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For many companies, REACH legislation is an indispensable but often underestimated link in their supply chain. On paper, the rules seem simple: register, document and communicate about the substances used. In practice, however, a single missing document or incomplete registration can have serious consequences, ranging from halted deliveries to hefty fines.

At Faes, we regularly see that non-compliance is not the result of unwillingness, but of uncertainty about responsibilities within the chain. Who is liable when packaging materials or components do not comply with REACH? And how great are the risks to your brand and customer confidence if something goes wrong?

In this article, we show what happens when companies do not comply with REACH and why the consequences often go beyond just a fine.

What is REACH and who is responsible?

The European REACH Regulation (Registration, Evaluation, Authorisation and Restriction of Chemicals) has one clear objective: to protect people and the environment from the risks posed by chemical substances. This regulation requires companies that manufacture, import or use chemicals to know exactly which substances are contained in their products and packaging, and to share that information within the supply chain.

What many organisations overlook is that REACH does not only apply to manufacturers of chemical substances. Companies that market products containing these substances, such as packaging materials, must also comply with the obligations. This means that every link in the chain is responsible for its own part of compliance.

The principle of REACH can be summarised simply: no data, no market. Without correct registration and documentation, a product or component simply cannot be sold or used within the EU. This means that the legislation affects not only the chemical industry, but also companies in the high-tech, medical and defence sectors that depend on reliable and traceable packaging solutions.

What are the possible consequences of non-compliance?

Failure to comply with REACH has immediate and often far-reaching consequences. European legislation stipulates that Member States must impose penalties that are effective, proportionate and dissuasive. In the Netherlands, this is done by the Human Environment and Transport Inspectorate (ILT), the Dutch Labour Inspectorate and the Netherlands Food and Consumer Product Safety Authority (NVWA). They monitor companies for compliance and can intervene if the obligations regarding registration, communication or documentation are not met.

Fines and legal measures

In the event of violations, authorities may impose administrative fines or impose an order subject to a penalty. In more serious cases, violation of REACH may be classified as an economic offence under the Economic Offences Act. This means that criminal prosecution may even take place, resulting in possible imprisonment or heavy fines. In other European countries, fines can run into millions of euros.

Operational risks

In addition to financial damage, non-compliance has direct consequences for business operations. Products may be withdrawn from the market or temporarily unavailable until the documentation is complete. This also applies to packaging materials containing substances covered by REACH. Without valid registration, the principle of “no data, no market” applies: the product may no longer be sold or used within the EU. This can halt deliveries, put pressure on customer relationships and disrupt production processes.

Reputational damage and customer confidence

A listing in public databases, such as the European Safety Gate system, can permanently damage a company’s image. Especially in sectors where quality and reliability are key, such as high-tech, medtech and defence, a single incident can lead to a loss of trust or exclusion from tenders. Suppliers who cannot demonstrate their compliance will lose their position in the chain.

Where do things often go wrong?

Although most companies are familiar with the basics of REACH, things often go wrong in practice. Not because of unwillingness, but because the rules are complex and responsibilities are spread across multiple parties. In many cases, one crucial link is missing: structural control over the materials and documentation within the chain.

1. Incomplete or outdated safety data sheets (SDS)

One of the most common causes of non-compliance is that safety data sheets are not up to date. Substances are changed, suppliers change, but the corresponding SDS documents lag behind. This creates uncertainty about the composition and risks of materials and can lead to rejection during an inspection.

2. No communication about substances of very high concern (SVHCs)

Companies often forget to inform their customers about the presence of substances on the list of “Substances of Very High Concern”. According to Article 33 of REACH, this information obligation is mandatory, even for products such as packaging or components. A lack of transparency in the chain can quickly lead to reputational damage or blockages during audits.

3. Failure to comply with restrictions from Annex XVII

Some substances are completely banned or only permitted under specific conditions. Think of plasticisers such as phthalates, which can be found in packaging materials or coatings. An incorrect composition or unclear specification can mean that a product can no longer be traded within the EU.

4. Uncertainty about responsibilities

In complex supply chains, it is not always clear who is responsible for collecting and sharing REACH data. Suppliers, importers and assembly partners sometimes point to each other, with the result that no one maintains an overview. This lack of ownership poses a major risk, especially during audits or certification processes.

5. Insufficient internal control and knowledge

Compliance is not a one-off action, but a continuous process. Without clear internal procedures, periodic checks and employee training, gaps in documentation and communication arise. This is a structural risk, especially for companies that use many different materials or suppliers.

How can you prevent REACH issues?

REACH compliance does not begin with the inspection, but with well-organised processes and clear agreements within the chain. Companies that document their packaging and material flows in a controlled manner not only minimise the risk of fines or recalls, but also strengthen their reliability towards customers and partners.

1. Map your materials and suppliers

A complete overview of all materials used and their composition is the basis of REACH compliance. Collect SDS documents, supplier declarations and SVHC information and ensure that this data is managed centrally. Regularly check whether suppliers still comply with the current REACH list.

2. Ensure compliance in your processes

Make sure that REACH is not a one-off action, but an integral part of quality and purchasing processes. Set up procedures for assessing new materials, suppliers and packaging. Link compliance to product development so that requirements are directly incorporated into design and material selection.

3. Invest in knowledge and awareness

The complexity of REACH requires knowledge at all levels of the organisation. Train employees involved in procurement, logistics and product development so that they can recognise risks and know what the obligations are.

4. Work with a reliable partner

As a partner, Faes supports companies in setting up a compliant packaging chain. We combine knowledge of legislation with experience in material selection, design and traceability. Our specialists help assess documentation, select REACH-compliant materials and establish the correct procedures. This reduces the risk of errors and increases the certainty that every piece of packaging meets the applicable requirements.

Compliance as the foundation for trust

Failure to comply with REACH is not a minor administrative risk, but a direct threat to the continuity of your business operations. Fines and sanctions are visible, but the real damage often occurs silently: delivery blockages, product delays and loss of customer confidence. Especially in sectors where safety, precision and sustainability are key, demonstrable compliance is a prerequisite for being allowed to deliver at all.

At Faes, we see REACH compliance not as an obligation, but as an opportunity to gain control of the chain. By organising materials, processes and documentation properly from the outset, you avoid unnecessary risks and build a reliable and future-proof supply chain system.

Certainty starts with insight. With our knowledge of packaging design, material selection and legislation, we help companies to work in a REACH-compliant manner, without compromising efficiency or innovation.

Would you like to know whether your packaging process complies with REACH obligations? Please contact our specialists. Together, we will ensure that your packaging complies with the law, but above all with practice.

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