REACH for Retail & Trade

What is REACH?

REACH — Registration, Evaluation, Authorisation and Restriction of Chemicals — is a European Union regulation (EC No 1907/2006) that governs the production, import, and use of chemical substances within the EU and European Economic Area. It places the burden of proof on manufacturers and importers to demonstrate that the substances they produce or place on the market are safe for human health and the environment. Since its full implementation in 2008, REACH has become one of the most comprehensive chemical safety frameworks in the world, affecting businesses across virtually every sector that touches physical goods.

REACH and the Retail & Trade Industry

At first glance, REACH may seem like a concern exclusive to chemical manufacturers. In practice, retailers and traders sit at a critical junction in the supply chain — they are the final commercial link between producers and consumers, which makes their compliance obligations both significant and legally enforceable.

Any retailer importing goods from outside the EU into the European market is legally classified as an importer under REACH, and therefore inherits the full set of obligations that come with that role. A clothing retailer sourcing garments treated with flame retardants or azo dyes, a hardware chain selling adhesives and solvents, or a supermarket stocking cleaning products — all are directly subject to REACH requirements. Even retailers who source exclusively from EU-based suppliers must manage supply chain communication, ensure that Substances of Very High Concern (SVHCs) are properly disclosed, and verify that no restricted substances are present in the articles they sell.

Consider a practical example: a home improvement retailer sells paint brushes manufactured in China. The bristles may be held together with an adhesive containing a chemical on the REACH Candidate List of SVHCs. If that substance is present above 0.1% by weight of the article, the retailer is legally obligated to provide that information to any consumer who requests it — within 45 days of the request. Failure to do so constitutes a compliance breach, regardless of whether the retailer was aware of the substance's presence.

The fashion and textile sector faces similar challenges. Certain textile dyes, formaldehyde-based finishes, and perfluorinated compounds used in waterproofing treatments are subject to REACH restrictions. A retailer selling outdoor apparel or sportswear must verify that these treatments comply with Annex XVII restrictions before placing products on shelves.

Key Requirements

• Duty to communicate SVHCs in articles: If a product contains a Substance of Very High Concern on the REACH Candidate List at a concentration above 0.1% (w/w), retailers must proactively inform business customers and respond to consumer requests within 45 days. This applies to finished goods such as electronics, furniture, toys, clothing, and packaging materials.
• Compliance with Annex XVII restrictions: REACH Annex XVII lists over 70 groups of chemical substances that are restricted or outright banned in consumer products. Retailers must ensure that no products on their shelves contain these substances above the permitted threshold — for example, lead in jewelry sold to consumers is restricted to 0.05% by weight.
• Importer obligations for non-EU sourcing: Retailers importing goods directly from outside the EU must ensure that substances present in those goods above one tonne per year are either pre-registered or registered with the European Chemicals Agency (ECHA). In practice, this often means working with EU-based Only Representatives appointed by non-EU manufacturers.
• Supply chain due diligence: Retailers must actively request and maintain Safety Data Sheets (SDS) for any hazardous chemical mixtures they purchase for internal use — cleaning agents, maintenance products, paints — or resell. An SDS must be in the language of the country where the product is sold.
• Substance authorisation awareness: Certain substances listed in REACH Annex XIV require specific authorisation before they can be used. Retailers selling products that may contain these substances — such as certain chromium compounds used in leather tanning — must verify that their suppliers hold valid authorisations.
• Record keeping: Retailers must be able to demonstrate compliance upon request from national enforcement authorities. This includes keeping records of supplier declarations, SDS documents, and responses to SVHC inquiries for at least ten years in some member states.
• Monitoring the Candidate List: ECHA updates the Candidate List of SVHCs periodically, sometimes twice per year. Retailers must have a process in place to monitor these updates and reassess their product portfolios accordingly.

Implementation Steps for Retail & Trade Companies

1. Conduct a product portfolio audit. Map all products and product categories against known REACH-regulated substances. Prioritise categories with the highest chemical complexity — electronics, textiles, furniture, toys, cosmetics, cleaning products, and DIY materials. Identify which products are imported directly from non-EU countries, as these trigger the most significant compliance obligations.
2. Build a supplier communication process. Draft and distribute a supplier questionnaire asking for SVHC declarations, confirmation of Annex XVII compliance, and copies of relevant Safety Data Sheets. Make REACH compliance a contractual requirement in supplier agreements, with clear consequences for non-disclosure or misrepresentation.
3. Appoint or verify Only Representatives for non-EU imports. If your business directly imports products from non-EU manufacturers, work with those manufacturers to ensure an Only Representative (OR) has been appointed with ECHA. The OR takes on the registration obligations on behalf of the non-EU producer, which protects your business from being treated as a manufacturer under REACH.
4. Establish an SVHC response procedure. Create an internal process — ideally supported by a product compliance database — that allows customer-facing staff to respond to consumer SVHC inquiries within the legally required 45-day window. Train retail staff on what these requests mean and how to route them to the compliance team.
5. Subscribe to ECHA Candidate List updates. Set up automated alerts from ECHA's website or use a third-party regulatory intelligence service to receive notifications whenever the Candidate List is updated. Assign a responsible person to review each update against your product portfolio and initiate supplier re-evaluation where necessary.
6. Review and maintain Safety Data Sheets. For all chemical products sold or used internally, collect up-to-date SDS documents. Verify that each SDS complies with REACH Annex II formatting requirements and is available in the correct language. Archive these documents in a centralised system accessible to compliance and procurement teams.
7. Engage a regulatory consultant or legal advisor for complex cases. Where products contain multiple components sourced from multiple countries, or where substances sit close to regulatory thresholds, engage a specialist to conduct chemical analysis or legal review. This is particularly relevant for private-label products where the retailer acts as the manufacturer in the eyes of the regulation.
8. Train procurement and buying teams. REACH compliance begins at the point of purchase decision. Procurement staff should be equipped to ask the right questions during supplier negotiations, understand red-flag substances in their product categories, and refuse to onboard suppliers who cannot provide adequate chemical documentation.

Frequently Asked Questions

Does REACH apply to us if we only sell finished goods, not chemicals?

Yes. REACH applies to chemical substances both on their own and as components of mixtures or articles. A finished product — a sofa, a children's toy, a pair of shoes — is considered an "article" under REACH. If that article contains an SVHC above 0.1% by weight, disclosure obligations apply to the retailer selling it, regardless of whether the retailer had any involvement in manufacturing or chemical formulation. Retailers are "downstream users" under REACH and are subject to specific obligations tied to that role.

How do we know if a product contains an SVHC?

The primary mechanism is supply chain communication. Suppliers are legally required to provide SVHC information to their business customers automatically and free of charge whenever a product contains a listed substance above the 0.1% threshold. In practice, retailers should not rely solely on voluntary supplier disclosure — robust supplier questionnaires, contractual declarations, and periodic third-party laboratory testing for high-risk product categories provide a stronger compliance foundation. ECHA also maintains a public database called SCIP (Substances of Concern In articles as such or in complex objects) where suppliers must submit notifications, which can be a useful cross-reference tool.

What are the penalties for non-compliance?

REACH enforcement is the responsibility of individual EU member states, and penalties vary significantly across jurisdictions. In Germany and the Netherlands, enforcement is particularly rigorous, with fines that can reach tens of thousands of euros per infringement and, in serious cases, product recalls or criminal liability for company officers. Beyond financial penalties, non-compliance carries reputational risk — product withdrawals and public enforcement actions can damage consumer trust in ways that far exceed the cost of the fine itself. National market surveillance authorities conduct product sampling and testing, meaning that even smaller retailers can be subject to inspection.

We source from EU-based distributors, not directly from manufacturers. Are we still responsible?

Sourcing from EU distributors reduces but does not eliminate your REACH obligations. You are still responsible for ensuring that any SVHC information passed down the supply chain reaches your customers and consumers. If a consumer asks you whether a product contains a particular substance and you cannot provide an answer because your distributor has not given you the information, you remain in breach of your REACH communication obligations. It is therefore important to contractually require your EU distributors to pass on all relevant SVHC disclosures and to maintain documentation that you have requested this information in good faith.

Summary

REACH compliance is not optional background noise for the retail and trade sector — it is a legally binding framework that directly governs the products retailers import, stock, and sell to consumers across the EU. The regulatory landscape continues to evolve as ECHA expands the Candidate List and member states strengthen enforcement capacity, making proactive supply chain management and ongoing monitoring more important than ever. Retailers that build systematic REACH compliance processes today — through supplier due diligence, staff training, and robust documentation — protect themselves from legal exposure, avoid costly product withdrawals, and build the kind of supply chain transparency that increasingly defines competitive advantage in responsible commerce.