K-REACH:
How to reach it?
         Sookie Hong
         3E Company
        September 29, 2015
Content: K-REACH
• Regulatory Landscape
• Requirements in Details
  - Exclusions/Exemptions
  - Report, Registration, and Notification
  - Data for hazard evaluation or risk assessment
  - K-REACH and GHS
• Draft Amendments
• Regulatory Timelines and Forecast
• Conclusion
Korea REACH
• “K-REACH” (Act on Registration and Evaluation of
  substances (aka “AREC”) – Ministry of Environment
  (MoE))
                                           TCCA à
          K-REACH
                                             CCA
   - Risk assessment/preventive    - Hazardous substances
   control (pre-market)            management (licensing,
   - Designation of hazardous      inspection)
   substances (toxic, banned,      - Response to emergency/chemical
   restricted)                     accidents
   – New chemical notification under TCCA removed
   – Hazard testing under TCCA transferred to K-REACH
                                                                      3
Chemical Lists Designated by K-REACH
        Toxic
       Banned
                          K-REACH will
      Restricted           designate
         PEC
                        Exception:
                        “Accident-prone” (only CCA)
     Permissible        “Observational” repealed
                                                      4
K-REACH Legal Framework
• Act on Registration and Evaluation of substances (“AREC”)
  ‐ Presidential Decree stipulates:
   Grace period of existing chemical registration
   Exempted substances for R&D (i.e. reagents, non-isolated
   intermediate, low-risk polymer, etc.)
 ‐ Ministerial Decree specifies:
   Required documents for registration exemption application, required
   test data, hazard assessment methods, content of risk communication,
   etc.
 ‐ Guidance and Notices provides:
   Product notification, data and cost sharing, chemical “confirmation”
   requirement, classification/labeling, registration dossier, testing method,
   data protection, etc.
                                                                                 5
K-REACH Overview
                                     Hazard
                                 Evaluation and
                Registration /
   No pre-                          chemical
 registration      Annual          designation
                  Reporting
                                   (i.e. toxic
                                  substances)
                Authorization/
                 Restriction
    Risk                             Risk
Communication      (banned,       Assessment
                  restricted,
                 permissible)
                                                  6
K-REACH: Requirements (1)
Requirements                   Act of K-REACH (May 22, 2013)
Reporting         (Art. 8)
                  • Importers, Manufacturers, and Sellers (excluding users)
Requirement       • Quantity AND Use Report
                  • All new substances and ≥ 1 ton/year for existing
                   substances
                  • Every year
Registration      (Art. 9 - 17)
                  • Importers, Manufacturers
                  • All new substances
                  • ≥ 1 ton/year for designated existing substances
                  • < 1 ton if considered hazardous to human health or
                   environment
Risk Assessment   (Art. 24)
                  • ≥ 100 ton/year initially
                  • ≥ 10 ton/year after year 5 (i.e., 2020)
                                                                              7
K-REACH: Requirements (2)
Requirements                               Act of K-REACH (May 22, 2013)
Risk Communication (SDS,             (Art. 29 - 30)
chemical properties, use, exposure   • End user and seller ómanufacturer and
scenario, and safe use guidelines,     importer
quantity of use/sale, etc.)
                                     (Optional for downstream user “upon request
                                     by manufacturer or importer” (Art .30))
Product Notification                 (Art. 32 - 37)
                                     • Report of hazardous substances in products
                                       exceeding 1 ton/year
                                     • Product risk assessment/safety standard
                                     • Product sale ban/recall
                                                                                    8
K-REACH Key Points
• Effective from January 1, 2015
• Only Representatives (“OR” policy)
 ‐ Foreign companies need to appoint a representative
   for reporting, registration, notification, etc.
 ‐ Eligibility of representatives
    § Korean citizenship holder
       Or
    § A person or business entity who has an address
       in Korea
                                                        9
CBI under K-REACH
• Period of data protection: 15 years
• Not eligible for CBI:
  ‐ Chemical common name, trade name, and product
    name
  ‐ Chemical or product use
  ‐ Safe use information of chemical or product (i.e.
    precautionary statements for handling, disposal, etc.)
  ‐ Accident response
  ‐ Physico-chemical properties
  ‐ Hazards/Risk information
                                                             10
Out of Scope
•   Radioactive substances
•   *Pharmaceutical and quasi-pharmaceutical
•   Narcotics
•   *Cosmetics and related raw materials
•   *Agricultural substances and their active ingredients
•   Fertilizers
•   Food and food additives
•   Animal feeds
•   Gun powder and military supplies
•   Health supplements
•   Medical devices
*: Precursors used to manufacture active ingredients are subject to K-REACH
                                                                              11
Existing vs. New Chemical Substances
• “Existing” chemical substances
 ‐ Chemical substances distributed for commercial purposes
   domestically before February 2, 1991 and announced by the
   MOE on December 23, 1996
 ‐ Chemical substances for which the hazard evaluation has
   been completed under the Toxic substances Control Law
   after February 2, 1991 and was published by the MOE
à Basically it is listed in KECI (Korea Existing Chemical
  Inventory)
• “New” chemical substances
  ‐ Not listed in KECI
                                                               12
Annual Reporting
• Subject: ALL new substances regardless of
  quantity and existing substances manufactured,
  imported, or sold ≥ 1 t/y
• Who? Manufacturer, importer, and seller
  - Seller who sells substances for industrial use
• What? Quantity and use
  - 55 Use categories designated by the MoE
• For 2015 reporting, deadline is by June 30, 2016
                                                     13
Exemptions of Reporting
a) Existing substances below 1 ton/yr (manufacture,
   import, sale)
b) Imported substances equipped in machinery
c) Imported substances contained in experimental
   machinery or equipment
d) Substances contained in finished article and not
   released during its use
e) PPORD
f) Reagents
g) Non-isolated intermediates
                                                      14
Additional Exemptions from Reporting
K-REACH Quiz
• Mixture scenario
                      B:         A: New
                   Existing       chem
                    chem           0.1t
                     0.7t
                               C:
                            Existing
                           chem 2t             Answer:
                                               A and C
        Which one(s) are subject to annual reporting?    16
Registration (1)
• All new substances regardless quantity and
  “designated existing substances” 1 ton or more
  per year
• Who? Manufacturer, Importer
• Registration for new substances must be done
  prior to manufacture or import à no grace
  period
• Process time:
  - 3-7 days for substances < 1 t/y
  - 30 days for substances ≥ 1 t/y
                                                   17
Registration (2)
• “Designated existing substances subject to
  registration” (aka “PEC” (Priority Evaluation
  Chemicals)) will be issued by MoE every 3 years
  based on the criteria of total quantity in commerce
  and hazard/risk concerns. Grace period for
  registration: 3 years from announcement
  à First batch PEC with 510 substances published
  (July 1, 2015)
                                                        18
Registration (3)
• What to submit:
 ‐ Information of importer, manufacturer, or representative
 ‐ Chemical identity/information (name, CAS, molecular formula,
   structure, impurities/by-products, estimated quantities of import
   or manufacture)
 ‐ Intended use
 ‐ Classification and labeling à GHS
 ‐ Physio-chemical properties
 ‐ Hazard information
 ‐ Risk information including exposure scenario (only imported or
   manufactured 10 tons or more per year)
 ‐ Guidance of safe use
 ‐ Others… (CBI application, etc.)
                                                                       19
Exemptions of Registration
  a) Imported substances equipped in machinery
  b) Imported substances contained in experimental
     machinery or equipment
  c) Substances contained in finished article and not
     released during its use
  d) *Substances manufacture domestically or imported ≤
     10 ton/yr to export for military purpose
  e) *Reagents for R&D
  f) Surface treated substances
  g) Non-isolated intermediates
  h) PLC (cationic polymers are subject to registration)
*“Confirmation of Registration Exemption” must be submitted every year. (for
   now)
                                                                               20
Existing substances will not be selected as PEC
•   Impurities and by-products
•   Minerals, ores, ore concentrates, cement clinker, crude oil, coal
•   Natural gas, liquefied petroleum gas, natural gas condensate
•   Vegetable fats, vegetable oils, vegetable waxes; animal fats, animal
    oil, animal waxes
•   Fatty acids from C6 to C24 and their potassium, sodium, calcium
    and magnesium salts
•   Glycerol
•   Process gases and components thereof
•   Coke, magnesium oxides
•   Glass, ceramic frits
•   Compost and biogas
•   Hydrogen and oxygen
 Types of Registration
                     Low volume           Low volume
   Standard
                    (before 2020)         (after 2020)
• All new and      • New < 1 t/y        • New < 100
  designated       • No hazard data       kg/y
  substances ≥ 1     submission         • No hazard data
  t/y; high risk     (but exposure        submission
  concerned < 1      information for      (but exposure
  t/y                use is required)     information for
• Hazard data,                            use is required)
  physico-
  chemical, etc.
                                                             22
Data Submission (1)
• Mandatory Joint-submission for PEC
    The justifiable reasons for individual submission:
    ‐ Compromised trade secret that may cause damage to business
    ‐ If joint submission is more costly than individual submission
    ‐ Classification and labeling from same testing category are different among
      registrants
à    “Confirmation of Individual Submission” from the KCMA required
• Sharing vertebrate animal test data for new substances
    A person must obtain the prior approval from the owner of the data that had
    been submitted for registration (Act Art. 16 - 17)
    Exception: no consent is needed if the data which 15 years have passed since
    its use for registration
à If refused by the owner, the data submission can be waived with a
 “Confirmation” from KCMA
• Industry can check with the NIER if existing data available
                                                                                   23
Data Submission (2)
• Test proposal showing test information and schedules
  may be accepted in lieu of testing data of physico-
  chemical, toxicity, and eco-toxicity (like EU REACH) à
  Only if testing data proven as unavailable.
• MoE only accepts data generated from locally certified
  labs (GLP) or internationally qualified labs (OECD)
  (except physico-chemical data)
• Some data submission during registration maybe
  waived
   ‐ QSAR for substances imported or manufactured below 10
     ton per year
   - Isolated intermediates
   - New substances with low volume (1 t until 1/1/2020)
                                                             24
Hazard Review/Risk Assessment
• NIER will conduct hazard review on registered substances:
    - new substances within 6 months
    - PEC within 1 year
à Designate and publish toxic chemical
  substances
• Additional data for risk assessment are required for registration; gradual
  reduction of quantity :
   ≥ 100 ton/yr by Jan. 1, 2015;
   ≥ 70 ton/yr by Jan. 1, 2017;
   ≥ 50 ton/yr by Jan. 1, 2018;
   ≥ 20 ton/yr by Jan. 1, 2019;
   ≥ 10 ton/yr by Jan. 1, 2020
à Start counting the date of registration certificate received, NOT the date of
  registration submission.
à Designate and publish banned, restricted, and permissible chemical
  substances
                                                                                  25
Authorization/Restriction
• Authorization - Designation of “Permissible” substances
  ‐   Results of hazard evaluation and risk assessment that demonstrate high risk
  ‐   Substances with high risk of CMR, endocrine disruptors
  ‐   PBT, vPvB
  ‐   Other substances with similar high risks
  ‐   Must have a permit to manufacture, import, or use
• Restriction - Designation of “Restricted / Banned”
  ‐   Results of hazard evaluation and risk assessment that demonstrate high risk
  ‐   Designated by international institutes as high risk
  -   Substances that have been removed from Permissible list
  ‐   Banned (all usage) or restricted (partial usage) from
      manufacture, import, sell/store, transport, or use
                                                                                    26
Product Control (1)
• Safety management for “Risk concerned
  products”
1) Household products – cleansers, adhesives, deodorizers, air
   fresheners, bleaching agents, detergents, fabric softener, etc.
2) Biocide products – preservatives, disinfectants, insecticides, etc.
 ‐ Product Notification prior to manufacture or import:
   exceeding 1 ton/yr per “hazardous substance” containing 0.1
   % in product
   ‐ Substance name, concentration, use in product, hazard properties
   ‐ Exceptions: chemical substances not released from
     product during its use, substances in finished
     articles, etc.
                                                                         27
Product Control (2)
• Hazardous Substances here means:
  ‐ K-REACH designated ones: Toxic, permissible, restricted, or
    banned substances
• “Exemption from Notification” can be granted to:
   ‐ Release of hazardous substance in product is controlled
   ‐ Hazardous substance in the product already registered for the respective
     use
• Risk assessment requirement per product category
• MoE will publish safety standard, labeling, packaging, and safety
  information for consumers
• Safety, labeling criteria will include hazardous substances that are
  not allowed in risk-concerned product, concentration limit,
  migration, evaporation, etc.
• For product that fails to meet safety standard, MoE can ban or
  recall
                                                                                28
Post-Registration (1)
All records below must be kept for 5 years
• Chemical information
• Annual Report (including exemption application)
 - Registrants’ information change à within 1 month
 - Change in Use à within 1 month
• Chemical registration (including exemption
  application)
 - Change in annual volume à within 1 month
 - Change in risk/hazard info à within 6 months
                                                      29
Post-Registration (2)
• Notification of risk-concerned product that
  contains hazardous substances (including
  exemption application)
• Risk communication
• CBI information
                                                30
  What to submit where?
Importer,
Manufacturer,       Registration,
(Seller),           Existing testing data
OR                  inquiry
                        Annual reporting,
                        Product notification   Local MoE
                Chemical identification,
                Exemption application,
                Applying for individual
                registration for PEC, etc.
EU vs. K-REACH
                          EU REACH                    K-REACH
Pre-registration          Yes                         No
Annual reporting          No                          Yes
Existing chemical         All existing substances 1   Only PEC 1 ton or more
registration              ton or more
Joint registration        Mandatory                   Mandatory (for PEC)
Registration types        Standard; Intermediate      Standard; Low volume
                          Use only; PPORD
Hazard evaluation /risk   Industry                    Government (MoE)
assessment
                                                                               32
K-REACH facts that may interest you... (1)
• Nano materials are subject to hazard evaluation under K-
  REACH
• Testing data that was used for registration with ECHA is
  acceptable for K-REACH registration (but QSAR or Read-
  across from EU REACH may not be acceptable)
• Non-GLP testing data for physio-chemical properties
  other than Pow are acceptable
• New substances approved of LVE (100 kg) under TCCA
  are considered as exempted for K-REACH registration
• K-REACH does not grant “expedited” registration
  process for new substances even if they have been used
  by OECD member countries
                                                             33
K-REACH facts that may interest you... (2)
• “Unknown” chemical substances are not allowed
  – must obtain information from suppliers
• For registration, use category per chemical
  substance must be specified – must obtain
  information from suppliers
• Registration Fee
  ‐   Discounted fee for SME (up to 80%)
  ‐   100,000 KRW for new substances
  ‐   200,000 KRW for PEC
  ‐   Other fees: exemption application (50,000 KRW);
      product notification (50,000 KRW)
MoE vs. MoEL: data submission
Before K-REACH: one-time submission
TCCA (MoE) – ISHL (MoEL) Hazard Testing
                                            TCCA Hazard Testing
                                            ISHL Hazard Testing
            MoE (NIER)            MoEL
After K-REACH: separate submission
                         MoE             K-REACH Hazard
                         (NIER)          Evaluation
                         MoEL            ISHL Hazard Testing
K-REACH and GHS
1) During registration, GHS hazard classification and
   labeling (pictograms, H and P codes) information are
   required
2) Risk communication – SDS may be utilized
Classification/Labeling
   ‐ MoE adopted UN 3rd Rev. by including hazard class “Hazardous to
     Ozone Layer” (NIER No. 2014-45)
Safety Data Sheet (SDS)
   ‐ MoEL is a ruling authority on the format
   ‐ Updated SDS standard including K-REACH information (e.g. Sec 15)
     is pending
Draft amendments/latest notice
1) Draft - Ministerial Decree amendment proposal
  (MoE No. 2015-540)
•   Simplifying documentation for R&D application
•   Reagents for R&D application
•   Selecting a lead registrant for joint registration
•   Simplifying a representative change
2) Final - Exemptions from “Chemical Identification”
  requirement (MoE 2015-162)
• Published on September 1, 2015
• Exempted existing substances from annual reporting also
  exempted from chemical identification obligation
What Is Coming Up
• 510 PEC substances must be notified (“Chemical
  identification”) to KCMA by January 2016 (within 6
  months since published date)
• Annual report for 2015 due by June 30, 2016
• 510 PEC substances to be jointly registered by June
  2018 (3 years since the published date)
• Risk assessment data ≥ 100 ton/yr until Dec. 2016; ≥
  70 from Jan. to Dec. 2017; ≥ 50 from Jan. to Dec.
  2018…
                                                         38
Thank you for your attention!
경청해주셔서 감사합니다!