The new REACH regulation will introduce major changes to the way in which we view and deal with chemical substances.

The regulation states that companies will be responsible for managing the risks involved with producing, importing, using or distributing all chemical substances and preparations in quantities greater than 1 ton within the EU.

The legal burden of proof has also shifted with this new regulation. In the past, the government of an EU country was responsible for proving that a particular substance was damaging in any way, or could cause serious health risks. Now, that responsibility lies with the companies. REACH requires some 30,000 existing substances to be registered within a strict timeline.

If companies fail to register a substance by the deadline, they may no longer be permitted to market that substance, or any products that contain it, within the EU. In other words: No data, no market.

Within the EU, current impact assessments indicate that REACH will lead to cost increases and portfolio rationalization. And it is expected that these same consequences will also affect non-EU companies.

For example, a company that processes and exports non-registered chemical substances after 2010 may be forced to withdraw certain products from the market, which will damage its image and reputation.

Some substances are even likely to be completely withdrawn from the market. REACH will also lead to higher administrative costs for non-EU companies, adding an extra 4-20% surcharge onto the production costs of certain substances, which could compromise business continuity.