Philippine exporters may soon face stricter documentation and sustainability checks when selling goods to Europe as the European Union (EU) prepares to introduce the Digital Product Passport (DPP), a new system designed to track a product’s origin, materials and environmental impact.

The regulation will begin mandatory implementation between the first and second quarters of 2027, initially covering large batteries before expanding to other industries in phases, according to Tradelink Electronic Commerce Limited, a digital service provider assisting companies with compliance.

Philippine exporters affected

While the rule directly applies to European importers, suppliers from exporting countries such as the Philippines are expected to comply with the same data requirements.

Loren Gusto, sales officer of InterCommerce Network, said local businesses — particularly small and medium enterprises — should start preparing for the transition.

“While the obligations will primarily fall on EU importers, these requirements are expected to cascade to suppliers, including Philippine exporters. Early awareness and preparation will therefore be important,” she said in an email.

The Digital Product Passport, or DPP, is part of the EU’s sustainability agenda under the Ecodesign for Sustainable Products Regulation, a key policy within the bloc’s environmental strategy.

Digital identity for products

The system will function as a digital identity for products, storing standardized data about a product’s composition, environmental footprint, durability and recyclability throughout its lifecycle.

Information will be accessible through QR codes or near-field communication tags linked to an online database. Authorities in Europe will only recognize passports registered within official digital registry systems.

After the initial rollout for batteries in 2027, the requirement will expand to textiles in the same year and later to electronics by the fourth quarter.

Additional sectors such as construction materials, furniture and packaging are expected to follow between 2028 and 2029. By 2030, the system is projected to extend across industries including automotive, machinery and medical devices.

Compliance may pose challenges

Industry groups warn that compliance may pose challenges for smaller exporters because of the costs of certification, data management requirements and the need for digital infrastructure to handle product traceability.

Despite these hurdles, the initiative is expected to reshape global supply chains by requiring manufacturers and suppliers to disclose detailed product information to meet the EU’s sustainability standards.