Compliance in the supply chain
REACH obliges importers to preregister or register their imported substances as a matter of principle
If a non-EU manufacturer has already commissioned an Only Representative (OR) who covers the entirety of the imported substances, the importer is exempt from mandatory registration and then meets the criteria of a Downstream User (DU).
The REACH Regulation does not distinguish between direct and indirect importers to the EU. Consequently, trade outside the EU followed by imports into the EU is more difficult. This applies, in particular, if several companies are involved along a non-EU supply chain, formulating substances in preparations with secret compositions. In a multistage non-EU supply chain, the manufacturer generally does not know in which products, in which quantity and by which route, its substance is imported into the EU.
The components from which their products are made and who their suppliers and customers are, constitute Confidential Business Information (CBI) closely guarded by dealers or formulators. Neither the non-EU manufacturer (represented by the OR) nor the importer can meet their obligations without disclosing the Confidential Business Information, therefore risking a loss of business.
To address this problem, we have developed a software-based solution – the REACH-Code-Model.
The benefits of the REACH-Code-Model
- All parties along the supply chain are issued certificates to certify their REACH compliance.
- The information on suppliers, importers and product compositions is stored only by the trustee.
- The trustee controls the offset product quantities along the supply chain to prevent illegitimate advantages.
- The Only Representative of the non-EU producer remains responsible for the accuracy of the information that is provided and certified by the trustee.
- All certificates issued are valid with immediate effect. The waiting time for additional information on importers and imported quantities does not apply.
- The REACH-Code-Model allows the trustee to transfer the information on REACH compliance to the authorities in a simple, quick and safe manner.
- No need for individual contracts between downstream users and trustees.