What impact does Brexit have on China’s chemical enterprises? Is it necessary to promptly address UK law?

Release Date:

2020-02-04

On the evening of January 31, local time, the United Kingdom officially announced its departure from the European Union, marking a growing estrangement between the two. From the 2016 Brexit referendum to today, the Brexit saga has finally come to a close. As the UK and the EU have yet to reach agreements on trade, security, and other issues, the two sides will enter an 11-month transitional period during which negotiations will take place.

The primary concern of Chinese chemical companies is: now that the UK has left the EU, what impact will this have on me, and do I need to promptly address UK-specific legal requirements?

According to the latest guidance issued by the UK’s Health and Safety Executive (HSE) at https://www.hse.gov.uk/brexit/reach-guidance.htm, although the UK is currently not an EU member state, this period is considered a transitional phase. During this transition, EU regulations remain the primary regulatory framework, and all applicable requirements continue to apply as before. The relevant regulatory requirements are summarized below:

~All registrations, authorizations, and classifications in place prior to Brexit shall remain valid;

~The EU’s REACH Regulation continues to apply in the United Kingdom;

~All registration procedures for new chemicals remain unchanged; UK companies are required to continue submitting registrations to ECHA.

~The United Kingdom recognizes all new registrations, authorizations, and classifications approved by the European Union;

~HSE is currently not suitable as the lead regulatory authority for conducting assessments related to plant protection products, biocidal products, and REACH‑regulated substances; however, it will continue to collaborate with relevant companies to minimize disruptions and delays to ongoing evaluations.

~UK enterprises and other EU enterprises shall enjoy equal rights if the project is accepted and processed by the competent authority of another EU member state;

~HSE continues to process UK national authorization applications submitted under the Plant Protection Products Regulation and the Biocidal Products Regulation.

In summary, Chinese companies currently need not worry about any impact of Brexit on their exports; until December 31, 2020, they may continue to comply with the existing EU REACH regulations as applied to the UK. As the transition period ends on December 31, 2020, the UK and the EU will continue to negotiate a new agreement, at which point the relevant guidance documents will be updated accordingly.