GPSR: How can small businesses get a point of contact in the EU or NI?
On 13 December, the European Union’s new General Product Safety Regulation (GPRS) law came into effect, impacting businesses across Britain by updating requirements on manufacturers, importers, and distributors of products into the EU and NI by introducing new obligations around risk assessment.
The biggest change is that legislation requires that businesses must now have a named representative (‘a responsible economic operator’) within the EU or NI to ensure compliance tasks are fulfilled.
Larger businesses are likely to be compliant with the new rules without much adjustment - many larger manufacturers and suppliers already have a responsible person nominated for other regulatory purposes. But for smaller businesses or sole traders, the new obligations are a game-changer. Below we look at how these businesses can get a point of contact in the EU or NI.
Please note that this post is not extensive or exhaustive. It does not seek to be or act as a substitute for legal or professional advice. For further information on the GPSR, please visit the UK Government website, and seek any necessary legal advice.
What does the legislation say?
Article 16 of GPSR sets out that products can only be placed on, or made available to, the EU and NI markets if there is a responsible economic operator established in either territory to fulfil certain compliance tasks and act as a point of accountability with market surveillance authorities.
‘Established’ means having a presence in NI or the EU, it cannot simply be a PO Box address. For a business, this can be a registered office, headquarters, or your permanent place of business (for example, a retail outlet, distribution centre, or other functions) in that country. For an individual, this can be the place where you are resident.
Who can be a responsible economic operator?
A responsible economic operator can either be the manufacturer, the importer, a fulfilment services provider (involving two of the following – warehousing, packaging, addressing or dispatching – but not parcel, postal or freight services), or an authorised representative.
For small businesses and sole traders exporting to the EU or NI, it is likely that their economic operator will be an authorised representative. An authorised representative is a natural or legal person that a manufacturer appoints to represent them and carry out certain duties on their behalf.
What is the economic operator responsible for?
The role of the responsible economic operator is, where necessary, to cooperate with the relevant regulatory bodies, which includes ensuring that all product safety incidents are reported.
In practice, this means the economic operator has responsibility for verifying technical documentation and keeping it in case it is requested by the authorities for proof of compliance, as well as making sure products have the right information on them (e.g. safety information or serial number). If the product does not comply or if risks are reported, the economic operator must inform relevant regulatory bodies.
The name, registered trade name or registered trademark, and contact details (including postal address) of the responsible economic operator must also be indicated on the product or on its packaging, the parcel, or an accompanying document.
What happens if you do not have a responsible economic operator in the EU?
Where there is no responsible economic operator established in NI or the EU already, the manufacturer placing the product on the market should take steps to ensure someone is in place to undertake those compliance tasks or the product cannot be placed on the market.
If the product does not comply with GPSR legislation but is placed on the EU or NI markets anyway, then a range of penalties exist, ranging from fines, to product recall and even legal action in severe breaches of legislation. Sellers will be held accountable for safety issues, even if unaware.
How to find a responsible economic operator?
If you are a small business or sole trader there are a number of services online where you can pay a professional to act as your responsible person. Online marketplaces may also provide this service.
Where a manufacturer has not arranged an authorised representative within the EU or NI, an importer (e.g., a retailer) seeking to sell those products in NI, or a fulfilment service provider (where no other economic operator is established in the EU or NI) will act as the responsible economic operator.
How can you trust these services?
Small business owners and sole traders may be naturally cautious about paying someone they’ve never met in another country to provide this service. Legitimate service providers should have an Economic Operators Registration and Identification number (EORI), and the validity of EORI numbers can be checked on the European Commission's website. As with anything else, it is worth checking reviews from past customers and Businesses should always seek official guidance from the UK Government.
This article first appeared on Best for Britain