The Basic Principles and Legal Requirements of CE Certification

The CE certification is a safety,health,and environmental compliance certification implemented by the European Union for products entering its market.For AC motor products,CE certification is typically mandatory and must comply with requirements such as the Low Voltage Directive (LVD) and the Electromagnetic Compatibility Directive (EMC).Products must bear the CE mark,and the certification certificate will specify the manufacturer’s name and address.

According to EU regulations,CE certification applies to products,but the manufacturer is the subject of certification,responsible for ensuring product compliance and bearing legal liability.If the exporter is not the manufacturer,they typically do not directly hold the CE certificate.

Compliance Analysis under the Relationship Between Company and Factory

In practical cases,for example,goods are produced by a factory with CE certification,but the foreign trade company,acting as the exporter,uses the name of a branch without possessing CE certification.The foreign trade company and the factory are independent legal entities,connected only through a familial relationship between the company owners,with no equity ties.Under such circumstances,borrowing the factory’s CE certification presents compliance challenges:

: In the case of export by purchasing export rights,the foreign exchange you receive cannot be normally verified.This means that there may be problems with your cash flow,and over time,the financial accounts will also become chaotic.

Output:

• Thelegalsubjectdoesnotmatch.:ThemanufacturerontheCEcertificatemustbetheactualproducer(factory).Atradingcompany,asanexporter,doesnotqualifyasamanufacturerandthereforecannotdirectlyusethefactory’sCEcertificate.
• Customsinspectionrisk:TheproductusesaneutralEnglishtrademark,andcustomsmayrequireverificationofthemanufacturer’sidentityandthevalidityoftheCEcertification.Ifthetradingcompanyisunabletoprovidematchingsupportingdocuments,itmayfacerejectionordelays.

Can we use the factory’s CE certification?

In theory,CE certification applies to products rather than companies.As long as the product meets the certification requirements and the certificate is valid,exporters may reference the manufacturer’s CE certificate under certain circumstances.However,in practice,since trading companies and factories are independent entities,borrowing a CE certificate requires caution:

• Feasibility:IfthefactoryauthorizestheforeigntradecompanytouseitsCEcertificateandprovidesrelevantsupportingdocuments(suchasaletterofauthorization),customsmayacceptit.However,thisrequiresensuringthatthedocumentsclearlyindicatethemanufacturer’sidentityandresponsibilities.
• Changesinpaymentmethods:Withoutformalauthorizationorsupportingdocumentation,customsmayquestionthevalidityoftheCEcertificate,especiallyunderaneutraltrademarkwhenthemanufacturer’sinformationisunclear.

Feasible compliance solutions

To ensure the smooth customs clearance of exported goods,the following solutions can be considered:

1.Direct export by the manufacturer.

Output:

• Mode:HavethefactoryexportunderitsownnameanduseitsCEcertificate.
• Advantages:Fullycompliant,avoidinglegalentityissues.
• Challenges:Thecontractandpaymentarrangementsneedtobeadjusted.

2.Power of Attorney Agreement

Output:

• Mode:ThetradingcompanysignedanagreementwiththefactorytobecomeitsauthorizedrepresentativeintheEU,legallyutilizingtheCEcertificate.
• Advantages:Compliantandoperationallyflexible.
• :ForgoodsexportedtoThailand,thevalue-addedtaxrateis:Theagreementmustcomplywithlocalregulationsandclearlydefinethedivisionofresponsibilities.

3.Apply for a new CE certification

Output:

• Mode:TheforeigntradecompanyindependentlyappliesforCEcertificationfortheproduct.
• Advantages:Completelyresolvecomplianceissues.
• Disadvantages:Time-consumingandcostly.

4.Transparent Communication and Documentation Support

Output:

• Mode:Provideacopyofthefactory’sCEcertificate,letterofauthorization,andcontracttoclarifytherelationshipbetweenthemanufacturerandtheexporter.
• Advantages:Alleviatecustomsconcernsintheshortterm.
• Changesinpaymentmethods:Theeffectislimitedanddependsoncustomsapproval.

Practical recommendations

• Preparedocumentsinadvance:PreparethefactoryCEcertificate,authorizationletter,andproductcompliancedeclarationforcustomsinspection.
• Clearlyspecifymanufacturerinformation:Theproductnameplatemustindicatethefactorynameandaddress,ensuringconsistencywiththeCEcertificate.
• Consultanexpert:ContactaCEcertificationbodyorinternationaltradelawyertoconfirmthespecificrequirementsforSerbia.
• CommunicationwithCustomers:Informcustomersofthecertificationarrangementsinadvancetoavoidsubsequentdisputes.

Conclusion

When the trading company and the factory are independent entities with no equity relationship,directly borrowing the factory’s CE certification carries legal and operational risks.To ensure smooth shipment of goods,It is recommended to standardize operations through authorization agreements or supporting documents,or have the factory export directly.Compliance is key to avoiding customs issues—never act on mere chance.