ACC: Study confirms 'onerous' cost of EU's Reach proposal

02 May 2005 19:18  [Source: ICIS news]

WASHINGTON (CNI)--The American Chemistry Council (ACC) said Monday a newly released report confirms its concerns about the “onerous cost impact” of Reach, the European Union’s (EU) proposed new regulatory framework for chemicals.

 

The study, conducted by the consultancy firm KPMG Business Advisory Services, examined the cost consequences of the proposed registration, evaluation and authorisation of chemicals (Reach) for four industry sectors - automotive, electronics, flexible packaging and inorganics.  

 

Under Reach companies that manufacture or import more than one metric ton of a chemical substance per year would be required to register it in a central database.

 

The study found that one-time costs of registration are in the range of 6% to 20% of annual revenues.

 

The study said small and medium-sized enterprises may find funding of registration cost prohibitive and be forced to drop products from their portfolio. It also cited the potential loss of confidential business information as a significant concern with the current proposal.

 

While the analysis concentrates on cost to industry, ACC noted that it was not designed to look at overall costs or the broader socio-economic effects.

 

Said the industry group said: “ACC continues to be concerned that the European Commission is not properly evaluating the benefits of chemical products in providing safe and abundant supplies of food, medicines and other products that have improved the quality of life.”

 

The report was sponsored by an industry consortium of chemical producers and users as part of a project to assess Reach impacts on downstream users.

By: Glenn Hess
+1 713 525 2653

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