IULTCS speaks out on REACH
05/01/2009
The International Union of Leather Technologists and Chemists Societies (IULTCS) has issued a detailed statement on REACH, the European directive on chemical substances that came into force in June 2007.
The first phase of pre-registration of chemical compounds closed on December 1, and the candidate list of ‘Substances of Very High Concern’ is currently under review. However, the new IULTCS statement said the regulations will take more than 10 years to implement in full.
It covered a list of “legitimate questions being asked by tanners globally” on what consequences REACH is likely to have on their businesses. The question is a global one because, although REACH is a European regulation, it applies to any chemicals, leather or finished products that are finally sold on the European market. In Europe itself, the IULTCS communiqué said the effects will be felt by everyone involved in the leather supply chain.
The legislation distinguishes between responsibilities of chemical manufacturers, importers or distributors, and downstream users of chemicals. The overwhelming burden of complying with the regulations will fall on the shoulders of chemical manufacturers, importers and distributors of chemicals. The responsibility of the downstream user, (in this discussion the leather manufacturer or tanner), is to ensure that their suppliers are complying with REACH regulations.
Leather is viewed as an article that is exempt from REACH regulations, however, tanners, as downstream users, should be aware of a series special circumstances.
There is an exception if a “chemical will be intentionally released” from an article. The classic example of this is ink from a pen. It is hard however to come up with examples of leather articles that contain chemicals where their release from leather is intentional. If tanners are uncertain about intentional release, then they should consult with an expert on their specific circumstances.
There will also be a list of Substances of Very High Concern (SVHC) and there are legal obligations to manufacturers of articles that contain these SVHC compounds. Tanners need to confirm whether the chemical products they are using contain any of these compounds, and if so, how much is used and present in the leather. (See more on SVHC below)
IULTCS has picked up on concerns among European tanners that REACH could affect their competitiveness in the global leather marketplace. But IULTCS takes the view that, precisely because of the global structure of the leather and leather supply industry, and the influence of global retail brands, compliance with REACH will quickly become a voluntary norm for any leather company worldwide who wants to conduct business in international markets. This has happened before with earlier EU legislation, such as that covering the use of certain amines.
Leather manufacturers have also expressed concern that REACH may add to cost of production. The IULTCS statement confirmed that, for the manufacturers or importers of basic chemicals, there will be “many consequences in the near future”. Following the pre-registration phase, the registration and particularly the evaluation process will represent a significant cost for chemical suppliers who, IULTCS says again, are the ones on the frontline. The statement adds: “Consequently they will be obliged either to increase the price of chemicals, or stop producing them in Europe or importing them into Europe, relocating manufacture and supply only to the rest of the world. In theory, for European downstream users it means that either prices will increase or products will no longer be available on the European market.”
However, it also says that REACH costs for basic chemicals will be spread across different industries and companies with common chemistries will work together to reduce the overall cost of compliance. Chemical companies will typically apply costs of regulatory compliance as an overhead to manufacturing cost. This will most likely result in an increase in the price of chemicals globally and not just in Europe.
It is too early to say which, if any, chemicals used by tanners will be withdrawn from the European market. Although it is possible that some substances may not be supported under REACH, it is anticipated that the overwhelming majority of all substances will at least be pre-registered. This means that they will remain on the market in the near future. As the regulations progress, suppliers will then notify customers of substances that may be withdrawn, but it is anticipated that in all cases the supplier will make functional alternates available.
A candidate list of SVHC chemicals has been published on the European Chemical Agency website (see below). This list is being reviewed and will be replaced in early 2009 by a definitive list. Tanners need to check with their suppliers to see if listed SVHC substances are present in the chemicals they purchase and use in their processes. If the content of SVHC in the leather is higher than 0.1%, then the tanner has a number of additional legal obligations regarding product use and notifications to their customers. IULTCS says it is unlikely that tanners will be currently using chemicals that are on the candidate list, but if they are, they should seek alternatives before these compounds begin appearing on restricted substances lists from the world's big retail groups.
Tanners operating from or for the European Market should ensure all chemical products being used will be registered, obtaining written verification from their chemical suppliers that they (or the supplier’s vendor) have pre-registered all the substances present in the supplier’s formulations. There is typically a database of all chemical products used in the tannery. Generally these lists already exist in the framework of risk management, quality management, or to comply with occupational safety and health regulations. Some formulations may not disclose all components and this is why tanners should ask suppliers for written confirmation that formulated products are pre-registered.
They also need to ensure that all end-uses of chemicals are clearly defined. It is not required at the time of pre-registration, but chemical suppliers will at some stage need to declare all the end-uses and utilisations of chemical substances in the tanning industry. It is important that tanners ensure their supplier understands and includes all intended uses of products to ensure proper evaluation of all user risks during assessment of substances by REACH authorities. This is necessary to ensure proper classification and appropriate end-use approvals.
Finally, the IULTCS recommends that tanners who need more specific information on the REACH regulations themselves consult the website of the European Chemical Agency (ECHA) in Finland at the following link:
http://echa.europa.eu
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