Small businesses are warning they have had to pause selling their products in the European Union and Northern Ireland since mid-December while they work out how to comply with new EU product safety regulations that caught many of them unawares. Skye Weavers, a small family business on the Isle of Skye, says it has missed out on sales of its scarves, shawls and blankets to customers in both markets after halting internet orders from those locations because of the rule change.
The EU brought in its general product safety regulation GPSR on 13 December, which applies to all consumer products, apart from a few exceptions including food, antiques and some technical items. Skye Weavers first heard about the new regulation from another textile business, and set about working out how to comply so they can keep selling online to European customers.
Brexit reduced online purchases from the EU, because shoppers are wary of buying without knowing in advance the additional import taxes and handling costs they will have to pay.
Nevertheless the Holdens set about finding a solution for this market. The textile business hopes to reopen its website to EU customers in the coming weeks. The new EU safety regulation has hit small and medium-sized enterprises SMEs particularly hard, causing cost and confusion, says William Bain, the head of trade policy at the British Chambers of Commerce. The BCC boss accuses British officials of failing to communicate the changes to companies, especially smaller ones.
Before the mid-December deadline, the UK government did post guidance for businesses selling products to Northern Ireland on the gov. However, Bain believes it should have gone further to ensure businesses of all sizes, and not just those belonging to trade associations or business groups, knew about the changes. Tom Hagen runs Hagen Automation, a Bedfordshire-based business that sells lubricants and grease for cyclists online, and depends on EU customers for up to a fifth of his business.
