Potential Impact on the Cotton Industry REACH- Potential Impact on the Cotton Industry BY: Michael Thomason Consultant

REACH In Europe Registration, Evaluation, Authorization and Restriction of Chemicals In Europe

REACH Effective Date – June 1, 2007 Regulation EC # 1907/2006 & Directive 2006/12/EC Effective Date – June 1, 2007

REACH Objectives Protection of Human Health & the Environment Maintenance & enhancement of the competitiveness of the EU chemical industry. Prevention of fragmentation of the international market. Promotion of non-animal testing.

REACH Single coherent system for new and existing chemicals!!! Based on the premise that industry is best suited to ensure that chemicals manufactured or sold in the EU do not adversely affect human health or the environment. Responsibility changes from Governments to Industry to prove that a chemical or product is safe for use.

REACH Covers? All substances manufactured or imported at 1 metric ton or more must be registered. All EINECS chemicals over 1 metric ton. Will involve over 30,000 existing chemicals. Polymers are currently exempt. Will be revisited in the future. Monomers and additives for polymers are not exempt. Natural fibers are exempt. Food is exempt. Articles (converted products) are exempt. Raw materials are not exempt.

REACH Covers? Substances- a chemical element and its compounds in the natural state or obtained via a manufacturing process. Preparations – a mixture or solution composed of 2 or more substances. Polymers are currently exempt. If a polymer contains more than 2% (w/w) monomers or other substances they must be registered. Articles (converted products) are not subject to REACH, but raw materials and substances intended to be released from articles under normal use are subject to registration. Substances of Very High Concern (SVHC) present at 0.1 % or higher in articles subject to notification.

REACH Impacts Who? Chemical producers in Europe. Importers of chemicals and preparations into Europe. Distributors of chemicals. Article producers in Europe. Importers of articles into Europe. Downstream users.

HOW REACH IMPACTS COTTON? Raw Cotton is exempt. Articles containing cotton are exempt. Raw materials may not be exempt. Finishes on cotton may not be exempt. Most flame retardants not exempt. Controlled release additives are not exempt. Cotton fibers treated with an SVHC must be reported at 0.1 % level.

Out of Business in Europe!!! Importance of REACH to Your Company Non-Compliance = Out of Business in Europe!!!

REACH Quantity Thresholds for Registration 0 – 1 metric ton No Registration 1 - 10 metric ton TD 10 – 100 metric TD & CSR Required 100 – 1000 metric ton TD & CSR Required 1000 metric ton TD & CSR Required TD = Technical Dossier CSR = Chemical Safety Report

REACH Quantity Thresholds for Registration Example: 1 % finish on Cotton Fiber. 2200 lbs finish x 100 lbs fiber/1 lb finish = 220,000 lbs of treated cotton = 220,000 lb / 500 lbs/bale = 440 bales of cotton Potential registration required at 440 Bales

REACH Timeline

Pre-Registration Timing? 1 June 2007 – 1 June 2008 Get Ready 1 June 2008 – 30 Nov. 2008 Pre-registration Why pre-registration? - To allow phase-in substances to take advantage of phase-in deadlines (EINECS Chemicals). - To enable registrants of the same substance to prepare a single hazard data set. Who? - Potential registrants (Manufacturers, Importers, only representative, Downstream user)

Why is Pre-Registration Important? Buys Time!!! - If you pre-register, you can choose not to register at a later date. (ex. – For 10 metric tons or less usage, it buys you ~10 years to make a decision). First duty of most companies. Raw materials for Articles must be pre-registered. Importer: have to pre-register “all” substances in preparations. Manufacturer: have to pre-register all substances. Downstream User: have to ensure the substances supplied to you are registered for your use.

Pre-Registration Consequences of failure to pre-register. - Withdrawal of substance from the market? - No registration = No Market - Uncertainty If in doubt, then pre-register!! If you do not pre-register a substance then it must be removed from the market in Europe by January 1, 2009.