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Sunday, Feb 02, 2025

Small UK Businesses Struggle with New EU Product Safety Regulations

Small businesses in the UK face challenges complying with the EU's new product safety regulations, causing disruption in exports to the EU and Northern Ireland.
Small businesses in the UK are facing significant challenges as they navigate the European Union's new product safety regulations, which came into effect on 13 December.

These rules, designed to enhance product safety standards across EU member states, require non-EU businesses to appoint a 'responsible economic operator' within the EU to manage product issues.

The regulations also apply to Northern Ireland, which adheres to EU standards under the Windsor framework.

One such business affected is Skye Weavers, a family-run company on the Isle of Skye, which has halted online sales to the EU and Northern Ireland while it figures out how to comply with the new requirements.

Other small businesses, such as Hagen Automation, have also paused EU sales, with some scrambling to find EU-based representatives to manage compliance.

The new regulations have had a particularly severe impact on small and medium-sized enterprises (SMEs), which often lack the resources to cope with sudden regulatory changes.

William Bain, head of trade policy at the British Chambers of Commerce (BCC), criticized the UK government for insufficiently communicating the changes to businesses, highlighting the lack of advance notice and cooperation between UK and EU regulators.

The UK government, in response, stated that it had provided clear guidance and engaged with businesses ahead of the regulation's implementation.

However, many small businesses continue to struggle with the new rules, which some describe as a significant burden on their operations.

The BCC has called for better communication and collaboration between the UK and the EU to help businesses stay informed and avoid further disruptions.

The government is looking to strengthen its relationship with the EU as part of its growth agenda, and businesses hope for clearer, more timely guidance in the future.
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