Ensure Import Compliance and Product Safety from China

How to ensure import compliance and product safety when sourcing from China?

Ensuring compliance for imports, applicable product regulations and safety standards is often one of the more complex and risky aspects of importing products from China.

For any importer seeking to consistently buy safe products from China, gaining thorough control and visibility over compliance is essential. Numerous studies show unsafe and non-compliant goods are being sold on online marketplaces like Amazon, putting EU and UK consumers at risk. These days, however, markets and online platforms have also started to demand stricter accountability.

This article provides information and tips for importers wanting to buy safe products from China and how to ensure that the items meet EU regulations. Outlined are the certification requirements and proactive management strategies necessary to facilitate smooth operations while protecting customers. This empowers gaining and maintaining consumer confidence in your brand and enhancing your brand’s reputation.

In this article:

• Why are are there so many non-compliant products on the market
• Why compliance is essential
• EU regulations and standards explained
• Certification requirements
• Why you can’t rely on the supplier’s test reports alone
• 8 Strategies for Effective Compliance and Ensuring Product Safety
• A systematic approach to compliance
• Conclusions
• How the Sino Solution can help

Why are are there so many non-compliant products from China on the market?

Shouldn’t product certification compliance be the suppliers’ concern rather than yours? After all, it’s the manufacturers’ responsibility to ensure compliance when you buy something from within the European Union. However, China is not Europe. This is where many importers get this all wrong.

Let me explain. The moment that an importer sells products on the EU market, he is always responsible for ensuring product certification and consumer safety compliance. It is impossible for government authorities to enforce compliance in a foreign country – China included. All responsibility for import compliance is put on the importers.

Many Chinese suppliers, particularly those producing inexpensive goods, lack expertise manufacturing products that comply with EU standards. Chinese suppliers export to the entire world. The factory’s main market that you buy from may actually be developing countries, instead of the western market. Manufacturers may not be specialised in compliance for each market since different markets have distinct requirements.

Many small European businesses are unaware of the exact requirements for a particular product either. This leads to importers that procure non-compliant items into their markets, without knowing this.

Race to the bottom

Many marketplaces like Amazon incentivise low prices. Prices are often a race to the bottom. Sellers try to cut costs from their (often Chinese) suppliers to sell their goods cheaper. When prices are negotiated to the lowest levels, manufacturers will likely cut corners to stay profitable. Factories may use cheaper materials or skip critical safety testing. This all makes it more likely that the products are non-compliant or even totally unsafe.

Many importers don’t realise that ensuring compliance is purely the importer’s responsibility, not the Chinese supplier’s. The result? Many businesses don’t take the needed action to ensure that the imported products they sell on the European markets comply. The incentive to ensure compliance is often low and ultimately many products that potentially lead to health and safety problems end up on the European market.

Why Compliance is Essential

Ensuring product compliance is crucial for importers to avoid legal, ethical and financial risks.

Compliance with safety standards is essential for many reasons:

• Upholding ethics: You have a moral responsibility only to provide products that meet agreed safety standards. Compliance demonstrates your commitment to protecting consumer welfare, not just profits. Putting unsafe items on the market and potentially damaging the health and safety of consumers or even the little ones, is something no one wants.
• Legal liability: Non-compliant products could cause injuries, resulting in lawsuits against your business. Regulators levy heavy fines for non-compliance. You also face costs of recalls, lost sales, legal fees and the unwillingness of insurance companies to compensate if issues are found with your products.
• Brand reputation: Customers expect safe and high-quality products. For your brand to uphold your reputation, you want to ensure the customer that their product is safe to use. Non-compliance undermines trust and loyalty in your brand.
• Market access: Online marketplaces apply rules to verify compliance before allowing product listings or shipments. Customs or other protective authorities also take measures to prevent non-compliant goods from entering the market. Non-compliance potentially blocks your ability to reach customers.

Example of how it can go wrong

The Mattel recall of a staggering 9 million Chinese-made toys due to safety concerns serves as a powerful example of the risks associated with non-compliance. The presence of lead paint and small magnets in the toys posed serious dangers to children, highlighting the potential harm caused by unsafe products. Mattel’s reputation suffered, and the financial impact was significant, with costs related to the recall, legal actions, and damage control. This incident emphasizes the need for proactive compliance measures

Conclusion

It’s not enough to rely solely on supplier claims of safety. Proactive testing and controls are needed throughout the import process. New rules also require platforms and shipping partners to verify compliance before handling goods.

Rather than reacting to issues, take a preventative approach. Identify risks upfront and address them proactively. This protects your hard-earned reputation in the long run.

EU import regulations and standards for import compliance

This section will overview key EU directives, labeling requirements, certifications, and standards importers must address to sell products legally in the EU.

Harmonised Standards and Product Safety Directives

The EU utilizes “harmonised standards” – technical specifications developed by CEN/CENELEC to meet requirements of directives. Conformity with these very broadly formulated standards demonstrates meeting EU safety and quality controls.

Basic Safety Directives

The baseline safety rules are formulated into specific directions. These directives are regulatory frameworks established by the European Union to ensure the safety and quality of products sold within the EU market. These directives set out specific requirements and standards that products must meet to comply with EU regulations.

• Toy Safety Directive – Sets toy material, mechanics, flammability and chemical standards.
• Low Voltage Directive – Regulates electrical safety of devices.
• Electromagnetic Compatibility Directive – Electronics must conform to EMC standards.
• General Product Safety Directive – Ensures all products are safe, even without specific standards. Requires risk assessments.

Other Relevant Directives

• RoHS Directive – Restricts hazardous materials in electrical/electronic products.
• Radio Equipment Directive – Regulates wireless devices and spectrum conformity.
• Eco-Design Directive – Promotes energy-efficient EuP design.
• Personal Protective Equipment Directive – Governs safety gear intended to protect users.
• Medical Devices Directive – Implements rules for medical items regarding safety and performance.
• Machinery Directive – Applies technical requirements to mechanical equipment.

Note these do not cover every regulation. More information is available at ec.europa.eu and ce-check.eu. Certification requirements will be described in the next part.

You can find information about product regulations by visiting any of the following websites:

ec.europa.eu

www.ce-check.eu

Certification Requirements

Importers must obtain the proper certifications to demonstrate compliance when bringing goods into the EU market. Let’s take a closer look at the key certificates:

CE Marking

The CE mark stands for “Conformité Européene,” which translates to “European Conformity” in English. CE marking is mandatory for many product categories and indicates conformity with applicable EU directives and meets EU health, safety, and environmental requirements. The mark must be clearly displayed on the products before they are sold. Make sure that the correct CE marking is present on the products.

In practice, this marking doesn’t provide any guarantee for compliance when you’re dealing with goods from outside the EU. It’s the manufacturer that adds the marking on the goods. However, the manufacturer in China cannot be taken accountable for CE compliance after importing the goods.

Product labeling:

In addition to the CE marking and the previously mentioned documentation, specific product categories may have additional label requirements. These requirements often include product identification, country of origin, manufacturer or EU seller information, and safety warnings. These labels can be added to the product packaging, product itself, or accompanying documentation.

CE compliance certification and documentation

A lot of people are asking or requiring a “CE certificate” when they buy goods from China. A CE certificate, however, is not a thing. But being able to issue CE compliance does require more than just the printed CE mark. Two other documents you may need for selling on the EU market are the Declaration of Conformity and Technical Files.

Declaration of Conformity (DoC)

A Declaration of Conformity is a document provided by a manufacturer, stating that a product meets all relevant requirements of product safety directives[1]. The supplier signs that the product has been designed and constructed to comply with essential requirements and has undergone appropriate conformity assessment processes.

When you receiving this document from your supplier, make sure that it includes the supplier’s business name and address, a description of the product, a list of relevant directives it complies with, references to applicable standards, and the signature of the authorized person. You should also check for any obvious defects in the product and verify the accuracy and completeness of the document.

Technical files

The technical documentation provides information on the design, manufacture, and operation of a product and must contain all the details necessary to demonstrate the product conforms to the applicable requirements. You are supposed to keep this technical information for 10 years.

In addition to the EU declaration of conformity, the importer should confirm that the technical documentation includes a brief product description, list of parts, test results, and details of manufacturer’s authorised representatives.

REACH Certificate

For products containing chemicals, a REACH certificate is required to demonstrate compliance with EU regulations. REACH (Registration, Evaluation, Authorization, and Restriction of Chemicals) ensures that substances used in products do not pose risks to human health or the environment. Obtaining a REACH certificate confirms that the product does not contain any prohibited substances and meets the necessary chemical safety standards.

RoHS Compliance

In the case of electrical and electronic goods, RoHS (Restriction of Hazardous Substances) compliance is essential. RoHS restricts the use of certain hazardous substances in these products, such as lead, mercury, and cadmium. By providing a self-declaration of RoHS compliance, importers verify that their products adhere to the required restrictions and are free from the prohibited hazardous substances. This certification ensures the safety and environmental friendliness of electrical and electronic goods.

EN Standard Compliance

To ensure compliance with EU technical requirements, importers can conduct accredited third-party tests according to relevant EN standards, or ask their supplier to provide these test result documents. The test results can be used as supportive evidence that products meet the necessary EU standards.

Conclusion

By obtaining certifications such as CE marking, Declaration of Conformity (DoC), REACH compliance, and demonstrating RoHS/EN standard conformity, you mitigate risks for safety and legality. These certifications help to demonstrate compliance and facilitating import compliance for the EU market and selling them on the major platforms like Amazon.

Why you can’t rely on the supplier’s test reports and certifications alone

When importing goods, it can be tempting to accept your supplier’s word that a product meets compliance standards based on their test reports. However, solely relying on these reports is risky business. As an importer, you are responsible for verifying import compliance and safe imports yourself.

The reality is that test reports do not always tell the full story. Samples tested could differ from actual production batches in materials or components. Suppliers also have incentives to cut corners or provide misleading documentation to hide issues.

Let me give a few scenarios where a supplier’s test report alone cannot guarantee a product’s compliance:

• The tested sample was from another manufacturer, not your supplier’s own production.
• Production batches differ from samples tested through changed materials or components. This can be because of cost saving or because the product has changed since the testing.
• In some cases, suppliers have falsified documentation to mask noncompliance.

Without confirming for yourself, you have no way of assuring if the tested product truly matches what you will receive. To safeguard your business and ensure regulatory compliance, it is crucial to implement proactive measures beyond relying on test reports alone.

Relying on test reports opens yourself up to compliance risks down the road. As the importer, you are responsible for any market issues regardless of supplier fault. To protect your business, you should consider other proactive strategies that can help you to get in control of the compliance of your goods and to protect your business and your brand.

8 effective strategies for ensuring import compliance

You can consider various additional measures to reach import compliance. With proactive measures in place, you can confidently navigate the import process, mitigate risks, and deliver compliant products to the market. Let’s delve into the strategies that can empower you to achieve these goals.

Supplier Evaluation and choosing your supplier wisely

Screen suppliers’ compliance capabilities upfront. Compliance assessment can be an essential consideration when configuring who to work with. Rank potential suppliers based on risk factors like industry, location, certification records. Choosing reliable factories reduces your risks exponentially.

Thorough Documentation Review

Thoroughly review all supplier documentation to confirm compliance. Check certificates and test reports for authenticity, dates, relevance to goods supplied, and consistency with specifications. Verify reports are from accredited labs testing current standards. Use laboratory verification systems by entering full certificate/report numbers to validate documentation authenticity. Disqualify any supplier unable to provide genuine documentation that proves their goods meet all necessary requirements.

Regulation Monitoring

Stay up-to-date on rule amendments to adapt processes accordingly. Regulations constantly change and therefore checking the products based on the latest regulations is required. Old test reports may not align with current standards. In case the test reports don’t align with these standards, retesting is necessary.

Risk assessment

Determine hazards specific to each industry and product. For example, electronics require Bill of Materials (BOM) checks while children’s toys need safe edges and seams.

Different products have different specific risks regarding safety, harmful substances, etc. By identifying these risks, you can allocate your resources specifically towards mitigating this specific risk. Then you can find out what preventive measures to take and how to manage and inspect the factory to prevent the specific risks. These can be a clear description of the product specification, testing or inspecting at the supplier’s side.

Production contracts

Contractual agreements formalise supplier obligations to deliver compliant products and facilitate accountability. You can specifically outline the risks and what a supplier is supposed to do to mitigate them. In addition, you can use the production contract to specifically define the product specifications of the materials and assembly, as well as the quality terms, that you know will lead to safe products.

Addressing Compliance in Stages and managing the factory

Use incentives and proactive management of the factory and check how the factory prevents problems. Incentivise the factory’s management to take control of the production floor and let them check the production at the risk points by themselves. Proactive risk management is vital when buying from overseas suppliers.

Quality inspections

Schedule inspections at critical stages to catch issues early. These could be pre-inspections to detect issues early by material checks before production or during production inspections. These also include testing the items on major quality risk during the final inspection. Resolve any issues ensuring ongoing compliance.

Laboratory Testing

Periodic independent lab testing confirms supplied goods match initially certified samples and comply with current regulations. Third-party lab testing is a way to verify that your product is compliant with safety regulations. When choosing this, make sure that you control what item is sent to the test lab and that this item belongs to your batch. If this is in the supplier’s control, you don’t know what they actually send. In addition, be aware of the test labs incentive to sell you as much as possible tests. If you’re budget is limited, focus the resources on testing the major risks specific for your product.

Conclusions

Safe imports and guaranteeing import compliance is crucial from multiple perspectives:

• Legal Requirements – Regulations exist to protect consumers, and non-compliance can result in penalties.
• Product Safety – Only accepting compliant goods helps prevent unsafe items from reaching users.
• Brand Reputation – Building and maintaining consumer trust requires consistency in delivering lawful, hazard-free products over the long term.

To guarantee import compliance and conformity, especially when sourcing from China, importers must take a proactive and systematic approach to compliance. With a proactive compliance orientation, businesses can mitigate risks, satisfy all compliance obligations, and develop their brand in a manner respecting public welfare. Overall, it facilitates smooth, lawful operations vital for sustainable import activity and growth.

A systematic approach to compliance

Adopting a systematic approach with Transparency, Strategy, Control and a long term Improvements approach helps to minimise compliance risks when buying from China. At Sino Import Solutions, we have developed a systematic approach to compliance that ensures effective risk management and product conformity.

1. Transparency:
   We conduct a comprehensive risk assessment based on factors such as supplier type, available test reports, and product specifications.
2. Strategy and Agreements:
   Production agreements formalize compliance responsibilities and ensure that the supplier understands and meets the necessary compliance requirements.
3. Manage and Control:
   We manage and control the factory at critical risk points. This includes implementing proactive measures, conducting inspections, and monitoring production processes to prevent and mitigate compliance issues.
4. Long-Term Improvements:
   We emphasize the importance of maintaining rigorous quality control and a long-term approach to compliance.

How Sino Import Solutions can help you reach import compliance:

We offer comprehensive support services to assist importers in their compliance journey. Depending on the issues you may face, the compliance risks related to the goods you import, or how you would like our assistance, we can help you in the following ways:

Risk Point Identification:

We assist in identifying potential risks related to product safety and compliance. By formulating these risks, we help you to manage your resources efficiently to mitigate the major compliance risks involved with your products. We can help you to select suppliers that pose least risks to your products. We can also conduct due diligence on your current suppliers or execute due diligence on the documents related to compliance based on the latest regulations, that are provided by the supplier.

Negotiating and formalising agreements:

We provide guidance in negotiation and formalising production contracts with manufacturers. We assist with getting the right terms in your production contracts that mitigate risks and get you in control of the compliance of your goods.

Inspections on Critical Points:

We conducts inspections to prevent or detect issues related to safety risks caused by parts, chemicals, or production processes used in the manufacturing of goods. Depending on the risks that we want to mitigate, we can execute inspections before-, during- or after production. This ensures that the products being sold are safe and compliant.

Pro-active management of the company:

Our company offers practical strategies for effective compliance management to mitigate risks. We foster stronger relationships to align our interests in the short and long term. By consistently monitoring and managing compliance, we ensure the safety and conformity of your products. Through trust and strong relationships, we effectively communicate our interests to suppliers, encouraging them to prioritize our requirements.

By leveraging our expertise and support, you can ensure that your products meet the necessary compliance standards and regulations, protecting your business, brand reputation, and consumers.

We help you ensure import compliance for the products that you sell!