Seat cushions. Paints. Perfumes. Cosmetics. Computer housing. What do these products have in common? They all release chemical substances into the environment, so exporters of the products to Europe must comply with new demanding European regulations known as REACH, short for "Registration, Evaluation and Authorization, and Restriction of Chemicals."

Some 30,000 chemical substances are covered by REACH, which will be phased in starting this June. Rosemary Gallant, deputy senior commercial officer at the U.S. Mission to the EU, called REACH "the world's most ambitious law on public health and environmental protection and one of the most complex texts in the history of the EU." The new regulations comprise some 1,000 pages of legal text and technical annexes, including some that have yet to be finalized. "The devil is in the details, and some details are not yet decided," Gallant said.

Unlike some other regulations, the rules of REACH are based on the substance used in each product, not its end use. For example, an ordinary garment exported to Europe would not be subject to REACH, but garments treated with pesticides for use while hiking in the woods would be covered. So would mattresses made with polyurethane, an environmentally risky chemical.

Who needs to register? Not the manufacturer who uses these substances, but his EU importer and Europe-based downstream users and third-party representatives. Phase-in periods of REACH will range from three to 11 years, depending on the substance. U.S. manufacturers and their importers in Europe will be able to benefit from an extended deadline if they pre-register their substances with the European Chemicals Agency in Helsinki, Finland, by Nov. 30, 2008.

The good news is that products already registered under other European regulations, such as foods, pharmaceuticals, biocides and pesticides, will not need to be registered again through REACH. Also exempt are low-risk substances such as water and oxygen; minerals, ores or concentrates; and polymers.

The bad news is that REACH will impose significant costs. Technical dossiers outlining the health and environmental risks will be required whenever shipments of that substance to Europe amount to more than one metric ton a year. Even more demanding chemical safety reports will be required for substances shipped to the EU in quantities of more than 10 metric tons annually. During the pre-registration period, some companies will have to test their substances for safety on vertebrate animals. Failure to register a covered substance could halt all trade in that substance.

"If you don't register your chemicals, they cannot be exported to Europe," Gallant said. Substances categorized by the REACH rules as of "very high concern" will need to meet even more stringent requirements, beyond registration with the European Chemicals Agency. These substances will need official authorization from the ECA or they will be banned outright from entering the EU.

Gallant said, "The ECA wants companies to prove that they have looked at safer alternatives, and prove that they cannot substitute for those substances," if such is the case. Importers and downstream users will be encouraged to share data about each risky substance in order to eliminate duplication of their efforts.

Many details of REACH remain murky. For example, will the "importer" be defined as the person who makes an entry to European customs, or the person who moves the goods into Europe? Because of the complexities of the new rules, international law firms with a presence in Europe will play an essential role in guiding U.S. exporters through the shoals of REACH.

"Law firms have a leg up in understanding the regulations, and they will be some of the winners," said Michael J. Ford, vice president, regulatory compliance and quality, at BDP International, a third-party logistics provider. Although 3PLs will eventually feel some indirect impact from REACH, law firms will play the crucial role at the front end of the process, long before REACH has an impact on the operations of transportation and logistics.

To adjust to REACH, 3PLs eventually will need to develop procedures for deciding what happens to any shipment that winds up being detained in Europe because of insufficient or incorrect documentation. Ford noted that by the time a shipment enters Europe, U.S. exporters have incurred a considerable cost, so 3PLs will have to answer such questions as, "Do we send it back? Do we send it somewhere else? Do we move it into a warehouse and move it later?" Some small-scale exporters to Europe may be tempted to ignore REACH, and hope that their noncompliant shipments pass through entry points in Europe below the radar screen.

Given its breadth and complexity, it's not surprising that the U.S. Department of Commerce will be educating the trade community about REACH for months to come. "They are concerned to see that REACH does not become a trade barrier," Ford said. Sooner or later, exporters to Europe will find that they can ignore REACH only at their own risk.