The UK Parliament has recently invited businesses, importers and exporters to share evidence on digital product records.
The aim is to better understand their potential impact on businesses, consumers and supply chains.
Similar systems have already been widely adopted across the EU, where they are more commonly known as digital product passports.
For businesses that trade internationally, it is important to understand how these changes may affect compliance and what steps they should take to prepare.
What is a digital product record?
A digital product record, commonly known as a digital product passport, is an online data set that is linked to a physical product. This can be done through something such as a QR code.
Digital product records allow businesses to track a range of information about a product throughout its lifecycle. Some of these include:
- Product identification – Digital records allow businesses to keep track of serial and batch numbers, which are scanned via a simple label.
- Material composition – The materials used can be tracked, allowing businesses to track environmental impacts and giving consumers insight into recycling methods.
- Ownership – They can track the ownership history of a product. They can validate ownership and facilitate resale.
- Compliance documentation – The information includes all necessary compliance information such as declarations of conformity.
- Origin and manufacturing – Details about where the product was made as well as supply chain data, making the customs processes easier.
This process has already been widely implemented within the European Union and is proving to be a success.
The clear product data allows commodities to be passed across borders much more easily. Customs officers can instantly scan digital identifiers, see clear compliance data and check commodity codes electronically.
What may this mean for British businesses?
For British businesses, the introduction of digital product records could create both new compliance requirements and opportunities to improve how product information is managed.
Businesses exporting to the EU may already be affected by requirements around digital product passports, particularly in sectors where new EU sustainability and product information rules are being introduced.
Even where there is no immediate legal requirement in the UK, businesses should consider how these systems could affect their international supply chains.
If customers, suppliers or overseas regulators require more detailed product information, businesses may need to have the right data readily available.
This could also place greater responsibility on businesses to ensure that product information is accurate, consistent and easy to access.
Companies that rely on information being held across different systems or by different teams may find it more difficult to respond quickly to new requirements.
For businesses that trade regularly with the EU, preparing early could therefore help avoid unnecessary disruption and additional costs further down the line.
How can you prepare?
Businesses should start by reviewing what product information they currently hold and where that information is stored. This can help identify any gaps before new requirements come into force.
It is also worth considering how product data is collected across the supply chain.
Information about materials, manufacturing, compliance and product origins may come from several different suppliers, so having a clear process for collecting and checking this information will become increasingly important.
Businesses should also keep an eye on developments in both the UK and EU. Requirements are likely to develop over time and may differ depending on the product or industry.
For businesses that import, export or operate across borders, early preparation can make the transition much easier.
Ensuring product information is accurate, accessible and properly managed now could help businesses respond quickly as digital product records become more widely adopted.
How can we help?
Keeping up to date with Government guidance can be tricky, but preparing for potential changes can ease the effect once they come into place.
Our team here at Reanda are here to support businesses with ongoing regulatory changes. We can advise on compliance to ensure that your business is abiding by international laws.
For support with digital product records, get in contact with our team today!