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Blogs Compliance: What It Is and Why It Matters

Compliance: What It Is and Why It Matters

July 24, 2026

As an Industry Advisor for Electronics and High Tech at PTC, I bring 10+ years of experience across the semiconductor and high-tech manufacturing value chain. My expertise spans engineering, product leadership, and digital transformation, with a focus on PLM, ERP, and MES integration. I’ve led initiatives in NPI, compliance, and supply chain resilience at companies like Propel Software, Zipline, and Qualcomm, delivering ROI-driven solutions that align technology with business goals.

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What is REACH compliance?

REACH compliance refers to conformance with the EU regulation on the Registration, Evaluation, Authorization and Restriction of Chemicals (Regulation EC No 1907/2006). Administered by the European Chemicals Agency (ECHA), REACH is one of the most comprehensive chemical regulations in the world. It governs how chemical substances are managed throughout their lifecycle, from manufacture and import to use in products and articles.

Unlike RoHS, which applies specifically to electrical and electronic equipment, REACH applies across industries and product types. Any company that manufactures, imports, or sells chemical substances, mixtures, or articles containing chemicals in the EU must understand and actively manage its REACH compliance obligations. For electronics manufacturers, this means managing substance data not just at the product level, but deep into the bill of materials, across every supplier tier in the supply chain.

The regulation operates on a core principle: no data, no market. If a substance can't be registered and its risks managed, it shouldn't be used in commerce. This has profound implications for how electronics companies select materials, qualify suppliers, and document their products.

Why is REACH compliance important?

REACH compliance matters for reasons beyond regulatory obligation.

Market access and legal standing. Products containing restricted substances at levels above defined thresholds can't legally be sold in the EU market. For electronics manufacturers with EU customers or distribution channels, non-compliance is a direct revenue risk.

Transparency and supply chain accountability. REACH requires companies to communicate information about hazardous substances to customers and downstream users. This transparency obligation extends throughout the supply chain, making supplier relationships a compliance dependency.

Substances of Very High Concern (SVHCs). The ECHA regularly updates the SVHC candidate list, which currently contains more than 240 substances. Articles containing SVHCs above 0.1% by weight require notification to ECHA's SCIP database and disclosure to customers and consumers on request. Keeping pace with list updates is an ongoing obligation.

Global regulatory convergence. REACH has influenced chemical regulations in multiple jurisdictions. Its framework has been partially adopted or referenced in regulations across the UK, Turkey, and other markets. EU REACH compliance increasingly serves as a baseline for global regulatory alignment.

Brand and customer expectations. Major OEM customers and retailers often require full material declarations (FMDs) or Certificates of Compliance (CoC) as part of supplier qualification. Failure to provide compliant documentation can disqualify an otherwise capable supplier.

How to achieve REACH compliance

REACH compliance isn't a one-time certification. It's a continuous operational process that requires active management of substance data, supplier relationships, and regulatory updates.

Understand your role in the supply chain. Are you a manufacturer, importer, downstream user, or only representative (OR)? Each role carries specific obligations under REACH. Manufacturers and importers of substances above one tonne per year must register with ECHA. Downstream users must manage safe use and may need to notify ECHA in certain circumstances.

Build a complete substance inventory. Map all chemical substances present in your products, including those in components sourced from suppliers. This requires full material declarations from your supply chain, not just top-level compliance assertions.

Monitor the SVHC candidate list. The candidate list is updated twice per year. Your compliance processes should include automated monitoring so that newly listed substances trigger immediate review of affected components and products.

Collect and validate supplier data. Supplier Safety Data Sheets (SDS) and full material declarations are the primary data sources for REACH compliance. Establish structured processes for collecting, validating, and updating this data as your product and supply base evolve.

Manage Annex XIV and Annex XVII obligations. Annex XIV lists substances subject to authorization, meaning their use requires explicit approval from ECHA. Annex XVII lists restricted substances, similar in mechanism to RoHS restrictions. Both lists are subject to revision.

Maintain documentation and reporting capabilities. REACH compliance documentation includes SDS records, substance inventory data, and customer communication records. These must be kept current and accessible for audit purposes.

What substances are restricted under REACH?

REACH restricts substances through several mechanisms. The most operationally significant for electronics manufacturers are the SVHC candidate list, Annex XIV (Authorization List), and Annex XVII (Restriction List).

Heavy metals

Heavy metals feature prominently across REACH restriction mechanisms. Lead, cadmium, mercury, and hexavalent chromium appear in both REACH and RoHS contexts, though the applicable thresholds and product scope differ between the two regulations. Under REACH, heavy metal restrictions may apply to articles more broadly than under RoHS, which is limited to electrical and electronic equipment.

Carcinogens

A significant portion of the SVHC candidate list consists of carcinogenic, mutagenic, or reprotoxic (CMR) substances. These include certain aromatic amines, polycyclic aromatic hydrocarbons (PAHs), and various industrial chemicals used as intermediates in electronics manufacturing. Electronics manufacturers must monitor component and materials sourcing to ensure CMR substances don't exceed applicable thresholds.

Phthalates

Several phthalates, including DEHP, BBP, DBP, and DIBP, appear on both the REACH SVHC candidate list and the RoHS restricted substance list. These plasticizers are commonly used in cable insulation, connectors, and plastic housings. Managing phthalate content requires substance-level data from polymer suppliers, often obtained through full material declarations using the IPC-1752B format.

What is the difference between REACH and RoHS?

REACH and RoHS are both EU chemical regulations but serve different purposes and operate through distinct mechanisms. Understanding where they align and where they differ is essential for electronics manufacturers managing both.

Scope. RoHS applies only to electrical and electronic equipment. REACH applies to chemical substances, mixtures, and articles across all industries.

Mechanism. RoHS sets maximum concentration limits for specific restricted substances in EEE and requires CE markings and a Declaration of Conformity. REACH operates through registration requirements, SVHC disclosure obligations, authorization for high-concern substances, and restrictions on specific uses.

Documentation. RoHS compliance centers on the technical file and Declaration of Conformity. REACH compliance involves SDS records, full material declarations, SCIP database notifications, and customer communication obligations.

Overlap. Some substances are restricted under both regulations. For example, phthalates like DEHP appear on the REACH SVHC list and the RoHS restricted substance list. Managing these overlapping substances through a unified compliance data model reduces duplication of effort.

Relationship. RoHS compliance doesn't imply REACH compliance, and vice versa. Electronics manufacturers must manage both independently, though many of the underlying data requirements, particularly at the BOM and supplier declaration level, can be addressed through shared workflows.

Common REACH compliance questions

Who is required to comply with REACH?

Any company that manufactures, imports, or sells chemical substances, mixtures, or articles in the EU must comply with the applicable obligations under REACH. This includes electronics manufacturers based outside the EU who sell into European markets. Non-EU manufacturers often appoint an only representative (OR) established in the EU to fulfill registration and communication obligations on their behalf.

Downstream users who use chemical substances or mixtures in their own processes must also manage safe use obligations and may need to notify ECHA if they use a substance for a purpose not covered by a registered use.

Is there an official "REACH certificate"?

No. REACH doesn't establish a formal certification mechanism. Compliance is demonstrated through documentation, including substance registration records, SDS files, SCIP notifications, and Declarations of Conformity or full material declarations provided to customers. Some companies use the term "REACH CoC" (Certificate of Compliance) informally to describe these declarations, but there's no official certificate issued by ECHA or any EU authority.

Is UK REACH the same as EU REACH?

No. Following Brexit, the United Kingdom established its own chemical regulation, commonly called UK REACH, administered by the Health and Safety Executive (HSE). UK REACH mirrors the structure of EU REACH but operates independently. Substances registered under EU REACH don't automatically satisfy UK REACH registration requirements. Companies selling into both markets must manage compliance obligations separately.

Where can I check if a chemical is restricted or requires reporting?

ECHA maintains publicly accessible databases for all major REACH lists. The SVHC candidate list, Annex XIV Authorization List, and Annex XVII Restriction List are available through the ECHA website and are updated on a regular schedule. ECHA also provides the SCIP database for articles containing SVHCs. Electronics compliance teams should subscribe to update notifications and integrate list monitoring into their compliance workflows.

How PTC helps electronics manufacturers manage REACH compliance

REACH compliance at the component and material level requires structured data management, active supply chain engagement, and continuous regulatory monitoring. PTC's PLM solutions provide the infrastructure to manage all three in an integrated environment.

Centralized material and substance tracking

PTC's Windchill and Arena platforms provide centralized repositories for material and substance data linked directly to parts and assemblies in the bill of materials. This enables compliance teams to assess REACH exposure across the entire product portfolio, not just individual components in isolation. When the SVHC candidate list is updated, the system can flag affected products automatically.

Supply chain data collection and management

Collecting full material declarations from suppliers is one of the most operationally challenging aspects of REACH compliance. PTC's solutions streamline supplier outreach, data ingestion, and validation workflows, reducing the manual effort required to maintain current substance data across a complex, multi-tier supply chain. Structured formats, including IPC-1752B, are supported to enable consistent data exchange.

SVHC monitoring and regulatory updates

Keeping pace with ECHA's twice-yearly candidate list updates requires a proactive monitoring process. PTC integrates regulatory content updates into its compliance workflow so that newly listed SVHCs automatically trigger a review of affected components and products. This shifts compliance management from reactive to proactive, reducing the risk of market disruptions caused by undetected SVHC content.

Documentation and reporting support

Generating customer-facing compliance declarations, maintaining internal substance inventory records, and supporting regulatory inquiries all require organized, accessible documentation. PTC's PLM platform maintains this documentation within the same environment as product and BOM data, making it straightforward to produce accurate compliance reports on demand. For electronics manufacturers subject to both REACH and RoHS, a unified compliance data model reduces duplication and ensures consistency across both reporting frameworks.

Managing REACH compliance effectively means treating it as an ongoing business process, not a periodic event. PTC provides the tools to make that possible at scale.

Topics BOM Management Digital Thread Regulatory Compliance Sustainability
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Steven Humphrey

As an Industry Advisor for Electronics and High Tech at PTC, I bring 10+ years of experience across the semiconductor and high-tech manufacturing value chain. My expertise spans engineering, product leadership, and digital transformation, with a focus on PLM, ERP, and MES integration. I’ve led initiatives in NPI, compliance, and supply chain resilience at companies like Propel Software, Zipline, and Qualcomm, delivering ROI-driven solutions that align technology with business goals.

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