The EU’s General Product Safety Regulation (GPSR), which replaces the 2001 General Product Safety Directive, is set to come into force in Northern Ireland on 13 December 2024. This regulation aims to enhance consumer protection by updating safety requirements and addressing the risks associated with modern products, including those incorporating new technologies such as artificial intelligence. While this regulatory update is significant for ensuring consumer safety, it brings challenges for businesses trading between Great Britain (GB) and Northern Ireland (NI), particularly for small and medium-sized enterprises (SMEs).
What is the GPSR?
The GPSR introduces several changes to how products sold within the EU must meet safety standards. Key aspects include:
- Enhanced Product Safety Obligations: Businesses must ensure products are safe throughout their lifecycle, accounting for risks arising from foreseeable misuse or updates to digital products.
- Improved Traceability: Every product must include information identifying the manufacturer and, in some cases, the distributor.
- Digital Products and AI: Products using software updates or artificial intelligence must remain compliant after updates are applied.
- New Penalties and Recalls: The GPSR imposes stricter penalties for non-compliance and introduces streamlined processes for product recalls.
Although the regulation applies directly in Northern Ireland under the Windsor Framework, it does not apply in Great Britain, where domestic product safety rules govern the market.
Implications for GB-NI Trade
The divergence between EU and GB product safety rules complicates trade between the two regions. Under the Windsor Framework, NI remains aligned with EU single market rules for goods, while GB does not. This creates regulatory challenges for businesses sending goods to Northern Ireland, particularly for SMEs lacking the resources to manage dual compliance requirements.
- Increased Administrative Burdens
GB businesses exporting to NI must now ensure their products comply with both UK and EU standards. This includes:
- Labelling: Products sent to NI may require additional safety labels and documentation to meet EU requirements.
- Testing and Certification: Products may need third-party testing or EU-recognised conformity assessments, adding costs and delays.
- Compliance Costs for SMEs
SMEs often operate with limited budgets and smaller compliance teams. Navigating dual systems could lead to disproportionate compliance costs. The need to meet stricter traceability standards and update software or digital components for compliance may also strain resources.
- Potential Trade Barriers
Non-compliant goods cannot be sold in Northern Ireland, risking lost sales for GB companies. Additionally, products requiring minor modifications for compliance may face delays in reaching the NI market, impacting SMEs reliant on just-in-time supply chains.
- Impact on Consumer Confidence
While the GPSR aims to increase consumer safety, delays or higher costs for compliant goods may inadvertently affect product availability or pricing in NI. SMEs trading in sectors such as toys, electronics, and AI-integrated devices are particularly vulnerable.
Recommendations for SMEs
SMEs trading between GB and NI should prepare for the GPSR by:
- Conducting a Regulatory Gap Analysis: Identify any differences between existing GB product safety standards and GPSR requirements.
- Updating Supply Chain Processes: Work with suppliers to ensure traceability and compliance documentation is in place.
- Investing in Expert Support: Consider engaging legal or regulatory consultants to navigate dual compliance requirements.
- Monitoring the Market: Keep an eye on UK government updates regarding post-Brexit regulatory adjustments, as further changes could impact trade.
Richard Smith, RHA MD, said: “Hauliers are critical to successful trade between Great Britain and Northern Ireland and a robust and efficient GB-NI supply chain is crucial to the overall UK economy.
“There remains concern in our sector about divergence and the hurdles businesses must go through to send a range of goods from GB to NI. Looking ahead, businesses seek reassurance and further clarifications around the impact of the next set of changes due to be rolled-out in March.
“Earlier this year, we wrote to the NI secretary of State on behalf of the road transport sector to request a meeting to discuss these issues and to offer our recommendations. Today we repeat our ask.
“We’ll continue to engage with decision-makers at all levels, both nationally in Westminster and at a devolved level at Stormont. We’re committed to finding durable solutions which will protect and maintain supply chains across the United Kingdom and minimise the impact of new and evolving regulations on both business and consumers.”
Conclusion
The introduction of the EU’s General Product Safety Regulation (GPSR) in Northern Ireland highlights the growing complexity of cross-border trade in the post-Brexit era. SMEs trading between GB and NI will face increased administrative and financial burdens to ensure compliance, potentially impacting their competitiveness. However, with proactive planning and investment in compliance infrastructure, businesses can continue to access the Northern Ireland market while meeting the new safety standards.
As the GPSR comes into effect, it will be crucial for policymakers and industry bodies to provide targeted support for SMEs, ensuring the regulatory transition does not disproportionately affect smaller businesses.
