Being one of the crucial export sectors of the UK, the Chemicals industry could get hit hard due to Brexit. British companies are already competing with the American and the Asian markets and are under tremendous pressure in battling higher R&D costs.

Furthermore, there is an increasing certainty that the UK government will implement a new Regulatory system. Chemical companies interested in continuing business with the UK market, from 2021 onwards, must comply with both the EU REACH and the UK REACH. UK companies cannot hold EU REACH registrations even if they currently adhere to them. They must change their Regulatory compliance status into the new UK REACH scheme to continue manufacturing or importing those substances into the UK.

There are no transitional measures from 2021 for the UK companies that currently export chemical substances into the other EU States. Since the UK companies will no longer be considered as they are inside the EU, they cannot fulfil the EU REACH obligations themselves directly. The repercussions would be on the EU customers as they will no longer be able to buy from the UK companies until this is addressed.

Lastly, a divergence in the system of legal remedies between the UK and the EU chemicals legislation can be anticipated. It also means that a new Body for decisions is likely on the cards in the UK.

Given the current BREXIT scenario, companies must be prepared to address potential Regulatory procedural challenges. Manufacturers must proactively follow all the Regulatory changes immediately to maintain their supply chain management. You can also consider reaching out to an expert to comply with the evolving EU and UK Regulatory landscape. Act Now!

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