Written evidence submitted by the British Chemicals Association

 

British Chemicals Association views on the implementation of UK REACH, specifically regarding the incomplete UK REACH Registration phase and damage to growth, innovation and the economy

 

British Chemicals Association - who we are

 

  1. The British Chemicals Association (BCA) provides a home for companies large and small wherever they sit in the chemical industry supply chain where they can keep abreast of industry and regulatory developments and benefit from the collective voice which membership provides. Our 120 members range in size from multi-nationals to SMEs and sole traders, and include chemical manufacturers, product formulators, distributors, retailers and service providers.

 

  1. Our membership and members’ interests are diverse and are representative of the whole chemical industry. We provide all members with information and support relevant to the running of any business operating in the industry and also operate a range of sector groups for those with special interests in surfactants, biocidal products, personal care and water treatment, supported by seminars and training courses for staff development.

 

  1. We represent our members’ interests through engagement with government and other stakeholders in the industry at both UK and EU levels. Engagement means we can work to shape the regulatory landscape and the design of legislation to minimise the adverse impact on industry whilst meeting the regulatory outcomes it is intended to achieve.

 

Why are we responding to the call for evidence?

 

  1. Whilst BCA has discussed with Defra since 2017 aspects of the design and implementation of UK REACH, and continues to do so to try to have issues addressed, the call for evidence is an opportunity to draw Parliament’s attention to the damage to growth, innovation and the economy associated with the incomplete UK REACH Registration phase.

 

Summary of the issue

 

  1. Following preliminary “grandfathering” and “notification” steps in 2021, up to 22,000 existing substances which have been registered under EU REACH today remain on the GB market pending the completion of the UK REACH Registration phase.

 

  1. The incomplete registration phase is, however, inhibiting growth and innovation by arbitrarily restricting companies who formulate products to using only the substances they used before the end of the EU exit Transition Period. New registrations are required before they can use other substances even though they are being used by other companies. A new registration process is in place but this involves delay and cost (and requires HSE resources to administer) and amounts to little more than another notification step pending registration.

 

  1. Whilst the Evaluation, Authorisation and Restriction phases of UK REACH are operational, the Registration phase is likely to remain incomplete for another 6 or 8 years, pending a review (the Alternative Transitional Registrations Model (ATReM)) of what registration should involve.  During this period another issue with even more serious consequences for the UK economy will emerge - substances and products will be lost from the GB market because of registration costs.  The Registration phase for existing substances will realistically make no contribution to the protection of human health and the environment which the rest of UK REACH provides and should be completed without delay.

 

Background

 

  1. UK REACH, as retained EU law, is based on EU REACH.  The Registration phase requires the re‑registration of substances already registered under EU REACH by substance manufacturers and importers who have “grandfathered” their EU REACH registrations into UK REACH.  However, it also requires the registration by distributors and downstream users importing EU REACH registered substances from EU suppliers. These companies - the majority of the GB chemical industry and mainly SMEs - have not registered before, because they were not required to by EU REACH where registration requirements for importers applies only to those importing substances from outside the EU.
  2. The Registration phase has been problematic from the start.  Deadlines for submission of registration dossiers (originally by the end of this year) have already been extended once.  A Defra consultation on extending deadlines again to either 2026, 2027 and 2028 or to 2026, 2028 and 2030, to give time for the ATReM review, has just closed.

 

  1. As things stand, registration requires the re-submission of data submitted to the European Chemicals Agency (ECHA) in the EU REACH registration phase completed in 2018 when the UK was still in the EU.  This will cost at least £2 billion, will involve animal testing, and will contribute nothing to the evaluation, authorisation and restriction of substances because the data on the 22,000 substances in their entirety are already publicly available on the ECHA website for regulators and other stakeholders worldwide to refer to and use. (The only restriction on the use of substance data is by companies “for the purpose of registration”.)  For UK REACH, the “no data no market” principle must be accepted as being irrelevant for substances registered under EU REACH.  A key aim of EU REACH which came into force in 2007 was the generation of data for existing substances on the EU market, little data having been generated under previous regulatory regimes.  That “no data no market” requirement was completed in 2018.  The UK cannot afford the luxury of generating its own and inferior database (smaller GB market, lower tonnages, hence fewer data required) even if it provides regulators with search functions especially now that ECHA has started to develop these and make them freely available. Any ECHA registration data gaps affecting GB evaluation can be addressed irrespective of whether the registration phase is completed or not.

 

  1. If, as a result of the ATReM review, registration requirements change, it is inevitable that costs will still be incurred. If current ATReM ideas on 22,000 hazard profile substance groups and thousands of individual company risk assessments are taken forward, vast resources, which the majority of the industry does not possess, will be required.  It is difficult to see how an enhanced contribution to the level of protection for human health and the environment from as yet undefined ATReM requirements not implemented until 2028 or 2030, even if the HSE has the resources to examine registrations, can be used as an argument against completing the registration phase now, especially when work on a separate project to improve UK REACH has started.

 

  1. Irrespective of whether industry is faced with ATReM costs or the £2 billion, some companies will not be able to afford to register.  Of those who can, many will conclude that the return from sales to the relatively small GB market does not warrant the expenditure, resulting in the loss of substances and chemical products for industrial and consumer use from GB and export markets. Because only 4.000 of the 22,000 substances have been “grandfathered” into UK REACH pending registration, it is clear that the main burden will fall on SMEs who have no experience of registration and little resource.

 

Registration now

 

  1. Registration can be completed now by granting UK REACH registrations to companies who have “grandfathered” previously held EU REACH registrations into UK REACH, and, for existing EU REACH registrations, by either creating equivalent UK REACH registrations (as the UK Intellectual Property Office has done for trademarks) or by simply regarding them as being registered.  The Retained EU Law (Revocation and Reform) Bill 2022 provides the vehicle for doing this, with those released from work on the ATReM project providing resource to amend the legislation.

 

  1. There are no downsides.  Completing the Registration phase now will allow the HSE to focus resources on enforcing the requirement that substances used in GB are REACH registered, whilst continuing evaluation, authorisation and restriction work.  It will make less pressing any concerns about intellectual property restrictions on the use of publicly available ECHA data “for the purpose of registration”.   And it will allow all stakeholders to focus on the project to improve UK REACH.   

 

 

British Chemicals Association

November 2022