1. EXECUTIVE ROUNDTABLE SERIES 1 Impacts of REACH on the aviation sector Mathieu Farge, Senior Associate, Environment June 3, 2010 KEY LEGAL CONSIDERATIONS GOVERNING THE NEXT GENERATION AIR TRANSPORT SYSTEM EXECUTIVE ROUNDTABLE SERIES

2. 2 Regulation (EC) No 1907/ 2006 of the European Parliament and of the Council of 18 December 2006 concerning the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH), establishing a European Chemicals Agency (ECHA) Purpose : to ensure a high level of protection of human health and the environment, and to strengthen the competitiveness of the chemicals sector and promote innovation Reverse of the burden of proof : manufacturers, importers and downstream users shall prove that chemicals produced and placed on the market are safe INTRODUCTION EXECUTIVE ROUNDTABLE SERIES

3. 3 KEY PRINCIPLES OF REACH Registration of substances manufactured or imported in quantities of 1 Tonne or more per annum  No Data, No Market  Data Sharing / Joint Submission (SIEF) Evaluation of the risk management of Chemicals Authorization required for Substances of Very High Concern (SHVC), e.g., CMR, PBT, vPvBs, etc. (Annex XIV) Restrictions on the manufacture, placing on the market and use of certain dangerous substances mixtures and articles (Annex XVII)

4. EXECUTIVE ROUNDTABLE SERIES 4 MAIN FIGURES 143,000 substances pre-registered by 65,000 companies (as of December 1, 2008) Data Sharing / Joint Submission : 2,526 SIEF (as of May 27, 2010) 4,429 registration of substances are expected by ECHA as of December 1, 2010 (406) filed in 2009 EXECUTIVE ROUNDTABLE SERIES

5. 5 MAIN LIABILITIES UNDER REACH First Tier Liability for Manufacturers / Importers of Chemicals (Substances, Mixtures, Articles)  Registration  Sharing Data  Information  Supply of SDS… Second Tier Liability for Downstream Users and Suppliers  Information No specific / direct liability for Consumers under REACH Most actors in the airline industry are Downstream Users / Suppliers or Importers of Articles EXECUTIVE ROUNDTABLE SERIES

6. 6 SPECIFIC IMPACTS OF REACH ON THE AIRCRAFT INDUSTRY Notion of article and its components (« sub-articles ») applied to the aircraft  Current debate on the notion of article related to the concentration of SVHC in the article (0,1 % weight by weight )  ECHA position  Dissenting views (Austria, Belgium, Denmark, France, Germany, Sweden) Importation and placing on the market : what about the transit period?  Refueling / short stop  Plane staying during a longer period of time in the EU in order to be repaired or equipped

7. EXECUTIVE ROUNDTABLE SERIES 7 Communication of information in the supply chain  Information on the safe use of substances, on the risk management measures to implement  Specific information related to SVHC Determine the recipients of the information  Professional user  Consumer  Subcontractors that may work on the article Labeling on the components of the plane  Short risk phrases  Pictograms SPECIFIC IMPACTS OF REACH ON THE AIRCRAFT INDUSTRY

8. EXECUTIVE ROUNDTABLE SERIES 8 Thank for your attention ! Mathieu Farge Jones Day 2 rue Saint-Florentin 75001 Paris Tél. 01 56 59 39 39 mfarge@jonesday.com