The CE marking is a well-known mark of conformity that you find on a wide range of different products, for example, electronic systems, toys and machinery. The CE marking indicates compliance with all the regulations in force for a specific product: for example, the Low Voltage Directive, or the EN 71 directive for the safety of toys. The CE marking is not applicable to all products, however, it is mandatory for all products that fall within the scope of the regulations.
As I explain in more detail in this article, there is much more to say about the CE marking than you see, which is more than the small printed logo. Although many importers are aware that there are requirements for testing and documentation, many companies cannot understand how this documentation is produced and what it must contain.
Then there is China
The procedures for CE marking do not take importers into account. While it ensures that CE conformity marking is relatively simple for a manufacturer based in the European Union or the United States, as it only affects its own products, it is far more complex for importers who buy from contract manufacturers in China and other developing countries. We want to debunk six common myths about CE marking when importing from China, and we need to explain the background to each of these myths.
Important Note: As we publish this article, Amazon.com has recently removed a scooter model from its market. Meanwhile, UK customs authorities recalled 15,000 units of the same product, after finding that 88% of the units on the market were non-compliant. For “unlucky” importers this can mean financial ruin. However, all of this could have been avoided, if they had at least a basic understanding of the product safety regulations applied in their home markets and how compliance procedures work when importing goods from China.
Why CE marking becomes more complex when it involves Asian contract manufacturers
CE marking, being quite complex in itself, when combined with the pitfalls and smokescreens of negotiations with Asian suppliers, results in a dangerous mixture of confusion and serious risks. Failure to ensure compliance can result in the seizure of goods, which occurs on a large scale during the writing of this article. In case you missed the news, more than 15,000 so-called Hoverboards were seized recently by the British authorities. The total number of units inspected was 17,000, so more than 88% (!) of the inspected Hoverboards were seized. Because? Because importers have not been able to demonstrate compliance with the EU regulations in force on the subject.
But all of this only happens in the super-regulated Europe, right? Think about it. Earlier this week Amazon.com announced the retirement of almost all Hoverboard models sold on the site. According to this article, Amazon.com sent a request to all Hoverboard sellers to produce compliance documents right away:
“Amazon sent a notice to sellers asking them for proof that their gadgets were “compliant with current safety regulations, including UN 38.3 (battery), UL 1642 (battery), and UL 60950-1 (charger),” according to Swagway.
In 90% of cases, buyers will not receive any support from their suppliers. It’s a fact: most suppliers have no idea what UL 1642 is, for example. And why should they? After all, it is not their responsibility. Currently, CE marking is only required in the European Union, yet, as recent events have pointed out, American companies that import from China from other Asian countries are also facing the same difficulties.
So, what do Chinese CE marking suppliers know about it? Not much, in fact many of them believe that it is paperwork and formalities. As the recent seizures in the UK have shown, a product does not “become” compliant with safety regulations by accident. To be compliant, a product must be designed according to certain directives. This brings us to the next problem. Only a minority of Chinese manufacturers have the technical expertise to make “compliant products”. It’s a complicated thing.
But is the iPhone “Made in China”? Yes. China is home to some of the most sophisticated and largest large-scale manufacturing facilities in the world. But since Foxconn (the world’s leading contract manufacturer) doesn’t accept your order of 2000 pieces of Bluetooth earbuds, it’s pretty irrelevant.
Misconception n° 1: It is the responsibility of the supplier, and not ours, to ensure compliance with all relevant directives on CE marking.
No, it is not your responsibility. Although legal texts often refer to ‘producer responsibility’, this does not concern importers. The European authorities never prosecute foreign producers. Instead, they focus on importers who are based in the European Union and who then face controls and fines.
The biggest mistake you can make when buying from China, is not to make assumptions about the supplier. Of all the big mistakes, the most serious one is to assume that the supplier even knows what regulations apply in Europe regarding your product. 80% of them don’t know, 15% know, but they can’t do it. The remaining 5% have the technical expertise, equipment, subcontractors and experience, and some of the necessary compliance documentation, but do not have everything they need.
Misconception n° 2: The supplier has sent us a CE declaration of conformity. Does this mean that my products are compliant?
When a supplier is asked if they “comply with the X-regulation/directive”, they respond by sending an EC Declaration of Conformity (DoC). Before we dive into that, let’s start with the basics: a factory can’t be “CE marked.” This only concerns specific products. Therefore, a CE Declaration of Conformity is only valid for the SKU(s) listed(s) and does not magically guarantee compliance with every single unit that comes off an assembly line.
Now we come to the real problem. What many Chinese manufacturers, and importers, fail to understand, is that the Declaration of Conformity is only one of the “CE Documents” required by law. At a minimum, all documentation includes the following:
- Declaration of Conformity
- Test report//
- Project file / circuit diagram
- Bill of Materials / List of Components
- Risk analysis
- Summary of all applicable EU directives / technical standards
- User manual / instruction booklet
- Markings and labels affixed
This is the technical file. Guess how many Chinese manufacturers there are who know what a technical file is? Not many. Finding a supplier, and a suitable product, with complete documentation is almost impossible. Simply put, the production contract does not work that way. In addition, manufacturers are not experts, nor should they be assumed to be, in the field of CE marking in the European Union. This is your job!
The technical file
The technical file is created and kept aside by the importer, without exception. No specific format is needed, and many vendors collaborate on its creation, but never expect them to take the initiative and move a project forward. Also keep in mind that each product must have its own technical file, even if variations of the same product can be included in a single file.
Misconception n°3: The supplier knows which EN directives apply to our products
No, most providers don’t have a clue. Even among manufacturers who trade predominantly with the European Union, there is limited understanding of which “CE marked directives” apply. As a result, many suppliers can only produce documents attesting to partial compliance, i.e. compliance with some, but not all, of the regulations in force.
Misconception n° 4: My products are CE marked, why should I worry?
The CE marking is only a mark of conformity. However, the European importer must keep the necessary documentation for a minimum of 10 years. There are a lot of poor quality and sometimes dangerous products that have the CE marking – but the label itself is worthless without the proper documentation. What you need to take into account is the following:
- Which EU directives apply to our products?
- Do we have all the documentation?
- In addition to the CE marking, are there any other EU labelling requirements applicable to the product?
Misconception n°5. Third-party testing and certification are not mandatory for our products. We can then trust the supplier to produce all relevant documentation.
In our interview with Han Zuyderwijk, he stated that 90% of all products can be “self-certified”. This means that a supplier is authorized to issue a declaration of conformity, without submitting the product to a third party company for conformity testing. This should make the life of importers much easier. Simply tell the supplier to issue a Declaration of Conformity (DoC) and test on-site. Yes, in theory, everything could work, if it weren’t for the fact that very few suppliers have the experience and adequate equipment to carry out the required tests. After all, these test reports are mandatory attachments to the technical file.
As a result, you must rely on a third-party testing company when developing the CE technical file. In the end, you don’t have to allow your supplier to make judgments about their products, even if they have the necessary skills and equipment.
Misconception No. 6: My supplier cannot guarantee compliance with a certain directive. Despite this, for years he exported goods to companies in the European Union without problems. Why should we listen to you instead of our supplier?
We often hear this objection raised. We hope to hear less and less of it, after the current tightening of controls on unsafe electronic components. But let’s get back to the main topic. Many importers assume that there are no regulations in place, simply because their competitors don’t care about ensuring compliance. Many Chinese suppliers make the same reasoning: none of our buyers have ever requested this type of procedure before, why should we worry now?
What you need to understand first of all is that there is no overall application of all regulations. There are regulations developed, firstly, in a European context, rather than for international trade based on contacts made through Alibaba and Globalsources. In practice, this means that customs do not check every single shipment.
Although we do not have data on the number of shipments that are actually checked, we are receiving an ever-increasing number of reports from importers who see their goods seized by the customs of the various member states of the European Union, simply because of the lack of compliance documents for the CE marking. However, the fact that most shipments still “pass the check” is regarded, by both suppliers and importers, as a signal that the CE marking of conformity is not something that should be taken seriously.
Conclusion
I agree that the application of the regulations is not homogeneous. I agree that the picture is overly complex and that the legislation needs to be adapted to today’s conditions (noteworthy is that the CE marking was made in the 90s, which does not make it that old, but things evolve quickly). However, my opinion and yours will carry little weight on the day your product is seized because it is non-compliant. In reality, the big risk is not to have the goods seized by customs. By far the greatest risk is that the products may cause fire or personal injury. If this happens and if it turns out that your company has sold illegal and non-compliant goods, you will not only face the seizure of the goods, but you will also have to face a lawsuit for millions of euros.
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