Top 10 Compliance Mistakes Chemical Companies Make – And How Compliance Advisors Can Prevent Them

2025-06-12 16:57:08

Chemical compliance mistakes regulatory compliance in chemical industry Common compliance errors chemical companies

In today’s tightly regulated global marketplace, chemical companies must navigate a complex web of compliance requirements. Whether it’s REACH in the EU, TSCA in the United States, or K-REACH in South Korea, one misstep can result in fines, supply chain disruptions, or loss of market access.

Despite the best efforts, companies often fall into common compliance traps. Thats where chemical compliance advisors come in—they are experts who understand the regulatory landscape and help businesses avoid costly mistakes.

In this article, we explore the top 10 compliance mistakes chemical companies make and how compliance advisors play a crucial role in preventing them.

1. Assuming Compliance Is Universal Across Markets

The Mistake:
Many companies mistakenly assume that compliance with a major regulation, such as the EU REACH (Registration, Evaluation, Authorization, and Restriction of Chemicals), automatically guarantees compliance in other global markets. However, this assumption can lead to significant regulatory oversights. Although REACH is comprehensive, other regions have their own distinct legal frameworks and requirements. For instance, Canada’s CEPA (Canadian Environmental Protection Act) emphasizes domestic substance notifications and risk assessments, while Japan’s CSCL (Chemical Substances Control Law) mandates unique pre-market evaluations and reporting procedures. These differences mean that a product compliant with REACH may be non-compliant in jurisdictions like Canada or Japan. This can result in delays, penalties, or loss of market access. Therefore, global chemical compliance requires a tailored approach that accounts for the specific regulations of each country or region.

Advisor’s Role:

Compliance advisors provide guidance on the specific requirements of each jurisdiction and help develop region-specific compliance strategies.

2. Outdated or Inaccurate Substance Inventories

The Mistake:
Failure to maintain an accurate inventory of chemical substances, especially with proper volume tracking, can result in missed registration deadlines and unintentional non-compliance. Many regulations, such as EU REACH, Korea’s K-REACH, and Taiwan’s TCCSCA, require registration based on annual tonnage thresholds. Without precise tracking, companies may unknowingly exceed these limits, triggering obligations that they fail to meet. This can result in legal penalties, supply chain disruptions, and damaged business credibility. A robust inventory system with automated alerts and regulatory integration is essential for staying compliant, reducing risks, and ensuring smooth market access.

Advisor’s Role:
Advisors help set up proper inventory tracking systems and ensure alignment with national and international chemical control laws.

3. Non-Compliant Safety Data Sheets

The Mistake:
Using outdated Safety Data Sheet (SDS) formats or incorrect hazard classifications can lead to serious regulatory issues, including fines, shipment delays, or customs rejections. Since different countries adopt different versions of the Globally Harmonized System (GHS), an SDS that complies in one region may be non-compliant in another. Inaccurate hazard information can also pose safety risks to users and expose companies to legal liabilities. To ensure regulatory compliance, protect users, and maintain smooth, uninterrupted trade across global markets, it is essential to regularly update SDSs to reflect current regulations and correct classifications.

Advisor’s Role:
Advisors ensure that SDS comply with the latest GHS implementations, adapted markets to markets specific version and language requirements.

4. Incorrect Classification and Labeling

The Mistake:
Failure to correctly classify chemicals or apply proper hazard labels can endanger safety and violate legal requirements. Accurate classification is vital for informing workers and users about risks like toxicity or flammability. Mislabeling can lead to improper handling, accidents, or environmental harm, and may result in regulatory penalties, fines, or product recalls. It can also disrupt supply chains and damage a company’s reputation. To stay compliant and ensure safety, companies must follow current classification standards and maintain accurate, region-specific hazard communication, including labels and SDSs.

Advisor’s Role:
Chemical compliance advisors verify data and ensure that classifications and label elements (pictograms, hazard statements, etc.) meet regulatory standards.

5. Ignoring Regulatory Updates

The Mistake:
Failing to keep up with regulatory changes, such as new REACH restrictions in the EU or TSCA updates in the U.S., can lead to immediate non-compliance and significant business risks. These changes may introduce new bans on substances, revised exposure limits, or additional reporting obligations that directly affect a company’s product portfolio. Failing to recognize these updates can result in the placement of non-compliant products on the market, which can trigger enforcement actions, fines, or forced product withdrawals. Failure to adapt promptly may also damage customer trust and disrupt supply chains, especially in regulated industries. To avoid these risks, companies must continuously monitor regulatory developments and update their compliance strategies accordingly.

Advisor’s Role:
 Advisors monitor regulatory changes across jurisdictions and help clients proactively respond to evolving requirements.

6. Poor-Quality Registration Dossiers

The Mistake:
Many companies submit registration dossiers that are incomplete or inconsistent, which significantly increases the risk of regulatory rejection or costly requests for additional data. Such shortcomings often stem from inadequate substance characterization, missing test reports, or contradictions between different sections of the dossier. Regulatory authorities, such as those under EU REACH, expect scientifically sound, high-quality submissions that fully support claims of safe use. Incomplete dossiers can delay market entry, disrupt supply chains, and lead to financial losses due to repeated submissions or additional testing requirements. To avoid these issues, companies must ensure that all data is accurate, consistent, and aligned with current regulatory standards before submitting.

Advisor’s Role:
 Advisors the preparation of robust technical dossiers, including data generation, use descriptions, and chemical safety assessments.

7. Overlooking Supply Chain Responsibilities

The Mistake:
Assuming that suppliers are fully compliant without proper documentation or verification can expose downstream users to significant compliance risks. Relying solely on verbal assurances or outdated information may result in the use of unregistered, restricted, or improperly classified substances under local or international regulations. If a supplier fails to meet regulatory requirements, downstream users may unknowingly place non-compliant products on the market, which can lead to legal liabilities, enforcement actions, and reputational damage. This risk is especially high in complex global supply chains, where regulations vary by region. To mitigate these risks, companies should implement robust supplier due diligence processes, request up-to-date compliance documentation (such as REACH registration numbers or valid Safety Data Sheets), and establish regular communication to ensure continued regulatory alignment.

Advisor Role:
Advisors help evaluate supplier compliance, request supporting documents, and manage communication across the supply chain.

8. Mishandling Confidential Business Information (CBI)

The Mistake:
Failing to protect trade secrets or properly assert confidentiality of claims in regulatory submissions can jeopardize sensitive business information and undermine a company’s competitive advantage. Many regulations, such as EU REACH, the U.S. TSCA, or Korea’s K-REACH, allow companies to request confidentiality for specific data, including substance identities, usage details, or supplier information. However, failing to follow the correct procedures—such as omitting justifications, missing deadlines, or using the wrong forms—can result in the public disclosure of proprietary information. Once disclosed, this data can be accessed by competitors, potentially impacting market share or intellectual property value. To prevent this, companies must understand the confidentiality provisions of each regulation, actively monitor disclosure timelines, and submit well-supported claims to effectively protect their trade secrets.

Advisor’s Role:
Advisors guide companies on confidential business information (CBI) protections under different regulations, such as REACH Article 118 or TSCA CBI provisions.

9. Unpreparedness for Regulatory Inspections

The Mistake:
Companies lacking organized documentation or properly trained personnel are often caught off guard during regulatory inspections, resulting in compliance failures, fines, or operational disruptions. Regulatory bodies expect businesses to maintain clear and accessible records related to chemical safety, usage, storage, and compliance status. Without a structured system in place, companies may struggle to produce the required documentation, such as safety data sheets, registration certificates, or volume tracking records, when requested. Untrained staff may also be unaware of regulatory obligations and unable to respond effectively in compliance with, which increases the risk of non-compliance with the findings. To ensure readiness, companies should invest in ongoing staff training, maintain up-to-date documentation systems, and conduct regular internal audits to proactively identify and address gaps.

Advisor’s Role:
Compliance professionals help prepare internal teams for audits and maintain required documentation in inspection-ready formats.

10. Treating Compliance as a One-Time Task

The Mistake:
Treating compliance as a one-time task instead of an ongoing responsibility is a critical oversight. Regulations evolve frequently, and treating compliance as a box to check can result in missed updates, outdated documentation, and increased risk of non-compliance. A proactive, continuous approach supported by regular monitoring is essential.

Advisor’s Role:
Compliance advisors integrate ongoing monitoring, training, and documentation updates into the company’s operations.

How GPC Regulatory Supports Compliance Success

With years of experience guiding businesses through complex chemical regulations worldwide, GPC Regulatory has helped hundreds of companies avoid the most common compliance pitfalls. Our team of global regulatory experts provides tailored support for registration, notification, hazard communication, and supply chain management.

GPC Regulatory also offers access to in-depth regulatory intelligence and tools that simplify compliance decision-making, whether for existing substances or new market entries. Our proactive approach ensures that clients not only meet legal obligations but also stay ahead in a dynamic regulatory environment.

Final Thoughts

Chemical compliance is about more than avoiding penalties. It is about ensuring long-term market access, protecting workers and consumers, and maintaining brand integrity. While the cost of non-compliance can be steep, most mistakes are preventable with the right guidance.

By partnering with an experienced chemical compliance advisor, companies can mitigate risk, reduce complexity, and confidently expand into global markets.

Looking for expert support?
 GPC Regulatory offers practical, global compliance solutions tailored to your business needs. Whether you're registering a substance, updating your safety data sheet, or navigating new market entry, their experts are ready to help.