Are you compliant with the new GPSR rules?

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.

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.

Here’s why…

What does the GPSR mean for UK businesses and sole traders?

The new GPSR rules are intended to improve consumer safety and information. 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.

Here’s what GPSR could mean for your business:

→ Appointment of a ‘responsible person’

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

Stricter product safety requirements must be met. This includes detailed risk assessments and documentation for all products you’re selling to the EU/NI, meaning additional and potentially costly testing and certification for your products.

→ Traceability and market surveillance

Under GPSR, increased traceability requirements 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

You'll need to meet specific labeling and packaging requirements. These include information on product safety, the 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 summary, your administrative burden and the costs associated with selling your product in the EU/NI are likely to be greatly increased. This may impact the profitability of your EU/Ni-based sales, making it financially unprofitable to continue trading with EU/Northern Ireland-based customers.

Some specific product categories, such as medical supplies, food, and antiques, are excluded from the GPSR rules. But if your products are eligible, now’s 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, we’re here to give you a helping hand.