The European Chemicals Agency (ECHA) introduced the European REACH directive in 2007. Since then, foreign companies have struggled with the question of whether they need REACH Only Representation. This article summarizes the top 5 reasons why REACH Only Representation is important. It also explains why now is the right time to find and appoint a REACH Only Representative.
I will list the top 5 reasons for REACH Only Representation. And then, go through each of them in more detail. REACH Only Representatives:
- Ensure business continuity
- Are experts in REACH Regulation
- Take risk away from foreign suppliers
- Eliminate paperwork and administrative hassles
- Prepare foreign suppliers for future market changes
Let’s go through each reason in more details and how each reason impacts foreign chemical and substance suppliers imports into Europe.
REACH Only Representation ensures business continuity
The final phase of the European REACH directive will be implemented in June, 2018. After this date, suppliers that have not registered the substances that are required to be registered will no longer be able to supply their products to their European customers. This applies to both foreign suppliers and domestic European suppliers.
REACH Only Representatives are experts in REACH regulations
REACH directive will affect my products? Do I need to register my substances? These and many other REACH-related questions are ones that REACH Only Representatives are at home with.
The best REACH Only Representatives are members of ORO, the Organization of REACH Only Representative that has its finger on the pulse of the changing REACH landscape. Not only that, but ORO members are actually responsible for setting many of ECHA’s rules and regulations.
REACH Only Representations takes risk away from foreign suppliers
There is a real risk that if foreign suppliers do not comply with European REACH directives, they will no longer be able to supply to their European customers. But, there is also a risk that foreign suppliers who incorrectly report data to ECHA will be fined.
Members of ORO (including CAPLINQ), have insurance against such risks. They are legally responsible for the proper chemical reporting of their principals’ substances. In the unlikely event that the REACH Only Representative makes an error in reporting, the foreign supplier no longer has any responsibility. They can point to their REACH Only Representative. The REACH OR in turn is insured against such errors and can work to fix the situation.
REACH Only Representation eliminates paperwork and administrative hassles
Once a foreign supplier has appointed a REACH OR, the OR must work to have the company setup for regular reporting to ECHA. After this stage, REACH Only Representation is an administrative task that must be carried out by European companies.
The best REACH Only Representatives automate much of this reporting and thus comply with current REACH regulations with minimal additional expense. Because of this, a company just starting out in REACH Only Representation has a significantly higher administrative burden.
REACH Only Representation prepares foreign suppliers for future market changes
REACH regulations are constantly changing. So, it is likely that the regulation that will be enforced from June 2018 will still look different than the REACH directive as it looks today. And, with these changes come opportunities of course.
Therefore, good REACH Only Representatives will recognize what these changes mean to their foreign suppliers. As such, they can identify areas for improvement as well as changes that might even give their foreign suppliers a competitive advantage.
Please visit caplinq.com to learn more about the European REACH directive. You can contact us if you have further questions on REACH Only Representation or to understand how CAPLINQ’s REACH Only Representative Service can help you import your substances into Europe.