Page 132 - CW E-Magazine (3-10-2023)

Point of View

and submission when the CMSR comes into force. This is likely to be modelled on the ‘IUCLID’ (International Uniform Chemical Information
Database) software used under EU REACH to record, store, maintain and exchange data on hazard properties of chemicals. For a country
with immense IT expertise, developing this software should not be a major deterrent. The authorities would do well to also take the industry
into confidence during the development and testing of this software, lest it ends up becoming a stumbling block in smooth implementation,
leading to further delays.

Losing out
Even as not having the India-REACH in place puts human health and environment at potential risk from chemicals, the industry also
loses out in many ways. While the Indian industry has to adhere to stringent requirements when importing to countries like China, Korea,
Turkey, UK, Taiwan, amongst others (which already have REACH-like laws), besides EU and the US, countries importing into as big a market
as India, have it much easier.

Industry observers have also repeatedly flagged the disadvantage of not having reciprocal regulations when negotiating free trade
agreements with developing nations.

Not only can different regulatory approaches and requirements in each country create significant costs for the chemicals industry and for
governments, they can also create barriers to trade. If national approaches to chemical regulations are harmonised, industry is not faced with
a plethora of conflicting or duplicative requirements, and governments can have a common basis for negotiating trade terms for mutual benefit.

Quality Control Orders
Another area related to regulations that is vexing the industry is the Quality Control Orders (QCOs) issued by the Bureau of Indian
Standard (BIS) for certain chemicals. The government had moved to make BIS standards mandatory for certain chemicals, so that both
domestic manufacturers and overseas suppliers meet the BIS parameters such as quality and safety. Besides the stated intention of providing a
third-party guarantee of quality, safety, and reliability of products to end consumers in India, the aim was also to check the unbridled import of
chemicals of dubious quality and to boost domestic manufacturing.

The BIS Act 2016 addresses the provision of a Grant of Licence (GoL) for both domestic and foreign manufacturers of listed chemical
products. The BIS grants the license based on a successful assessment of manufacturers’ infrastructure, production processes, quality
controls, and testing capabilities through a visit to the manufacturing premises.
Many companies – especially in the oleochemicals value chain – have been left nonplussed by the QCOs. The overseas suppliers are
unwilling to take on the additional cost of inspection, leaving small sized Indian firms scrambling for cost effective supplies. This, they say,
is detrimental to boosting domestic manufacturing.

As per information available on the chemical ministry website, the QCOs for 33 chemicals have been notified in the gazette so far, for
making BIS standard as mandatory. The ministry is in the midst of coming up with QCOs on an additional 100-odd chemicals.
There seems to a lack of clarity regarding the basis of inclusion of chemicals under QCOs. Even though the authorities are reported to
have sought industry inputs before notifying the QCOs, they would be well advised to take a holistic view of the entire value chain before
identifying these chemicals.

The time is now
As the world becomes increasingly focused on sustainability and protecting the environment, it is imperative to have a functioning
regulatory framework for chemicals to ensure compliance and minimise their negative impacts.

Around a year ago, this column had emphasised the urgent need to kick-start this regulatory process. Ten months later, we do not seem
to have made any real progress. We should have had this far-less complex regulatory framework up and running years ago. Given that the
European REACH took a long time to get the industry on board and even after 15 years of its implementation still remains a work in progress,
it is anybody’s guess as to how the India-REACH implementation will pan out. The long delays even before it has been notified does not
inspire much confidence. But not having the regulations in place will only hurt the country and the industry in the long run. So, as we have
said before, the time is now.

Biju Pillai

132 Chemical Weekly October 3, 2023

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