The EU’s General Product Safety Regulation (GPSR) came into force on 13 December. Many small businesses have ceased exports to the EU and Northern Ireland as a result.
What has changed?
The GPSR replaces the EU’s General Product Safety Directive (GPSD). Because of the growth in digital commerce and drop-shipping, there has been an increase in selling substandard or even dangerous goods.
The new GPSR therefore aims to better protect consumers in the EU by adding obligations to businesses selling goods that are intended for consumers living in the EU and Northern Ireland.
GPSR is EU legislation and so has no impact on goods being placed on, or made available to, the British market. However, it does apply to any goods that are exported to and sold in the EU. Because of the Brexit deal relating to Northern Ireland, GPSR also applies to goods that are sold in Northern Ireland.
What is included?
The new rules affect repaired, used and reconditioned products as well as new ones. There are exceptions for certain goods, including food, feed, medicinal products, living plants and animals, and antiques.
The regulation also does not apply to products that are intended to be repaired or reconditioned prior to being used where they are clearly marked as such when being sold.
It is also important to note that the new GPSR applies only to products that are placed on the market from 13 December 2024. Government guidance on GPSR confirms that no action needs to be taken for products that have already been placed on the market in Northern Ireland before 13 December 2024 and which are in compliance with the 2005 UK GPSR.
What are the new requirements?
The new rules mean that businesses need to ensure that products comply with the general safety requirement outlined in the regulation before they place it on the market. Additional requirements include:
- Carrying out internal risk assessments and drawing up technical documentation.
- Ensuring that products are traceable in a way that is visible and accessible to consumers. This may mean using a batch or serial number.
- Having a named point of contact on product safety, known as the ‘EU Responsible Person’.
‘Responsible economic operator’ requirement
In addition, according to Article 16 of the GPSR, products can only be placed on, or made available to, the Northern Ireland or EU market if there is a ‘responsible economic operator’ established (i.e. has a presence) in either Northern Ireland or the EU to fulfil certain compliance tasks.
The responsible economic operator can be any one of the manufacturer, the importer (e.g. a retailer), an authorised representative (appointed by the manufacturer to act on their behalf), or a fulfilment service provider. Their details need to be indicated on the product, its packaging, the parcel or an accompanying document.
While this requirement may initially seem difficult for a small business in Britain to be able to fulfil, there could be options to work with another business in the supply chain.
How are Northern Ireland businesses affected?
The UK Internal Market Act 2020 gives unfettered access protections to Northern Ireland based businesses. According to government guidance on the GPSR, this means that goods that can be sold in Northern Ireland can also be sold in the rest of the UK without needing to meet any further regulatory requirements.
Way forward
The new GPSR presents a challenge to smaller businesses who export consumer goods to the EU and Northern Ireland.
Understandably, many have decided to cease trade with these areas as a result. However, this also means that there could be opportunities for businesses who are not put off by the additional compliance work required by the GPSR.
It may be worth seeking some legal advice to find out what the position is for your business. If you would like any financial advice on costs and budgeting for the new requirements, please give us a call. We would be happy to help you!
To review the detailed government guidance, follow the link below:
