Understanding REACH and GHS: What Every Chemical Exporter Must Know

In today’s global chemical marketplace, regulatory compliance is more than just a requirement—it is a critical component of market access, legal operation, and long-term competitiveness. For chemical exporters, particularly those targeting the European Union (EU), two key regulatory frameworks demand close attention: REACH and GHS.

This article provides an overview of these frameworks, the responsibilities they impose, and the opportunities they offer to chemical manufacturers, suppliers, and exporters.

What is REACH?

REACH stands for Registration, Evaluation, Authorisation, and Restriction of Chemicals. It is one of the most comprehensive regulations enacted by the European Union to protect human health and the environment from the risks posed by chemicals.

REACH applies to all chemical substances manufactured or imported into the EU in quantities of one metric ton or more per year.

Key Aspects of REACH

• Registration: Companies must submit detailed technical documentation on the properties and uses of each chemical, including safety data.

• Evaluation: The European Chemicals Agency (ECHA) assesses submitted dossiers and testing proposals for quality and completeness.

• Authorisation: Certain hazardous substances require special approval for use.

• Restriction: The EU may limit or ban specific substances or uses based on risk.

Unlike previous systems, REACH places the burden of proof on industry, rather than on regulators. Manufacturers and importers must ensure the safety of their substances and demonstrate risk management measures.

What is GHS?

The Globally Harmonised System of Classification and Labelling of Chemicals (GHS) is a framework developed by the United Nations. It aims to harmonise the classification and labelling of chemicals worldwide, improving communication and safety across international borders.

Key Features of GHS:

• Standardised classification of hazards

• Consistent pictograms, signal words, and hazard statements

• A uniform format for Safety Data Sheets (SDS)

By using GHS-aligned labelling and documentation, companies can ensure that workers, transporters, and users understand chemical hazards, regardless of their country or language.

Business Implications of Compliance

Complying with REACH and GHS is not merely a legal obligation—it offers several long-term advantages:

Market Access

Meeting REACH and GHS requirements enables chemical exporters to operate legally in the EU and other regulated markets.

Enhanced Reputation

Demonstrating compliance reflects a company’s commitment to safety, sustainability, and responsibility, strengthening its credibility with customers, regulators, and investors.

Innovation and Improvement

To comply with these regulations, companies often invest in safer formulations, cleaner production processes, and better workplace practices—driving innovation and operational efficiency.

Integration into Global Supply Chains

Certified and compliant businesses are more likely to be selected as suppliers by multinational corporations and international clients.

Challenges and Costs of Compliance

Despite its benefits, compliance can be resource-intensive:

• Financial Costs: Testing, data generation, and dossier preparation can be expensive.

• Human Resources: Companies may need to hire regulatory affairs professionals or train existing staff.

• Time and Complexity: REACH, in particular, involves a significant administrative burden and long timelines.

• Impact on SMEs: Small and medium-sized enterprises (SMEs) may struggle with the cost and complexity of compliance.

Nonetheless, many companies mitigate these challenges by joining industry consortia, sharing data with other registrants, and seeking technical guidance from regulatory experts.

Risks of Non-Compliance

Failure to comply with REACH or GHS can result in serious consequences, including:

• Loss of Market Access

• Legal Action and Financial Penalties

• Damage to Brand and Business Reputation

• Disruption in Supply Chain Relationships

As international buyers and regulatory bodies increase their scrutiny, non-compliant businesses may find themselves excluded from lucrative opportunities.

Steps to Achieve Compliance

1. Identify Relevant Substances: Determine which chemicals require registration or classification under REACH and GHS.

2. Compile Safety Data: Collect or generate the required toxicological, environmental, and use-related information.

3. Label and Document Properly: Use GHS-aligned labels and provide up-to-date Safety Data Sheets.

4. Monitor Regulatory Updates: REACH and GHS evolve over time; staying informed is essential.

5. Engage with Industry Resources: Leverage industry associations, ECHA guidance, and regulatory consultants.

Compliance with REACH and GHS is not just a regulatory hurdle—it is a strategic asset. While the associated responsibilities and costs can be significant, especially for smaller firms, the benefits of legal compliance, market access, improved product stewardship, and global credibility far outweigh the challenges.

For chemical exporters aiming to grow sustainably in international markets, understanding and adhering to REACH and GHS is not optional—it is essential.