Businesses exporting chemicals to the European Union (EU) are being advised to provide documentation stating that they comply with registration, evaluation and authorization of chemicals (REACH) regulations, following several instances at Dutch and Belgian ports when cargo ships were stopped for documentation of compliance with REACH.

While REACH is primarily aimed at chemical producers, manufacturers of a wide range of non-chemical products and components for these products are also often affected. Manufacturers of fluids, lubricants, sealers or products containing these chemicals that export to the EU are required to register these products in a central database.

If they are not registered, the substance cannot be produced in or imported to the EU. For example, products that release chemical substances in the disposal of the product (e.g., auto parts) are also covered. 

During the first phase of implementation, manufacturers producing 1,000 tons or more annually are required to register. Any such chemicals will need to be registered in a central database.

Click here for further Information on REACH and other environmentally related laws and regulations or contact Linda Spencer at lindas@sema.org.

Importing product into the United States just became more complicated and costly due to a new U.S. Customs and Border Protection (CBP) regulation. The Importer Security Filing (ISF), which is commonly known as the “10+2” initiative (because it requires importers to supply 10 pieces of data and shipping companies another two items), marks the first time importers are required to communicate with the CBP regarding incoming shipments.

All importers—from those bringing in one container a year to those importing products weekly—are equally liable under this new rule, which took effect January 26, 2009, and mandates that importers or their designated agents supply the required data electronically at a minimum of 24 hours before the products are loaded onto ships in the overseas port.

Penalties for incomplete or non-compliance are steep—$5,000 per incident as well as possible no-load orders. The CBP is delaying enforcement for one year in order to allow companies time to implement compliant systems.

Information required includes 1) importer of record number; 2) consignee number; 3) seller (owner) name/address; 4) buyer (owner) name/address; 5) ship-to party; 6) manufacturer (supplier) name/address; 7) country of origin; 8) Commodity Harmonized Tariff Schedule number (must be submitted 24 hours prior to the product being loaded onto the ship); 9) container stuffing location; 10) consolidator name/address.

The 10+2 initiative has been developed as part of CBP’s ongoing strategy to assess and identify high-risk shipments so as to prevent smuggling and ensure cargo safety and security.

In response to industry and lawmakers' concerns over the probable increased costs and delays to importers as a result of the rule, and the uncertainty of whether importers can supply the data in the required timeframe, the CBP agreed to keep the comment period open through the end of July 2009.

SEMA, as part of a coalition of businesses, has called for a longer comment period to document compliance issues that arise as companies begin to meet the 10+2 requirements. While the CBP has said that it is delaying penalties for one year, it has provided itself with the legal wiggle room to impose them sooner based on “lack of effort” on the part of importers.

Specifically, the interim rule notes that the CBP will “show restraint in enforcing the rule, taking into account difficulties that importers may face in complying with the rule, so long as importers are making satisfactory progress toward compliance and are making a good-faith effort to comply with the rule to the extent of their current ability.”

Additional information on 10+2 is available by contacting Linda Spencer at lindas@sema.org.

The E85 ethanol-powered C6.R run by Corvette Racing in the 2008 American LeMans Series marries horsepower and greenpower.

The race is on. The race to innovate more efficient and planet-friendly motorsports technology continues at the Toyota Grand Prix of Long Beach on April 16.

SEMA, in partnership with the Motorsport Industry Association (MIA), present “The Race Goes Green,” a one-day conference with senior executives from automakers, the automotive aftermarket, and aerospace and motorsport communities to discuss how motorsport and advanced engineering can help solve the fuel-economy challenge.

SEMA President and CEO Chris Kersting and SEMA Vice President of Vehicle Technology John Waraniak will join other key executive speakers, including AutoNation CEO Mike Jackson and Pete Spence, group vice president technical director, Toyota Racing Development USA.

Kersting will participate in a special panel session focusing on the business opportunities for SEMA members and other companies in the high-performance aftermarket as increasing numbers of energy efficient vehicles reach the U.S. marketplace.

“The Race Goes Green” is part of a series of SEMA initiatives geared to develop new business opportunities in a growing market for vehicles that are both “cool” and “green,” as highlighted in the debut of the “Making Green Cool Zone” at the 2008 SEMA Show.

“This event is part of our ongoing effort to help keep SEMA members informed about the latest vehicle technologies and new business opportunities associated with high-performance engineering and energy efficiency,” says Waraniak.

“It will also assist them in these challenging times with relevant information, knowledge and networking opportunities for demonstrating that horsepower and green power can coexist."

“The Race Goes Green” conference takes place April 16 at the Long Beach Convention Center in Long Beach, California.

About the Motorsport Industry Association: the MIA is a global network of companies involved in the business of motorsports. MIA members represent the broad spectrum of the racing industry, including race teams, sanctioning bodies, engineering suppliers, educators, trade media and service providers. For additional information, please visit www.the-mia.com.

Germany has developed a “Cash for Clunkers” program at a time when the initiative has been rejected in the United States. Earlier this year, SEMA launched the largest grassroots effort in its 46-year history to successfully prevent inclusion of a national Cash for Clunkers program within the economic stimulus bill.

Cash for Clunkers programs accelerate the normal retirement of vehicles through the purchase of older cars, which are then typically crushed into blocks of scrap metal. 

Under the German program, the government is offering consumers 2,500 euros toward the purchase of a new car regardless of the CO2 emissions of the new model so long as they scrap a vehicle that is at least nine years old. In addition, the program allows German consumers to replace a more fuel-efficient older car with a less efficient newer model. 

Like the U.S. proposals, the European-style programs do not stand up to scrutiny. In fact, staff for the European Commission (EC) warned that the programs focus on age rather than actual emissions; that the cars collected may simply be resold in other countries; or that the scrapped cars were at the end of their useful lives anyway and worth far less than the subsidy.

Both the EC staff and the European Federation for Transport and the Environment have urged Germany and other countries to abandon the subsidies since they do more environmental harm than good by artificially accelerating the car life cycle.

Washington lawmakers correctly rejected a similar program to crush rarely driven second and third vehicles in favor of a targeted tax incentive to help boost new-car sales, namely a federal deduction of state sales and excise taxes. During the scrappage debate, members of Congress made the same comment time and time again: Why would we spend tax dollars to destroy good used cars? Excellent question.

Cash for Clunkers proposals may reemerge later this year. SEMA will remain vigilant in opposition and keep its members informed of all new developments.

For additional information, contact Brian Duggan at briand@sema.org.  

The specialty-equipment industry lost two innovators this past week with the passing of safety pioneer Jim Deist and SoffSeal’s Gary Anderson, a founding member of the Automotive Restoration Marketplace Organization (ARMO). Deist was 80, Anderson 64. 

Safety equipment innovator Jim Deist, shown here in trademark overalls and with ever-present cigar at the Wally Parks NHRA Motorsports Museum, spent his career developing products—chutes, harnesses, firesuits—that kept drivers and crews alive as the speeds grew more death-defying. Click here to read more about Jim Deist.

Gary Anderson (far right) helped to organize the Colton Camaro project, a restoration project in honor of Army Chief Warrant Officer 2 Lawrence Shane Colton who was killed in action in Baghdad. Anderson and Alex Tainsh of SoffSeal formally presented the completed Camaro to Lance Colton (left) and his mom Ingè during the 2005 SEMA Show. Click here to read more about Gary Anderson.

SEMA members responded to a comprehensive survey with a clear message that the nation’s health care system is broken. The survey results underscored the need to make tough, balanced decisions to help solve the problem. Issues include whether to require businesses to offer coverage and individuals to buy insurance.
 
Under the current system, nearly 27 million small-business owners, employees and dependents are left uninsured. Skyrocketing premiums have made it especially difficult for specialty automotive companies to offer health care coverage to their employees. Enacting legislation to help SEMA member businesses gain access to affordable coverage remains a top priority for the association.
 
“The SEMA member survey provides valuable insight to the health care dilemma faced by small businesses,” said Steve McDonald, SEMA’s Vice President of Government Affairs. “SEMA members want to ensure that their workers have access to affordable, quality coverage. While wanting to be part of the solution, the survey results caution that there is no one-size-fits-all answer. The ability of individual small businesses to make meaningful contributions must factor in their size and economic circumstances.”
 
Nearly all SEMA members are small businesses. As of early 2009, 25% of SEMA member companies participating in the survey provided health insurance and paid the entire premium. Another 47% asked the worker to pay a portion of the premium, while 28% provided no health care coverage.

Since SEMA last surveyed its members on this question in 2005, there has been a continued trend towards requiring the worker to help pay the premium. Companies also took other steps to reduce premiums, such as seeking reduced coverage and increased deductibles. 
 
Last year, insurance premiums rose at an annual rate of 10% and beyond for more than 50% of respondent companies. For those companies that provided coverage, 27% of respondents paid an average premium of $3,000–$5,000 per employee/year while 36% paid more than $5,000/year.  
 
The survey indicated a willingness to work within the current employer-based system or transfer health insurance responsibilities to individuals.  The key message was that any solution needed to be affordable and could not impose costly mandates on the employer.  

The survey showed that federal health care tax credits to employers would be a powerful incentive for increasing health insurance coverage. Nearly 41% of the respondents agreed that a federal tax credit of $2,000 per employee would make it financially possible for their companies to voluntarily cover 60% of the premiums. Another 43% already provide at least 60% coverage.

There was also widespread support for permitting small businesses to band together to pool risk, reduce insurance premiums and level the playing field between large and small companies in the health care market.

In contrast, SEMA members generally opposed a national “pay-or-play” policy with mandates on employers to provide certain defined health care benefits to their workers, or pay into a government insurance plan that would.  Sixty-six percent of the respondents were opposed to the government defining the kind of health care coverage an employer must provide or the percent of premiums that an employer must pay under a pay-or-play system.

Under proposed legislation, small businesses could be exempt from such a system, but their workers could be required to purchase insurance on their own through an individual mandate. 
 
SEMA members expressed a strong desire to provide access to high-quality health care benefits to their workers, even though it was a financial strain on their small business to do so, especially under current economic conditions. SEMA members criticized the government and insurance companies for not doing enough to control health care costs, and expressed frustration, confusion and uncertainty over the exact reasons why premiums have been rising so quickly. 
 
SEMA is a member of the Small Business Coalition For Affordable Healthcare, the nation’s leading coalition dedicated to increasing access and affordability of health insurance for the largest segment of the uninsured—small-business owners, employees and their dependents. Congress is expected to begin debating reform legislation in the near future.

President Obama has indicated that he wants to expand the current employer-based system and implement other structural reforms to promote market-based competition, reduce costs and simplify paperwork. 
 
“SEMA welcomes the current opportunity to provide a national solution for access to affordable care,” said McDonald. “We remain enthused about legislation that would establish state or nationwide health insurance purchasing pools offering small businesses a wide range of health plan choices. SEMA will also work to promote other comprehensive reforms to provide quality, value and competition.”
 
For more information about the survey, contact Stuart Gosswein at stuartg@sema.org.

Last year's inaugural SEMA Pinewood Drag Race had more than 150 entries and raised about $40,000 for children's charities Childhelp and Victory Junction Gang Camp.

Hot off the heels of last year’s successful inaugural event, SEMA will host the second annual Pinewood Drag Race in conjunction with the annual 2009 SEMA Installation Banquet & Gala Fundraiser, held August 1, 2009 at the Pasadena Convention Center in Pasadena, California.

eBay Motors has signed on to be presenting sponsor of the event, which will be held from 10:00 a.m.–5:00 p.m. The drag races will benefit children’s charities Childhelp and Victory Junction Gang Camp. Childhelp is an organization that assists abused and neglected children, and Victory Junction Gang Camp provides life-changing camping experiences to disabled and chronically ill children.

"The SEMA Cares Committee is thrilled to have eBay Motors as this year’s presenting sponsor for the SEMA Pinewood Drag Race," said Joel Ayres, chairman of the SEMA Cares Committee. "This just shows that even in a challenging economy, SEMA members are willing to step up and help these children have a better life. On behalf of the committee and these kids, I’d like to thank eBay Motors for its generous donation."

Last year, about 150 cars were entered in the derby, which raised about $40,000 for the two charities. Stock cars were built by children at their camps and then sponsored by SEMA member companies through their donations to the charities. SEMA manufacturers were allowed to design and build their own entries for the Modified class.

"As Winston Churchill said, 'We make a living by what we get; We make a life by what we give,'" said Ayres.

The day-long event will be followed by the SEMA Installation Banquet & Gala Fundraiser, where this year’s Hall of Fame inductees will be announced.

To enter the SEMA Pinewood Drag Races, presented by eBay Motors, click here.

For questions about the Pinewood Drag Races and the SEMA Installation Banquet & Gala Fundraiser, contact Lisa Moreno at 909/396-0289 ext. 105 or at lisam@sema.org.

Filler for eNews

The deadline for the 2009 SEMA Memorial Scholarship Fund (SMSF) is quickly approaching. All applications are due April 1, 2009, 5:00 p.m. (PDT).

For 25 years, the SMSF has provided financial assistance to students who attend colleges, universities, trade or vocational schools and who are pursuing careers in the automotive aftermarket. Since the beginning, the SMSF has awarded more than 700 students more than $1 million in scholarship funds and loan forgiveness scholarships to any college graduate with outstanding student loans who are currently employed by a SEMA-member company.

In 2008, SEMA awarded scholarships of $1,000–$4,000 to nearly 100 applicants.

To apply for the 2009 scholarship, applicants must visit www.sema.org/scholarships to access the new online application. The online application process was set up to make the process easier for applicants.

To learn more about the SEMA Memorial Scholarship Fund and to obtain an application, visit www.sema.org/scholarships.