Logistics

What a Difference a Year (Hopefully) Makes

Most people on the planet were glad to see the back of 2020. The authors of the Anglo-Saxon Chronicle might have glossed over the sheer awfulness with something like ‘2020 was a terrible year,’ and left it at that. Tempted as I might be to do the same, it is worth noting again just how resilient BCF members have been over the past twelve months.

Resilience firstly in reacting to Covid: keeping production going; keeping staff employed and adapting work practices to keep them safe; and playing their part in helping make products used in the response to the virus and by taking a lead in their communities. However, while the overall picture was not as bad as for other industries, we know some members were hit harder than others – decorative paint sales continue to soar as lockdown Britain’s enforced love affair with DIY carries on into the third, and hopefully last ever national lockdown, whilst industrial paints and printing inks suffer as other industries reeled under the economic contraction, not least aerospace and automotive.

But also, secondly, resilience in preparing for the UK’s new trading relationship with the EU, against a backdrop of delay to decisions and uncertainty of outcome. We know from participation in our various Brexit webinars, in our committee meetings, and from regular communications with members just how much time and resource has been put into making sure the coatings industry is ready to deal with all the new rules and regulations.

Both of those issues – Covid and Brexit – will continue to hamper business well into 2021. Despite the rolling out of vaccines across the country, it seems likely we will be in some form of lockdown until Easter, and maybe continue to have restrictions in place for even longer. Bailouts from government will help mitigate the worst effects to the economy but members operating in the industrial and printing ink sectors will be likely still feeling negative effects for some time.

Likewise, although the UK has left the EU and the transition period has ended, Brexit will still be a 2021 issue. There will no doubt be a period of teething problems to overcome as industry adapts to the new rules and regulations, not least at the ports and in dealing with customs in the short-term, and in the medium term through dealing with chemicals regulations both in the UK and as a ‘third country’ exporting to the EU. Once things settle down, and we can plan ahead with a little more certainty, companies will have to evaluate the impact of those rules on their business. At the same time, there will be continued FTA negotiations with the USA, Australia and New Zealand, as well as other countries we have recently signed continuity agreements with.  We have to look for and benefit from trading and regulatory opportunities from leaving the EU, otherwise it will only have been a damage limitation exercise.

2021 is likely to also be a year focused heavily on the environment. The UK presidency of the UN Climate Change Conference – COP26 – delayed from last year, will take place in Glasgow in November. The Government will want to place itself as a world-leader in all things green ahead of that and we can expect a raft of announcements and legislation on environmental policies. The introduction of a carbon tax of some kind is almost a certainty and this is something we at BCF will keep a close eye on – along with other business organisations. We all want to play our part in improving the environment, and a key area where BCF hopes it can add value is helping to solve the challenge of how to improve the environmental impact on leftover decorative paint, 98% of which is landfilled or incinerated. We have a vision to radically improve this, through our voluntary PaintCare initiative.  However, with business hurting from Covid and Brexit, and already having to cope with new green taxes like that on plastic packaging, we need to make sure solutions are proportionate for the times.

Here at BCF we will continue to provide many events and resources online although we hope – as I am sure everyone else does – that we might be able to see each other in person again, at least in the Autumn. Our lobbying efforts will be heavily focused on the UK’s transition from the EU, not least around seeking amendments to UK REACH to reduce the anticipated costs to business of the new scheme. As always, we are here to provide regulatory support to BCF members, and to generally promote the industry within Government, Parliament and the wider public.

Press Releases

Frequently Asked Questions of the KKDIK Regulation (Turkey REACH)

With the pre-registration deadline for KKDIK quickly approaching on the 31st of December 2020, we at CIRS are busy monitoring the latest updates and preparing you to fulfil all the necessary obligations. Completion of the pre-registration obligation provides you with a grace period for registration until the end of 2023 after which all chemical substances manufactured/imported to Turkey in one ton/year must be fully registered.

To make this process easier for you, we have gathered all the most frequently asked questions from our practical experience to-date with the KKDIK regulation.

  1. If pre-registration is completed within C&L notification, then why should a foreign enterprise do the pre-registration themselves and not through a TR-importer?

If a TR-importer does C&L notification, they select the role of ‘importer’. The pre-registration will also have been completed under an importer. This may result in the following scenarios (a) higher cost for registration (b) the TR-importer may not do the registration and choose a supplier which has registered their substance with an OR (c) If the TR-importer does the registration, then they can buy the substance from any supplier they want as they will have the registration number. The result is an overall loss of commercial power in Turkey

  1. How is the pre-registration/registration of a polymer processed according to the KKDIK regulation?

Article 4 (hh) of KKDIK: Polymer means a substance consisting of molecules characterised by the sequence of one or more types of monomer units, distributed over a range of molecular weights wherein differences in the molecular weight are primarily attributable to differences in the number of monomer units and comprising of the following:

1) A simple weight majority of molecules containing at least three monomer units which are covalently bound to at least one other monomer unit or other reactant; and

2) Less than a simple weight majority of molecules of the same molecular weight

According to the KKDIK regulation, polymers are themselves exempt from registration. In the same way as EU REACH, it is the monomer unit and any other substances which are present in 1 ton/year or greater which require pre-registration/registration.

  1. For C&L notification of chemicals delivered in mixtures, does each individual substance require notification?

The way a mixture is classified is if the mixture contains a substance which is classified as hazardous and it is above the appropriate concentration limit (varies depending on the substance in question), then the mixture is classified as hazardous. If a mixture meets hazardous criteria, then C&L notification is required. Classification is the same as EU REACH.

  1. Is it possible to transfer completed pre-registrations?

Currently, the online platform for submitting pre-registration/registration dossiers is updating. This is the KKS tool (IUCLID and REACH-IT hybrid). This may take some time to complete. The OR transfer function will be available after the update is complete.

  1. According to KKDIK, all substances manufactured/imported into Turkey in 1 ton/year should be pre-registered. If my substance is less than 1 ton/year can it still be pre-registered?

Yes, it is still possible to pre-register substances which are less than 1 ton/year. This will also cover future business if annual tonnages rise to the 1 ton/year mark or above in the period of three years. If pre-registration is not completed before Dec. 31st 2020 and tonnages rise above the 1 ton/year threshold, then full registration will be required which will be far costlier.

  1. Is there a system of reporting dispatches into Turkey after pre-registration is completed?

Currently, there is not such a system in place for reporting dispatches

  1. When dealing with a mixture, if a raw material is pre-registered under the supplier, can the pre-registration be used by the formulator of the mixture?

This is the decision of the supplier who obtained the pre-registration number and whether he grants access to the formulator to use the pre-registration number.

  1. Who may register in the case of a multinational company/group companies?

This depends on whether each company within the same parent company are defined as ‘registrant’ according to Article 4(ü) of the KKDIK regulation. If multiple companies are under the same legal entity, then just one company needs to act as the registrant. In the case of a separate legal entity, such as a sister company, they should also register.

  1. How are alloys registered?

According to the KKDIK regulation, alloys are treated in the same way as mixtures. Therefore, each individual substance i.e. each metallic substance must be registered individually.

  1. If the tonnage band is expected to increase in the future, can the higher tonnage band be registered under instead?

Companies may register under higher tonnage bands if they expect their annual tonnage to increase. The higher registration fee must also be paid. Furthermore, the registration dossier must include all the required information for the higher tonnage band as data requirements differ between tonnage bands.

  1. If a company is importing a mixture to Turkey, how can they find out if the individual components have already been registered in Turkey by the supplier, if the supplier is refuses to share the information?

The options are to (a) Contact the formulator where the supplier is not the same entity as the formulator. The formulator may be more willing to share the composition information. (b) Take analytical measurements to determine the composition of the mixture or (c) Find an alternative supplier of the same substance who is willing to share the information

  1. Our substance only has a CAS No. and no EC No. is available, can we process pre-registration only with CAS No.?

Yes, there is no problem to process pre-registration without EC No.

  1. We are a distributor located outside Turkey, can we appoint an OR and process pre-registration?

No. It’s same as EU REACH. Only foreign manufacturers can appoint an OR and process pre-registration.

  1. Is there a definition of “new chemical” in the KKDIK regulation?

No. The regulation is only about the substance. There is no specific definition of Existing Chemical and New Chemical. CIRS suggests companies to process pre-registration of all their substances.

  1. If the manufacturer completes the pre-registration, can the local importer take C&L notification with this pre-registration No.?

No, if the importer processes C&L Notification, they have to firstly complete pre-registration by themselves.

  1. Our product contains a raw material which has not been reacted. The tonnage of this raw material is more than 1 ton/year. Are we still required to process pre-registration of this raw material?

It’s similar as EU REACH. If the raw material is not residual on purpose, it can be regarded as an impurity and pre-registration will not be required.

  1. We are a Turkish legal entity which owns several factories in different sites, how shall we process the pre-registration?

According to KKDIK regulation, registrant shall be the natural or legal person in Turkey. If the company has one individual legal entity which own different factories, and the factories have no individual legal entity, only one pre-registration is enough, and all factories will be covered.

If you have any further questions, please do not hesitate to contact us:

Julie Harrington, Regulatory Affairs Consultant

julie@cirs-reach.com

+353 0 87 197 2618

https://www.linkedin.com/in/julie-harrington-14270a160/