The European Parliament has supported proposals to ease cross-border administrative requirements for smaller textile and footwear companies, while retaining their financial responsibilities under extended producer responsibility rules.
The European Parliament has backed proposals to reduce administrative requirements for small textile and footwear businesses operating across the European Union, in a move intended to simplify compliance without weakening producers’ responsibility for waste. Adopted on 20 October 2026, the Parliament’s position would temporarily remove the obligation for eligible EU-based businesses to appoint an authorised representative in every member state where they sell products.
The measure forms part of the European Commission’s Environmental Omnibus simplification package and addresses a growing concern among smaller companies: the cost and complexity of complying with different national systems under extended producer responsibility (EPR) rules. For independent fashion labels, footwear producers and emerging brands seeking to expand across European markets, the proposed changes could reduce an administrative burden associated with cross-border trade.
The Parliament supported the proposal covering textiles, footwear, electronic equipment and certain single-use plastic products by 612 votes in favour, eight against and 39 abstentions. However, the decision establishes the Parliament’s negotiating position rather than introducing an immediate exemption. The final legislation remains subject to agreement with EU member states.
Reducing Administrative Barriers Without Removing Waste Responsibilities
Under extended producer responsibility frameworks, companies placing products on the market are required to contribute towards managing those products when they become waste. In the textile sector, this includes financing collection, sorting and recycling systems, reflecting the principle that producers should share responsibility for the environmental consequences of the goods they sell.
Cross-border compliance can introduce additional complexity. Businesses selling into several EU countries may be required to appoint an authorised representative in each relevant market to fulfil obligations under national waste legislation. For smaller companies with limited administrative resources, maintaining these arrangements can create costs that are disproportionate to the scale of their operations.
The European Parliament’s proposed suspension would apply specifically to micro and small enterprises established within the EU, defined as businesses with fewer than 50 employees and annual turnover or an annual balance sheet total below €10 million. Medium-sized and larger companies would remain subject to the existing requirements, as would businesses established outside the European Union.
Importantly, the proposed relief concerns the appointment of authorised representatives, not the underlying environmental obligations. Eligible businesses would still be required to meet applicable producer responsibility requirements, including waste-prevention obligations and financial contributions to waste-management schemes.
The Parliament has proposed maintaining the suspension until 2035 or until a broader EU legislative framework on the circular economy is adopted, whichever occurs first. The European Commission is expected to propose a comprehensive Circular Economy Act before the end of 2026, although the timing of its eventual adoption remains uncertain.
Dutch MEP Ingeborg ter Laak, the Parliament’s rapporteur on the proposal, emphasised that simplifying compliance should not undermine environmental ambitions.
“We must reduce unnecessary administrative burdens without compromising our environmental ambitions.”
Her remarks, translated from the European Parliament’s Portuguese-language press release, underline the distinction between reducing bureaucracy and removing environmental accountability. Ter Laak also stressed that companies must continue taking responsibility for the waste associated with their products, while avoiding unnecessary obstacles to commercial growth within Europe.
The Parliament has called for improved information-sharing between member states, interoperable digital systems and more consistent reporting requirements. These proposals address a broader issue within the EU’s regulatory landscape: businesses operating across several countries may be required to submit similar information through separate national systems, despite complying with legislation based on common European principles.
What the Proposal Means for Europe’s Fashion Industry
For smaller fashion businesses, the proposed changes could have practical implications for expansion within the European market. Independent designers and emerging labels increasingly sell directly to consumers through e-commerce, allowing them to reach customers across borders without establishing physical retail operations in every country.
Yet digital access to international markets does not eliminate regulatory obligations. Companies must still navigate national requirements covering product compliance, consumer protection and waste management, creating administrative demands that can be particularly challenging for businesses operating with small teams.
Removing the requirement to appoint multiple authorised representatives could simplify one aspect of this process, although the financial benefits will depend on the final legislation and the compliance arrangements already in place. The proposal does not exempt smaller businesses from extended producer responsibility fees or the environmental obligations associated with placing products on the market.
The initiative also comes as the European textile sector prepares for broader changes to waste management. Revised EU waste legislation establishes a framework for textile extended producer responsibility, requiring producers to contribute towards the collection, sorting and treatment of discarded clothing and other covered textile products.
These obligations are intended to strengthen the infrastructure supporting textile reuse and recycling, while shifting more of the financial responsibility towards companies placing products on the market. The latest simplification proposal does not reverse that direction. Instead, it reflects an effort to distinguish between environmental responsibilities and the administrative mechanisms used to enforce them.
The distinction is particularly relevant for smaller sustainable fashion businesses, which may support stronger environmental standards but lack the resources available to larger companies for managing complex regulatory requirements. A more consistent approach across member states could make compliance easier to navigate without reducing the funding available for waste collection and recycling.
Nevertheless, questions remain about implementation. The final provisions will depend on negotiations between the European Parliament and EU member states. According to the Parliament’s announcement, negotiations can begin once the Council of the European Union has adopted its position.
The wider Environmental Omnibus package also includes proposed changes affecting packaging and batteries, which were considered in a separate parliamentary vote. Together, these measures reflect a broader effort to simplify aspects of EU environmental legislation while preserving its underlying objectives.
For the fashion industry, the significance of the parliamentary decision extends beyond a single administrative requirement. It reflects the challenge of designing environmental legislation that supports circularity while remaining workable for companies of different sizes.
As the EU develops its wider circular economy framework, the effectiveness of its textile waste policies will depend not only on the responsibilities imposed on producers, but also on whether compliance systems are proportionate, consistent and accessible across the single market.
European Parliament — Waste: MEPs Support Simplified Rules for Small Businesses
