India REACH: Final Chemicals Rules
India is currently drawing up the fifth version of its Draft Chemicals (Management and Safety) Rules, 20xx (“India REACH”), which is expected to be the final one. It will be published later this year for wider industry consultation.
“India REACH” is expected to be published and enforced in early 2021. There have been delays to the proposed rules as a result of the ongoing Covid-19 pandemic.
Free Webinar: India “REACH” – what we know so far
Tuesday, 6 October 2020
According to the draft regulation:
● The Chemical Regulatory Division (CRD) will be established as the competent authority for chemical management in India.
● Foreign manufacturers will need to appoint an India-based Authorized Representative (AR) to fulfil legal obligations. The AR’s function is similar to the Only Representative’s in EU REACH.
● Joint registration will be accepted but detailed rules on data sharing etc. have not yet been published.
● Notification will be required within 180 days from the date of enforcement of the regulations. This requirement applies to all existing substances manufactured and imported at a volume above 1 tonne per year. The substance will be notified for certain uses and downstream users need to notify CRD if the intended use is not notified.
● Notification of new chemicals is required before entering the India market.
● Companies will be required to register Schedule VI listed substances over 1 t/y and will need to follow the requirements set out in Schedule VII. Chemical Safety Reports (CSR) are required for these substances over 10t/y.
● The CRD will evaluate all substances and list the priority substances in Schedule II. This list will be assessed further to see if which substances require restriction or authorisation.
● Companies handling priority and hazardous chemicals are subjected to further regulatory requirements (e.g. chemical safety report, exposure scenarios, restriction, prohibition).
A New Age for the Indian Chemicals Industry
Top 6 Trends for India:
Trade conflicts that have erupted around the world could present opportunities for chemical companies in India.
There is a move towards economies of scale, especially through mergers and acquisitions. Scale could help fortify India’s competitive advantage.
India could leverage on digitalisation to expand profit margins.
The Indian petrochemicals industry is expected to grow in the 2020s.
Integrating environmental sustainability to the industry as a whole has the potential to protect long-term shareholder value, while complying with new regulations.
China REACH has changed the Chinese chemical industry for good – the stricter environmental norms and tighter financing have lead to uncertainty for the Chinese market. That could mean comparative advantage for Indian chemical companies in certain segments, especially in the short term.
India REACH – your next regulatory challenge
Yordas’ regulatory experts are here to help you comply with India REACH and other chemical notifications around the world.
