New Regulation on Product Conformity and Market Surveillance for Businesses Selling to the European Union
The rise of e-commerce, combined with increasingly complex global supply chains, has introduced new product safety challenges. As a result, the European Union has taken significant steps to enhance market surveillance and product compliance.
The influx of non-compliant and potentially unsafe products from online retailers has caused disruption in the EU market, affecting fair competition and endangering consumers. To address these issues, the EU implemented the Strategic Agenda 2019-2024, which includes Regulation (EU) 2019/1020, aimed at improving the enforcement of product conformity and market surveillance measures. A core priority of this agenda is to “develop a strong and competitive economic base.”
WHAT DOES THIS MEAN IN PRACTICAL TERMS FOR SELLERS ON EBAY AND AMAZON
This is where many sellers are struggling because it is not easy to obtain this information. International Associates can work with you to get the manufacturers to be complaint.
The eBay guidance can bee seen here Selling products with a CE symbol into Europe | eBay
UNDERSTANDING REGULATION (EU) 2019/1020
- Enhanced Market Surveillance: The regulation strengthens the supervision of products subject to EU harmonization legislation, ensuring safety in both consumer markets and workplaces while protecting the environment and public security.
- Economic Operators’ Responsibility: It establishes guidelines for economic operators and introduces new rules for cooperation between businesses and supervisory authorities.
- Product Import Controls: The regulation sets up stricter controls on products entering the EU market, ensuring they meet compliance standards.
- Legal Revisions: It updates and replaces parts of Regulation (EC) No 765/2008 on accreditation and market surveillance and amends Directive 2004/42/EC and Regulation (EU) No 305/2011 concerning construction products.
- Effective Date: While Regulation (EU) 2019/1020 has been effective since July 16, 2021, certain provisions began applying as early as January 1, 2021.
HOW DOES THIS IMPACTE E-COMMERCE
Key elements of the regulation significantly affect online businesses:
1. Introduction of the Fulfilment Service Provider Role:
A new category of economic operator—the Fulfilment Service Provider—has been introduced. This entity, which handles tasks like warehousing, packaging, and dispatching without owning the products, will now share liability for product compliance, alongside manufacturers, importers, and distributors.
2. Requirement for EU-Based Economic Operators:
Products cannot be sold to EU consumers without an economic operator established in the EU. This rule heavily impacts e-commerce platforms and online sellers outside the EU, requiring them to partner with an EU-based entity to remain compliant.
3. Responsibilities of the Fulfilment Service Provider:
The fulfilment service provider will now assume responsibilities related to product compliance. These include:
- Maintaining EU declarations of conformity and technical documentation.
- Notifying authorities when they suspect products pose risks.
- Cooperating with authorities in corrective actions such as product recalls or stock destruction to ensure public safety.