The European Union’s General Product Safety Regulation (GPSR) is a significant new framework aimed at enhancing product safety standards across the EU market. While it entered into force on June 12, 2023, the regulation will start being fully applied from December 13, 2024. Businesses operating in the EU need to act now to ensure compliance with these new rules, particularly the requirement to appoint a responsible person for product safety.
Key requirements of the GPSR
Ensuring product safety
GPSR mandates that all products sold in the EU market comply with strict safety requirements, regardless of whether the products are sold physically or through online platforms.
Responsible person
A crucial new aspect of the GPSR is the obligation to appoint a responsible person within the EU. This individual or entity will:
- Ensure the product complies with safety regulations.
- Be the point of contact for EU authorities.
- Take responsibility for maintaining relevant compliance documentation.
Impact on online and offline sellers
The regulation applies not only to sellers on platforms like Amazon,eBay, Etsy, but also to those operating on their own e-commerce websites. Additionally, it covers traditional distribution methods such as wholesalers, retailers, and direct sellers offering products in physical stores.
Definitions under GPSR
- A manufacturer is any individual or entity that designs or markets a product under their name or trademark.
- An authorized representative is an EU-based individual or company, designated by the manufacturer, to handle compliance and safety obligations.
Why compliance matters
Non-compliance with GPSR requirements can result in severe consequences, including:
- Fines and legal penalties.
- Removal of products from the EU market.
- Loss of trust among customers and partners.
How Incorporate can help
At Incorporate, we specialize in establishing and managing Estonian private limited companies (OÜ) to help businesses meet administrative and legal requirements in the EU. While we do not provide compliance services directly related to product safety, we ensure that your Estonian OÜ is properly set up and managed to act as your responsible person under the GPSR.
Here’s how we can assist:
- Establishing an Estonian OÜ: We guide you through the entire process of setting up a private limited company in Estonia, making it quick and hassle-free.
- Ongoing company management: Once your Estonian OÜ is established, we offer support for its day-to-day administrative and legal management to keep your company operational.
With our expertise, you can focus on ensuring your product compliance while we handle the administrative aspects of your responsible person entity.
Why choose an Estonian OÜ as the responsible person?
Estonia’s business-friendly environment, efficient e-governance systems, and low administrative costs make it an ideal choice for establishing an entity to fulfill your GPSR obligations. Whether you sell through Amazon, eBay, or physical retail stores, we can tailor our services to meet your needs.
Act now to ensure compliance
With the December 2024 deadline for GPSR compliance approaching, it’s important to begin preparations now. Incorporate can assist in ensuring your products meet EU safety standards and help with the appointment of a responsible person.
For more details on setting up an Estonian OÜ or fulfilling this requirement, get in touch today!
FAQ
What is the General Product Safety Regulation (GPSR)?
The GPSR is an EU regulation designed to improve product safety standards for all products sold on the EU market, whether online or offline. It requires businesses to comply with stricter safety standards and appoint a responsible person within the EU to ensure compliance.
When does the GPSR take effect?
The GPSR came into force on June 12, 2023, but it will be applied starting from December 13, 2024. Businesses need to ensure compliance by this date.
Who needs to comply with GPSR?
The regulation applies to all businesses selling products on the EU market, including manufacturers, importers, and distributors. This includes online sellers on platforms such as Amazon, eBay, Etsy, or their own e-commerce websites, as well as traditional retailers and wholesalers.
What is a responsible person, and why do I need one?
A responsible person is an entity or individual based in the EU who ensures that a product complies with EU safety regulations. They act as the contact point for authorities, maintain compliance documentation, and oversee product safety. This is a mandatory requirement under the GPSR for all products sold in the EU.
How can I appoint a responsible person?
You can appoint a responsible person by designating an authorized representative within the EU. Setting up an Estonian private limited company (OÜ) is an efficient way to fulfill this requirement. At Incorporate, we can help you establish and manage this entity.
Does this apply to small businesses and individual sellers?
Yes, the GPSR applies to all businesses regardless of size. Even small businesses and individual sellers, whether operating online or offline, must comply if they sell products in the EU.
What happens if I don’t comply with the GPSR?
Non-compliance can lead to serious consequences, including fines, removal of your products from the EU market, and legal penalties.
Why choose Estonia for setting up my responsible entity?
Estonia offers a business-friendly environment, low administrative costs, and efficient digital governance systems, making it an ideal location for establishing a responsible entity for GPSR compliance.
