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What is the most common mistake in determining who the supplier is?

Companies often assign the role of supplier based on intuition rather than on the definition in the regulation. This results in a passport that is missing, duplicated, or held by the wrong party.

The most common mistake in determining who the supplier is, is that companies assign the role based on who is most visible to the consumer — usually the brand on the label — instead of on what the regulation actually establishes. Who places the product on the EU market, who has it manufactured, and who sells it under their own name, are three different positions that do not automatically coincide with who has the most recognizable name.

The consequence of that confusion is concrete: a passport that no one compiles because everyone thought someone else was responsible for it, or conversely two parties who both think they are the supplier and independently submit data. Both situations result in no functioning passport, and both can be prevented with half an hour of prior consultation.

Why this mistake occurs so often

In the practice of SMEs, roles overlap. An importer has clothing manufactured in a factory outside the EU, sells under its own brand name, and supplies a retail chain that presents it as its own collection. Which of these three is then responsible for the product passport? The regulation distinguishes roles such as manufacturer, importer, authorized representative and distributor, and links obligations to them. That categorization is not the same as the role distribution set out in a trade contract, and neither is it the same as who is most recognizable as the selling party.

In private label this is even more explicit. A principal who has a collection made and sells it under their own name sometimes assumes that the role automatically remains with the manufacturer or the importer. That is an assumption, not an established fact. Who exactly fulfils which role depends on the actual situation and is described in the regulation itself; anyone in doubt about their own position would be wise to ask a lawyer or the competent supervisory authority. A first orientation on the concepts can be found in the knowledge base with the roles set out.

What goes wrong if the role has not been established

If no one in a chain has documented in writing who fulfils the role of supplier, two recurring problems arise. The first is a missing passport: each party assumes that another party will submit the data, and no one does. The second is duplicate work: two parties independently submit data, with the risk of contradictory information about the same article. Both situations are more troublesome to correct afterwards than to prevent beforehand.

In addition, the role distribution also has consequences outside the passport itself. The same question — who is responsible for what comes onto the market — also applies to product safety, and supervisors look at the actual role during an inspection, not at who is on the invoice. A role that has been well-chosen for the passport thus also helps with other obligations that already existed.

How to establish the role correctly

The core of the solution is simple to formulate, even if the implementation is sometimes more difficult: establish who fulfils which role, and do so in writing, per product line or per supplier if the situation differs per collaboration. This need not be complicated — a short paragraph in the purchase contract stating who submits the data for the passport and who verifies it already prevents much confusion. For companies that sell through multiple channels or in multiple EU countries, it is even more important to review this per collaboration, because the actual situation may differ per partner.

A good first step is to determine where your company likely stands in the chain, before you have that conversation with suppliers or customers. With a few questions that clarify your situation you will receive an indication, free of charge and without obligation. Answers to frequently asked questions about roles and responsibilities are collected at the questions that other entrepreneurs asked us.

Once you know which role applies, you can also better assess what data is needed and where it should come from. This saves time when compiling the product passport itself, and prevents you from having to request data afterwards from a party that is not prepared for it. Read more about how that data makes its way to the product passport at the explanation of how the information is compiled.

None of the above is a statement about your specific situation: the actual allocation of roles in a chain may differ per collaboration, and the regulation itself remains the starting point. If in doubt, a lawyer or the competent supervisory authority is the appropriate party to assess that.

Would you like to get an impression yourself before you have that conversation? The free quick-scan gives a first direction in a few minutes, and the knowledge bank helps you further understand the concepts that are relevant to your business.

This article is general information and not legal advice.