Regulatory impacts of Brexit
REACH
With the withdrawal of the United Kingdom (UK) from the European Union (EU) on the 31st January 2020, the future of the chemical industry (amongst others) in Europe is uncertain. Now that the withdrawal agreement has been ratified by both British and European Parliaments, there is still the question of knowing whether both parties will manage to negotiate the various trade agreements that will rule their future relations.
As regards to REACH specifically, during the transition period (until 31st December 2020), the European regulations will keep on applying to the UK. After this, two major options are possible:
- A trade deal is settled before the end of 2020
In this case, an agreement or even a mutual recognition of Authorisations and Registrations could be feasible. Depending on the agreed upon deal, some variations could happen such as, for instance, a simple regulatory alignment.
- No deal is reached before the end of 2020
If no deal is reached between the EU and the UK, or simply no deal regarding the chemical industry, then a no deal scenario would be back on the table. In the case of REACH, it would mean that all Registrations and Authorisations carried out by British entities which would not have been transferred to a Europe-27 Only Representative would become void at the end of the implementation period. The two blocs could then see their cooperation ruled by the World Trade Organisation (WTO) rules.
On the UK side of the issue, UK-REACH is ready to be implemented upon the withdrawal date if no deal - or an insufficient deal - is reached.
EcoMundo may act as Only Representative (OR) for British companies wishing to transfer their Registrations or Authorisations to the EU-27. We also recommend to all companies getting their supplies from British entities to make sure the latter got organised before it is too late.
Cosmetics Regulation
Like REACH, the cosmetics industry depends entirely on the coming negotiations of the next 11 months. Until the end of the implementation period, it is business as usual. The Cosmetics Regulations (EC) No 1223/2009 keeps on applying in the United Kingdom as it did before. Even though some retailers or suppliers have started to refuse British Responsible Persons (RPs), it should be noted that they are still valid.
- If a deal is reached
There again, a regulatory alignment or a notification recognition system of each bloc could be envisioned (between the European CPNP and its future British counterpart). However, experts consider that a full regulatory alignment is very unlikely to happen.
- If no deal is reached
CPNP (Cosmetic Products Notification Portal) notifications made by British Responsible Persons will need to be transferred to RPs from the EU-27 to remain valid. Notifications would then need to be carried out in both the United Kingdom and the European Union as a Cosmetics Regulation is ready to be implemented in the UK in a no deal scenario; the latter would take the important elements of the European cosmetics regulation to apply them in the UK. Additionally, a British Responsible Person would need to be appointed to commercialise cosmetics across the Channel. British entities of the European CPNP will be deactivated and lose access from the effective exit day (in all probability at the end of the transition period).
Reminder of the latest Brexit developments and perspectives
This Friday 31st January, the United Kingdom will leave the European Union, 3 and half years after the referendum which triggered the whole Brexit process, and after 47 years of membership in the EU.
Today at 11pm (London hour) - midnight in Brussels - the United Kingdom will officially cease to be a member of the European Union. British and Europeans will then have 11 months, until 31st December 2020, to negotiate trade agreements in order to determine their future trading relations. These treaties will be decisive because, on a regulatory point of view, they will decide or not of regulatory alignments between the blocs.
If no treaty is negotiated, or if all trading areas cannot be negotiated - which is a probable issue - then the UK and the EU will start to trade under WTO rules, at least for some areas.
However there is still a possibility that the United Kingdom asks for an extension of the transition period. If Boris Johnson goes down this road, he will need to do so before June 2020. This hypothesis remains very unlikely since the British Prime Minister passed a ban of an extension into law.
Wish to know more about Brexit?
For more information, do not hesitate to contact Sylvain de Backer or Renaud Germain-Thomas or one of our cosmetics or REACH experts via our contact form, specifying the purpose of your inquiry.
Regulatory impacts of Brexit
REACH
With the withdrawal of the United Kingdom (UK) from the European Union (EU) on the 31st January 2020, the future of the chemical industry (amongst others) in Europe is uncertain. Now that the withdrawal agreement has been ratified by both British and European Parliaments, there is still the question of knowing whether both parties will manage to negotiate the various trade agreements that will rule their future relations.
As regards to REACH specifically, during the transition period (until 31st December 2020), the European regulations will keep on applying to the UK. After this, two major options are possible:
- A trade deal is settled before the end of 2020
In this case, an agreement or even a mutual recognition of Authorisations and Registrations could be feasible. Depending on the agreed upon deal, some variations could happen such as, for instance, a simple regulatory alignment.
- No deal is reached before the end of 2020
If no deal is reached between the EU and the UK, or simply no deal regarding the chemical industry, then a no deal scenario would be back on the table. In the case of REACH, it would mean that all Registrations and Authorisations carried out by British entities which would not have been transferred to a Europe-27 Only Representative would become void at the end of the implementation period. The two blocs could then see their cooperation ruled by the World Trade Organisation (WTO) rules.
On the UK side of the issue, UK-REACH is ready to be implemented upon the withdrawal date if no deal - or an insufficient deal - is reached.
EcoMundo may act as Only Representative (OR) for British companies wishing to transfer their Registrations or Authorisations to the EU-27. We also recommend to all companies getting their supplies from British entities to make sure the latter got organised before it is too late.
Cosmetics Regulation
Like REACH, the cosmetics industry depends entirely on the coming negotiations of the next 11 months. Until the end of the implementation period, it is business as usual. The Cosmetics Regulations (EC) No 1223/2009 keeps on applying in the United Kingdom as it did before. Even though some retailers or suppliers have started to refuse British Responsible Persons (RPs), it should be noted that they are still valid.
- If a deal is reached
There again, a regulatory alignment or a notification recognition system of each bloc could be envisioned (between the European CPNP and its future British counterpart). However, experts consider that a full regulatory alignment is very unlikely to happen.
- If no deal is reached
CPNP (Cosmetic Products Notification Portal) notifications made by British Responsible Persons will need to be transferred to RPs from the EU-27 to remain valid. Notifications would then need to be carried out in both the United Kingdom and the European Union as a Cosmetics Regulation is ready to be implemented in the UK in a no deal scenario; the latter would take the important elements of the European cosmetics regulation to apply them in the UK. Additionally, a British Responsible Person would need to be appointed to commercialise cosmetics across the Channel. British entities of the European CPNP will be deactivated and lose access from the effective exit day (in all probability at the end of the transition period).
Reminder of the latest Brexit developments and perspectives
This Friday 31st January, the United Kingdom will leave the European Union, 3 and half years after the referendum which triggered the whole Brexit process, and after 47 years of membership in the EU.
Today at 11pm (London hour) - midnight in Brussels - the United Kingdom will officially cease to be a member of the European Union. British and Europeans will then have 11 months, until 31st December 2020, to negotiate trade agreements in order to determine their future trading relations. These treaties will be decisive because, on a regulatory point of view, they will decide or not of regulatory alignments between the blocs.
If no treaty is negotiated, or if all trading areas cannot be negotiated - which is a probable issue - then the UK and the EU will start to trade under WTO rules, at least for some areas.
However there is still a possibility that the United Kingdom asks for an extension of the transition period. If Boris Johnson goes down this road, he will need to do so before June 2020. This hypothesis remains very unlikely since the British Prime Minister passed a ban of an extension into law.
Wish to know more about Brexit?
For more information, do not hesitate to contact Sylvain de Backer or Renaud Germain-Thomas or one of our cosmetics or REACH experts via our contact form, specifying the purpose of your inquiry.
