REACH remains largest elephant in the room, says EEF 14 January 2013

Smaller companies are running the risk of unlimited fines, or even prison, by failing to comply with the REACH (Registration, Evaluation and Authorisation of Chemicals) Directive on hazardous substances.

That's chief among the findings of a study by EEF, the manufacturers' organisation, which shows that awareness of the implications for manufacturers remains worryingly low.

EEF head of climate & environment policy Gareth Stace says the findings backs longstanding fears that companies have failed to recognise the scope and significance of REACH, while many believe it is limited to chemical companies.

"REACH continues to be the elephant in the room for many companies who are either unaware of the implications or still believe it is a chemicals only issue," states Stace.

"In contrast, the regulations have serious requirements for all manufacturers, who are facing either the restricted use or banning altogether of some substances," he says.

Stace makes the point that in fact restrictions apply even to some hitherto commonly used substances in manufacturing – meaning that they should be working on substitutions now.

There are also major implications for companies in the supply chain, he adds, making the point that they must be in a position to advise customers if such substances are present in the products they sell.

"For many companies there is the very real risk of lost business if they are unable to advise their suppliers whether their products contain certain materials and, where they are, how their use is being monitored," warns Stace.

"Furthermore, if companies don't plan for substance bans, it could prevent production entirely."

Stace advises that where there is a strong enough argument for continued use of a banned substance, companies can apply to the European Commission to continue to use it. However, the first such deadline is just one month away.

Furthermore, companies have just six months to make themselves aware of the implications of the next major deadline for registration of chemicals in June 2013

Initial estimates suggest the cost of REACH is around €2billion, whilst the cost for large companies to apply for continued use of a substance is at least 50,000 euros.

EEF is calling on government to do more to raise awareness of the implications of REACH on businesses. It is also calling for more user friendly guidance and a clearer understanding of when the Commission is likely to give permission for continued use of banned substances.

Brian Tinham

Related Companies
EEF (Engineering Employers Federation)

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