News Content

Online purchases bring legal risk to forwarders' pick 'n pack operations

FORWARDERS are at legal risk if distributing for a manufacturerw outside the EU, which could also affect forwarders that undertake "pick and pack" operations.

London solicitors Pysdens have issued a statement detailing how Trading Standards Authorities can pursue a UK firm acting on behalf of a party outside of the UK, if an item handled by the forwarder adversely affected the end user.

This could happen if the forwarder was the only party within the EU handling goods causing the problem, notes the newsletter of the British International Freight Association.

Pysdens warned forwarders who import, pick, pack and supply products direct to consumers of the EU's General Safety of Products Directive ("GPSD") 2001/95/EC now British law, can lead to unexpected liabilities.

"Under the relevant legislation 'producer' includes the manufacturer (where established in the EU); and any person who presents himself as manufacturer by affixing his name to the product or reconditions it," said the Pysdens release.

"It also includes their representatives where they are not established in the EU, or if there is no representative established in the EU, the importer of the product," it said.

The growing risk arises from increasing online purchases, when the forwarder by having offices in the country of delivery where the manufacturer or agent does not, the forwarder becomes the "importer".

Pysdens continues: "It also includes other professionals in the supply chain insofar as their activities may affect the safety properties of a product.

"With the advent of website purchasing where delivery is included both forwarders and couriers are becoming involved in direct delivery of goods from abroad to the consumer and end users and this is where they may be caught by the Product Safety legislation, particularly where they are the only party responsible for the goods before the consumer receives them in the EU," the release said.

Manufacturers from outside the EU use forwarders to import, store, assemble pick and pack direct to customers.

"In the EU and it is in this situation that the forwarder becomes the only party in the EU capable of taking responsibility for supply to the customer," said the release.

"Therefore the forwarder is caught through the definitions of 'producer' and 'distributor' in that they are the importer because they are bringing the goods into the country to make available to the consumer and end users and they are in the supply chain that supplies the product to the consumer and end users even though their activity does not affect the safety properties of the product.

"One last word of warning," said Pysdens. "The GSPD is interlinked with many other EU directives concerning goods such as those dealing with dangerous goods; pharmaceutical products; food and toys. The EU is in the process of trying to bring harmonisation to the disparate array of legislation in this area.

"A product Safety and Market Surveillance package is being proposed that will harmonise the legislation and standardisation of testing so that there will be a register of testing to avoid testing being carried out more than once on the same product in different EU countries," said the Pysdens statement.