![Does your UK small business export to the European Union (EU)? If you do, the new General Product Safety Regulations (GPSR) should be on your radar as a matter of urgency.](https://static.wixstatic.com/media/ff8468_60185a96261b4227bc7538b247ae3863~mv2.jpg/v1/fill/w_980,h_653,al_c,q_85,usm_0.66_1.00_0.01,enc_avif,quality_auto/ff8468_60185a96261b4227bc7538b247ae3863~mv2.jpg)
The GPSR legislation takes effect from 13 December 2024 and could have a significant impact on your ability to trade with EU and Northern Ireland-based customers.
Hereโs whyโฆ
What does the GPSR mean for UK businesses and sole traders?
The new GPSR rules are intended to improve safety and information for consumers. The legislation modernises the EU general product safety framework and addresses the new challenges posed to product safety by the digitalisation of modern economies.These are much-needed changes that aim to make products safer for all EU/NI customers. But the net effect for small, micro and sole trader businesses is serious.
Hereโs what GPSR could mean for your business:
Appointment of a โresponsible personโ
As a UK business, you must designate a responsible person based in the EU to act as a point of contact for the relevant authorities and consumers. This applies however small your business may be and is likely to lead to additional costs and admin that may well be prohibitively expensive.
Enhanced product safety requirements
There are stricter product safety requirements that must be met. This includes detailed risk assessments and documentation for all products youโre selling to the EU/NI, meaning additional, and potentially costly, testing and certification for your products.
Traceability and market surveillance
There are increased traceability requirements under GPSR that may necessitate maintaining detailed records of your supply chain. As a business, you need to be prepared for more rigorous market surveillance activities by EU authorities and greater transparency around the nature of your supply chain.
Labeling and packaging under GPSR
There are specific labeling and packaging requirements that youโll need to get right. These include information on product safety, origin of the product and instructions on how to safely use the product. Again, this adds potential complexity, admin and costs for small businesses with limited resources.
Potential impact on sales
In a nutshell, your administrative burden is likely to be greatly increased, as will the costs associated with selling your product in the EU/NI. This may impact the profitability of your EU/NI-based sales, making it financially unprofitable to continue trading with EU and Northern Ireland-based customers.
Some specific product categories are excluded from the GPSR rules, such as medical supplies, food and antiques. But if your products are eligible, nowโs the time to get up to speed.
Talk to us about getting compliant with GPSR
Are you currently trading with EU or NI-based customers? Have you assessed the potential impact of the new GPSR rules? If not, weโre here to give you a helping hand.
Our team can help you carefully assess the impact of GPSR on your operations and take the best steps to mitigate the risks and costs associated with becoming compliant.
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