Exporters Must REACH to Comply with EU Regulation

May 2007

Starting 1 June 2007, chemical exporters to the EU market must be familiar with the regulation known as “REACH” (Registration, Evaluation and Authorisation of Chemicals) or risk a loss of sales. 

The regulation requires European importers and manufacturers to either register with or provide notice to the European Chemicals Agency for chemical substances they produce, import, put on the market or use.  Companies with European operations will be covered by REACH.  Exporters and manufacturers that are not required to register or provide notice about their chemical substances should be familiar with REACH since their EU customers must comply with the regulation.  Because compliance is a prerequisite to importing the goods into the EU market, U.S. and other global exporters that fail to understand the regulation could risk losing sales to competitors.

First, an exporter must determine if its chemical substances are covered by REACH.  If so, in order to ensure a successful sale, the exporter can either appoint a representative located in an EU country to become a registrant or simply allow the importing customer comply with REACH.  Under either scenario, the exporter should understand that in order to establish or maintain a business relationship with a partner in the EU, it must disclose to the representative or importer information concerning the properties and uses of chemicals, all relevant precautionary measures, and inform the representative or importer about any changes in the composition of the product.  Exporters should also keep in mind that compliance with REACH co! uld raise confidentiality and intellectual property rights (IPR) issues.  Therefore, careful planning and disclosure practices should be followed.

Yormick & Associates thanks Legal Intern, Jordane-Christine Fura, for contributing to this International Law Alert.  Ms. Fura received her law degree, with Honors, from the University of Montpellier, specializing Business Law.  She is completing her Masters in International and European Business Law at the University of Robert Schuman in Strasbourg, France.  This August, she will enter the LL.M. in U.S. and Global Legal Studies Program at Case Western Reserve University School of Law in Cleveland, Ohio.