EU/NI General Product Safety Regulations (GPSD / GPSR), Total Nightmare

[artofadornment]

A bit blindsided by this... for those who aren't aware, it's is a "new regulation to set safety and other requirements for all consumer products, regardless of whether product-specific regulations, directives, or standards exist". It will be required for all products shipped into Northern Ireland and EU starting Dec. 13 2024. Read: https://www.compliancegate.com/general-product-safety-regulation/

I make 95% of my own products (fashion jewelry) from parts I source from many different suppliers around the world. According to this, like everyone else selling overseas (I'm in Canada) I'll need a "Responsible Person contact" [according to Article 16 of the GPSR, products cannot be placed in the market unless there is an established economic operator in the EU/NI] to:

• check that the declaration of conformity, CE marking, and other technical documentations are in order and provided to the market surveillance authorities
• inform the market surveillance authorities about dangerous products and accidents
• ensure the necessary actions are taken to rectify any non-compliance issues
• provide documented evidence of the checks that were performed, if requested by the authorities

So does this mean that every supplier for each clasp, bead, pendant setting, jump rings etc. I use, I need to provide the original manufacturer's contact information in the listing AND either shipped with the product or labelled on the product, AND find someone over there who can back me up on all of this? Or am *I* the "manufacturer" (I think I am, I hope I am)?? Even I'm technically the manufacturer, this is a LOT of extra steps for every single product!

Sounds like a great way to stop small online businesses from selling overseas - but perhaps that's their intention? LOL

Anyway, this is awful news, because I like shipping worldwide - I've already had to drop several countries due to required packaging/recycling registration & associated costs. Advice, anyone?

[SocknRoll]

It really does feel like that's their intention. Honestly, what the hell is the point in all of this. I've been in online retail for over 10 years, and not one person has ever asked me for this information. It's companies taking more and more responsibilities of themselves, while also destroying smaller businesses. It's disgusting

[vimonial]

Hi,

the new regulation GPSR is hard for a lot of small online shops. For your case it depends on if you sell the complete product and manufacture it yourself, import it or sell single parts. These would all need different considerations to comply with the regulation. 

If you manufacture the products you can put yourself as manufacturer and need to provide a responsible person in the EU, if you want to sell to the EU.

If you need any assistance we have developed a free app https://apps.shopify.com/gpsr to stay compliant and list the manufacturer, CE marking information etc. in a compliant way on product pages and easily manage the data. Might be interesting for you.

Best! 

[SocknRoll]

Hey there,

Thanks for your comment!

So I take it with you having created your own app for GPSR, you have all the knowledge on the policy?

Maybe you can clarify some things for me, because this is where things get very complicated.

We are a reseller of several brands, mainly brands based in the US and EU itself.

I have contacted the brands to ask if they have acquired a representative within the EU, but they either came back to say  they aren't interested, or they don't think they have to have one, as it's only affected sellers in the UK.

So because of this, none of them will be getting representation within the EU. Also, because GPSR states the brand must do this, it means we can not do it ourselves.

What confuses things more is eBay's info on GPSR. They include something called "article 51", which states that any items already sold into the EU market, do not need any of this information added to the parcels.

I have contacted eBay 3 times now on this, hoping to get some info from someone, but they just all come back and repeat what GPSR is, and don't elaborate on article 51. They are just as clueless as anyone else.

What doesn't make sense, is if products sold into the EU market before Dec are basically exempt from this, how on earth do customs know which parcels need GPSR info on them, and which don't?

Unless customs are opening every single parcel, and checking the item in there and checking their database to see if it's already been sold into the EU market, how will they know which items fall under article 51, and which don't?

They could not answer this. I just said this all seems like a farse, making us input all this information, for them to not even bother checking it, and again, they just couldn't give me an answer.

Due to low sales, we haven't purchased any new stock this year, so effectively all our stock has been sold into the EU already, meaning according to article 51, we shouldn't even need a representitive and none of our parcels need the info on them.

But we know things are never that simple, which is why I am still trying to get a definitive answer on this.

If you can help clear up some of this confusion, I'd greatly appreciate it.

Thanks!

[artofadornment]

Honestly I think most people who locally source or make their own goods (myself included) will have no problem with most of the new rules... they know what their products are made of and where they came from etc., but it's the "responsible person in the EU" that poses the biggest hurdle. If we're not a big corporation with franchises/locations/affiliates overseas, nor have a dedicated customs broker who has been handling importation of our items over there for months or years who can vouch for us, how the heck can we possibly get a "responsible person" over there to represent us? No one knows who we are!!

I suspect this is more about finding new ways to collect money (no doubt a govt dept/industry of getting monthly fees for EU representation will magically crop up) and/or discourage international trade from anyone other than Big Box merchants without looking like "bad guys" (for what they would do otherwise, which is to charge huge tariffs to penalize trade from outside the EU). I can't believe I'm actually saying this but I find this to be underhanded and frankly cowardly on their part. I've been selling there (and everywhere) for 20 years and so I'm utterly disgusted, and have at least a few regular customers that are going to be royally angry too.

....

Specific to SocknRoll's point about Article 51:

The article says "Member States shall not impede the making available on the market of products covered by Directive 2001/95/EC which are in conformity with that Directive and which were placed on the market before 13 December 2024". It sounds a lot like "states cannot prevent the sale of any products already complying with safety requirements of the Directive if they were available for sale before Dec 13, 2024". [the Directive basically establishes safety standards]

But it's unclear if that means:

- "only totally new products introduced to the market after Dec 13 will be subject to the new rules, and everything prior will be grandfathered" or

- "any safety Directive-compliant stock that was listed for sale before Dec 13 will be grandfathered until they sell out and you have to restock them; also any totally new products will be subject to the new rules".

I hope it's the first one. But how do we prove it? How will they check??

Here is a link to that Ebay discussion, and honestly it just gets more infuriating.

....

So... are we going to have to ship products marked as "gifts" on the customs form, using our personal name instead of business name on the return address, as a workaround? Or just cut that entire market off, I guess?  sigh

[SocknRoll]

Hey there,

Sorry that I missed this response, and thanks for your reply!

That is what is confusing the hell out of me. How will they know which items are exempt as they've already been sold in the EU market?

It isn't like the custom label states the exact product, just the category code. I don't expect customs to open every parcel too, to determine which items are exempt or not.

It doesn't make any sense.

Like you, we were thinking of maybe sending orders as "gifts", but I think this applies to any items going into the country, not just business orders, so I'm not sure if it would work, plus I don't know if we could still apply the IOSS code on a gift, so that may result in customers paying import tax.

Because of this article 51 business, we are going to leave our listings available to the EU, and see what happens. See if we start getting a lot of returns, or if listings start getting removed.

January/February are our quietest times of the year, so it's the best time to test the waters and see what happens.

I honestly don't see how they will enforce this, when they are giving exceptions to previously sold items, so I feel like this is a threat to get sellers to comply and put them in check, but if they actually enforce it or not, god knows..

[falcieridesigns]

I had a look at article 51 on the GPSR site and I didn't understand any of what it said. It didn't seem to say that if you were already producing before 10th Dec that you would be exempt. It didn't seem to explain anything at all. 

[AnniP2023]

Would you know a source where I can find information regarding digital products? I search everywhere but could not find any clarification, if this new regulation also applies to digital products. I create / design my digital products and sell them worldwide, including the EU. I am based in Australia. 

I am really wanting to find out if this applies to physical products only or also to digital goods and services, for sellers based outside the EU. 

I mean how could my products harm a customes in any way, being digital? 

Thanks for your input. 🙂

[vimonial]

Hi Anni,

In the GPSR regulation the following products are specified as exempt in article 2:
Medicinal products (for human or veterinary usage)
Food and feed
Living animals and plants
Genetically-modified organisms and microorganisms
Plant and animal products related to their reproduction
Animal by-products
Products for plant protection
Travel equipment operated by a service provider for consumers’ riding purposes
Aircraft
Antiques
Hope this helps you.

[SDEmbroidery]

Hi, thank you.
I read the list of exemptions. I have the feeling that they did not consider the digital products at all. They have examples for physical products, but not for digital products. 
To be honest, I wouldn't be surprised if they didn't even think about these products in the markets. Watching what the EU is regulating or is planning to regulate is like sitting in a circus watching clowns (sorry). They are so out of this world with what they decide that it's hard to believe they do it to make the markets stronger and protect customers. 

Anyway, nothing we can do except following their games and rules. 

I am just wondering: if I am selling from my Australian webshop and a European customer is ordering a digital product with an instant download, am I an importer to Germany? Basically they came to me, I did not ship anything to Europe. Right?

[Osmium]

Hi,

 I had to make this account because I'm also dealing with that EU law thingy recently and wanted to share what I think may be a lead in your case.

I hope it helps, even though it's my interpretation, and I am not a lawyer. 

From what I understand, digital products are not "objects" and are indeed not mentioned in directive 2023/988. In definitions, we read the product is an item. It's only my interpretation, but it suggests a physical object. 

There is also directive 2019/770 that regulates digital market, and it's content. I am pretty sure that's what applies to you if you only trade in "digital" goods. 

It may apply if you for example print your arts which you then sell (that's what I deal with at the moment) as 2019/770 states that it may not apply if digital content is added to physical content.

[samarkanddesign]

And what do you suggest about finding a “Responsible Person” to verify one’s products?

[TeemuEAS]

Dear Artofadornment, 

You do NOT have to disclose your manufacturers, consider yourself to be the manufacturer. We recommend, however, to request all relevant technical documentation they may have directly from them. Your product range sounds like it can be considered a single product type, saving you considerable money. 

The reason for GPSR is to stop the flow of rubbish via eastern marketplaces - but it does have an effect on everyone unfortunately. 

The good news is that we have just today released an affordable and quick GPSR Authorised Representative solution to supplement our tax compliance solutions: https://apps.shopify.com/eas-eu-compliance 

The registration link to EAS GPSR service can be found on our website. 

[artofadornment]

Thanks for the heads-up! As it turns out, the number of my annual sales to the EU/NI don't make the basic 139€ annual fee worthwhile, but it may be perfect for most other shops - I'm pretty small potatoes (total worldwide gross sales per month under $2000, with sales to Europe only 1 or 2 a month). The fact that you are offering to be the EU representative will be a game-changer for some folks. 🙂

[artofadornment]

The deadline of Dec. 13, 2024 swiftly approaches.

Is there any news yet on:

1.) how we prove our products were available to EU before that date? (how will the GPSR folks even be checking, I wonder?)

2.) if Shopify can somehow offer a "responsible person" located in EU & NI as a rep for their users' shops?

3.) if Shopify will offer a FREE (since it's requirement for EU market, period) app that will allow us to add the other requirements (safety info, etc) via the theme editor for product pages?

My apologies if #3 has already been done, I have yet to update my theme from 15.0 to 15.2.0.
Incidentally I've been getting more orders than usual from the EU, it's like they know what's coming. Normally I may get 1 or 2 a month, but I've already had 3 this week and 1 last week. Interesting.

[vimonial]

Hi Artofadornment, 
as far as we know:

1. Currently there is no clear legal guidance. One of the leading german lawyers are saying, that products offered before 13.12.2024 can be offered without GPSR Information. Source: https://www.it-recht-kanzlei.de/gpsr-online-kennzeichnung-produkte-uebergangsbestimmung.html#abschni...

2. We do not think Shopify will do this, as it also has legal consequences to be the responsible person. But maybe Shopify will provide a statement for that soon.

3. As far as we know there is currently no official Shopify implementation. We have developed an app exactly for that as we faced the same issue. It's free and manages compliance info in a bulk management way by using metaobjects. Might be interesting for you: https://apps.shopify.com/gpsr

[MongooseMatt]

Hi Vimonial,

Thank you for posting your thoughts here, we are looking at your EAS app.

Quick question on (3). Your app says you act as an 'Authorised Representative for GPSR'. Is that the same as the Responsible Person requirement for GPSR? If so, how is this being achieved given, as you say, there are potential legal consequences?

[vimonial]

Hi Matt, 
I think you are mixing up apps. Our app is called GPSR Compliance Manager. We are not acting as an responsible person. Our app lets you manage and display the required fields in a structured and compliant way. 

[SDEmbroidery]

The EAS app is a totally different app. You'll use it to let them 'collect' the VAT in the EU, so you only have to pay to them and not to a handful of different tax offices throughout the EU. I use EAS and it's great, makes life so easy. But it has nothing to do with the new GPRS regulation. 

[DoggessArt]

I have a similar question, I am based in the EU but I make handmade dog tags from Resin and they are made of so many different parts (colours, resin, bezels, splitrings, foliage or flower etc) which in most cases I cannot even remember where I got them from (or bought off another small business), so am I the creator of the finished product? I am just worried about all the extra steps and how the hell this should be tested? I am only a small business with hand crafted items not making big money out of this and I would hate to have to close because of more admin and complications 😞 Can anyone help? 

[Osmium]

Hi, and warning, I’m writing long posts.
Yes, on paper you are a producer. I understand your concerns as I’m in a similar situation myself. Also, I’ve seen some new product development and risk assessments in my career, and they are always a pain. Personally, I can’t imagine applying them to small art or handcraft businesses but here we are.
I haven’t found much of help even though Gpsr, or directive EU 2023/988, says in point 41 of the preamble that
“In order for economic operators that are small and medium-sized enterprises (SMEs), including micro-enterprises, to be able to cope with the new obligations imposed by this Regulation, the Commission should provide practical guidelines and tailored guidance(…)”
Yes I went through most of it and even am trying to get some legal help, but local legislation is far behind, at least in my country so there are lots of interpretations right now.
For now, I would advise and what I’m going to do, is to look up the original text of this directive on Eur-lex, go to Chapter III, Section 1 Article 9, Obligations of manufacturers and try to apply as much as you can. Mostly focusing on points 5-7 – tracking numbers, contact data ect. I have some experience in risk assessments so I’ll try to at least write something up for points 1-4 – risks and safety. Of course, I strongly advise to read all of the obligations.
One more thing, this directive says it applies to products (physical things, not digital) that are NOT required to be under specialized harmonizing norm (like toys have 2009/48/EC for example). If another directive about the safety of a group of products applies (CE certification mostly), that one needs to be considered first,  and on top of that this one completes it adding requirements about serialization, reporting and data collection on incidents.
I doubt there will be some massive purge on day 1, rather slow evolution and maybe even help and changes to aid small businesses as in big companies they mostly have all of this done anyways.
I know it is a big post but hope my work and thoughts will be helpful to someone. Unfortunately there is also that thing about having a contact in EU. Doubt there is much to be done about this one atm, we have to wait and see how it going to unfold or use those shady “I’ll certify your product for gpsr for only x.99” sites 😞