Market access requirements EU Engineering products General overview August 2014 Contents 2 • Overview of Market access requirements • Background of EU legislation • Drivers for non-legislative requirements • How to keep track? Legislation Consumer / User Health and Safety Environment CE Marking/HACCP Social / Fair Trade labels ISO 9000 series Certificate Quality SA 8000 / OHSAS Certificate EN / IS0 norms Codes of conduct ECO Labels Social accountability Market driven 3 E.g. Packaging, WEEE, RoHS, Cadmium IS0 14001 Certificate Environment Legislation Consumer / User Health and Safety Environment CE Marking/HACCP Social / Fair Trade labels ISO 9000 series Certificate Quality SA 8000 / OHSAS Certificate EN / IS0 norms Codes of conduct ECO Labels Social accountability Market driven 4 E.g. Packaging, WEEE, RoHS, Cadmium IS0 14001 Certificate Environment Legislation EU legislation only deals with issues that are relevant for the European consumer and/or the European environment Focus is on: Safety to the consumer Safety to the environment As a result of: • The product which is marketed in the EU Use Disposal / waste / recycling • The packaging 5 Market access requirements (EU) Legislation: (EU) Buyer Requirements: Consumer Health & Safety Social issues Environmental Issues Product / packaging Environmental issues Manufacturing Direct impact in the EU 6 Impact abroad e.g. exporting country Legislation For a manufacturer of parts or components the legislation may not be directly relevant However, since the buyer will pass down requirements to his suppliers, indirectly this legislation will be (very) relevant 7 Producers are part of the supply chain Requirements are passed down in the supply chain EU Importers/ buyers Responsible products on the European market 8 Suppliers of products/ components Suppliers of materials EU Legislation Most legislation is harmonised on a European level CE REACH RoHS Etc. Most…. but not all Be sure to check specific legislation in your export market! 9 Legislation Consumer / User Health and Safety Environment CE Marking/HACCP Social / Fair Trade labels ISO 9000 series Certificate Quality SA 8000 / OHSAS Certificate EN / IS0 norms Codes of conduct ECO Labels Social accountability Market driven 10 E.g. Packaging, WEEE, RoHS, Cadmium IS0 14001 Certificate Environment Market driven requirements Why do buyers set additional requirements, going beyond EU legislation? 11 CSR: People, Planet and the Profits Reduced Costs Ability to perform in a demanding market Increased market acceptability Increased Profits 12 Market driven requirements Corporate social responsibility is a key driver of buyer requirements 13 14 Market driven requirements But what are the key drivers for Corporate social responsibility (CSR)? 15 Consumer Health & Safety Managing consumer health & safety risks Hazardous substances Unsafe materials (flammable) 16 Unsafe design Consumer Health & Safety Sometimes to the extreme... source: New Scientist • Remove the child before folding • Warning: This product moves when in use 17 Social Managing social / labour issues Forced labour Non discrimination Right to union membership Minimum wages Equal remuneration Occupational health and safety Minimum age 18 Working hours Social Reputation management 19 Environment Managing environmental issues Pollution Water use Waste Dangerous substances Energy use 20 But CSR is not just about risk management or image…. 21 Economy Managing (natural) resources & reducing operational costs Productivity Agricultural yields Rare earth metals 22 Raw materials Energy costs Community Community development 23 Value creation New markets 24 Value creation Shared value creation 25 CSR is still on the rise 26 In fact…… Many Market [Access] Requirements originate from CSR policies & Many requirements can be dealt with through a CSR policy 27 Legislation Consumer / User Health and Safety Environment CE Marking/HACCP Social / Fair Trade labels ISO 9000 series Certificate Quality SA 8000 / OHSAS Certificate EN / IS0 norms Codes of conduct ECO Labels Social accountability Market driven 28 E.g. Packaging, WEEE, RoHS, Cadmium IS0 14001 Certificate Environment Company values Governments Legislative compliance: - Consumer health and safety - Environment NGOs Public pressure: - Replace dangerous chemicals - Brands: responsibility for supply chain Clients - Products according to specs - High quality assurance Consumers Consumer products Expect: - Safe products - Good circumstances 29 Company policy Black Box Purchase requirements: -Social -Product safety -Environmental -Quality How to keep track? Check for your products and potential export countries! Use the CBI website 30 31 Assignment Discuss in groups: How can market access requirements influence your plans to export? • • 32 What decisions may they influence? Where do they fit in your export marketing plan?