On January 6, 2021, the U.S. Environmental Protection Agency (EPA) announced new substance restrictions under the U.S. Toxic Substances Control Act of 1976 (TSCA). The act is the primary chemicals management law in the United States that regulates the manufacture, import, distribution, use, release, and disposal of new and existing chemicals in U.S. commerce. Since March 8, 2021, the final rules of Section 6(h) require companies to identify the presence of five new restricted substances in their products, and communicate this to their customers in the U.S. market.
Any company operating in or selling into the U.S. is in scope of TSCA and subject to its enforcement penalties. Non-compliance can result in a fine of $50,000 USD per day per violation, or even prison time. Companies that do not operate in the U.S. or sell directly into the U.S. are not in scope; however, that doesn’t mean they won’t have requirements. Similar to the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) Regulation, in-scope companies will need the help of their global supply chains to meet their requirements.
Downstream Impact of TSCA
The newly restricted substances are used extensively across industry verticals. They are:
- Phenol, isopropylated phosphate (3:1) (PIP 3:1).
- Decabromodiphenyl ether (decaBDE).
- 2,4,6-tris(tert-butyl)phenol (2,4,6-TTBP).
- Hexachlorobutadiene (HCBD).
- Pentachlorothiophenol (PCTP).
The new rules require detailed composition information, and companies in scope will be engaging their suppliers for information. EU-based suppliers to companies that do business in the U.S. can expect to receive urgent data requests to fulfill TSCA requirements.
Companies cannot rely on existing data to meet the new obligations. Only one substance in the new group, decaBDE, can reasonably be identified during regulatory actions taken to address the REACH Regulation or the EU Restriction of Hazardous Substances (RoHS) Directive.
Learn about the new TSCA requirements — and why companies should prepare for future changes— in our webinar, Collecting Missing Data to Meet the New TSCA Deadlines.
Why Report on TSCA Substances
The U.S. is the world’s largest economy, home to over 575,000 manufacturers and representing a substantial pool of potential customers to EU suppliers. Timely responses to data requests are a value-add for companies looking to expand their U.S. customer base. These TSCA changes are the largest expansion of product compliance requirements in years and will be a focus for the foreseeable future.
A quick turnaround on data requests is important for TSCA compliance, as the U.S. EPA has set aggressive deadlines for companies in scope. September 2021 is the latest deadline for manufacturers, as a 180-day delay on PIP 3:1 enforcement was announced in March. In January 2022, the rules will expand to also apply to distributors.
That leaves little time for companies to meet their requirements. Companies in the EU should be aware of this pressure on their U.S. customers so they aren’t caught off guard by data requests. Facilitating customer compliance with TSCA protects and strengthens business relationships and company reputation, and could be a major factor in securing future contracts.
Assent’s TSCA Restrictions Solution
Assent automates supplier engagement, and streamlines the data collection and management process so companies can quickly meet their regulatory requirements and customer expectations. See why Assent’s TSCA Restriction Module is the best solution for managing the new TSCA requirements. If you have any questions about TSCA or Assent, contact us today.