Porträtfoto Volker Treier

"Bureaucracy and unclear regulations burden businesses"

Volker Treier, Member of the German Chamber of Commerce and Industry Executive Management, on the EU Product Safety Regulation

12.12.2024 - "The entry into force of the EU Product Safety Regulation presents significant challenges for traders and manufacturers. The operational effort required to implement the regulation is immense. Companies must meet numerous additional documentation and verification obligations, such as providing a risk analysis and specifying a 'responsible economic operator' within the EU. Furthermore, the current form of the regulation raises many unanswered questions that have yet to be addressed by the EU Commission. Even the FAQs published shortly before the regulation came into effect provide insufficient clarity. Many relevant questions remain open, such as those regarding the labelling of goods produced outside the EU that enter the EU via supply chains involving various actors.

The scope of the regulation is problematic as it not only applies to physical products but now also covers digital products, including software. This expansion of the application is perceived by many companies in Germany and Europe as an additional bureaucratic burden. Sustainable business models are also under pressure due to these regulations. For instance, those who trade in used car, bicycle, or motorcycle accessories on a professional basis must conduct a risk analysis as if the products were brand new. Moreover, new requirements are imposed on online retailers, including mandatory manufacturer identification, product images, and safety information.

Throughout the legislative process, the DIHK repeatedly advocated for making regulations more practical and less bureaucratic in order not to further stifle businesses with excessive bureaucracy. The competitiveness of companies must finally become the focus of European legislation.

The EU Product Safety Regulation does not exist in isolation. It fits into a myriad of existing legal requirements, some of which overlap. This increases complexity for companies and makes legal compliance more challenging.

To support businesses in implementing the EU Product Safety Regulation, the DIHK appeals to competent authorities to provide practical templates and guidelines that offer orientation to companies. The 79 IHKs in Germany are available as knowledgeable contacts to provide regional support and ensure smooth implementation."

Key areas:
  • Supply Chains

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