3 September 2014
Practice Group:
Hazardous Chemical Users: Time to Consider
Compliance with the GHS
Corporate/M&A
By Murray Landis & Richard Gunningham
In most Australian states, businesses involved with hazardous chemicals must comply
with the Globally Harmonised System of Classification and Labelling of Chemicals (GHS)
from 31 December 2016. 'Businesses' include manufacturers, suppliers, importers and
any person conducting a business or undertaking that involves hazardous chemicals. 31
December 2016 may seem a long way off, but businesses should begin the transition as
soon as possible to ensure compliance and avoid penalties.
Background
The GHS was developed by the United Nations to harmonise rules about classification
and hazard communication in relation to hazardous chemicals at a national, regional and
worldwide level. It applies substantially the same hazard communication throughout the
world, similar to the harmonised system for road signs. This makes sense from a risk
management perspective in avoiding differences in hazard communication country by
country, and from a commercial perspective, in reducing the requirement for different
wording and images and the associated cost.
The GHS is being progressively implemented in 67 countries including Australia, the
United States, China, Japan, New Zealand and the United Kingdom. In Australia, the
GHS is implemented by the Commonwealth and each state and territory (except the
Australian Capital Territory).
Coverage
Classification
'Hazardous chemicals' include pure substances, their dilute solutions and mixtures
categorised as:

physical hazards, such as explosives and gases under pressure

health hazards, such as carcinogenic and toxic chemicals

environmental hazards, such as chemicals hazardous to the ozone layer.
Hazardous Chemical Users: Time to Consider Compliance With the GHS
Hazard Communication
Labels for hazardous chemicals must contain:

the relevant symbol for the hazard, imposed onto a pictogram

a signal word such as 'danger' or 'warning'

a hazard statement that describes the nature of the hazard, for example 'may
cause cancer if inhaled'

a precautionary statement that describes the recommended measures to
minimise the hazard risk.
The specific symbol and wording depends on the chemical classification. The GHS also
sets out 16 minimum elements for Safety Data Sheets (SDS).
Compliance with the GHS Alone: Is it Enough?
In Australia, the short answer is 'no'. Most Australian jurisdictions impose additional
requirements to the GHS.
Labelling
The additional requirements include that:

the label must identify the ingredient that causes the hazardous chemical to fall
within certain listed hazard classes, and the proportion of that ingredient to the
rest of the chemical

the label must contain any information about the hazard, first aid and emergency
procedures not included in the wording required by the GHS.
Packaging
The GHS does not contain any requirements for packing hazardous chemicals. Most
Australian jurisdictions require that:

the hazardous chemical must be packed in a container (in sound condition)

the container must be made of material compatible with the hazardous chemical.
Classification and SDS
Most Australian jurisdictions have adopted a modified version of the GHS classification
regime and contain additional requirements for an SDS.
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Hazardous Chemical Users: Time to Consider Compliance With the GHS
Action Steps
We recommend that businesses conduct a GHS review of their labelling and packaging
for hazardous chemicals. If there is any doubt about complying with the GHS, it is best to
get advice early rather than face possible prosecution as well as adverse publicity and
penalties.
Authors:
Murray Landis
murray.landis@klgates.com
+61.7.3233.1231
Richard Gunningham
richard.gunningham@klgates.com
+61.7.3233.1237
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