Are you concerned about Brexit risk to your chemical supply chain?

October 02, 2018

With the United Kingdom’s departure from the European Union (EU) looming, the finer details of regulatory alignment between jurisdictions are still being negotiated. The UK has stated its preference of becoming an associate member of the European Chemicals Agency (ECHA) but it is also preparing contingency plans for a no-deal scenario.

Deal or no deal?

As a deal has not yet been negotiated, ECHA’s guidance currently states that the UK will be a “third country” outside the EU after the 29 March 2019. This means that REACH will no longer apply to UK companies unless they attempt to export chemicals, mixtures and articles into the EU. As things stand, UK-based REACH registrations and authorisations will no longer be valid in the EU. If your company is affected by this then we recommend that your substance registrations are transferred to an EU-based legal entity or an EU-based Only Representative.

Replacing REACH

The UK is also in the process of drafting legislation that could replace EU REACH domestically. This will become law in the event of no-deal and will ensure continued protection of human health and the environment. This means that a UK agency will take on responsibilities similar to those performed by ECHA and the regulation will be supported by a new IT system. If this draft legislation becomes an Act of Parliament, then companies may have another set of regulatory obligations to fulfil within the UK.

Planning for change

Although the Brexit negotiating partners would prefer to make a deal, it is prudent for companies affected by chemical regulations to plan for a no-deal scenario to minimise any disruption to their supply chains or distribution networks. In order to continue legal access to the EU and UK markets in the event of no-deal, TSG makes some key recommendations:

  1. To maintain access to EU markets: Plan to carry out a legal entity change for UK-based REACH registrations. If your organisation has an EU-based legal entity then plan to transfer them to that otherwise identify an EU-based Only Representative: TSG can help. In the event of no-deal then enact this plan.
  2. To maintain access to UK markets: Keep abreast of the UK domestic arrangements and in the event of UK replacement legislation, plan to undertake a comprehensive compliance review. You should expect that you will need some experienced resource to assist with this and again TSG can help.

TSG offers REACH Only Representative services based in the EU. Additionally, with years of regulatory experience, we are ready to support companies in the event of a new UK chemicals regulation designed to replace EU REACH.

Get in touch with us today to discuss your Brexit risk mitigation plans.

 

 

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