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Proposals aim to bring down wall of technical trading rules

By Ahmed ElAmin, 16-Feb-2007

Related topics: Products & Markets, Colour Cosmetics, Fragrance, Hair Care, Skin Care

New proposals released yesterday aim to bring down the wall of technical trading rules that prevent cosmetic manufacturers and others from selling their products more easily across national boundaries.

The proposals by the European Commission target reducing or eliminating the differences in national rules that have often formed a protective barrier for a country's domestic market.

Rules -- such as those relating to packaging or food safety standards – have often restricted smaller companies from selling their goods in other EU member states.

They have also led to huge costs and time delays in getting goods to markets, sometimes requiring companies changes in packaging or processing procedures.

In a statement the Commission said the broad package of measures would assure a smoother functioning of the internal market for goods.

"National technical regulations have considerable practical implications for the production, distribution and day-to-day use of products," the Commission stated. "Such national rules restrict intra-EU trade in goods, as construction products, many foodstuffs (bread and pasta), furniture, bicycles, ladders and precious metals sometimes. This leads to extra administrative costs and heavy testing requirements."

One of the proposals relates to establishing a system for of market surveillance that that the rules are being followed. The system would be built on the existing one in place for consumer products.

The proposals also aim to increase cooperation between national accreditation bodies. The "encouragement" would be re-enforced by new rules to increase the confidence and trust in the "CE" mark.

CE accreditation is used by manufacturers as a means of signifying that the product meets all the provisions of European directives releating to cross-border trade in the bloc.

The Commission also proposes establishing a common legal framework, build on harmonised definitions and procedures, for the marketing of manufactured products.

The measures will have an impact on 22 industrial sectors, representing a market volume of around €1,500bn a year.

The Commission also proposes measures for the trade with goods which do not fall under EU-legislation. Such goods accounts for about a quarter of EU intra-manufacturing trade.

"At present many companies are discouraged from venturing outside their domestic market because they have to prove that their products fulfil the requirements of technical rules in other member states," the Commission stated.

Public authorities will now have to justify to companies why a product that was lawfully marketed in another member state, cannot be sold on their national market.

In addition, it is proposed to create local product points which will provide information to businesses about additional requirements outside their home market