Product compliance and lab testing demonstrate a company’s adherence to regulatory requirements. Their implementation is paramount when it comes to the success of your business, be it the brand image or revenue, yet many companies struggle to foster a culture in which this is performed with proactivity.
The Importance of Compliance and Lab Testing
The processes involved in compliance and lab testing may seem complicated, but the benefits they will bring your company in the long run are immeasurable. What’s more, there’s not as much of a void between quality and compliance as some businesses believe. Despite this, these procedures can still be difficult to understand, especially because many countries — indeed, many individual states and provinces — abide by their own rules and regulations when it comes to the import of goods.When your supply chain involves multiple suppliers, ensuring total compliance across every one of them can get complicated. A classic example of the perils of non-compliance occurred several years ago when a series of investigative lab tests proved that lead paint was being used on a number of popular children’s toys distributed throughout the US.The violation leading to the lead paint scandal occurred because several foreign suppliers were unaware of the composition of their own materials. This sort of error can happen when the different regulatory standards are not comprehensibly communicated by those companies whose supply chains are geographically dispersed. Further obstacles include language barriers and cultural differences during the import of foreign goods.If a product violates compliance regulations, it is seized by customs and the purchasing company may face prosecution or a heavy lawsuit. They will likely be ordered to destroy all faulty products and be permitted to replenish them only on the condition that safety standards are thereafter strictly adhered to. Companies will also put their brand image at risk when consumers become aware of the violation and avoid purchasing from the brand in the future.Lab testing is a crucial component of a healthy supply chain, in part because it aids compliance so fundamentally. The costs associated with quality control issues vary depending on how early a problem is discovered, if detected at the beginning of production, corrective action can be taken swiftly, negating the bulk of the costs of poor quality. This forward-thinking pays off in the future by minimizing product recall, reducing delays caused by compliance issues and minimizing any risk of damage to brand image and equity.Many companies and regulatory bodies experience a number of issues when it comes to product information and data transparency. With consumer safety ever more at the forefront of policy, federal agencies are now making it mandatory for companies to provide relevant information in a timely and efficient manner, in order that mistakes and complaints become less commonplace moving forward. This shift in the demand for transparent product information is encouraged further by a change in consumer behavior, as people expect higher standards when it comes to matters of health and safety.
Regulatory Standards You Need to Know About
A great many regulatory requirements can be found in each industry. Here are 5 of those most common requirements in the business of importing and exporting goods.
1) Substance regulations
Whether it’s relating to lead, phthalates or chemicals, many substances can have major implications on health and safety. For example, even after the lead paint scandal, the issue of unacceptable amounts of lead continues to be one of the most common product safety violations in the US. Across the EU, there is a growing concern about the impacts caused by some chemicals known as endocrine disruptors, which can have harmful effects on the hormonal system. In REACH, these hormone-disrupting chemicals, some commonly found in cosmetic products, are considered of similar regulatory concerns as other regulated substances of high concerns.
2) Requirements for lab testing
For some product classifications, products are required to be sent for lab testing to check for harmful substances. Even if such tests are not legally required, it is nevertheless highly recommended that you undergo them voluntarily and openly, as they can help ensure the official labeling of your product is in affirmation of its safety. Another reason that such voluntary tests are advisable is that you can never say with absolute certainty that materials coming into your factory are safe. Lab testing affords you extra assurance of the health of your supply chain.
3) Requirements for documentation
Oftentimes you will need to prepare certain compliance documents to ship with your products, declaring that they have been manufactured in accordance with all relevant regulations in the country of importation. In the EU, this purpose is served by the Declaration of Conformity. In the US, products must come with a General Certificate of Conformity. If necessary, work with your freight forwarder to ensure these documents are always included with shipments.
4) Product-specific safety standards
The US department of the Consumer Product Safety Commission utilizes the Regulatory Robot, a tool that provides a comprehensive overview of the regulations that will likely apply to your product. The European Committee for Standardization is one of the three organizations responsible for developing and defining standards of various kinds of products at the European level. It is also recommended that you consult with either a test lab or product compliance consultant to ensure your awareness of all regulations concerning your business.
5) Requirements for labeling
Labeling requirements apply not only to the type of product you are exporting but also on the location of importation itself. Be sure to include these requirements in your quality inspection checklist.
