WHAT IS REACH?

*REACH is a new regulatory system proposed by the European Commission to make producers and importers of chemicals prove that the substances they put on the market in the European Union are safe for consumers to use.

REACH stands for Registration, Evaluation and Authorisation of Chemicals. It applies to about 30,000 chemicals found in products as diverse as cars, computers and paint.

WHAT DOES THE COMMISSION'S PROPOSAL REQUIRE?

*All chemicals produced in or imported into the EU in quantities of at least one tonne per year must be registered with a central database. A series of tests is required to provide that information, varying according to the volume of the substances in question.

*Chemicals that are of "very high concern" such as those that can cause cancer, damage genes or have an effect on fertility, and those that are persistent, bioaccumulative and toxic (PBT) or very persistent and very bioaccumulative (vPvB) would have to go through an evaluation.

*Chemicals of greatest concern will need authorisation for specific uses. Authorisation will be granted if a company shows that risks can be adequately controlled.

WHAT CHANGES HAVE BEEN MADE?

*Both the European Parliament and council of ministers reduced the number of substances in the low-tonnage category that would require tests.

That category applies to chemicals produced or imported in amounts of between one and 10 tonnes a year, estimated to be between 17,500 and 20,000 substances.

*The Parliament backed measures requiring mandatory substitution for hazardous chemicals when alternatives are available. EU states did not adopt this measure.

*The EU states' version widened the scope for waiving tests for substances in the 10-100 tonne category, excluded waste from REACH, and exempted minerals, ores, and concentrates from the registration and evaluation phase.

HOW BIG IS THE EUROPEAN CHEMICALS SECTOR?

*According to industry group CEFIC, the EU's chemicals industry had sales of 586 billion euros ($683 billion) in 2004, making it the leading chemicals producing area in the world, followed by Asia and the United States. Germany is Europe's largest chemicals producer with giants such as BASF and Bayer .

*CEFIC says the EU chemical industry (excluding pharmaceuticals) is made up of roughly 27,000 companies, 96 percent of which have fewer than 250 employees, placing them in the category of small and medium-sized enterprises (SMEs).

WHAT ARE THE COSTS AND BENEFITS OF REACH?

*The European Commission forecasts REACH will cost the chemical industry 2.3 billion euros over 11 years. Total costs to industry -- including sectors such as metals, textiles, electronics and cars -- are estimated at between 2.8 billion and 5.2 billion euros.