A SCOTTISH business has expressed fears over a new EU regulation set to come into force next month, calling for more guidance and clarity to be issued by the UK Government.
From December 13, the EU’s new General Product Safety Regulation (GPSR) will come in, intensifying post-Brexit trade barriers with the UK’s closest overseas market.
The new regulation adds obligations on UK businesses selling non-food goods intended for consumers in the EU.
For many sellers, this will mean appointing an EU Responsible Person (RP) based in the EU or in Northern Ireland, the cost of which will be a concern for many small and medium-sized businesses.
Businesses will also need to make sure the contact details of the RP are on their products and ensure products are traceable through a batch or serial number in a way that is visible and accessible for consumers.
There are businesses set up in the EU who will act as an RP for businesses outside the bloc for a fee, but this could be around £100 an item.
Samantha Paton (below), founder of Dundee women’s clothing company Isolated Heroes, said she only found out about the regulation through other businesses talking about it on social media two days ago.
She said the lack of information on the policy is “crazy” and has called on the UK Government to issue more detailed guidance to help businesses prepare for the change.
“We’re really at a bit of a standstill, there’s just no information. I’m shocked that I found about this policy through seeing other businesses posting about it. There’s hardly anything online in terms of signposting on it.”
Isolated Heroes has opted for now to remove EU and Northern Ireland shipping from December 12 until more clarity is given.
Paton has written to her local MP Chris Law alongside MSPs Shona Robison and Joe Fitzpatrick to ask for help in finding out more information.
In an email she has said she is concerned about the impact the new regulation will have on her business and highlights the company could lose “up to a third of our online sales” if it needs to stop sales to Northern Ireland and the EU.
Under the Windsor Framework, the rules will also automatically apply in Northern Ireland.
Paton also said that she is worried about the cost of arranging an RP, especially as the business has so many customers in Ireland.
“Being a small business, one of the benefits is we can work on product development and we can develop products fast, so we work to limited edition drops per month,” Paton said.
“We will maybe bring out 15 products a month, sometimes more. So it’s not like we’re a business that’s selling one product with two or three variations a year, we have quite a significant amount of stock changing so that could be costly.”
She added: “We have so many customers in Northern Ireland and that’s a big concern too.
“It just feels like more red tape and for it to come into place in December when it’s our busiest time of year as an online retailer for manufacturing, shipping and sending products, it just feels like something we’ve got no time to learn.
“It’s crazy to me the lack of clarity around it.”
The regulation aims to regulate the safety of goods not covered by existing EU standards and CE marking, as well as some that are already regulated but not when supplied via online marketplaces or distance sales.
The Department for Business and Trade has been approached for comment.
