Exporters to China Face New Supply Chain Challenges

Manufacturers of electrical and electronic equipment will continue to face additional environmental restrictions as 2007 progresses. As China has emerged as one of the world's leading trade nations and a key link in countless global supply chains, manufacturers must ensure that measures are in place to demonstrate and maintain compliance with the new China Restriction of Hazardous Substances (RoHS). Non-compliance with this directive can result in stalled supply chains, lost revenue, fines and damage to corporate reputation. Similar to the European Union's RoHS, China's law takes it up a notch by adding marking requirements, restrictions on packaging and production materials, and testing/certification requirements. As a result of the China RoHS, importing into China only becomes more challenging. Manufacturers need to act now, not only to address China RoHS, but also to prepare for environmental regulations that are bound to be enacted around the world.