EU implements new packaging regulations, causing complaints from small and micro enterprises

A wave of dissatisfaction is sweeping through the small and micro business community in the European Union. Since the partial implementation of the EU's Packaging and Packaging Waste Regulation (PPWR) on August 12th, it has been increasingly criticized by European small and micro business owners, who say that this new packaging regulation has brought them a disproportionate burden. According to the European News Network on the 26th, the President of the European Parliament, Roberta Metzola, admitted that the new packaging regulations have imposed a "rigid and counterproductive" burden on small and medium-sized enterprises.

PPWR aims to reduce packaging waste, improve recyclability, and encourage better recycling and reuse throughout the European market. However, many companies have issued warnings that the administrative requirements involved in this regulation are difficult to implement, especially for small and medium-sized enterprises that do not have dedicated compliance and sustainability regulatory departments, making management challenging. The Brussels Signal in Belgium reported that booksellers and small publishers, wine merchants, component suppliers, and retailers of handicrafts, art, and design have been particularly affected.

The most controversial "Extended Producer Responsibility" (EPR) system in this regulation involves companies that sell products in multiple markets within the European Union. It requires companies to register with the national registry of the product manufacturer and appoint an authorized representative in each country where the product is sold, which imposes additional administrative responsibilities on small and medium-sized enterprises operating across borders. Multinational corporations can incorporate these obligations into their existing compliance departments and supply chain systems, but for small and micro enterprises, managing registration and representation in multiple countries will bring significant additional costs and administrative workload. It is estimated that the cost of appointing a representative in each country is approximately 600 to 2000 euros. On the 24th, the European Dynamic Network reported that this request alone has sparked a petition that has received over 70000 signatures.

Due to sudden administrative burdens, companies across Europe have stopped cross-border sales. The Brussels Signal reported that the German online retail association H ä ndlerbund announced on the 30th that small traders are stopping shipping to other EU countries. According to a report by the French newspaper "Public Opinion", PPWR has brought panic and dissatisfaction to small and medium-sized enterprises, and businesses are generally concerned that the additional costs caused by it will affect their export and sales business.

Regarding these criticisms, Mezola stated that the European Parliament plans to address these issues in the coming weeks. The European Parliament is considering exempting small and micro enterprises from this packaging regulation. However, according to a report by the European Dynamics Network, the European Parliament needs to reach an agreement with the Council of the European Union, and the Council's negotiations on this matter have been suspended.