The export of Chinese lighters has reversed the decline that occurred five months ago when the EU CR regulations were implemented. In Zhejiang, a major province for lighter production and export, according to statistics from Hangzhou Customs in China, the export quantity of lighters slightly decreased but prices increased in the first half of this year, and the total export value remained basically the same as the first half of last year.
EU CR regulation: The wolf is still here
The EU CR regulation was once a 'Damocles sword' that made Chinese lighter companies restless. According to its regulations, all disposable lighters exported to the EU market must be equipped with anti child opening devices. This device is abbreviated as "CR" in English, and the CR regulation is also named after it.
In the autumn of 2001, the European Union initiated the process of formulating CR regulations. On April 30, 2002, the European Union passed the draft CR regulation. In February 2006, the European Union voted to pass the CR regulation. In May of the same year, the European Commission announced a resolution requiring member states to implement CR regulations and ban the sale of novelty lighters. On March 11, 2007, the CR regulation was implemented.
Huang Fajing, Vice President of Wenzhou Cigarette Industry Association and Chairman of Rifeng Lighter Co., Ltd., said that since the second half of 2006, the number of EU orders received by Wenzhou lighter companies has sharply decreased by 30%, and nearly 3000 novel lighter varieties in Wenzhou are on the verge of production stoppage. This is because the CR regulations have set three obstacles in front of Chinese lighters: first, high testing costs, with a testing fee of up to $20000 to $30000 for a single lighter, and the regulations target lighters with export prices below 2 euros. Secondly, the long testing cycle can range from one season to six months. Thirdly, patents that cannot be bypassed, such as what kind of safety device can be installed on a small lighter and where to install it, are already well researched technical issues, and these technical patents are mostly held by European and American manufacturers.
According to statistics from Hangzhou Customs, in the month when the CR Act was officially implemented, Zhejiang's exports of lighters to the European Union decreased by 82.6% compared to the same period last year, directly leading to a 58% year-on-year decrease in the total export volume of lighters in the province in March, marking the largest monthly decline since 2006.
Chinese enterprises stabilize their position and dance with wolves
However, since April this year, the export of lighters in Zhejiang has gradually rebounded, with a year-on-year decrease of 14% in export volume. In May, it began to steadily increase and rebound. In the first half of this year, Zhejiang Province exported 900 million lighters worth 140 million US dollars. The export volume decreased by 3.9% compared to the first half of last year, but the export value remained basically unchanged year-on-year.
Ge Yibo from the Statistical Analysis Department of Hangzhou Customs believes that the reason why lighter exports can stop falling and rebound is attributed to the following important "lessons": Chinese lighter companies actively explore diversified markets and improve processes; Breaking through technological barriers through independent research and development, some leading lighter companies in Zhejiang have cooperated with universities and institutes, and have obtained several patented technologies that meet the requirements of CR regulations; Wenzhou has also established a lighter testing laboratory, which has been recognized by the European Union for CR testing and the necessary ISO9994 certification for export to the EU.
A laboratory enhances the confidence of Chinese lighters
The most obvious effect is that the lighter laboratory of Wenzhou Entry Exit Inspection and Quarantine Bureau has been recognized by the European Union, becoming the first lighter laboratory in China to receive official recognition from the European Union. Wenzhou lighters used to require overseas testing for export to the European Union, but now they can obtain an EU "ID card" at home. The testing costs for CR and ISO9994 standards have been reduced by nearly 10 times, and the period from sample delivery to certificate issuance has been shortened to one month.
Jiangxi Shangrao Hengtai Smoking Equipment Co., Ltd. sent disposable plastic lighters for inspection, with a total of 800000 yuan exported to Italy, Spain and other places. The product was entrusted to the laboratory for testing on June 20th. General Manager Li Xiulian said that we now have laboratories in China that can issue "qualification certificates", reducing testing costs by nearly half. The cycle from sample delivery to certificate issuance has been shortened by one month, greatly accelerating the development speed of new products.
Xu Shunhua, Director of Wenzhou Entry Exit Inspection and Quarantine Bureau, said that after the news of the lighter laboratory of the bureau's technical center being recognized by the European Union was announced in June this year, inquiries from Beijing, Guangdong, Hunan and other parts of the country came in a continuous stream.
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