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Chinese enterprises should start technical preparation for the EU legislation, known as REACH (Registration, Evaluation and Authorization of Chemicals), to ensure continued passage of China's exports of chemical products to the European Union, said Zhang Xiangchen, director of the ministry's department of WTO affairs.

According to the EU law, which begins in June 2007, chemicals will not be allowed to enter the European market without a registration of toxic substances.

The new EU law, which is one of the largest-ever EU laws put together by the economic bloc, "will shift responsibilities of collecting chemical security information from regulators to enterprises."

Collaborating with their customers in the European Union, Chinese enterprises should make clear the components of their chemical products to prepare for the coming EU registration, said Zhang.

Sino-EU trade of chemical industrial products amounted to US$16 billion in the first 10 months of this year and is expected to reach US$19 billion in the whole year, according to Chinese customs. That sum is over 7 per cent of total bilateral trade.

"It is vital to help enterprises deal with the REACH law in a bid to guarantee the Sino-EU chemical trade," Zhang said.

According to the latest investigation by the ministry, however, most Chinese enterprises have not yet started information collection or preparation for the implementation of REACH.

"Only a few large-sized enterprises have set up special teams to deal with the issue," Zhang said.

In order to minimize REACH's impact on China's chemical product exports, the Chinese Government will organize experts to translate the law into Chinese and is planning a website to provide information for enterprises.

"We will also hold specialized training courses for domestic enterprises to deal with the EU law," Zhang added.

(For more biz stories, please visit Industry Updates)