Have you complied with REACH? If not, you might now have to cease trading

Are you a manufacturer or importer of chemical substances? Are you selling products containing chemical substances in the EU? If the answer to either of these questions is 'yes', then you will probably be affected by the REACH Regulation.

Crucially, some businesses may be affected in particular by the 1 December 2008 deadline for pre-registration. If these businesses have not pre-registered their products by this date, they will not be able to sell them anymore within the EU.

REACH's central policy objective is to transfer responsibility for the generation of data on the safety of chemical substances from governmental authorities to the businesses placing them on the market.

Briefly, REACH requires businesses to register all existing and new chemical substances that are manufactured or used within the EU, or imported from outside the EU, in quantities greater than 1 tonne per annum with the new European Chemicals Agency. Registration applies to all chemical substances, whether in pure form or in a preparation or (in some cases) incorporated into a finished article. Products currently on the market should have been pre-registered by 1 December 2008. Businesses that did not pre-register will not be able to manufacture or import these chemicals until they have been registered. Registration can be complex and fees are charged.

Even if your business does not directly use chemical substances or import them into the EU, you should be aware that the regulatory obligation back up the supply network could be quite significant. Your supplier's failure or desire not to pre-register/register substances used in your products could potentially result in your company being locked out of the EU market or, worse yet, having no product to ship.

Another significant issue for businesses are REACH's substance disclosure requirements. REACH requires suppliers to communicate certain information about substances on the Substances of Very High Concern Candidate List (issued in October 2008) to their customers and, on request, to end-users. This will require all suppliers of products containing Substances of Very High Concern taking action (if they have not already done so) to understand what it is they have to disclose.

One other area to be aware of is the obligation for suppliers to notify the European Chemicals Agency of Substances of Very High Concern that are present in goods above certain tonnage and concentration thresholds.

REACH will have far reaching consequences for most businesses - not just those active in the chemicals sector. It is therefore essential for every business quickly to assess the impact of REACH on its own particular situation. Companies need to prepare now to manage communication up and downstream and generally to evaluate the implications of REACH for major product lines and major constituents. For assistance please contact Luisa Leone at Hewitsons.