EU Parliament Votes 612-8 to Exempt Small Firms from EPR Representative Rule

The European Parliament has voted 612 to 8, with 39 abstentions, to exempt small companies from appointing authorised representatives for extended producer responsibility (EPR, the rule obliging producers to fund collection and recycling of waste from their products) in every member state where they sell.

The exemption covers small textile and footwear producers, alongside packaging, electronics and single-use plastic products. It would apply to all EU-based businesses with fewer than 50 employees and an annual turnover or balance sheet below €10m, and would run until 2035 or until new circular economy legislation replaces it.

What changes for small suppliers?

Currently, a company selling into multiple EU countries must appoint a representative in each member state to manage EPR compliance, including financial contributions toward handling waste from its products. For a small Belgian knitwear maker shipping to five markets, that has meant five separate compliance arrangements.

The Parliament's position goes wider than the Commission's original proposal, which had suggested sector-specific suspensions. MEPs instead backed a horizontal exemption. The rapporteur, Ingeborg ter Laak, said: "For European companies to be able to grow and sell, unnecessary administrative burdens should be reduced without compromising our environmental ambitions."

She added: "It is clear that companies should take responsibility for the waste they produce, and that products need to be collected and recycled properly. We should reach these goals without creating unnecessary obstacles for the businesses we want to see succeed in Europe."

What survives the exemption?

The adopted position maintains all other EPR obligations. Small producers would still face waste-prevention duties and payment of relevant fees. The exemption removes a representation requirement, not the underlying financial responsibility for product waste — a distinction sourcing teams should note when auditing small EU vendors.

MEPs also called for:

• more effective information sharing between member states
• interoperable digital compliance systems
• harmonised reporting requirements across the single market

The Parliament stated these reforms are designed to ease operations for companies trading across borders.

What happens next?

The vote is a negotiating position, not final law. Trilogue talks with the Council and Commission will determine the final details of new waste rules affecting textiles, footwear, single-use plastics and other categories. The Council could narrow the exemption or alter the 2035 sunset date; nothing is settled until those negotiations conclude.

The measures sit inside the Environmental Omnibus package, an initiative aimed at simplifying environmental regulation while maintaining EU standards on health and sustainability. The package also covers industrial emissions, the circular economy, environmental assessments and geospatial data.

One thing the Parliament's position does not address: whether third-country sellers without an EU establishment gain any relief. The exemption as adopted covers EU-based businesses, so exporters appointing EU representatives appear unaffected — a gap the trilogue may or may not close.

The outcome of negotiations will determine how EU waste legislation applies to small businesses and could reshape both administrative processes and environmental compliance costs across the single market.