International Business Experts, Greg Smith and Craig Colling from Certlabel discuss some of the pitfalls for businesses when complying with regulatory standards in overseas markets and the options for dealing with them. To listen to it, click on the link below.
The One-Stop Shop (OSS) or Import One-Stop Shop (IOSS) will directly affect all B2C transactions in the EU market going forward. Just as Importers into the EU market will require an EU Fiscal Representative for IOSS transactions, companies outside of the EU that sell products online to EU consumers, will now need to have EU product representation if sending products directly to the EU consumer. This change is the implementation of the Market Surveillance Regulation which comes into force on the 16th July 2021.
The Market Surveillance Regulation is to help avoid in the influx of sub-standard products into the EU market, that are being sold outside of the EU through online platforms. The objective is to ensure that any product purchased by an EU consumer has a nominated point of contact within the EU market, that takes legal accountability for the product being made available and ensuring the product meets market requirements.
So what are the options?
This isn’t a quick ‘pop-up shop’, this is a fully registered business in the EU, that is not only the setup fees, but will require the administration and funds to run it. The requirements and cost will vary depending on where you choose to setup business and it is advised to get professional advice if you choose this option. In general, aspects to consider are:
This service takes several forms depending on the products you sell. The food industry refers to it as Food Business Operator (FBO) whereas cosmetics will refer to it as the Responsible Person (RP). Other industries have different terminology, but the core service is referred to as Authorised Representation. The service offering will vary depending on who is providing it, but essentially it doesn’t lock you into the burden and cost of running a second business abroad.
This is a good option if you are just entering into the export market and still establishing a steady export business, or sell low product volumes. It can also be beneficial to companies that sell seasonal or promotional items. Depending on your service agreement, you can restrict the service to the periods when you are selling the products on the market. So, you do not incur running costs when you are not selling product. Aspects to consider:
If you have specific questions following our podcast or you are looking for clear practical advice, you are welcome to get in touch with Craig: enquiry@certlabel.com. There isn’t a ‘one-size fits all’ when it comes to business and so it is about tailoring a solution that fits.
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