New EU packaging rules leave small businesses uncertain

A new European Union regulation on packaging and packaging waste has created uncertainty among small businesses, with some online retailers suspending sales to other countries while they seek clarity on their obligations, ERR reported.

The regulation, which took effect last Wednesday, requires businesses to register in the producer register of every EU member state where they sell goods.

Kaidi Holm, the owner, manager and sole employee of the small business Seebistuudio, said Finland has been its largest target market after Estonia. The company had previously accepted soap orders through its online shop from anywhere.

“Now that the regulation should be applied by target country, we decided to suspend deliveries to other countries through the online shop. We are waiting until the exact obligation and everything it entails have been investigated,” Holm said.

Holm said reducing packaging waste is often already an important priority for small businesses in the sector. However, she said the paperwork should be linked to the size of the company and micro-enterprises should be exempt from the burden.

“The main obstacle for a small business is that when there are few people, each with many different functions, one additional obligation means taking time away from other work. Exactly the same administrative burden is imposed on someone who makes a little soap from time to time as on a large company,” Holm said.

The regulation applies to all businesses that sell packaged goods on the EU market, including Luunja cucumbers, chemical industry products and goods made by small designers.

A-Galerii, which represents professional Estonian jewellery artists, has also closed its online shop until it is clear what is allowed and whether foreign sales could lead to substantial fines.

“We would actually expect a more official approach, rather than simply being told to continue with our business. The law should be arranged in a way that means we do not have to fear that we are operating illegally,” said jeweller and A-Galerii board chairman Valdek Laur.

Ivo Jaanisoo, deputy secretary general at the Ministry of Climate, said he saw no reason for businesses to stop selling.

“The packaging regulation actually comes into force with a transition period. Discussions are currently under way in Europe about the relevant implementing act, including what reporting and data submission should look like. If the implementing act takes effect, as expected, during this year, countries will then have another 18 months to bring their registers into compliance with it,” Jaanisoo said.