The European Commission has adopted a draft implementing regulation aimed at amending the regulation on fees and charges payable to ECHA under the REACH Regulation. This revision aims to strengthen the Agency's financial viability while preserving the competitiveness of SMEs.
Since the last REACH registration deadline in 2018, income from fees has fallen significantly. This situation has necessitated a reform of ECHA's funding model.
The Commission is proposing a 19.5% increase in standard fees, reflecting cumulative inflation between 2021 and 2023. However, SMEs will be exempt from this increase.
Currently based on self-declaration followed by ex-post verification, recognition of SME status will now be subject to prior verification (ex-ante). This will reduce ECHA's administrative burden and avoid subsequent disputes over the fees applied.
Companies will therefore have to submit a request for recognition of SME status, and provide supporting documents, at least two months before any submission giving rise to fees. If the status is recognized, the decision will be valid for three years, and will cover all submissions made during this period, including those covered by other European legislation.
This status can be renewed at the end of the three-year validity period by means of a self-declaration, provided that it is submitted at least two months before the expiry of the validity period and that the company's SME status has not changed. In this case, no additional information is required.
To cover the costs of verifying SME status, an administrative fee may be applied, unless SME status is finally recognized. This mechanism aims to balance the efficiency of the process with a fair distribution of costs between companies.
To give stakeholders time to adapt to these new arrangements, application of the new rules on recognition of SME status will be deferred for 15 months after the regulation comes into force. Submissions already in progress at that date will not be affected.
👉 Contact us today for a free consultation. Let’s discuss your specific situation!
The European Commission has adopted a draft implementing regulation aimed at amending the regulation on fees and charges payable to ECHA under the REACH Regulation. This revision aims to strengthen the Agency's financial viability while preserving the competitiveness of SMEs.
Since the last REACH registration deadline in 2018, income from fees has fallen significantly. This situation has necessitated a reform of ECHA's funding model.
The Commission is proposing a 19.5% increase in standard fees, reflecting cumulative inflation between 2021 and 2023. However, SMEs will be exempt from this increase.
Currently based on self-declaration followed by ex-post verification, recognition of SME status will now be subject to prior verification (ex-ante). This will reduce ECHA's administrative burden and avoid subsequent disputes over the fees applied.
Companies will therefore have to submit a request for recognition of SME status, and provide supporting documents, at least two months before any submission giving rise to fees. If the status is recognized, the decision will be valid for three years, and will cover all submissions made during this period, including those covered by other European legislation.
This status can be renewed at the end of the three-year validity period by means of a self-declaration, provided that it is submitted at least two months before the expiry of the validity period and that the company's SME status has not changed. In this case, no additional information is required.
To cover the costs of verifying SME status, an administrative fee may be applied, unless SME status is finally recognized. This mechanism aims to balance the efficiency of the process with a fair distribution of costs between companies.
To give stakeholders time to adapt to these new arrangements, application of the new rules on recognition of SME status will be deferred for 15 months after the regulation comes into force. Submissions already in progress at that date will not be affected.
👉 Contact us today for a free consultation. Let’s discuss your specific situation!