APPENDIX 17
Memorandum from the Society of Motor Manufacturers
and Traders Limited
1. SMMT is the leading trade association
for the UK automotive industry. SMMT provides expert advice and
information to members as well as to external organisations. It
represents some 600 member companies ranging from vehicle manufacturers,
component and material suppliers to power train providers and
design engineers. The motor industry is an important sector of
the UK economy. It generates a manufacturing turnover approaching
£45 billion and supports around 850,000 jobs.
2. SMMT took part in the May internet consultation
launched by the European Commission and expressed its views on
the draft legislation. The new legislation will not only affect
chemical manufacturers, but also downstream users, who face issues
related to the use of thousands of chemicals during the manufacturing
process. Downstream users will be responsible for demonstrating
the safety of the chemicals used and for disclosing required information
to the public.
3. SMMT supports the public's right to know
about any hazards associated with the use of chemicals. However,
the Society believes that any regulation in this area should provide
downstream users with practical and necessary information in the
least burdensome way. If the system is successfully implemented,
it should reduce impacts on human health and the environment resulting
from exposure to harmful substances and enable downstream users
to have information and knowledge about all the chemicals they
use in the manufacturing process and increase the overall transparency.
4. Regulating chemical substances will have
a great impact on manufactured products. As an indication of the
difficulties faced by the automotive industry, the average vehicle
is comprised of up to 10,000 substances, and it is estimated that
all these substances minus any partial exemptions such as polymers,
would come under REACH.
5. The final Commission proposals showed
important improvements compared to earlier drafts:
registration costs for low-volume
substances are reduced;
information through the supply chain
is facilitated through the "Safety Data Sheet";
protection of confidential business
information is strengthened;
the role of the central agency is
also strengthened; and
the scope of REACH is reduced.
6. However, SMMT is still concerned that
the proposals fail to take into account the many issues related
to downstream users. The automotive industry is already subject
to extensive regulation and REACH should ensure that legislation
is not duplicated to avoid conflicting requirements. In particular
the new proposals still fail to address four key points:
The need of a risk-based approachSMMT
strongly believes that prioritisation of substances and of information
requirements for their registration should depend on risk instead
of tonnage.
Substitution PrincipleDangerous
chemical substances should only be substituted if the safety of
alternative substances has been scientifically tested. Substitution
plans should respect the lead times and product life-cycles specific
to various industries.
International CompetitivenessSMMT
believes that REACH as proposed could lead to cost increases and
negative effects on international competitiveness.
Focus on individual uses to be removedSMMT
believes that standardised "exposure categories" should
replace the use specific scenarios.
THE NEED
OF A
RISK-BASED
APPROACH
7. In May SMMT called for the regulation
to embrace a risk based approach rather than an approach based
on substance production volumes. However, the proposals adopted
by the College of Commissioners in October failed to take this
into consideration. Industry highly values the importance of manufacturing
and marketing safe products, and it is in the interest of producers
and users of chemical substances to produce and market safe and
tested goods.
8. The automotive industry strongly believes
that prioritisation of substances should depend on risk instead
of tonnage. Industry accepts that is in everybody's interest to
introduce more stringent testing requirements for dangerous substances,
even if used in small quantities. It is essential to identify
where the real concerns are and to channel resources to address
those concerns adequately. Based on the experience gained here,
lower risk substances could then be examined at a later stage.
INTERNATIONAL COMPETITIVENESS
9. SMMT believes that REACH as proposed
could lead to cost increases and negative effects on European
competitiveness. We understand that the Commission believes that
one of the keys to defending the competitive position of the European
chemicals industry is making every effort to ensure that new EU
legislation become the international norm.
10. However, what is in principle a worthy
statement in practice fails to address and assess the reality
of the global business environment. The Commission's proposal
has undoubtedly unintended competitive effects, as EU producers
of articles will have to cope to a much greater extent than non-EU
producers with the provisions of the regulation. European downstream
users will be at significant disadvantage in terms of cost and
ability to innovate when compared with non EU competitors. Companies
that are able to do so will be likely to be forced to increase
non-EU sourcing.
FOCUS ON
INDIVIDUAL USES
TO BE
REMOVED
11. SMMT believes that standardised "exposure
categories" should replace the use specific scenarios currently
envisaged by the proposals. The proposed use specific scenarios
raise issues related to confidentiality, flexibility and workability.
ConfidentialityDownstream
users may not want their suppliers to know how a particular substance
is used.
FlexibilityDownstream users
may want to use a substance for a specific use not originally
communicated to the supplier of chemicals.
WorkabilityA small European
firm, which lacks relevant staff time and training, may find it
impossible to communicate all the uses of a substance to an overseas
importer of chemicals.
CONCLUSIONS
12. REACH, which will overhaul the way chemical
substances are regulated across the EU, will greatly affect not
only the Chemical industry, but also the many downstream users.
SMMT believes that all its members will be affected by the new
legislation, considering that each vehicle is manufactured from
10,000 to 15,000 components, comprising up to 10,000 substances.
Overall, we believe that the impact of the proposals will be greater
than that of other recent substance restriction legislation such
as the ELV Directive.
13. It is also unclear exactly how the proposed
requirements would affect the automotive supplier community. Manufacturing
a complex automotive component can involve a number of transactions
among various automotive suppliers that may be based in different
countries. In some instances, confidential information may need
to be maintained as these transactions take place.
14. SMMT calls for the proposals to be used
as an opportunity to put in place an effective framework that
will protect consumers from dangerous chemicals, without acting
as a trade deterrent to EU member countries or being overly burdensome
on businesses.
January 2004
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