The Globally Harmonized System (GHS) of Classification and Labeling of Chemicals has been used by countries around the world since its introduction in 2003, but its mandatory nature is far less established. The final deadline for all businesses to become compliant with GHS labeling was June 1, 2016, which means the changeover should now be complete. In an effort to unify standards, OSHA decided to bring its Hazard Communication Standard (HCS) in line with the GHS, ensuring the same format is used by companies engaging in commerce domestically and abroad.

The Benefits of Compliance

The mandatory nature of the GHS standards means organizations must follow it. If organizations fail to comply with GHS standards, they leave themselves vulnerable to fines and penalties. Taking a strong approach to full compliance keeps businesses safe and makes transactions along the supply chain easier, as all parties involved have access to the same information stored in the same format. As the time from the final deadline continues to grow, lack of adherence to the GHS standard could translate to significant complications.

“Appropriate labeling of chemicals stored in all forms is critical for GHS compliance.”

OSHA’s increased fine schedules – which went into effect during the summer of 2016 – mean more serious consequences for a lack of adherence to the standard, according to Facility Executive.

• Fines for less-serious issues can now cost $12,600 per incident cited – up from $7,000 – marking an increase of about 80 percent.
• More drastically, the maximum financial penalty for serious or systemic issues is now $127,000. That’s a significant increase from the former $70,000 limit.

Because the need for compliant labeling stretches from 55-gallon drums to very small containers and involves a wide range of chemicals, an effective compliance program is crucial to long-term success. Businesses that come to recognize issues with their efforts need to take steps to correct those concerns before they’re cited for them during an inspection. Businesses need to consider a variety of factors, from ensuring proper labeling and signage exists in all necessary areas to making sure the labels selected can stand up to regular handling and the conditions present inside the facilities where they’re transported, stored and used.

An organized and effective GHS process helps businesses achieve compliance. For assistance selecting the right signage, labels and more, give us a call at (866) 748-5963 today!

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