UK small sellers face EU packaging fees

UK sellers shipping goods to the EU now face annual compliance fees of €300 to €1,100 for each country they sell to. These costs apply regardless of a business's size or sales volume.

The majority of the EU's Packaging and Packaging Waste Regulation (PPWR) took effect on August 12, 2026. The initial rules focus on registration and paperwork, not the physical packaging changes many anticipated.

What the new rules require

Businesses must now register with each EU state's Extended Producer Responsibility (EPR) scheme individually. Most states also require sellers to appoint an in-country authorised representative to handle registration. The rules for recyclability and labelling do not apply until 2028 to 2030.

Sophie Ashley, Head of Marketing at Parcel2Go, clarified the distinction. "What kicked in on 12 August is the compliance side, registration," she said. "The bit everyone pictures when they hear 'packaging regulation', recyclability, labelling, changing materials, is still years off."

Lee Bryan, founder of Arcus Compliance, warned sellers against premature action. "If you are redesigning your outer packaging this month against numbers that do not exist yet, you are guessing with your own money," he said.

Why small businesses are disproportionately affected

The fixed fee structure is the core problem for small sellers. Compliance costs are charged per country, not per parcel or based on revenue. This means a microbusiness pays the same fee as a large corporation for market access.

"Forty parcels a month costs roughly what forty thousand costs," explained Lee Bryan. "Compliance has stopped scaling with revenue and started scaling with the number of flags on your shipping map."

Natasha Dauncey, founder of Apothaka Skincare, confirmed the impact. "Even if I just send a few parcels a year to EU markets, I'm now faced with registration fees of 300-1100 Euros per market per year, plus authorised rep fees," she said. "These fees are the same whether you're a solo-run business or a massive corporation, which is inherently unfair."

The burden is forcing difficult decisions. Many small sellers are scaling back EU trade or leaving the market.

Automated enforcement and market retreat

Non-compliance carries a direct risk of delisting. Marketplaces and fulfilment providers are required to verify seller registration before allowing trade.

"Marketplaces have to check that a seller is registered before they can trade, and fulfilment providers sit in the same chain," said Lee Bryan. "What that produces is not a fine, it is a delisting. No warning, no negotiation, no inspection."

This automated enforcement is causing a retreat. "Most microbusinesses have had to stop shipping to the EU as they simply can't afford the cost," stated Natasha Dauncey. An irony exists in the timing. The EU is discussing exempting EU-based micro businesses from requiring an authorised representative, but this relief is unlikely to extend to UK sellers.

Strategies for managing the new rules

Experts advise a strategic approach rather than a full retreat. Lee Bryan recommends focusing on key markets. "Pick the three or four countries that actually pay, register there, appoint there, and stop dribbling single orders into another twelve where you will never recover the fixed cost," he said.

For sellers with significant volume, shifting legal responsibility to an EU-based partner can be more affordable. "For anyone with real volume, it is usually cheaper than running 27 relationships," Bryan explained.

The final advice is to analyse the numbers before acting. If EU sales are a small, scattered portion of revenue, leaving may be sensible. If a few key markets drive consistent income, absorbing the fixed costs may be worthwhile. Sellers should prioritise registration and declarations before considering any packaging redesign.