It is important to check how different regulations could affect the goods you trade, even if only to discover that they don’t affect them at all.
That was the lesson from last week’s member-exclusive Lunchtime Learning webinar on General Product Safety Regulations (GPSR), presented by international trade legislation senior adviser at the Chartered Institute of Export & International Trade, Garima Srivastava.
The UK has had its own GPSR since 2005, while the EU has introduced a new GPSR, which replaced the General Product Safety Directive (GPSD) 2001/95/EC and came into effect last week.
The new EU GPSR impacts businesses sending goods from Great Britain to the EU or Northern Ireland. Among the effects of the rules are a requirement for businesses to have an agent in Europe or Northern Ireland, according to the BBC.
Lacking in confidence
An early poll in the session highlighted the importance of education on the regulations, with 72% saying they were at least ‘somewhat’ lacking in confidence in their understanding of GPSRs.
This, Srivastava said, meant that even those with a base of understanding could benefit from learning more on the new rules.
Wide range
Srivastava emphasised that the regulations apply across a wide range of sectors, and provide “clear guidance on corrective actions” should there be an issue with a product that makes it unsafe.
“The UK’s regulations are the primary framework for ensuring the safety of consumer products. Unlike sector-specific safety laws, these regulations apply broadly, to any product intended for consumer use.”
GPSRs are particularly relevant for industries like toys, electronics, textiles and furniture – though a poll of attendees suggested a wider range were interested in learning more about the regulations. Srivastava said that this was understandable, as the GPSR’s applicability is not limited.
“Even if you’re not falling within these categories, you will still probably have obligations under GPSR,” she explained, reminding attendees to pay close attention to the relevant regulations and how they apply to their businesses.
Obligations
Srivastava provided a deeper dive into those obligations, emphasising that producers play the “fundamental role” in compliance with GPSR.
“Ultimately, it’s their product,” Srivastava said, noting that producers are expected to perform risk assessments and to provide documentation of this, as well as the safety measures they have taken in designing and manufacturing their products.
Distributors affected too
It’s not only producers, however, who have obligations – it’s also distributors. They are expected to conduct audits on suppliers and manufacturers, to review documentation – including on traceability and to monitor customer complaints.
Both producers and distributors (including importers) are responsible for ensuring supply chain traceability which includes ensuring that item labels need denote both batch numbers and a producer’s name and address.
Traceability
Srivastava advised firms to use digital systems to track product origin and distribution, and to keep meticulous records of both in case a recall or other action is required under the GPSR.
“We must remember, if something goes wrong, that we should be able to tell how a product has been manufactured, where it’s come from and how it’s reached a region,” she said.
On the steps firms should take to ensure compliance, she advised the following:
1. Regular assessment of risks during both design and manufacture of goods
2. Using recognised testing laboratories for validation that goods meet standards
3. Clear labelling of goods with any relevant warnings written in English
4. Keeping documentation, including technical files and supplier records
5. Monitoring the market and customer feedback, then taking action where necessary if goods need to be recalled
The new EU GPSR
The EU’s new GPSR legislation came into effect on 13 December last week, replacing the bloc’s General Product Safety Directive (GPSD).
Srivastava said that a key aspect of the new rules, which seek to enhance product safety and supply chain traceability, is that they affect online platforms like Amazon and eBay.
These platforms are now responsible for ensuring that products sold through their sites are compliant with EU standards – “a major shift reflecting the growing role of e-commerce in global trade”.
“Even if you’re selling through platforms like Amazon or Etsy, both you and the platform must ensure that the products are compliant,” Srivastava noted.
“This is a significant shift. For any businesses that export to the EU, it means you will have to have robust supply chain management systems.”
Consumers will also be able to seek compensation for damages caused by unsafe products under the new EU GPSR. This makes compliance “even more critical” for businesses operating in the EU.
Both those whose products are produced in the EU and those who are moving goods into the bloc should “definitely address” the key aspects of the EU GPSR regime, she said.
For those seeking extra support on complying with the new requirements, the Chartered Institute offers tailored support via its Imports Advisory Service, which you can access here.
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