Updates on REACH Fees for SMEs
Updates on REACH Fees for SMEs. The European Commission has proposed dropping the REACH administrative fee for companies officially recognized as small and medium-sized enterprises (SMEs), aiming to address industry concerns over its earlier fee reform plans1. This change, unveiled ahead of the REACH committee meeting on April 29, is part of a broader package that also includes a substantial 19.5% increase in the fees charged by the European Chemicals Agency (ECHA) for REACH processes, effective from April 2025.
The move to drop the admin fee for SMEs comes after criticism that the Commission’s initial proposal would have increased compliance costs for smaller businesses. That would meant potentially stifling innovation and growth in the sector. By reducing this fee, the Commission seeks to balance the need for increased regulatory funding-largely driven by inflation and ECHA’s expanded oversight-with the necessity of supporting SMEs, which are considered vital to the European chemical industry’s competitiveness.
Despite this concession, industry groups remain cautious. SMEUnited, representing European small businesses, has argued that the proposed changes to the SME status verification process-requiring companies to apply at least six months before a REACH submission-could introduce new administrative burdens and delays, potentially offsetting the intended relief. Under the current system, SMEs declare their size during registration, with ECHA verifying eligibility and imposing penalties for false declarations.
The broader REACH reform, described as the most significant overhaul in European chemical regulation history, has sparked debate between regulators and industry stakeholders. While the Commission emphasizes modernization and efficiency, industry voices warn of increased costs and complexity, particularly for SMEs facing digitalization and stricter compliance requirements.
When will it take effect?
The proposal is now under review, with final legislation expected later in 2025. The outcome will be closely watched by manufacturers, importers, and downstream users across Europe.
Would you like more details on how these changes in REACH could affect your business? Nordiik can help, contact us!
