Proposed EU legislation would ease cross-border administration for small European businesses while preserving textile waste management fees and existing environmental responsibilities.
The European Parliament voted on October 20, 2026, to simplify administrative requirements under extended producer responsibility (EPR) rules for small businesses selling textiles, footwear and other regulated products across EU member states.
The proposal, approved by 612 votes to eight, with 39 abstentions, would suspend the requirement for eligible companies to appoint an authorised EPR representative in every member state where they sell covered products.
Relief Restricted to Small EU Companies
MEPs narrowed the European Commission’s original proposal to businesses established in the EU with fewer than 50 employees and annual turnover or a balance-sheet total below €10 million. The exemption would remain available until 2035 or until broader circular-economy legislation supersedes it.
Importantly, the proposal does not eliminate producers’ financial contributions towards textile collection, sorting and recycling, or their other EPR obligations. Parliament also called for harmonised reporting requirements, interoperable digital systems and improved information sharing between national authorities.
Non-EU Exporters Remain Outside the Exemption
The distinction matters for textile and garment exporters in Pakistan, Bangladesh and other manufacturing countries. Companies established outside the EU that directly place covered products on its market would not qualify for the proposed administrative relief.
However, contract manufacturers supplying EU brands are not automatically responsible for EPR compliance. Obligations depend on producer definitions and commercial arrangements.
Under the EU’s revised Waste Framework Directive, member states must establish textile EPR schemes by April 2028, introducing additional waste-management responsibilities for producers.
Final Legislation Still Pending
On October 21, EU governments adopted a separate negotiating position covering packaging, proposing relief for EU producers placing less than one tonne of packaging annually on another member state’s market. A corresponding Council position on textile EPR simplification remains outstanding.
The Parliament’s proposed exemption is therefore not yet law.
Textile brands and exporters should continue preparing product-volume, material-composition and market-placement records while monitoring legislative negotiations and the forthcoming EU Circular Economy Act.
