13 December, 2019

REACH – Registration fees: a heavy bill for retold SMEs!

Theme:

REACH Regulation

Country:

EU

Audits conducted by ECHA between March 2011 and August 2019 reveal that more than half of reporting SMEs incorrectly reported the size of their business at the time of submitting their file.

In the event of an error in the declared size, the reporting company will have to pay the difference between the SME fee already paid and that applicable to the actual size of the undertaking, i.e. from 8 to 20 k€, or 2.5 times the « financial gain » (*) of the enterprise.

This invoice may be increased by administrative duties (**) up to 19,900 €.

  • In case of non-payment, registration may be revoked and legal proceedings initiated.
  • In the event of self-correction, the undertaking will only have to pay the difference in the fee.

Important

If the company admits to having declared the wrong size of the business within the prescribed time limit after receiving a request for additional evidence from ECHA, it will have to pay half of the applicable administrative fees.


In order to help companies determine their size, the Commission has developed a « User Guide for the definition of SMEs » (available to our subscribers on request).

In summary below:

REACH-SMEs

Source: European Commission Recommendation of 6 May 2003.


(*) The « financial gain» corresponds to the amount of fees avoided by the presentation of false information.

This is the difference between the total amount of royalties actually paid and the total amount of royalties that would have been due had correct information been provided:

  • for Large enterprise: 19,900€ or 2.5 times the financial gain (take the lowest amount);
  • for Medium enterprise : 13,900€ or 2.5 times the financial gain (take the lowest amount);
  • for small business : 7,960€ or 2.5 times the financial gain (take the lowest amount).

(**) Administrative fees ECHA in case of incorrect declaration of company size:

These rights are defined in ECHA Management Board documents MB/D/29/2010 final, MB/21/2012/D final and MB decision 14/2015.

They are based on Article 13(4) of Regulation (EC) COMMISSION No 340/2008 of 16 April 2008 concerning fees and fees due to the European Chemicals Agency under REACH : « Where a natural or legal person who claims to be eligible for a reduction has already paid a fee or reduced fee but cannot demonstrate that he is entitled to such a reduction, the Agency shall collect the difference between the fee or full fee and the amount paid and an administrative fee. »

To go further...

ACTE International has been training and supporting European companies and their non-European suppliers to the requirements of REACH regulation for more than 10 years!

For any requesttechnical assistance compliance of your REACH procedures or need for training to update your knowledge, do not hesitate to contact our experts.

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