Administrative Charge Means a Loss in Court for ECHA

The General Court decided in favor of a company that had sued the ECHA because of an administrative charge. The ECHA had examined the size of the company in question and determined that the company’s own declaration of its size was incorrect. Small and midsize enterprises (SME) must pay less than large companies to process the authorization request that REACH requires.

In this case, the ECHA demanded the missing amount from the company and levied an administrative charge for the extra effort involved.
In its decision, the General Count emphasized that the ECHA is certainly allowed to examine the size of an enterprise and make additional demands if the company’s declaration is false. However, the amount of the supplemental administrative charge was found to be inappropriate – the extra charge must not only be determined by the additional effort, but also aligned with the amount that the company saved by making a false declaration. The ECHA management board kept close watch over the case, given that it wants to renegotiate charges in December.

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