2006 (as amended by No. 987/2008), requires anyone producing or trading chemical substances within the EU to register with the European Chemicals Agency (ECHA). The products’ chemical components, upon evaluation by the ECHA, will be authorized, not authorized, or authorized with a limited on the quantity imported or produced.
The REACH legislation lists over 30,000 chemical substances that must comply with the REACH mechanism; the list is contained in the ‘Substances of Very High Concern List.’ However, the REACH provides exemptions to the stated list, which are listed in Annexes IV and V of the legislation, the contents of which the EU Trade Commission reviews once in every two years.
Local businesses that have been exporting goods to the EU were concerned since the implementation of the REACH legislation; they feared the high standard that the legislation requires would hamper their business activities. As the Ministry of Trade had observed, only 42% of 522 Indonesian exporters to the EU are currently able to meet the program’s requirements. The government would therefore have to support the remaining 58% of exporters in any possible means so that they could meet the REACH requirements, if it still wanted them to compete in the EU market.
For a brief overview of the issues that Indonesian exporters are facing with respect to their compliance to the REACH, see ILB No. 1348 11/3/2010.
The Indonesian Legal Brief is based upon research conducted by the hukumonline team.
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