CONSUMER COMPACT THE CONSUMER PRODUCT PUBLICATION THAT KEEPS YOU INFORMED

NOVEMBER • 2013

SUBCONTRACTING - THE HIDDEN RISKS

SUSTAINABILTY EFFORTS CAN REDUCE SUPPLY CHAIN ENVIRONMENTAL RISK

THE TIP OF AN ENVIRONMENTAL ICEBERG

REDUCING RISKS IN COMPLEX SUPPLY CHAINS

DEAR READER,

PAGE 2EDITORIAL

This latest issue of Consumer Compact highlights some of the risks that arise throughout complex, multinational supply chains. Often spanning across multiple continents, cultures and languages, supply chains of global manufacturers and retailers pose significant challenges when trying to ensure their members’ compliance to relevant quality, safety, social or environmental standards.

In regard to product quality, sub-standard suppliers will increase a manufacturer’s risk of product recalls. See the latest stats with regards to product recalls in the EU and find out how you can help ensure your supply chain isn’t subcontracting work to the informal sector. In this issue, read about the steps you can take to reduce the environmental risk posed by your supply chain and about numerous other industry-specific measures that will help improve your supply chain management on the whole.

For the complete range of SGS services and support visit: www.sgs.com/cgnr.

The SGS Consumer Goods and Retail Marketing Team

IN THIS ISSUE

INDUSTRY NEWSCONSUMER GOODSRapex Alerts Rose 26% in 2012 - read article Page 3

SUSTAINABILITYSubcontracting - The Hidden Risks - read article Page 4The Other Side of Made in France - Working Conditions in Paris’s Small Textile Workshops - read article Page 5Sustainability Efforts Can Reduce Supply Chain Environmental Risk - read article Page 6

FOODShrimp Early Mortality Syndrome – Can the Industry Turn Adversity into Opportunity? - read article Page 8Carbendazim Ban Impacts Global Orange Juice Markets - read article Page 9

ELECTRICAL & ELECTRONICSThe Tip of an Environmental Iceberg - read article Page 10

SOFTLINESChemical Safety Issues and Solutions for the Textile Industry - read article Page 12

COSMETICS, PERSONAL CARE & HOUSEHOLDCosmetic Regulation Public Consultation - read article Page 13

HARDGOODSUS Furniture Manufacturers Face Changing Chemical Regulations - read article Page 14The Issue of Packaging and Packaging Waste in the EU - read article Page 16

SGS IN THE NEWS, SGS EVENTS AND PUBLICATIONSSGS In The News - new services, achievements and accreditations. Page 19

Trade Shows and Conferences - meet the SGS experts Page 20

Product Recalls information Page 20

SafeGuards - information on new standards, regulations and test methods Page 21

Publications Subscription - stay on top of all new market developments Page 22

SGS CONTACTS Page 23

RAPEX ALERTS ROSE 26% IN 2012

PAGE 3INDUSTRY NEWS - CONSUMER GOODS

RAPEX, the EU’s rapid alert system for reporting and monitoring dangerous non-food products, saw a 26% rise in reporting in 2012. A total of 2,278 measures were taken by EU member states against dangerous products.

Consumer protection is at the forefront of what we do, and paramount for our clients. Testing, certification, verification and systems auditing prevents dangerous products reaching the marketplace, but RAPEX facilitates the effective reporting and removal of products already in the marketplace when things go wrong. The increase demonstrates the EU’s commitment to consumer protection, and reflects better enforcement work carried out by authorities across the region. It may also reflect the improved and updated RAPEX IT system that better facilitates reporting.

WHICH PRODUCTS ARE POSING RISKS?

In 2012, clothing, textiles and fashion items (34%), followed by toys (19%), were the main product categories for which corrective measures had to be taken. Among the most frequently notified risks caused by these products were chemical risks (18%), risk of strangulation (17%) and risk of injury (25%).

Risks of injuries and strangulation are often identified in children’s clothing with drawstrings and cords, e.g. in swimwear. Other examples of products - banned in the EU in 2012 – include a skin lightening product which contained hydroquinone (its use is prohibited in cosmetics and personal hygiene products) and a plastic doll containing 38.5% by weight of di(2-ethylhexyl) phthalate (DEHP) posing a chemical risk. Businesses should ensure that these well-known risks are taken into account before production.

WHERE ARE THEY COMING FROM?

China still represents the number one country of origin in the alert system. Last year, 58% of the total number of notifications on products presenting a serious risk, were related to products coming from China.

To improve this situation, the EU is working bilaterally with China on the exchange of information between the authorities and on communication activities. The EU and China will soon release a series of videos aimed at Chinese manufacturers and European importers, providing product safety information.

ABOUT RAPEX

RAPEX is the EU rapid alert system between member states and the Commission for non-food products. Its role is to disseminate information on potentially dangerous products quickly and effectively. This results in quicker identification and faster removal from EU markets of products, such as children’s clothing, textiles, toys, cosmetics and electrical appliances, which do not meet the required standards for safety.

SAFETY FIRST

With a reputation for excellence in inspection, testing, certification and verification, we help you to reduce risk, improve efficiency and ensure compliance with contractual or regulatory requirements throughout your supply chain. More importantly, we can help you gain a competitive edge and develop

products, processes and supply chains that deliver consumer goods that really are as good as you say they are.

For further information on SGS consumer testing services please visit our website www.sgs.com/cgnr or contact: consumer.products@sgs.com.

2,278 notifications.

30 participating countries (EU + Norway, Iceland and Liechtenstein).

5 most frequently notified product categories in 2012:

34% Clothing, textiles and fashion items

19% Toys

11% Electrical appliances and equipment

8% Motor vehicles

4% Cosmetics

Notifications by country of origin of the notified product:

58% China including Hong Kong

17% EU-27 and EEA countries

11% unknown

14% other

RAPEX 2012 IN NUMBERS

PAGE 4INDUSTRY NEWS - SUSTAINABILITY

SUBCONTRACTING – THE HIDDEN RISKS

In these days of fast fashion, increasing seasonality of products and extended supply chains, companies are increasingly discovering that they cannot be sure exactly where their products are being manufactured. This should be a concern for companies, not only because of the loss of control over manufacturing methods and quality, and potential breaches of Intellectual Property rights, but also because they cannot know about the conditions under which the products are made.

THE SECONDARY AND INFORMAL SECTORS

The recent high-profile incidents in Bangladesh and other countries have highlighted not only the prevalence of unauthorised subcontracting but also the poor conditions to be found in the secondary or informal sectors. Increasingly, it is such units that pose the highest risks of unacceptable standards. Poor health and safety, unacceptable working conditions with excessive working hours and breaches of local labour laws have all come to light in the wake of these events. Moreover, the risk of children being employed or young people working in hazardous conditions is much higher in such unregulated and unmonitored sections of the production chain, as is the use of illegal workers.

ARE YOU PART OF THE PROBLEM?

So what is driving such unauthorised subcontracting or production? Typically, this occurs because the appointed factory has been overextended and a higher volume of orders has been accepted than it can fulfil. This may be the factory’s normal procedure for managing peaks and troughs of demand or the result of it not having the equipment or skills necessary to

complete all steps in the process. But could it also be due to a desire not to disappoint regular customers who have increased the size of orders with little or no notice, or who are putting pressure on to meet tight delivery schedules? In other words, does your business form part of the cause of such unauthorised subcontracting?

So, if these are the reasons, what are the solutions?

BE PART OF THE SOLUTION

NGOs and academics have suggested a range of long-term solutions to deal with the root causes of this issue, ranging from fostering longer-term, trust-based relationships and financial investments for suppliers to reward them for transparency, to reviewing product pricing and even providing financial support to suppliers to assist them in implementing improved productivity. However, hand in hand with these initiatives is the need to have full disclosure of the supply chain and the units involved in production. Increasingly, companies are developing supply chain maps detailing all production steps and identifying the units and locations involved, as a good starting point. This is then supplemented

by capability and capacity audits prior to the start of production, coupled with spot checks during production to ensure that not only do the factories have the necessary facilities to meet production requirements in terms of both quality and quantity, but that they are also continuing to keep all production in-house.

Of course, once the production units are known this also makes it possible to monitor working conditions at these locations and to open up communication channels both for the managers of these units and for the workers, who can be empowered to report concerns so that companies can regain control of their supply chains and reduce risk to all parties – themselves, their suppliers and, most importantly, to the workers themselves.

SGS has developed a range of services to support companies in understanding their full supply chains, together with spot checks to identify subcontracting and audits to evaluate production units for quality and ethical performance.

Effie MarinosSustainability ManagerSGS United Kingdom Ltd.effie.marions@sgs.comt +44 203 008 7860

Do you know where your products are manufactured? Not just the agent or supplier you are sourcing from, but the actual location where your product or major components can be found? If you do, then you are in a lucky minority of companies with a fully transparent supply chain. If not, it is time to consider the risks in your supply chain.

PAGE 5INDUSTRY NEWS - SUSTAINABILITY

THE OTHER SIDE OF MADE IN FRANCE – WORKING CONDITIONS IN PARIS’S SMALL TEXTILE WORKSHOPS

In France, in downtown Paris (known as the “Le Sentier” manufacturing district) and the inner suburbs (the workshop pool having been partly moved to the city of Aubervilliers to avoid high rents), garment workshops currently operate with little knowledge of applicable local laws and low engagement with provision of satisfactory working conditions.

Though textile workshops do not directly supply major brands – they are actually contracted by agents based locally – companies could nonetheless be held responsible for supporting unacceptable practices.

SERIOUS SOCIAL RISKS

Where clothes alterations, security tagging and garment manufacturing are provided to competitive deadlines and prices, the other side of the business reveals poor working conditions. SGS’s experience in assessing such workshops has raised the following non-compliances:

Undeclared work (and risk of clandestine work)

Excessive working hours

Unpaid overtime hours

Underground subcontracting

Unpaid annual leave

Lack of social insurance

Unsafe working environment (in terms of fire safety, workers’ safety, hygiene conditions etc.)

The current situation reflects a standard working week of up to 60 hours for an average of EUR 1050, which is not compliant with France’s minimum wage (amounting to EUR 1430,22 gross) and does not take overtime hours into account. Besides, it is common practice

While major principals and media players turn their eyes to non-OECD countries to check CSR compliance issues, sector-specific social risks can still be found in Europe.

not to declare workers to avoid paying associated taxes and social charges.

The workers, mainly coming from China and other countries in South East Asia, are in most cases hired by owners who are themselves unaware about the social requirements. Consequently workers are satisfied with having only one week’s annual leave (when they are entitled to five weeks), even if it is unpaid, due to their poor knowledge of French labour laws.

In terms of safety, the overall conditions are found to be similar to those that major brands and retailers fight against in emerging countries. Several fires have occurred in Le Sentier / Aubervilliers workshops in the past 10 years. The high risk created by the storage of inflammable raw materials and finished goods with insufficient fire equipment is not taken into consideration, and workers regularly operate in small and crowded rooms.

To avoid labour inspection visits, owners of small workshops (fewer than 15 workers on average) close their businesses and declare new ones under other names at the same locations approximately every two years. As the French authorities struggle against clandestine work, most of the workshops are able to provide workers’ identity documents and resident permits. However, the risk is still considered high due to the above-mentioned underground subcontracting, which is common practice in this industry.

As highlighted by recent films and television news, the same situation has been identified in Italy in the main centres of garment and shoe manufacturing in Tuscany (especially the city and province of Prato, Italy’s number

one textile-producing site), and Veneto, which is a leading region in many aspects of the fashion industry, including textile production.

To compete with low-cost production countries, European workshops in the textile industry tend to disregard labour laws, resulting in poor conditions for migrant workers and a major brand image risk for companies.

SOLUTIONS

To secure companies’ supply chains from a social point of view, SGS offers workshop assessment visits based on customised auditing tools and methodology, developed to enable the identification of major risks in this specific sector.

For more information, please contact us:

Camille QuerleuSupply Chain Assessments & Solutions ManagerSGS Francecamille.querleu@sgs.comt +33 1 41 24 87 05

PAGE 6INDUSTRY NEWS - SUSTAINABILITY

SUSTAINABILITY EFFORTS CAN REDUCE SUPPLY CHAIN ENVIRONMENTAL RISK There are many types of risk that retailers and brands face when dealing with multi-layered supply chains, especially when that risk is multiplied by a large number of different products. Risks can range from: receiving sub-quality products; receiving late/partial orders; having a major accident/social responsibility concern at the manufacturing site; or coming under fire for the poor environmental practices of a supplier, among others. Our focus here is environmental risk within the supply chain and efforts under way to improve supplier performance.

One Sustainability effort many companies are involved in, which can also reduce environmental risk, is directly engaging suppliers to assess environmental performance via index questionnaires and/or following up with audits and training. Requesting environmental information from suppliers initiates the engagement process, raises awareness about important issues, and signals that their customers are concerned about the environmental impact of supplier operations. The use of indices allows facilities to identify the areas for greatest improvement, and scoring systems provide a benchmark of performance to track progress.

GLOBAL SOCIAL COMPLIANCE PROGRAM

An important program, developed by leading retailers, to improve environmental and social responsibility within the shared global supply chains, is the Global Social Compliance Program (GSCP). The GSCP was designed to assess and drive the improvement of suppliers to many different industries, and the program scope covers 11 different environmental areas. Specifically it asks suppliers to report on: environmental management systems, energy use/transport & greenhouse gas emissions, water use, wastewater, emissions to air, waste management, pollution prevention/hazardous substances, major incident prevention/management, contaminated land/soil & groundwater pollution prevention, land use & biodiversity and nuisances.

Performance in these areas is rated in three broad and progressive categories:

PAGE 7INDUSTRY NEWS - SUSTAINABILITY

LEVEL 1Awareness and Compliance – involving meeting all legal requirements, maintaining certain records and good practices.

LEVEL 2Proactive Management & Performance Improvement – Exceeding Level 1 by establishing an Environmental Management System, engaging with suppliers and demonstrating improvement.

LEVEL 3Leading Practice – Exceeding Level 2 by establishing a strategy to motivate leading practices, engage proactively with stakeholders and voluntary standards.

By going through this process, suppliers and their customers can get a picture of their environmental performance. The first priority is to make sure suppliers are at least meeting Level 1. Meeting Level 1 reduces the risk of a facility incurring a regulatory non-compliance, while advancing through to Level 3 further reduces the chance of disruption due to environmental issues..

To increase the vigor of the initial self assessment retailers and brands may have the results verified internally or by a third party. Verification serves not only to reduce the risk of overlooking issues that are not apparent from just a supplier self assessment, but it encourages honest responses and can clarify instances where improper responses resulted from suppliers’ misunderstanding the criteria.

THE ADVANTAGES OF GSCP

SGS has conducted audits based on the GSCP program for various facilities and can confirm that major opportunities for improvement do exist within most. When suppliers take the next step and initiate plans for improvement in areas where gaps were identified in the self assessment, reductions in both environmental risk and operational cost can be significant. To achieve the highest Level in the program suppliers need to plan for, and work on, reducing their impacts. This calls for specific actions and may require a detailed onsite assessment of what and how improvements should be made.

One approach facilities can take to work on these issues is using index results to self-guide changes in operations. Alternatively, companies may choose to seek external support, such as an energy/water/waste audit to identify specific problems, e.g. water/steam leaks, sub-optimal equipment settings, improper storage of waste, etc.. Regardless of the approach, it is in the suppliers’, brands’ and retailers’, economic interest to implement improvements to reduce environmental risk, and the potential associated costs. Sharing of savings can also be incentivized by programs where the brand or retailer provide funding for the auditing or training that will guide the suppliers.

For further information please visit our website www.sgs.com/en/sustainability or contact:

Michael S. Richardson, P.E.LCA & Sustainable Design Senior Project ManagerSGS North America Inc.michael.richardson2@sgs.comt +1 973 461 1517

PAGE 8INDUSTRY NEWS - FOOD

SHRIMP EARLY MORTALITY SYNDROME – CAN THE INDUSTRY TURN ADVERSITY INTO OPPORTUNITY?Identification of the pathogen responsible for shrimp early mortality syndrome (EMS) opens the door to better understanding and potentially a return to growth in the industry.

Early mortality syndrome (EMS), which is more correctly known as acute hepatopancreatic necrosis syndrome (AHPNS), is caused by a unique strain of the bacterial agent Vibrio parahaemolyticus. Identified by researchers at the University of Arizona, the bacterium when infected by a phage, produces a toxin that causes tissue destruction and kills the shrimp. It does not affect humans. It is transmitted through shrimp populations orally and colonises the gastrointestinal tract.

First reported in China in 2009, EMS/AHPNS has spread across southeast Asia to Vietnam, Malaysia and Thailand, adversely affecting the industry’s biggest producers. EMS/AHPNS outbreaks typically occur within 30 days of stocking a newly prepared shrimp pond and mortality can exceed 70%. Annual losses to the infection are estimated to exceed US$1 billion.

DETECTION AND TESTING

Fortunately for the industry, visual inspection of shrimp ponds can identify an outbreak of EMS/AHPNS, while

research into diagnostic testing methods is ongoing. Typical signs of infection include a darker shell and mottling of the shrimp carapace. Diseased shrimp become lethargic and anorexic. Post mortem pathogen testing can confirm the presence of Vibrio parahaemolyticus. Additionally, on dissection of affected stock the hepatopancreatic organs may appear atrophied and whitish with black streaks.

In Arizona, research continues on the development of diagnostic tests for the EMS/AHPNS pathogen that will enable improved management of hatcheries and ponds, and help lead to a long-term solution for the disease. It will also enable a better evaluation of risks associated with importation of frozen shrimp or other products from countries affected by EMS.

In an effort to learn from past epidemics and improve future policy, the World Bank and the Responsible Aquaculture Foundation, a charitable education and training organisation founded by the Global Aquaculture Alliance (GAA), initiated a case study on EMS in

Vietnam in July 2012. Its purpose was to investigate the introduction, transmission and impacts of EMS, and recommend management measures for the public and private sectors.

MARKET IMPACTS

Outbreaks have badly affected the industry’s major supplier countries and caused a severe reduction in supplies. As a direct result, prices have reached record levels and secondary supplier countries have been able to benefit from both increased market share and improved revenues.

EMS/AHPNS affects farmed shrimp and the risk of transmission to wild populations by the import of frozen goods into uninfected areas is deemed low. Tests conducted by Arizona University were unable to transmit the disease from frozen tissue. However, some countries have restricted the import of frozen shrimp and related products from EMS/AHPNS affected countries.

THE WAY FORWARD

Early detection can minimize losses, but effective diagnostic testing and treatment are not yet available. EMS/AHPNS will be a key topic of discussion at the GAA’s GOAL 2013 Conference in October.

For further information on SGS please visit our website at: www.foodsafety.sgs.com.

Ron Wacker, PhDGlobal Food Testing Business Development ManagerSGS Germanyron.wacker@sgs.comt +49 40 301 012 65

PAGE 9INDUSTRY NEWS - FOOD

CARBENDAZIM BAN IMPACTS GLOBAL ORANGE JUICE MARKETSCarbendazim in orange juice and orange juice drinks continues to impact the international trade in concentrate and distort local markets.

Australia banned the use of carbendazim, a common fungicide, on pome fruit (apples and pears), turf and other horticultural crops, including orange trees, in 2010 because of birth defects and male infertility in laboratory animals.

In early 2012, orange juice markets came under even greater pressure, following clarification that the US Environmental Protection Agency (EPA) has not approved carbendazim for use on orange trees. At the same time, the US Food and Drug Administration (US FDA) also confirmed that carbendazim was, and still is, an unlawful pesticide residue in orange juice marketed and sold in the US. As a result of the discovery of contaminated imports, the US FDA introduced an import testing programme to identify tainted product and remove it from the supply chain before it reaches the consumer. In the EU, Carbenzadim is not approved for use with orange production, and imports from outside the EU are subject to maximum residue limits (MRLs) of 0.2 mg/kg (200ppb).

HIGH DOSES DAMAGE FERTILITY

Commonly used to control plant disease in cereals and fruits, including citrus, bananas, strawberries, pineapples and pomes, carbendazim is a broad-spectrum fungicide. In recent years studies have identified the risk that when consumed in high doses it has been found to cause infertility. As a result of these studies MRLs have been reduced in many markets. In both Australia and the US it remains not approved for use on orange trees. This has created supply and demand issues for both the industry’s growers and buyers.

NEW FUNGICIDE DEVELOPMENT

Brazil, the world’s leading suppliers of oranges, orange juice and frozen concentrate orange juice (FCOJ) has

been hardest hit and is exploring all the options to continue the supply of export-grade fruit to the juice industry. However, researching, developing, testing and launching new fungicide molecules for citrus production is an expensive and slow process. Costs are estimated to reach USD 250 million, while the process, from discovery to commercial availability of a new fungicide could take up to ten years.

Fundecitrus, Brazil’s national citrus protection defence fund, is leading the campaign for the development of new fungicide products. In the interim Brazil has removed carbendazim from its list of recommended fungicides for producers.

MARKET DISTORTION

Brazil exports approximately 98%1 of its fresh and processed oranges. The new testing programme introduced by the US FDA to identify carbendazim residues on oranges and/or in orange juice has prompted Brazil to find new or existing markets with higher MRLs and a need for imports.

Australia in particular has felt the impact of these changes. Although banned for use within the country, imported oranges and FCOJ may still be treated with carbendazim. This inconsistency is causing market distortions as Brazil continues to export carbendazim contaminated FCOJ to the country without limit, while domestic suppliers must find alternative fungicides and bear the cost of their development.

With relatively high per capita orange juice consumption, an average of 23 litres per capita , per annum, Australia has been importing FCOJ since the 1970s. Today Australia’s juice industry has an underlying demand of approximately 500,000 metric tonnes2. Domestic growers can supply only 250,000 metric tonnes2. The remainder must be imported.

In 2011, some 89%2 of these needs were met by imports from Brazil. Carbendazim contaminated FCOJ is, presently, cheaper than domestically produced orange juice, putting pressure on local growers and threatening the sustainability of the local industry.

RESIDUE TESTING

Protecting consumers and brands requires growers, producers, manufacturers and importers to verify that all oranges and orange juice products meet relevant regulations and the MRLs of their destination market.

Depending on the residue being tested for and the products being tested, testing is performed on high performance liquid chromatographs with tandem mass spectrometers (HPLC-MS/MS), gas chromatographs with tandem mass spectrometers (GC-MS/MS), high performance liquid chromatographs with mass spectrometers (HPLC/MS), gas chromatographs with mass spectrometers (GC/MS) or gas chromatographs with electron capture detectors GC/ECD.

SGS has global capabilities to perform a broad range of residue testing on oranges and a wider variety of products.

For further information on SGS services please visit our website at: www.foodsafety.sgs.com.

Jim CookFood Scientific and Regulatory Affairs ManagerSGS North America, Inc.james.cook@sgs.comt +1 973 461 1493

1 Brazilian Orange Juice - Fruitful Sustainability2 Senate Committee Inquiry into the Citrus Industry in Australia

PAGE 10INDUSTRY NEWS - ELECTRICAL & ELECTRONICS

THE TIP OF AN ENVIRONMENTAL ICEBERGElectrical and electronics (E&E) manufacturers across the globe are dealing with an ever increasing demand, both legislated and consumer driven, to be held accountable for every molecule of material contained in their products which may impact the health of the environment, health of consumers and the health of individuals responsible for the manufacturing of products, and for the recovery, recycling and disposal of end of life products. What we are experiencing today is only the “tip of an environmental iceberg”. If your company has not put in place processes necessary to cost effectively manage the collection, risk assessment, and quality assessment of material data across a complex supply chain, then your corporate ship has struck the proverbial “environmental iceberg”, is taking on water and is in danger of sinking. In this article we will identify some of the challenges and techniques associated with keeping your corporate ship afloat.

The Challenges faced by E&E suppliers and product manufacturers today include:

AN EXPONENTIAL GROWTH IN GLOBAL

REGULATIONS

The number of product targeted environmental regulations has grown at an explosive rate. Looking back to 2002, there were about 25 enacted regulations for substance restrictions globally, fast forwarding to 2013 the number has grown to about 200. The products in scope of the regulations have also grown due to the impact of legislation such as EU RoHS, EU REACH, CHINA RoHS, Korea RoHS, California Proposition 65 and a long list of similar

country legislations either enacted or proposed and soon to be enacted. EU REACH is sometimes referred to as an “environmental compliance moving target”. As of the publishing of this article, the REACH list of Substances of Very High Concern has grown to 144 substances and will be added to every 6 months.

THE COMPLEXITY AND VOLUME OF MATERIAL IDENTIFICATION AND

REPORTING

If we break down a common chip capacitor, contained in the vast majority of electronic products manufactured today, we have the following materials and substances:

Ceramic Dielectric – Barium Titanate – Nickel Compound

Internal Electrode – Palladium – Silver

Termination – Silver – Sodium Borosilicate

Plating – Nickel – Tin

This simple example contains 6 homogeneous materials containing 7 unique substances which should be identified, analyzed and the data must be stored and accessible by various functions within your company, as well as country enforcement agencies, consumers, and possibly your B2B customers. If this component is sourced from multiple manufactures it is easy

PAGE 11INDUSTRY NEWS - ELECTRICAL & ELECTRONICS

to see how this could result in a large increase the number of records needing to be managed.

STEPS THAT CAN ENSURE A SMOOTH

VOYAGE

IF YOU ARE A SUPPLIER OF MATERIALS, such as Barium Titanate, Silver or Tin you will need to identify and report the chemical composition of your supplied materials to the capacitor manufacturer. Think of this as the start of a chain of custody for material composition disclosure.

IF YOU ARE THE MANUFACTURER OF THE CHIP CAPACITORIf you have obtained material composition disclosure information from your suppliers, which you may have multiple sources for, then you have the necessary information to provide to your customer. Think of this as a 2nd link in the chain. If your material supplier cannot or will not provide you with the information you will need to take further actions such as removing the supplier from your Approved Manufacturers List (AML) or if that is not feasible having

the material analyzed by an accredited materials testing laboratory until such time as you have either found a replacement supplier or the supplier is able to provide you with the information you need. Please keep in mind that it is not a best practice to qualify a supplier who is unable or unwilling to meet your requirements. You cannot afford to be the cause of a broken link in the supply chain.

IF YOU ARE AN ORIGINAL EQUIPMENT MANUFACTURER You will need to have a system in place to store, manage and make available, both within and external to your company, the data you received from your suppliers, and linked to your product Bill of Material. These data records, in the case of RoHS II would become part of your Technical Documentation File for your product and must be kept on file for ten years and made available to an EU member state enforcement officer when requested. Think of this as the final link in the supply chain starting with raw material disclosure and ending with finished product manufacturing.

SUPPORT IS AVAILABLE

SGS has a global network of environmental compliance experts locally available to provide you with tailored services that meets your needs, objectives, and budget.

We offer technical assistance, process assessment, materials testing, and consulting services for:

RoHS

REACH

ERP

EU WEEE

USA WEEE

Sustainability

California Proposition 65

For further information please visit our website www.sgs.com/ee.

Kenneth StanvickEnvironmental Compliance ManagementSenior ConsultantElectrical and ElectronicsSGS North America Inc.kenneth.stanvick@sgs.comt +1 603 305 4103

PAGE 12INDUSTRY NEWS - SOFTLINES

CHEMICAL SAFETY ISSUES AND SOLUTIONS FOR THE TEXTILE INDUSTRY In the current textile and footwear industry, the difficulty in controlling diverse health or environment-related chemical hazards lies not only in the vast volume of chemicals used in the manufacturing process, but is also due to the complexity and multi-tiered textile supply chain which involves tens of thousands suppliers worldwide. Chemical information is not always transparent and does not always move smoothly along the supply chain. Suppliers, especially small-to-midsized ones, often lack awareness and competence to manage chemicals effectively. The current industry trend of moving from traditional “push model” (production based on prediction) to a “pull model” (lean retailing/fast fashion) further increases the complexity of the supply chain.

Accompanying the faster pace of the industry, more and more stringent laws and regulations on chemicals are being issued by governmental authorities globally. Traditional solutions of performing chemical tests on finished products for the purpose of complying with regulations cannot be sustained in the long term. New solutions need to be found.

TESTING FROM LOW TIER SUPPLIERS IN THE SUPPLY CHAIN

For some brands and suppliers, depending only on finished product testing is like performing a risky high wire-walking act. Those companies would face great difficulties when confronting testing failure issues or experiencing product recall cases since where the chemical risk occurred can be very difficult to determine. They are still faced with products that conflict with regulations and consumer’s interests. Unlike physical properties, products with unwanted chemicals present are hard to fix and are usually recalled and destroyed with a high cost which could include fees for potential accountability and lawsuits.

Testing can be a more effective solution when it is conducted in the early stage of production and from the low tier of suppliers, such as the chemical suppliers and material suppliers. Buyers should pass on their requirements to their upstream suppliers and push these suppliers to demand better control of chemicals and products from their own suppliers. Risks will be lowered if the testing is performed at the very beginning of the supply chain.

UPSTREAM CHEMICAL MANAGEMENT IS

THE KEY

In addition to a thorough testing approach, experiences and practices in controlling chemical risks have revealed several basic guidelines toward sound management of chemicals:

1. Establish a competent hazardous substance control (HSC) team with the involvement of senior level management. The related employees should possess sufficient knowledge on general hazardous substances control and know-how such as REACH, GHS and MSDS etc1.

2. Require all the upstream suppliers to formally sign a Declaration of Conformity (DOC) to indicate responsibility and duty, and enforce requirements.

3. Establish a dynamic management mechanism to review suppliers’ HSC performance periodically and apply control measures and testing plans accordingly. An increased sampling level plus a testing program for suppliers with poor HSC performance will help to ensure better chemical and raw material quality. Elimination of unqualified suppliers should be considered as an option.

4. Perform risk analysis on incoming chemicals and materials and establish clearly written HS sampling and testing protocols. Test reports should be archived and the data summarized to support HSC and management decisions.

5. The chemical suppliers should be asked to improve the quality of MSDSs for their products. Accurate

and necessary information should be indicated in MSDSs in the format recommended in REACH Annex II or other similar standard formats.

6. Provide training to employees to ensure all containers are well labeled and chemicals are properly handled. This will help to avoid cross contamination.

7. Critical control points in the manufacturing process such as chemical traceability processes should be improved.

Using these practices, brands and suppliers can improve their chemical management performance step by step and eventually a multi-win result can be achieved among brands, suppliers, consumers and the environment.

Find more information on SGS Services for the Textile Industry.

Karen E. Kyllo, Ph.D.Deputy Vice President, Global SoftlinesSGS North America Inc.karen.kyllo@sgs.comt +1 973 461 7934

Jane Jiang, Ph.D. Softline Technical Director of Asia PacificSGS-CSTC Standards Technical Services (Shanghai) Co., Ltd. jane.jiang@sgs.comt +86 021 6107 2808

1 REACH: Regulation on the Registration, Evaluation, Authorization and Restriction of Chemicals

GHS: Globally Harmonized System of Classification and Labelling of Chemicals

MSDS: Material Safety Data Sheets

PAGE 13INDUSTRY NEWS - COSMETICS, PERSONAL CARE & HOUSEHOLD

COSMETIC REGULATION PUBLIC CONSULTATIONEurope announces public consultation on the inclusion of methylchloroisothiazolinone (MCIT) and methylisothiazolinone (MIT) in cosmetic products.

Acting on advice from the EU’s Scientific Committee on Consumer Safety (SCCS), delivered in 2009 (SCCS/1238/09), the European Commission has launched a public consultation regarding their proposal to further limit the approved use of MCIT and MIT, two common preservatives, in cosmetic products.

EXISTING RESTRICTIONS

Presently, Cosmetics Regulation (EC) No 1223/2009 authorises the use of MCIT and MIT as preservatives in all cosmetic formulations, as mentioned in Annex V (List of Preservatives Allowed in Cosmetic Products) entry 39, with the maximum authorised concentration of 0.0015% (15 ppm) of a mixture in the ratio 3:1 of 5-chloro-2-methyl-2H-isothiazol-3-one and 2-methyl-2H-isothiazol-3-one. Methylisothiazolinone is also allowed on its own in entry 57.However, the new advice states that the mixture of these two preservatives may have a ‘sensitising’ effect on skin.

As a result, further restrictions are being considered. Proposed changes to Annex V of the Cosmetics Regulation “would restrict the use of the MCIT and MIT mixture to rinse-off products only” as suggested by the SCCS. Hence, it would not be authorised to use this mixture for any leave-on products.The Commission proposes that entries 39 and 57 of Annex V to Regulation (EC) No 1223/2009 on cosmetic products are amended as shown in Table 1 below.

TIME TO REPLY

Launched in May 2013 interested parties had until October 8, 2013 to submit their comments on the considered measure and on its possible economic impact to the public consultation.

NEXT STEPS

After the public consultation the European Commission will decide whether to adopt the recommendations

in full, or part, and to incorporate it into European legislation, or to leave the legislation unaltered. To enact the change to Annex V a regulation will be required.

A number of recommendations made by the SCCS have yet to be put out to public consultation (including recommendations on propylparaben and butylparaben, among others). The responsible person and manufacturers should keep up-to-date with SCCS in order to be aware of upcoming changes that may affect their products

For information and advice on the cosmetic regulation please contact your local SGS representative or our global team: consumer.products@sgs.com.

Hubert BrunduGlobal Technical Manager – Cosmetics, Personal Care and HouseholdSGS Francehubert.brundu@sgs.comt +33 4 42 61 64 91

SUBSTANCE IDENTIFICATION CONDITIONS

Reference number

Chemical name / INN

Name of common

ingredients glossary

CAS number

EC number

Product TypeBody parts

Maximumconcentration no. in ready for use

preparation

Other Wording of conditions of use and warnings

a b c d e f g h i

39 Mixture of 5-chloro-2-me-thyl-isothiazol-3(2H)-one and

2-methylisothia-zol-3(2H)-one

Methylchloroisothiazolinone and Methylisothiazol

inone1

26172-55-4,

2682-20-4, 55965-

84-9

247-500-7, 220-239-6

Rinse-off products

0,0015% (of a mixture in the ratio 3;1 of 5-chloro-2-methylisothiazol 3(2H)-one and

2-methylisothiazol-3(2H)-one

57 2-Methyl-2H-isothiazol-3-one

Methylisothia zolinone2

2682-20-4220-

239-60,01%

Table 1. Amendments to entires 39 and 57 of Annex V to Regulation (EC) No 1223/2009

1 Methylisothiazolinone is also regulated in entry 57. The two entries are mutually exculsive.2 Methylisothiazolinone is also regulated in entry 39 in a mixture with methylchloroisothiazolinone. The two entries are mutually exclusive.

PAGE 14INDUSTRY NEWS - HARDGOODS

US FURNITURE MANUFACTURERS FACE CHANGING CHEMICAL REGULATIONSIn October of 2011, the flame retardant tris (1,3-dichloro-2-propyl) phosphate, referred to by its acronym TDCPP, was placed on the California Proposition 65 list of chemicals known to cause cancer or birth defects. This meant that businesses had one year either to remove it from, or to place a warning label on, their products that contained it. However, many businesses were caught unprepared when the restriction became effective in October of 2012, and the citizen enforcers permitted under Proposition 65 began to issue notices of intent to sue when they alleged to have found TDCPP in articles offered for sale after the deadline had passed, mainly in those household furnishings with foam cushioning and upholstery.

TDCPP was not the only flame retardant on the list, with tris(2-chloroethyl) phosphate (TCEP), brominated biphenyls, and tris(2,3-dibromopropyl) phosphate (referred to as Tris and banned in children’s clothing in the US since 1977) also present. These flame retardants are allowed to be in furniture and other articles, but a warning label must accompany the product, either on the product itself, on the packaging, or on a notice at the point of sale. Most manufacturers would prefer to remove the chemical in question because a California Proposition 65 warning label on the product may harm sales.

MANUFACTURERS IN DIFFICULTY

Despite these increasing restrictions on the presence of flame retardants in furniture and other articles, the flammability standards in the state of California, given in Technical Bulletin 117 (TB117), have not changed. Although changes to TB117 were proposed in February of 2013, including the use of physical barriers to prevent the spread of fire, manufacturers at the moment face the difficulty of complying with the same flammability standards but having fewer options with which to do so.

All furniture manufacturers who use composite woods in their products are already obliged to hold to the formaldehyde emission standards of the California Air Resources Board (CARB) if they or their customers plan to sell products in California. Recently, the US Environmental Protection Agency (EPA) proposed to issue a rule under the Toxic

Substances Control Act (TSCA) to apply the California standards throughout the US. If adopted, the CARB formaldehyde emission limits would apply nationwide, and composite-wood manufacturers would need to be certified as compliant by a Third Party Certifier (TPC). These manufacturers would be inspected at least quarterly. If the manufacturers

are located overseas, and are to be certified by a TPC that is also overseas, the TPC must have an agent physically present in the US in order to facilitate communication between the EPA and the TPC. The EPA is soliciting comments on these proposed regulations until August 9, 2013.

PAGE 15INDUSTRY NEWS - HARDGOODS

REGULATIONS IN OTHER US STATES

Within the last two years, several states have put in place chemical regulations that target children’s products, among which are various furnishings such as cribs and beds. Washington State’s Children’s Safe Products Act, although enacted in 2008, is being implemented in stages based upon the gross global sales of the manufacturer/retailer and the classification of the product. Cribs and beds would be classified as Tier 2 products, meaning a child has more than one hour exposure to them.

By the end of August 2013, manufacturers classified as “larger” (having between one million and two hundred fifty million dollars in gross annual sales) would be obliged to report to the State of Washington if their Tier 2 products contain any of the Chemicals of High Concern to Children (CHCC) above the Practical Quantitation Limit (if deliberately added) or above 100 ppm (if a contaminant). Chairs and tables would be classified as Tier 3 products, meaning children typically have less than one hour exposure to them. By the same deadline, manufacturers classified as “largest” (manufacturers have gross annual sales between 250 million and one billion dollars) would be required to report if these products have a CHCC under the same conditions given above. The “largest” manufacturers have until August of 2014 to report on their Tier 3 products, and this staggered reporting will continue through “medium”, “small”, “smaller”, and “tiny” manufacturers until all covered products from all levels of manufacturer are reported by August of 2018.

In addition to Washington State’s requirements, on December 1, 2013, New York State will prohibit TCEP in products for children three years old and under. Since July of 2010, Vermont has prohibited consumer products containing more than 0.1% of brominated flame retardants, but has recently placed that same limit on TCEP and TDCPP in residential furniture, to begin January

1, 2014. Maryland has also restricted TCEP to no more than 0.1% in products intended for children three years old and under, and this took effect October 1, 2013. Connecticut, Massachusetts, and New Jersey have introduced legislation restricting flame retardants both in children’s products and residential upholstered furniture.

COMPLIANCE IMPORTANT ACROSS THE

ENTIRE SUPPLY CHAIN

Formaldehyde and flame retardants are deliberately added chemicals and serve a function in the product so it is unlikely they would appear as contaminants in appreciable quantities. Furniture manufacturers, therefore, can request proof of compliance from their suppliers of composite wood, foam cushions, and upholstery textiles that these products were manufactured without these chemicals, or in the case of formaldehyde, that the residual levels are well within regulatory guidelines.

If this proof is unavailable, then it would be prudent for a manufacturer to test his materials, preferably before they are turned into a finished product. This strategy would also apply to tests for any applicable Proposition 65 chemicals or any chemicals on the Washington State list for children’s products. Ideally, the supplier would send samples directly to the test lab before the raw materials are sent to the manufacturer. Upon passing results, then the raw materials may be shipped.

Find more information on visit our website www.sgs.com/furniture.

For further details, please contact your local sales representative or the global team at consumer.products@sgs.com.

Paul MilneConsumer Testing ServicesTechnical Manager RSTSSGS North America, Inc.paul.milne@sgs.comt +1 973 461 7924

PAGE 16INDUSTRY NEWS - HARDGOODS

THE ISSUE OF PACKAGING AND PACKAGING WASTE IN THE EUThe EU Directive 94/62/EC on packaging and packaging waste was amended in February 2013. Whilst the definition of packaging is informative, the latest amendment provides detailed illustrative examples of elements that can be defined as packaging, part of packaging and non-packaging.

For every manufacturer in every industry, packaging plays an essential role. From the simple promotion of the product to its protection and transport, from textiles to delivery pallets, packaging can be found everywhere and has a wide range of usage. The afterlife of packaging, either as waste or recycling, is also an issue; and with every environmental and health issue comes a comprehensive set of national and international regulations and standards.

EU DIRECTIVES ON PACKAGING AND

PACKAGING WASTE

In December 1994, the European Union (EU) adopted Directive 94/62/EC on ‘Packaging and Packaging Waste’. The directive was published in the Official Journal of the European Union (OJEU) on 31 December 1994 and went into

effect on 30 June 1996. The EU directive covers all packaging, including those designed for commercial, industrial and domestic purposes, regardless of the material used for the containment, handling, delivery and presentation of goods, from raw materials to processed goods, from the producer to the user or the consumer.

Essential requirements are defined under EU Directive 94/62/EC. First, the packaging weight and volume must be minimal in order to maintain the safety, hygiene and acceptance of the packaged product. Then, the packaging must also be manufactured in such a way as to enable its reuse or recovery, including recycling, and also in a manner that minimizes the presence of hazardous substances in emissions, ash or leachate when incinerated or landfilled.

Packaging and its waste management are therefore complex and need to be precisely defined. That is why, for reasons of legal certainty as well as matters of harmonization of the definition and interpretation of ‘packaging’, the EU Directive 94/62/EC was recently replaced in February 2013 by the Directive 2013/2/EU. The latter is therefore more detailed as it provides illustrative examples of components that are packaging, part of packaging and non-packaging (see Table 1 below)--a more precise list for what had remained unclear until now.

The directive also established a limit of 100 ppm for the sum of the concentration levels of lead, cadmium, mercury and chromium (VI) present in packaging or packaging components and laid out the criteria for the definition of ‘packaging’. The three groups of packaging defined in Directive 94/62/EC remain the same:

Sales packaging or primary packaging.

Grouped packaging or secondary packaging.

Transport packaging or tertiary packaging.

PACKAGING AND WASTE REGULATION: AN ISSUE OF HEALTH AND

SUSTAINABILITY

During transport packaging needs to perform well. As for packaging material, its physical performance as well as chemical properties have to be compliant with a series of regulations and standards regarding customers’ health as well as sustainability and other environmentally friendly criteria.

The European Union REACH regulation covers the general registration, evaluation,

PAGE 17INDUSTRY NEWS - HARDGOODS

authorization and restriction of chemicals in consumer products manufactured or imported within the EU zone and entered into force in June 2007. This chemical regulation naturally also applies to packaging. Not only does this regulation require manufacturers and importers to provide safety information on every chemical substance used in the products, but it also controls and sets the level of all chemicals.

Packaging such as plastic wrap or a carton can contain a substance, a mixture or an article. Under REACH, the packaging is considered as a separate article from the substance, mixture or article that it contains and must comply with the requirements for articles, including substances of very high concern (SVHCs) from the Candidate List. Packaging with different functions (primary, secondary or tertiary) is also considered separately. For example, for an article wrapped in plastic (primary packaging) and then packed into a carton box (secondary packaging), both plastic and carton box are considered as separate articles.

Directive 2013/2/EU and the REACH regulation are both intended to improve the protection of human safety as well as the environment by limiting contact with dangerous or hazardous substances with the skin or the mouth as well as the risk of polluting natural environments. Whether food, cosmetic products or toys, packaging needs to be strictly regulated to avoid the transfer of chemicals and toxic substances from the package to the product or, worse, to the consumer.

HARMONIZATION OF LOCAL PACKAGING

AND PACKAGING WASTE REGULATIONS

With increased environmental and health concerns as well as ever growing worldwide imports and exports, local and national packaging regulations such as the Producer Responsibility Obligations (Packaging Waste) Regulations in the United Kingdom or the US Federal Trade Commission’s (FTC) Fair Packaging and Labeling Act tend to harmonize in order to ensure worldwide compliance and facilitate the manufacturers’ attempts to provide products that conform to every market.

PACKAGING EXAMPLE

Sales packing or primary packaging

Packaging - examples

Beverage system capsules (eg coffee, milk) which are left empty after use

Cake doilies sold with a cake

CD spindles (sold with CDs, not intended to be used as storage)

Clothes hangers (sold with a clothing item)

Film overwrap around a CD case

Flower pots intended to be used only for the selling and transporting of plants and not intended to stay with the plant throughout its lifetime

Mailing pouches for catalogues and magazines (with a magazine inside)

Matchboxes

Sweets boxes

Non-packaging - examples

Beverage system coffee capsues, coffee foil pouches, and filter paper coffee pods disposed together with the used coffee product

CD, DVD and video cases (sold together with a CD, DVD or video inside)

CD spindles (sold empty, intended to be used as storage)

Clothes hangers (sold separately)

Flower pots intended to stay with the plant throughout its lifetime

Mechanical quern (integrated in a fillable recipient, eg refillable pepper mill)

Tea bags

Tool boxes

Grouped packaging or secondary

Packaging, if designed and intended to be filled at the point of sale - examples

Aluminium foil

Cling film

Disposable plates and cups

Paper or plastic carrier bags

Plastic foil for cleaned clothes in laundries

Sandwich bags

Non-Packaging examples

Cake doilies sold without a cake

Disposable Cutlery

Paper baking cases (sold empty)

Wrapping paper (sold separately)

Table 1. Packaging Examples

Continues on next page.

PAGE 18INDUSTRY NEWS - HARDGOODS

Transport packaging or tertiary packaging

Packaging example

Labels hung directly on or attached to a product

Part of packaging - examples

Device for measuring dosage which forms part of the container closure for detergents

Mascara brush which forms part of the container closure

Mechanical quern (integrated in a non-fillable recipient, filled with a product, eg pepper mill filled with pepper)

Plastic sleeves

Staples

Sticky labels attached to another packaging item

Non-packaging - example

Radio frequency identification (RFID) tags

Table 1. Packaging Examples (continued from page 17)For manufacturers and importers, it is not yet sufficient to comply with the ‘Packaging and Packaging Waste’ Directive in order to import their products into Europe. Yet all regulations, standards and directives have the tendency to merge or converge in terms of norms and authorized levels in order to facilitate the compliance process.

As for the EU more specifically, the upcoming Life Cycle Assessment (LCA) regulatory approaches on sustainable and environmental packaging might soon be a new compliance issue for European manufacturers in every industry.

HOW CAN SGS HELP?

SGS’s 7 Paper and Packaging laboratories located in the US and Asia can provide a wide range of paper and packaging testing services. All laboratories are accredited to ISO/IEC Standard 17025 and are ISTA, NMFC and UN/DOT Third Party Certified to conduct Distribution Performance Tests on filled packages and Physical Characteristics Tests on packaging materials and components in accordance with ISTA, ASTM, NMFC, TAPPI and UN/DOT testing procedures and methods. Our technical expertise in vibration, shock, stacking & compression and environmental conditioning capabilities as well as sustainability, chemical, biodegradability, life-cycle assessment, carbon footprint and eco-labelling capabilities are greatly reinforced and supported by engineers, chemists, biologists and ISTA certified laboratory technicians and technologists.

For more information on SGS services visit our Packaging and Paper web page.

For further details, please contact your local sales representative or the global team consumer.products@sgs.com.

Hing Wo TsangInformation and Innovation ManagerSGS Hong Kong Ltd.hingwo.tsang@sgs.comt +852 2774 7420

PAGE 19SGS IN THE NEWS

SGS IN THE NEWS

COSMETICS, PERSONAL CARE & HOUSEHOLD New SGS US Lab Brings Solutions for Challenges Facing the Detergents and Household Cleaners Industry - read article

ELECTRICAL & ELECTRONICS

SGS HALT / HASS Seminar - Held in October in Munich, Germany - read article

SGS EMC Seminar - to be Held in Munich, Germany in December - read article

SGS and ENVIRON launch RoHS Compliance Assessment Service using BOMcheck - read article

SGS Accredited to Provide Batteries Market Access for Taiwan - read article

SGS to Exhibit at MEDICA 2013 - November 20 - 23, Dusseldorf, Germany - read article

FOOD SGS has launched a survey on “Current Industry Practices on Allergen Control and Management.” Please take some time to

participate.

PAGE 20SGS EVENTS

SGS EVENTS SEPTEMBER - NOVEMBER 2013

EVENT COUNTRY LOCATION DATES INDUSTRY TRADE SHOW / CONFERENCE

BOOTH NO. IF ANY

CONTACT PERSON

ELKOM, Teknologia 2013 fair

Finland Helsinki Oct 1 - Oct 3

Electrical & Electronics

Trade Show TBC soile.nappi@sgs.com

SGS HALT/ HASS Seminar

Germany Munich Oct 8 - Oct 9

Electrical & Electronics

Seminar NA denise.groeger@sgs.com

ABC Kids Expo USA Las Vegas, NV

Oct 15 - Oct 18

Juvenile Products &

Toys

Trade Show Booth no. S 107

jennifer.dwyer@sgs.com

SCS Formulate UK Ricoh Arena,

Coventry

Nov 12 - Nov 13

Cosmetics & Personal

Care

Trade Show Hall 1, Booth no.

510

jo.pinkess@sgs.com

Cosmoprof Asia

Hong Kong

Hong Kong Nov 13 - Nov 15

Cosmetics & Personal

Care

Trade Show Booth no. 5E-E4A

ivan.tsui@sgs.com

MEDICA Germany Dusseldorf Nov 20 - Nov 23

Medical Devices

Trade Show Hall 16, Booth no.

G10-5

silke.hilmer@sgs.com

SGS EMC Seminar

Germany Munich Dec 3 Electrical & Electronics

Seminar NA friederike.lotz@sgs.com

China GB Roadshow

Germany Munich Oct 21 Softlines Seminar NA markus.tebroke@sgs.com

UK London Nov 4 Softlines Seminar NA tricia.zourmand@sgs.com

UK Bradford Nov 6 Softlines Seminar NA tricia.zourmand@sgs.com

US New York Dec 3 Softlines Seminar NA nicole.izzo@sgs.com

US Los Angeles

Dec 5 Softlines Seminar NA nicole.izzo@sgs.com

For more events, please check the online events calendar.

SGS compiles recall cases notified in the EU, US and Australia for consumer goods. They can help you minimize costly recalls by increasing your awareness of recall cases related to your business. SGS Product Recalls is now offered for no charge, and is included twice per month in the SGS SafeGuards publication.

Browse the Product Recalls library: www.sgs.com/productrecallsSubscribe to Product Recalls: www.sgs.com/ConsumerSubscribe

PRODUCT RECALLS

PAGE 21SGS SAFEGUARDS

SAFEGUARDSSTAY ON TOP OF REGULATORY CHANGES WITHIN YOUR INDUSTRY! SafeGuards, are SGS technical bulletins concentrating on new product standards, regulations and test methods. They are written by SGS experts and dispatched on a weekly basis. Find below a selection of SafeGuards titles from the past weeks. Subscribe to SafeGuards: www.sgs.com/ConsumerSubscribeBrowse the SafeGuards Library: www.sgs.com/safeguards

CONSUMER GOODS EU RAPEX 2012 Report – 26% Rise in Dangerous Products Notifications - read the bulletin

The Second SVHC Consultation List in 2013 - read the bulletin

California Issues Final Draft of Proposed Green Chemistry Regulations - read the bulletin

COSMETICS, PERSONAL CARE & HOUSEHOLD US EPA Expands Safer Chemical List for DfE Labeled Products - read the bulletin

ELECTRICAL & ELECTRONICS New EU Harmonised Standard for Ecodesign Requirements, Energy Labelling of Household Dishwashers - read the bulletin

New EU Directive - Workers Health and Safety Requirements for Exposure to Electromagnetic Fields - read the bulletin

New FAQ Document for EU Waste Electrical and Electronic Equipment (WEEE) Directive - read the bulletin

FOOD Recent US FDA Recalls - 60 Percent Due to Undeclared Allergens - read the bulletin

EU To Require Warning Labels on Products with Plant Sterol and Stanol Esters - read the bulletin

New EU Regulation on Food for Specific Groups (FSG) - read the bulletin

HARDGOODS China Invites Comments for New Additives in Food Packaging - read the bulletin

US EPA Proposes Standards for Third-Party Certification Framework and Formaldehyde Emission Standards - read the bulletin

SOFTLINES China Updates Four Product Standards on Down and Feather Home Textiles - read the bulletin

Three New/Updated Product Standards for Knitted Garments and Accessories in China - read the bulletin

Three New or Updated Product Standards on Woven Garments in China - read the bulletin

SUSTAINABILITY Guangdong Province has Revised the Regulations on Work-Safety - read the bulletin

TOYS & JUVENILE PRODUCTS US FDA Issues Draft Guidance for Children’s Toy Laser Safety - read the bulletin

Australia Sets Mandatory Labelling Requirements for Portable Swimming Pools - read the bulletin

France Extends Restrictions of Formamide in Toy Puzzle Mats - read the bulletin

PAGE 22SGS PUBLICATIONS SUBSCRIPTIONS

IN THE KNOW & IN THE NOWWith the relaunch of the SGS website - www.sgs.com, we are now able to provide our subscribers a simpler yet comprehensive news management tool. Whether you already subscribed to various SGS publications or this is your first try, our new publications management page will help you choose the right types of newsletters, alerts or reports from our range of international and country-specific publications. Our main international publications and bulletins include:

SAFEGUARDS - a technical bulletin concentrating on new product standards, regulations and test methods. SafeGuards is usually published weekly.www.sgs.com/safeguards

CONSUMER COMPACT – embracing all consumer product segments it covers international and product news, industry articles and stories about our activities. It is published quarterly. www.sgs.com/consumercompact

PRODUCT RECALLS - compiles recall cases notified in the EU, US and Australia for consumer products. It can help you minimise recalls by increasing awareness of recall cases related to your business. Product Recalls are published bi-weekly. www.sgs.com/productrecalls

HOT SOURCE - written and researched by industry experts, our newsletter will keep you up to date with regulatory news, emerging markets, industry developments and case studies focusing on food quality, safety and sustainability. www.sgs.com/foodsubscribe

MEDICAL DEVICES NEWSLETTER - an informative publication highlighting the most up-to-date global developments worldwide in the Medical Devices industry. The newsletter will be sent to you whenever major regulatory or technical developments take place, providing access to relevant information to help you sustain/achieve your competitive advantage in the industry. Visit the Medical Devices Newsletter archive here.

EVENTS AND WEBINARS - strengthen your workforce and increase your productivity. We ensure that your people have access to the very latest industry information. We work with clients, stakeholders and industry organizations to deliver industry and product specific training courses, events and webinars. Forthcoming events and webinars are listed at: www.sgs.com/events

WIRELESS NEWSLETTER - the global SGS wireless newsletter is written by industry experts and it aims to keep you up to date with industry developments and updates to SGS’s wireless capabilities. Draw on our international market experience and in-depth industry understanding to help grow your business. For the complete range of SGS Wireless services and to find out how SGS can support you in fulfilling your testing and certification needs please contact us directly at: ee.global@sgs.com or visit www.sgs.com/wireless.

The August issue of the Wireless Newsletter included the follwing news:

Acoustics

LTE Coverage

SGS WHITE PAPERS

ROHS II: MORE THAN MEETS THE EYE

Why complying with the European Union’s new Directive on restricted substances may be more challenging than it appears. SGS’s new white paper examines all of these changes in detail, while providing expert advice about the changes brought by RoHS II.

Request a copy of the RoHS II White Paper.

SGS provides you with free white papers written by technical experts from various fields. These documents emphasize the importance of services that enable you to drive continuous quality improvement and excellence at every level of your organization.

UNDERSTANDING SUSTAINABILITY IN THE FISH AND SEAFOOD INDUSTRY AND THE RELATED CERTIFICATION SCHEMES AND CONSUMER GUIDES

This white paper aims to provide an overview of issues relating to sustainability in seafood production and outline global seafood sustainability initiatives.

Request a copy of the Seafood Sustainability White Paper.

PAGE 23SGS CONTACTS

GET THEM WHEN THEY COME OUT!

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Please contact:consumer.products@sgs.com

© 2013 SGS SA. All rights reserved. This newsletter is a publication of SGS SA. It is intended to provide general information on a particular subject or subjects and is not an exhaustive treatment of such subject(s). Accordingly, the information in this newsletter is not intended to constitute consulting or other professional advice or services. This newsletter is provided “as is” and SGS SA does not warrant that the information contained therein will be error-free or will meet any particular criteria of performance or quality. SGS SA expressly disclaims all implied warranties including, without limitation, warranties of merchantability, title, fitness for a particular purpose, non-infringement, security and accuracy. The information may not be quoted or referred to in any other publication or proceeding without the prior written consent of SGS SA.

AMERICAS

Consumer Testing Services,a Division of SGS North America Inc291 Fairfield Ave, Fairfield, NJ 07004, USATel: +1 973 575 5252Fax: +1 973 575 7175E-mail: uscts.inquiries@sgs.com

ASIA

SGS HONG KONG LTD.5/F & 8/F Manhattan Centre,8 Kwai Cheong Road, Kwai ChungNew Territories, Hong KongTel: +852 2334 4481Fax: +852 21447001E-mail: mktg.hk@sgs.com

EUROPE

SGS UNITED KINGDOM LTD.Saunders House,52-53 The MallW5 3TA Ealing, London United Kingdom Tel: +44 (0) 203 008 7860Fax: +44 (0) 203 008 7870E-mail: gb.cts.sales@sgs.com

MIDDLE EAST

SGS Turkey - CTSIstanbul Plaza Baglar Mahallesi Osmanpasa Caddesi No: 95 E Girisi Gunesli, 34209 Istanbul TurkeyTel: +90 212 368 40 00Fax: +90 212 296 47 82/83E-mail: cts.turkey@sgs.com

AUSTRALIA

SGS AUSTRALIA PTY. LTD10 Reid Road, Perth International Airport,Newburn WA 6105, AustraliaTel: +61 1300 765 725 Fax: +61 8 9373 3556E-mail: au.cts@sgs.com

REGIONAL CONTACTS

EDITORIAL TEAM

Jennifer Buckley - FOOD

Silke Hilmer - ELECTRICAL & ELECTRONICS

Stéphanie Pionchon - TOYS & JUVENILE PRODUCTS; COSMETICS, PERSONAL CARE & HOUSEHOLD

Kris Wan - SOFTLINES

Swati Tyagi - AUTOMOTIVE; HARDGOODS

Emilie Viengchaleune - SUSTAINABILITY

Mary Lau - EDITORIAL TEAM ASSISTANT

WWW.SGS.COM/CGNR

For the contact details of a specific SGS branch visit our SGS OFFICES WORLDWIDE web page.

WWW.SGS.COM

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