Trade in steel and related products is a lucrative business internationally for years.
Our office receives many enquiries from entrepreneurs who are interested in trading this raw material on the foreign market. In this article, we will talk about the introduction of steel and more specifically rebar to the German market. We will address a number of issues related to the legal regulation of the steel trade and point out the most important legal aspects faced by our clients.
Are rebars considered construction products?
Two definitions of construction products apply within Germany. According to the general provision of the Building Act, construction products are articles, building materials, components and systems, as well as kits, which are created for permanent installation in building structures (building and civil engineering structures) and whose use may affect the structural requirements. Construction products also include prefabricated structures formed from building materials, components and kits that are designed to be connected to the ground.
According to Regulation (EU) No 305/2011 of the European Parliament and of the Council of 9 March 2011, a construction product is any product permanently connected to a structure or building which affects the performance of that structure or building, with the exception of electrical or electronic products.
Supervision of construction products in Germany is exercised by, among others. Deutsches Institut für Bautechnik (DIBt). The German Building Research Institute is responsible for the assessment, certification and supervision of the quality and regulatory compliance of construction products.
DIBt-certified reinforcement-related products include, among others, reinforcing bars, reinforcing mesh, reinforcing bands, reinforcing wire and various reinforcing components such as dowels, brackets or clamps.
To summarise the above, it is indisputable that rebar should be considered a construction product.
Are you a manufacturer, importer or perhaps a distributor?
According to the legislation, the manufacturer of a construction product is the natural or legal person who produces such a product for installation in buildings, manufactures or commissions its development or production and sells the product under its own logo or name.
If the construction product is manufactured in a country outside the EU, according to the EU regulation, the manufacturer is the person who:
(a) is located in the EU, EEA or another country covered by the Regulation, sells the product under its own logo or name and manufactures the product itself in a country outside the EU or has it developed or manufactured in that country;
b) is located in a non-EU country, sells the product under its own logo or name and manufactures the product itself in a non-EU country or has it developed or manufactured in that country.
An importer, on the other hand, is a natural or legal person established in the EU who places construction products from a non-EU country on the EU market, i.e. who supplies them for the first time.
A distributor (seller) is a natural or legal person in the supply chain, other than the manufacturer or the importer, who makes a construction product available on the market, that is, provides it for sale or use on the Union market, whether in return for payment or free of charge.
What obligations does the seller have?
Before a construction product is placed on the retail market, the retailer must ensure that it bears the CE marking. The product should be accompanied by the documents that are required by EU construction product legislation. In particular, the performance information should be available in German. In addition, the product should bear the type, batch or serial number, as well as the manufacturer's name, logo or trademark and contact address, which may be displayed on the product itself, the packaging or accompanying documents.
What responsibilities does the producer have?
The primary obligation of the manufacturer is to prepare the declaration of performance and to draw up the technical documentation which forms the basis for the declaration of performance. The manufacturer should also affix the CE marking on the construction product to allow for identification. Furthermore, the manufacturer must indicate his name, registered trade name or trademark and contact address on the product, possibly on the packaging or accompanying documents.
The manufacturer must keep the declaration of performance and the technical documentation for a period of ten years after the product has been placed on the market. If necessary, the manufacturer shall carry out tests on random samples of products on the market or available on the market and take appropriate corrective actions if there is a substantiated suspicion that the construction product placed on the market is not in conformity with the declaration of performance or not in compliance with other requirements of the EU Regulation.
In addition, the manufacturer is obliged to provide certain information to the national authorities, including:
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technical documentation,
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declaration of performance,
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instructions for use and safety information,
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where applicable, the certificate of constancy of performance or the certificate of conformity of the factory production control and the test reports for the first tests.
The role of the retailer as a producer's responsibility:
The obligations of the manufacturer are transferred to the seller in situations where the seller:
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manufactures construction products and sells them under its own logo;
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markets an already manufactured construction product under his name or trademark;
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modifies an already marketed construction product in a way that affects the content of the declaration of performance of construction products.
In the absence of a declaration of performance or if the declaration is incorrect, the construction product does not meet the EU requirements. The vendor may not place such a product on the market. The seller must also provide customers with the correct declaration of performance.
In the event of a risk related to a construction product, distributors are obliged to inform the relevant national market surveillance authorities (DIBt) immediately.
It is important to remember that the assessment of possible risks associated with a construction product always requires an individual approach. Often the retailer is not in a position to carry out a full risk assessment, so it is recommended to report detected irregularities to the relevant market surveillance authorities.
Sanctions imposed for violations:
The German building supervisory authority may impose administrative penalties on the manufacturer or distributor of a construction product in the event of:
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lack of a certificate of conformity with the standards or possession of an incorrect certificate,
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failure to comply with safety and health requirements,
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the provision of incorrect product information or the absence of relevant technical documents,
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failure to comply with the requirements for the marking of the construction product.
Fines can be imposed on the manufacturer as well as on importers and distributors who introduce the product in Germany. The amount of fines depends on the severity of the infringement and can range from several thousand to several million euros. In addition, in the case of serious infringements, the German authorities may take legal action, including a ban on trading in Germany.
In summary, the introduction of rebar into the German market is not a simple process. Only some of the problematic issues have been described above. If you are interested in marketing this type of product on the German market, please contact us. We will be happy to analyse the legal aspects and support you in legally entering the German market.
