The European Chemicals Agency (ECHA) has introduced a significant change in its approach to administrative charges for joint authorisation applications under the REACH regulation. Starting from 22 July 2024, ECHA will issue only one administrative charge for joint applications that include applicants who have incorrectly declared their company size as micro, small, or medium-sized enterprises (SMEs).

Understanding the New Fee Structure for Joint Applications

Under the new provisions confirmed by the European Commission, if all applicants in a joint authorisation application accurately declare their company sizes, no administrative charge will be levied. However, if there are inaccuracies in the size declarations, the administrative charge will apply according to the updated method. Previously, ECHA issued separate charges for each applicant who incorrectly claimed SME status. Now, the charge will be based solely on the size of the largest applicant in the joint application group. This new approach aligns with the fee structure outlined in the European Commission’s Implementing Regulation on fees and charges payable to ECHA, ensuring a more streamlined and fair process.

How the New System Affects Applicants

Single Administrative Charge: The introduction of a single administrative charge for the entire joint application group means that companies will face a more predictable and straightforward fee structure. This charge will be determined by the size of the largest applicant, and the invoice will be sent to the lead applicant. This simplification aims to reduce administrative burdens and prevent the accumulation of multiple fees for a single joint application.
Accurate Size Declarations: ECHA emphasizes the importance of accurate size declarations. If a company benefits from lower fees due to false or incomplete information, this is considered a ‘financial gain,’ which will now be accounted for during the ex-ante verification process that occurs before the invoice is issued. This change ensures that the system remains fair and that all companies are incentivized to provide truthful and complete information.
Consistency in Fee Levels: While the method for calculating the administrative charge has been revised, the actual levels of the charge and other provisions remain unchanged. This consistency provides companies with clear expectations and ensures that there are no unexpected financial burdens beyond the administrative changes.

Why This Change Matters

This update by ECHA reflects a commitment to fairness and transparency in the authorisation process under the REACH regulation. By implementing a unified administrative charge based on the largest applicant’s size, ECHA prevents scenarios where multiple charges could be unfairly levied in joint applications. This approach not only simplifies the process for applicants but also aligns with ECHA’s broader goal of maintaining integrity and equity in chemical regulation across Europe.

Companies involved in joint authorisation applications should ensure their size declarations are accurate and up-to-date to avoid unnecessary charges and delays. By understanding and complying with these new regulations, businesses can better navigate the complexities of REACH compliance and focus on sustainable chemical management practices.

Current Administrative Charges

For context, here are the current administrative charges based on company size and incorrect declarations:

Size of Company	Administrative Charge
Large (non-SME)	€19,900 or 2.5 times the financial gain*, whichever is lower
Medium	€13,900 or 2.5 times the financial gain*, whichever is lower
Small	€7,960 or 2.5 times the financial gain*, whichever is lower

*The financial gain refers to the amount of fees avoided due to incorrect or incomplete information.

Source

ECHA Simplifies Administrative Charges for Joint Authorisation Applications

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