When ECHA advises "Consult a Specialist" – Why Are So Many Companies Ignoring
In our experience, one of the most overlooked aspects of REACH compliance isn't technical data generation or dossier preparation—it's determining the correct company size for fee reductions.
This is particularly interesting because ECHA itself advises companies to consult a specialist when determining their SME status. The guidance reflects an important reality: SME classification under REACH is not simply a matter of counting employees or looking at annual turnover. It requires a proper assessment of ownership structures, linked enterprises, partner enterprises, and consolidated financial information in accordance with the applicable SME rules.
Yet, despite this clear recommendation, many companies continue to make SME size claims without having a documented technical assessment to support them.
The Question We Should Be Asking
If an Only Representative (OR) is not providing or coordinating a documented size assessment, what gives the represented company confidence that its size declaration is correct?
Is the company making an informed decision based on evidence?
Or is it simply assuming that the declared size is correct because no one has challenged it?
The Hidden Risk
For many companies, the financial impact of an incorrect SME declaration doesn't become apparent until ECHA initiates an SME verification or audit.
By then, the consequences can be significant:
Repayment of the fee reduction.
Administrative charges.
Unexpected compliance costs.
Internal disruption while historical corporate information is gathered.
At that stage, the discussion changes from "Are we eligible?" to "Can we prove we were eligible?"
Those are two very different questions.
Documentation Matters
An SME claim should never rely on assumptions.
It should be supported by documented evidence demonstrating how the assessment was performed, including consideration of:
Ownership and shareholding structure.
Parent companies.
Linked enterprises.
Partner enterprises.
Financial thresholds.
Employee calculations.
Supporting financial documentation.
Without this analysis, a size declaration is little more than an opinion.
Where Do Only Representatives Fit In?
Only Representatives have years—even decades—of regulatory experience.
While not every OR offers corporate size assessments, represented companies often look to their OR as their primary regulatory advisor.
This raises an important question:
Should ORs be doing more to warn their clients about the complexity of SME status, especially when ECHA itself recommends seeking specialist advice?
Even if the OR does not perform the assessment, should they encourage clients to obtain one before submitting an SME declaration?
A simple warning that "this requires specialist assessment" could prevent significant financial consequences later.
A Preventable Problem
Many companies likely do not appreciate the financial exposure associated with an incorrect SME declaration until ECHA requests supporting evidence.
By then, changing the declaration does not erase the historical position that was taken.
The cost of obtaining a proper assessment before submission is often insignificant compared with the potential cost of an unsuccessful SME verification.
The Compliance Mindset
REACH compliance is about more than submitting registrations—it is about ensuring that every declaration made to ECHA can be supported by evidence.
If ECHA recommends consulting a specialist before determining SME status, perhaps that recommendation deserves far more attention than it currently receives.
After all, the question isn't whether an SME claim saves money today.
It's whether that claim can still be justified when ECHA asks to see the evidence.
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