Yesterday, October 12, 2026, the EU Environment Council met. A key item on the agenda was a recent proposal from Austria, the Czech Republic, and Estonia. These countries are calling for a proportionate EPR system for small manufacturers in the single market. The focus is on the highly controversial requirement to appoint a separate authorized representative in every EU target market.
The Current Reality for E-Commerce
- Since August 12, 2026, the authorized representative requirement has been in effect for foreign retailers. Without representation, retailers face sales bans and cease-and-desist letters.
- High costs: Fees ranging from 199 to 599 euros per country completely erode margins on small parcel volumes. As a result, the first retailers are halting EU shipments or considering closing their businesses.
- A U-Turn on the Deferral?
On October 9, 2026, the European Parliament’s Environment Committee (ENVI) published its proposals for a directive under negotiation, which provide for a suspension of the authorized representative requirement until January 1, 2035, for micro and small enterprises. This sets the thresholds at a maximum of 50 employees, a maximum annual turnover of 10 million euros, or a maximum annual balance sheet total of 10 million euros, limited to companies based in the EU.
As things stand, the Parliament is scheduled to consider the proposals in first reading on October 19, 2026.
Quantity vs. Size Logic
- The German proposal: The Federal Ministry for the Environment called for a de minimis threshold of 10 metric tons of packaging per year. Those falling below this threshold would not be required to appoint an authorized representative.
However, this proposal—based solely on quantity—was rejected in Brussels. - The current compromise: Brussels is now focusing primarily on the aforementioned company size. The German Retail Association (HDE) supports this relief for small European businesses but, like many trade associations, emphasizes that the requirement for an authorized representative must remain in place for manufacturers from third countries (e.g., China) to prevent unfair competition.
EPR obligations remain in place regardless
Even if a relaxation of the authorized representative requirement is approved, the fundamental EPR obligations will not be eliminated:
- Registration as a manufacturer in the respective national registry
- Reporting the quantities of packaging placed on the market
- Payment of national EPR fees
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