ILMA Compoundings September 2018 - 19

import and to ultimate use. Of course, chemical products
with lesser restrictions flow more predictably. But products
containing more restricted ingredients (even at low concentrations) can be somewhat difficult for chemical handlers to
manage in certain locales.
BLAME THE SAFETY DATA SHEET?
Predictably, the most salient aspect of this law's impact on
foreign suppliers to Korea is the obligation to fully disclose
chemical ingredients. The tension this creates over confidentiality of proprietary information can become palpable.
Beginning with the product Safety Data Sheet (SDS) and
running through various points where additional information might be requested, the exporter to Korea must
carefully plan its strategy for coping with these disclosure
needs and requests before they occur. In many situations,
downstream supply chain members in Korea lack the time
required for important deliberation by the exporter when it
comes to revealing trade secrets.
With the importation process being the compliance
"headwaters," disclosure management begins with the
supplier's SDS. It is at this point where the frustration
typically begins. The cause is the conflict between the CCA
requirements and Korean Globally Harmonized System
(GHS) permission for SDS to omit confidential chemical
identifiers (so long as the hazard is disclosed) and to use
ranges of concentration. What the latter gives, the former
takes away. Triggered by more recent deaths and injuries
caused by undisclosed content of restricted chemicals in
some products, the CCA now requires full disclosure of all
product ingredients.
As a result, importers are now requiring this full disclosure as a means of fulfilling the regulatory demand for this
disclosure. Naturally, they typically make this statement by
rejecting the Korean GHS-compliant supplier SDS with the
explanation that the SDS must now make full disclosure
of all ingredients. While this might represent the simplest
and most direct way for the importer to gain the essential
information, it is not correct. Hence the impasse.

always attends the product flow, so the importer and others
need not know or monitor the identity of downstream
players who handle the product.
The good news is that full disclosure in the SDS and
direct disclosure to the importer and downstream supply
chain members can be avoided. A limited but effective set of
alternatives are available to support the required disclosure
directly - and in confidence - to the Korean regulator
by an upstream entity (such as the exporting supplier),
which limits or even avoids the hand-wringing over sensitive
product revelations in some contexts.
These alternative methods creatively utilize the Korean
REACH Only Representative (OR) structure to make confidential disclosure initiated and supported by the exporting
supplier. Disclosure documents are created and submitted
by the OR, instead of the regulated party, allowing confidential provisions in the SDS to remain intact. The nature
and content of the disclosure and disclosure document are
tailored to the need and the regulatory body involved. In
local scenarios involving permit acquisition or maintenance,
the document can limit the information to the specific
regulated content in question, without unneeded reference
to the balance of the product ingredients. In some local situations, the disclosure might be required to pass though the
regulated supply chain member as an impromptu unofficial
requirement, but in those scenarios at least the information
disclosed involves only the chemicals subject to the permit
requirement.
These alternatives involve a bit of cost (relatively insignificant) and, in many cases, need not be used with frequent
repetition concerning the same chemicals. Also, many
exporters to Korea lack a relationship with a Korean OR
because they only export products with Korean inventorylisted substances to their Korean customers (direct or
indirect). This will soon change, though, as most exporters
to Korea will engage ORs soon after Jan. 1, 2019, to submit
their pre-registrations for Korean inventory-listed chemicals
that they ship at 1 metric ton or more per year.

EFFECTIVE ALTERNATIVES
The tendency of importers to require changes to the product
SDS is natural, because that solves all the downstream
disclosure issues with one step. That way the information

Eggenschwiler, an ILMA consultant, is an international
trade attorney and director of Global Trade for the
Redstone Group LLC. He can be reached at 614-923-7472
or jeggenschwiler@redstonegrp.com.

19



ILMA Compoundings September 2018

Table of Contents for the Digital Edition of ILMA Compoundings September 2018

LETTER FROM THE CEO
INSIDE ILMA
WHAT’S COMING UP
INDUSTRY RUNDOWN
ROUGH ROAD AHEAD
A BRIEF HISTORY OF BASE OILS
BUSINESS HUB
COUNSEL COMPOUND
WASHINGTON LANDSCAPE
IN NETWORK
PORTRAIT
ILMA Compoundings September 2018 - Cover1
ILMA Compoundings September 2018 - Cover2
ILMA Compoundings September 2018 - 1
ILMA Compoundings September 2018 - 2
ILMA Compoundings September 2018 - LETTER FROM THE CEO
ILMA Compoundings September 2018 - INSIDE ILMA
ILMA Compoundings September 2018 - 5
ILMA Compoundings September 2018 - 6
ILMA Compoundings September 2018 - 7
ILMA Compoundings September 2018 - 8
ILMA Compoundings September 2018 - 9
ILMA Compoundings September 2018 - 10
ILMA Compoundings September 2018 - 11
ILMA Compoundings September 2018 - WHAT’S COMING UP
ILMA Compoundings September 2018 - 13
ILMA Compoundings September 2018 - INDUSTRY RUNDOWN
ILMA Compoundings September 2018 - 15
ILMA Compoundings September 2018 - 16
ILMA Compoundings September 2018 - 17
ILMA Compoundings September 2018 - 18
ILMA Compoundings September 2018 - 19
ILMA Compoundings September 2018 - 20
ILMA Compoundings September 2018 - 21
ILMA Compoundings September 2018 - ROUGH ROAD AHEAD
ILMA Compoundings September 2018 - 23
ILMA Compoundings September 2018 - 24
ILMA Compoundings September 2018 - 25
ILMA Compoundings September 2018 - 26
ILMA Compoundings September 2018 - 27
ILMA Compoundings September 2018 - 28
ILMA Compoundings September 2018 - 29
ILMA Compoundings September 2018 - A BRIEF HISTORY OF BASE OILS
ILMA Compoundings September 2018 - 31
ILMA Compoundings September 2018 - 32
ILMA Compoundings September 2018 - 33
ILMA Compoundings September 2018 - BUSINESS HUB
ILMA Compoundings September 2018 - 35
ILMA Compoundings September 2018 - COUNSEL COMPOUND
ILMA Compoundings September 2018 - 37
ILMA Compoundings September 2018 - WASHINGTON LANDSCAPE
ILMA Compoundings September 2018 - 39
ILMA Compoundings September 2018 - IN NETWORK
ILMA Compoundings September 2018 - 41
ILMA Compoundings September 2018 - 42
ILMA Compoundings September 2018 - 43
ILMA Compoundings September 2018 - PORTRAIT
ILMA Compoundings September 2018 - Cover3
ILMA Compoundings September 2018 - Cover4
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