July 9, 2007

“No Data No Market!” – REACh the new Chemical Legislation in Europe

Fanwood Chemical is very pleased to announce that we have formed an alliance with REACh ChemAdvice GmbH.  This new venture has been established to serve as the “Only Representative” for companies in North America so that they can effectively meet their obligations and continue to serve their European customers when REACh comes into full force next year.  Our goal is to help you meet your obligations, while at the same time, containing your costs.

On June 1, 2007 the new system called REACh (Registration, Evaluation and Authorization of Chemicals) came into force in the EU.  REACh is the most comprehensive chemical regulation ever introduced.  It dramatically changes the way chemicals are regulated in Europe. 

Companies doing business in Europe, directly or indirectly, will need to register their chemicals and the uses of their materials with the newly created European Chemicals Agency.  Companies will then eventually be required to provide toxicity data for substances produced or imported into the EU in quantities above 1 metric ton per year.  They will also be required to submit a comprehensive risk assessment, called a Chemical Safety Report, covering all of the different uses of the materials they register.  For approximately 1,500 chemical substances, consumers will have to go through an authorization process to get permission to even continue to use those substances.

The most critical phase – pre-registration – will officially begin on June 1, 2008.  In order to pre-registration an existing compound, the name of the substance, the CAS-number, EINCS number, name and address of the registrant and the tonnage level need to be reported to the Agency in Helsinki by November 30, 2008.  Failure to meet this deadline will be very costly since you would then be considered a new entrant into the market, not be able to participate in the phase-in provisions of this regulation, and likely be locked out of the market for a long period of time.

All of the data that the agency receives for pre-registration purposes will be published on or before January 1, 2009.  Included will be a unique registration number for each importer and the substances they pre-registered.  All imports into the EU, covered by this regulation, will need to reference this number after this date. 

Companies that failed to pre-register will be out of the market.

Under this rule, “the registrant” has to be a “legal person” within the European Union. Companies that do not have a subsidiary in Europe need to appoint an “Only Representative” to comply with REACh.  If you are exporting to Europe, either directly or indirectly*, “REACh ChemAdvice GmbH” is very well positioned to serve as your “only representative”.

Now is the time for all exporters to the EU to determine how best to comply since it is quite a complex process to prepare all of the necessary details to effectively pre-register all of your chemicals.  Unless you are strictly supplying intermediates, it may also be difficult to determine the quantities you are actually shipping into the EU, without surveying all of your customers, worldwide.  Many firms may not even realize that they have an obligation to comply at all.

Once you select REACh ChemAdvice GmbH as your “Only Representative”, we will be pleased to provide the following services, customized to fit your particular circumstances:

     -          Strategy development for pre-registration and registration

-         Data collection and compliance with the REACh Legislation

-          Coordination of REACh relevant services

-          Authority relation management

-          Customer relation management

-          Representation at REACh consortia

We would also be prepared to become more directly involved in your daily business dealings in the EU, including acting as your importer of record, upon request.

REACh ChemAdvice GmbH was formed by a group of senior executives with many decades of experience in the chemical industry in conjunction with a team of REACh specialists.  In addition, we have built a network of service providers that are capable of assisting us with all of the other services that might be required to be sure that you will be in full compliance with REACh.  As an independent representative with no direct involvement in the trading of chemicals, REACh ChemAdvice GmbH can act on behalf of their clients in an unbiased manner. This can be of highest importance, especially in cases where you have multiple agents, indirect exports, or want to alter your supply chain into Europe either now or in the future.

The REACh ChemAdvice network will call on our in-house experts that have more than 250 years of experience in the chemical industry.  Please give us a chance to show you how our experience can build a bridge between you and the chemical market in Europe as these new requirements are put into place.

Dr. Rudolf Staab, Managing Partner                                 Tel.: +49 69 7167 33 14

REACh ChemAdvice GmbH                                            Fax: +49 69 7167 33 33

Liebigstrasse 33                                                            Email: rudolf.staab@reach-chemadvice.com

D 60323 Frankfurt am Main , Germany

* indirectly could include, but is not limited to the following:

through agents or distributors

as a substance in a mixture that your customer ships to the EU (i.e. - pigment in an ink)

as a substance in an article that is shipped into the EU (i.e. – ink in a ball point pen)

as a monomer in a polymer that your customer ships to the EU

In North America, please call Jim DeLisi, 908-322-8440 (jdelisi@fanwoodchemical.com) for additional details