1 Jan. 2019, the Act on Registration and Evaluation of Chemicals (the amended K-REACH) officially took effect. Enterprises’ obligations under this Act would be changed tremendously. For instance, the amended K-REACH introduced pre-registration, which would affect the regulatory compliance work of related enterprises.
In accordance with the requirements of the amended K-REACH, manufacturers/importers that manufactured or imported at least one ton per year of an existing substance between 2016 and 2018, shall submit application for pre-registration between 1 Jan. 2019 and 30 Jun. 2019. Enterprises that have completed the pre-registration may enjoy a corresponding registration grace period based on the tonnage band as well as the hazards of substances.
Enterprises that have not completed pre-registration or registration cannot continue to manufacture/import/export substances exceeding 1 ton/y after 1 Jul. 2019. If related enterprises illegally manufacture/import/use substances, the responsible enterprise or responsible person may be imposed imprisonment of no more than 5 years or a fine not exceeding 100,000,000 won, depending on the number of illegal activities and the seriousness of consequences.
In order to fulfill the obligations under the amended K-REACH such as pre-registration, registration and products notification, overseas enterprises may entrust a Korean legal entity as its only representative.
Enterprises may submit application for pre-registration through REACH-IT system. To complete pre-registration, related enterprises need to provide the following information: substance identification information, annual manufacturing/import volume, substance classification and labeling information, substance uses and range of application.
South Korea’s Ministry of Environment (MOE) suggests that it is better to determine the pre-registration volume based on the average export tonnage between 2016 and 2018 . That is to say, if an enterprise respectively exports substances in volumes of 20 tons, 50 tons and 120 tons between 2016 and 2018, enterprises may choose to complete 10-100t/a pre-registration of substances . But as the exported volume exceeded 100 ton in 2018, the enterprise can also choose to complete 100-1000t/a pre-registration to ensure that the supply is sufficient.
It is important to note that if an oversea enterprise completes pre-registration by entrusting an OR, the overseas enterprise would better enter into a contract and power of attorney (POA) in advance with the OR. According to the requirements of the amended K-REACH, the OR needs to submit an OR confirmation to Korean authorities online before carrying out the pre-registration work. Besides, OR also needs to submit the substances entrusted by the oversea enterprise for confirmation. Generally, the OR examination takes 7 working days. For this reason, related enterprises shall prepare the pre-registration in case of missing the pre-registration deadline.
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