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Firms who failed to sign up to EU REACH chemical legislation are barred from the European market
05-Feb-2009
Manufacturers who have ignored major new legislation requiring them to register chemicals found in their products can no longer legally market them in Europe, BMT Cordah Ltd, a leading independent environmental consultancy firm, has warned.
Companies were required to pre-register all the substances used in their products by December 1 last year, under the EU's Registration Evaluation Authorisation and Restriction of Chemicals (REACH) regulation. Under the regulation, firms that failed to pre-register were immediately banned from selling their products in the EU. The ban will continue until they have fully registered.
Firms in the UK that refuse to comply with the law face an "unlimited fine" and/or a prison sentence for company directors of up to two years, according to the Health and Safety Executive (HSE), which is responsible for the enforcement of REACH in Britain.
BMT Cordah, a subsidiary of the BMT Group, supported a number of companies within and outside of the EU to complete their pre-registrations, and is now offering to help companies that have not yet registered. The team has a strong reputation for advising a series of high-profile clients, including the Ministry of Defence and a number of chemical trade associations. Over the past year it has worked with more than 30 companies, and recently completed an in-depth business impact assessment for a large offshore operator.
BMT believe that the high costs associated with registering are discouraging firms, especially smaller ones, from signing up. With heavy penalties for non-compliance, it is now urging businesses to take action before it is too late. BMT can help by fast-tracking full registration dossiers for submission. It can also assist firms on how to cut their costs by advising them on new, innovative ways of replacing hazardous chemicals with safer ones.
Dr Nikki Robinson, Principal Consultant at BMT Cordah and REACH team leader, said: "REACH has already caused many companies, particularly SMEs, to conclude that the process of registration is simply too costly. But firms must accept that REACH is here and that there are important actions they must take if they intend to continue selling their products in the EU and avoid punitive measures."
He added; "Even though smaller businesses may find this legislation onerous, their flexibility as organisations should enable them to adapt more quickly to the changing environment. By turning to innovation, companies can really take advantage of this environmentally-friendly legislation."
Dr Robinson recommended that SMEs do the following:
- Communicate early. Talk to suppliers about potential increases in cost, and the magnitude of any increases.
- Talk to customers about the substances they will no longer be supporting.
- Be open with customers about the impact of REACH costs.
- Develop a REACH strategy for managing new opportunities, which should include determining which chemicals and products are no longer going to be supported, and what new, greener chemistries might fill the gap.
A consortium of BMT group subsidiary companies in Europe (BMT Cordah), North America (BMT Designers and Planners and BMT Entech), Asia (BMT Asia Pacific) and Australia (BMT WBM) are providing consultation, strategy and analysis services to companies affected by REACH.