EU simplifies packaging rules for small businesses

The European Union Council has proposed simplifying rules for small businesses that sell packaging in multiple member states. The new proposal aims to ease the administrative burden on smaller producers and sellers by reducing the need for local representatives in each country where they operate.

Threshold for simplified rules

The proposed change applies to businesses that market less than one ton of packaging per year in any given member state. This threshold is specific to each destination country and not a total across all European markets. It does not exempt companies from all obligations related to waste management.

Extended producer responsibility framework

The proposal relates to the extended producer responsibility (REP) framework, which requires companies to manage the waste generated by their products. The Council’s position is a negotiating mandate and does not immediately change existing laws or regulations.

Impact on remote sellers

For companies that sell remotely in multiple European countries, the new rules would reduce the need to appoint an authorized representative in each country where they are not based. This could simplify administrative procedures and reduce interactions with local service providers.

Temporary suspension of rules

The Council’s proposal includes a temporary suspension of certain representation rules until 2032. The European Commission will review this suspension before the end of 2030. These deadlines are still part of the legislative proposal and subject to final agreement.

Part of broader environmental reform

The proposal is part of the "Omnibus VIII" environmental simplification package. It aims to reduce administrative burdens on small businesses while maintaining the goals of effective packaging waste management. Companies will still need to comply with registration, declaration, and funding requirements in each market they operate in.

Negotiations with the European Parliament

The Council presidency now needs to negotiate the proposal with the European Parliament. The final details of the exemption, including its scope, conditions, and effective date, will be determined after the text is finalized. Until then, cross-border sellers should not assume the new rules are already in effect.