Blog Layout
Business risks of “wait and see”
Business risks of "wait and see"
Use of chromates in the EU Aerospace and Defence sector
All companies in the Aerospace and Defence (A&D) supply chains that use chromates, or specify their use by others, and where those uses are covered by an existing Application for Authorisation are faced with the question:
What do we have to do to ensure the continued use of the chromates that are essential to our business?
REACH authorisations have a review date, which means that re-authorisation is required if the continued use of the chromates is essential to your company beyond that date. While some companies have been able to substitute away from chromates for some uses, authorisation will continue to be essential for many A&D companies.
In the first round of applications for the authorisation of the continued use of chromates, applications were compiled and submitted by upstream suppliers using broad use definitions and most companies in the downstream supply chain could assume that their uses would be covered. Since that time, much has changed and it is now clear that broad definitions of use with very generic use conditions are not acceptable to the authorities.
Despite the challenges they face, applications submitted by upstream suppliers are the only option that is possible under the REACH Regulation for covering complex supply chains. However, it is now clear that the active participation of all stakeholders in the supply chain is of critical importance for successfully applying for the re-authorisation of uses for a longer period of time.
Why become active early on in the re-authorisation process? What are the risks of adopting a “wait and see” position?
For those companies involved in the A&D sector that are reliant on chromates, it is important to consider the risks of “wait and see”:
1. Firstly, your company will have no certainty that your particular supply chain is going to be covered in the re-authorisation, as it is not guaranteed that all original applicants will file a review report. Upstream applicants can only apply for uses in their downstream supply chains. An authorisation for a use that is the same as your company’s use is of no value to you if you are not in that particular supply chain. In such a case, you would have to change supplier or stop using that chromate at the end of the current review period.
2. Secondly, if your use is
covered by an upstream applicant in your supply chain, you will have no way of knowing until after the application for authorisation is submitted if the specific use description covers the required use. For example, the applied for use of a chromate coating might be for spraying, but your use is brushing. In such cases your use is not covered by authorisation and you would be obliged to significantly change the way you use chromates, if that is possible or otherwise to stop using that chromate at the end of the review period.
3. Thirdly, if the use description is specific enough to cover your use, you will have no way of knowing until after the application for authorisation is submitted if the risk management measures and operational conditions match your company’s conditions of use. For example, the application may be for a use of 2 hours per day, but your workers use the substance 4 hours a day, or the applied for use only covers use in a booth, yet you need to apply the substance in the open air. Again, if you are not able to match the conditions of use, you would not be covered by authorisation and would have to change how you use the chromate by the end of the review period, or stop that particular use.
For all
A&D sector stakeholders in the EU and outside of the EU, if your EU-based suppliers, facilities or service bases use chromates, or it is critical that their continued use is assured so as to avoid supply chain disruption. It is therefore vital for you to engage in the re-authorisation process to actively manage the business risks linked to the continued uses of the chromates that are essential to your business.
Other news items:
ADCR has developed a concise document presenting the main aspects of the 21 Dossiers submitted in EU and UK. The Factual Communication summarises the content of the dossiers, and provides information on the Chemical Safety Report, Analysis of Alternatives, research/substitution plans and the Socioeconomic analysis. Key facts are provided in bullet points and the timeline of upcoming authorisation decisions is provided. Authorisations are needed to ensure the continued availability and operation of A&D products in the EEA, since Cr(VI) is still required for manufacture, maintenance, repair and overhaul across the sector. Viable alternatives for every impacted part and process, where Cr(VI) is currently necessary, are not yet available, despite ongoing efforts. ADCR Factual Communication (pdf, 16 July 2024)