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Reduced REACH registration fees and charges for medium, small, or micro enterprises

SME reduction

How do I know if I qualify for the SME reduction?

Small enterprises
are defined as enterprises which employ fewer than 50 persons and whose annual turnover or annual balance sheet total does not exceed 10 million euro.

Micro enterprises
are defined as enterprises which employ fewer than  10 persons and whose annual turnover or annual balance sheet total does not exceed 2 million euro.

Lower levels of fees apply to companies that are medium, small, or micro enterprises.  To determine your company’s size, you must calculate staff headcount, annual turnover, and/or annual balance sheet total according to Commission Recommendation 2003/361/EC concerning the definition of micro, small and medium-sized enterprises.  Different definitions of SME may exist in your country but, for the purposes of REACH, only the definitions set out in Commission Recommendation 2003/361/EC can be taken into account.

In accordance with this Recommendation, an enterprise cannot be considered as an SME if 25% or more of its capital or voting rights are directly or indirectly controlled, jointly or individually, by one or more public bodies.

In addition, if you have shares or voting rights in other enterprises or if third parties (including natural persons) have shares or voting rights in your enterprise, the headcount, turnover, and balance sheet information of all the relevant enterprises must also be taken into consideration.

For further information, please refer to the definition of SMEs on page 14 of the SME User Guide http://ec.europa.eu/enterprise/enterprise_policy/sme_definition/sme_user_guide.pdf

How does the European Chemical Agency know if I am an SME?

The European Chemical Agency will know that you are a micro, small, or medium-sized enterprise on the basis of your declaration.  Specifically, as part of the information that you are required to send to the Agency, you will be given an opportunity to signal that you are a micro, small, or medium-sized enterprise.  Upon that declaration, the Agency will automatically apply the relevant reduced fees. 

The information that you have submitted will be verified in the context of the dossier evaluation by the Agency.  The submission of false information will not only trigger the application of the full fee but also of an administrative charge (see Article 13 of the Fees and Charges Regulation). In addition, penalties may be imposed by the competent authorities of the Member States.

You are therefore advised to verify carefully whether you meet the conditions for SME status in accordance with Commission Recommendation 2003/361/EC.   Please note that, for the purposes of REACH, only the conditions set out in the Commission Recommendation 2003/361/EC can be taken into account.

Does the SME reduction apply to only representatives?

The SME reduction also applies to Only Representatives.

If you are an only representative, the determination of whether the SME reduction applies to your submission should be done by reference of the headcount, turnover, and/or balance sheet information of the non-EU manufacturer that you represent.  This is to ensure equal treatment between non-EU manufacturers (including formulators and producers of articles) that decide to use an only representative and importers and manufacturers established in the EU.

Joint Submissions

Why are there lower fees and charges for joint submissions?

The reason why lower fees and charges apply in the case of joint submissions of a registration is twofold.  On the one hand, the associated workload of joint submission is lower than in the case of separate submissions and this should be reflected in the fee.   In addition, lower registration fees for joint submissions will also encourage data sharing, thereby avoiding unnecessary repetition of studies.

Who pays the fee in the case of a joint submission?

In a joint submission, the lead registrant submits the information that must be submitted jointly in accordance with Article 11(1) of the REACH Regulation (i.e. studies, proposals for testing, and classification and labelling information and, where relevant, the chemical safety report or guidance on safe use).  In addition, the other registrants that are party to a joint submission are required to make an individual submission with their identity, the identity of the substances that are being registered, and other information that cannot be submitted jointly (see Article 11(1) of the REACH Regulation). 

It is important to note that the reduced fee is payable per registrant that is party to the joint submission.  This means that, following the individual submissions of the registrants that are part to the joint submission, the Agency will automatically issue individual invoices to each of them. The lead registrant will, likewise, receive its invoice when it makes its submission. 

When a registrant (or lead registrant) informs the Agency that it is an SME, the Agency will automatically apply the relevant reduced fee in its invoice. 

How do I know if I qualify for a reduction for a joint submission?

To assess if you can benefit from the reduced fees that apply to registration submissions that are made jointly,  you need to look at the information that, in accordance with Article 11(1) of the REACH Regulation, must be submitted jointly (i.e., the classification and labelling information, the studies, and the proposals for testing). 

If you submit all of that information jointly, you can benefit from the reduced fees.  However, if you submit separately any of that information, you cannot benefit from the reduced fees.  For instance, if for any specific endpoint you do not rely on the studies that are part of the joint submission sent by the lead registrant but submit your own studies, you cannot benefit from the reduced fees.


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