Some small UK companies are pausing their sales into the EU amid concern that they may fall foul of new consumer rules coming into effect today.
Firms that export non-food products to the EU and Northern Ireland are now subject to the bloc’s General Product Safety Regulation (GPSR) which aims to give consumers better protection when shopping online. It also aims to improve rules around product recalls.
There are stricter rules across the entire product lifecycle, from design and testing to labelling and supply chain management (with some product exemptions). The new regulations place heavier emphasis on safety standards, and non-compliance could lead to penalties and disrupt a business’s EU sales.
The GPSR will require businesses to provide more detailed safety documentation, with further traceability, and appoint an EU-based “Responsible Person” to manage compliance.
Pedddle, the UK’s artisan market and stallholder directory, says that without the infrastructure of larger businesses, sole traders and small businesses must juggle these demands alongside managing production, sales, and customer relationships.
The new rules will affect a range of businesses, including manufacturers, retailers, EU-based importers and online marketplaces. They are not limited to new products, but also repaired, used and reconditioned products. The GSPR does not replace other product-specific rules but is intended to act as a ‘safety net’.
The Federation of Small Businesses recommends that businesses with existing or potential interest in the EU market and Northern Ireland check whether they will be subject to the new requirements.
It has expressed concern about the difficulties faced by SMEs exporting into the EU under the terms of the UK/EU Trade and Co-operation Agreement, stating that SMEs are particularly vulnerable to any additional costs incurred in the course of doing business. “We continue to call on UK and EU Government to come together to resolve these growth-stunting trade barriers,” it said in guidance issued earlier this year.
Pro-EU group, the European Movement in Scotland (EMiS), says Brexit means that UK consumers will not have the protection of the updated rules. EMiS also says complying with the GPSR will be costly for small businesses outside the EU.
EMiS chair David Clarke said: “GPSR is a new downside of the UK’s Brexit. Consumers lose out. The economy loses out. Everyone loses out.
“It does not have to be like this. The UK should apply now to rejoin the Single European Market. Chancellor of the Exchequer Rachel Reeves urges the UK and EU to get closer on trade. There is no better way than being in the Single Market.”
The UK government said it was helping businesses become aware of the changes.
The new rules
1. Appointing a ‘Responsible Person’: Businesses outside the EU must designate an EU-based ‘Responsible Person’ to ensure compliance with all safety requirements. Hiring or partnering with a ‘Responsible Person’, either an individual or organisation, would incur fees for the UK-based party, as would subsequent paperwork.
2. Testing and documentation: Enhanced product safety requirements may necessitate additional testing, certifications, or the development of technical documentation, which can be costly for small-scale producers.
3. Adjusting packaging and labelling: Businesses may need to update their product labels to meet new traceability requirements, which could involve reprinting packaging or updating supply chains, another costly endeavour.
4. Consultation and legal advice: Small businesses may need expert guidance to navigate their compliance, potentially adding legal or consulting fees to their expenses.
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