Compliance in complex supply chains
Christopher Cohrs and Thomas Schaefer of Chemservice present a unique solution for multi-stage supply chains under different versions of REACH *
In multi-stage , non-EU supply chains , substance manufacturers usually do not know through which channels and in which products their substances are imported into the EU . Thus , the non-EU manufacturers usually do not know the importers or the quantities of the individual imported substances . In most cases , the EU importers also do not know the exact product Figure 1 - Material flow in a non-EU supply chain compositions or the respective substance manufacturers . These details - as well as information about suppliers and customers - are a major trade secret of formulators and distributors . On top of that , competition and anti-trust law must be respected . As a result , the non-EU manufacturer , represented by its only representative ( OR ), cannot exempt the importers from their obligations , nor can the EU importers comply with their registration and compliance duties without communication of confidential business information ( CBI ) within the supply chains , which in turn may lead to loss of business and violation of competition and antitrust regulations .
Role of the OR
All substances placed on the EU market in quantities of 1 tonne / year or more are subject to registration unless they are considered exempt under REACH . Since REACH is an EU regulation , it does not impose compliance obligations on non- EU manufacturers ; rather , it shifts the registration obligation onto the EU importers who place the substances on the EU market . This can lead to a very large cost burden for importers , as they must register all imported substances themselves . For this reason , they generally purchase only registered chemicals . If there is no registration , the non-EU manufacturer is at an enormous competitive disadvantage , as he can only export his substances to the EU through those importers who have their own substance registrations , which in turn makes him dependent on these importers .
Because of this , REACH provides that any non-EU manufacturer or formulator can appoint an OR . The OR must be an EU-based natural or legal person who legally represents the non-EU manufacturer in the European Economic Area ( EEA ). The aim is to relieve EU importers of their obligation to register substances and to allow non-EU manufacturers to supply any EU importer with only one substance registration . However , the appointment of an OR does not automatically mean that the OR must register certain substances . This obligation remains with the EU importers , unless they obtain written confirmation from one or possibly more ORs that their imported quantities of certain products are 100 % covered by registrations or exemptions from ORs of non-EU manufacturers . It is therefore up to the non-EU manufacturer to decide which EU importers in his supply chain he wants to exempt from their registration obligations by informing them of the appointment of the OR and having the OR confirm to them in writing that their imports are indeed covered . These confirmations allow the EU importers to maintain clear documentation , as they would otherwise remain responsible for
38 SPECIALITY CHEMICALS MAGAZINE ESTABLISHED 1981