What is REACH?

The EU commission has published legislation to control the importation and use of chemical substances and preparations. The legislation, which came into practical effect on 1 June 2008, governs ‘Registration, Evaluation, Authorization and Restriction of Chemicals’ (REACH) in all EU member States. This regulation covers chemical products, such as paints and varnishes, as well as substances found in children’s toys, jeans and cosmetics, among other things.

The key points of REACH are:

• Companies must register chemical substances with the new European Chemical Agency (ECHA).
• Information pertaining to the composition and effects of these chemical substances must be made available, subject to commercial sensitivities, to the general public.

No data, no market

REACH entails major changes in mindset and ways of working with regard to chemical substances. The regulation states that, in principle, companies must manage the risks of all chemical substances and preparations that they produce in quantities greater than 1 ton, and/or import, process, use or distribute these substances and preparations in the EU. Whereas the government used to have to prove that a substance was damaging, the responsibility to prove the opposite now lies with companies. If they fail to register a substance in good time, they may no longer market that substance or products containing it. No data, no market.

Challenges of REACH

Impact assessments indicate that REACH will lead to cost increases and portfolio rationalisation. Companies that offer or process non-registered chemical substances after 2010 may suffer image and reputational damage. Some substances will be withdrawn from the market. REACH’s administrative burden may put an extra 4-20% surcharge on top of the production costs of certain substances. This could very well introduce business continuity risks. What is your main REACH issue?