Packaging and labeling are not just about wrapping a product. They play a big role in global shipping. The right packaging protects the item. The right label avoids problems at customs. Both are needed to ship across borders.
In global trade, mistakes in packaging or labeling can cause delays. A small error on a label can stop a shipment for weeks. Damaged packaging can lead to returns or even legal fines. These problems cost time and money.
Large companies usually have full teams for packaging and compliance. Small and medium-sized businesses (SMEs) do not. Many SMEs don’t have in-house experts or legal support. They may also rely on suppliers who don’t know global rules. That leads to packaging that does not meet the law.
This guide is for SMEs that export or plan to export. It explains five of the most common packaging and labeling problems. It also gives real solutions that do not cost a lot. You will also find a free checklist, expert quotes, and links to helpful tools.
This is not theory. This is what actually works in 2025.
In 2025, the importance of packaging and labeling in global trade has increased due to stricter international regulations. Organizations such as the World Trade Organization (WTO) and agreements like the United States-Mexico-Canada Agreement (USMCA) have introduced specific requirements for packaging materials and labeling standards.
For instance, the WTO’s Technical Barriers to Trade (TBT) Agreement includes a “Code of Good Practice for the Preparation, Adoption and Application of Standards” for voluntary environmental labeling schemes . Similarly, the USMCA outlines detailed provisions regarding packaging materials and containers used for retail sale .
The European Union’s Green Deal has also led to the implementation of the Packaging and Packaging Waste Regulation (PPWR), aiming to ensure that all packaging is reusable or recyclable by 2030 . These regulations are designed to minimize environmental impact and promote sustainability.
Non-compliance with these regulations can result in significant consequences, including customs delays, product returns, and financial penalties.
For example, the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) has increased civil penalty amounts for violations of certain regulations, effective December 28, 2023. Such penalties highlight the financial risks associated with non-compliance.
Furthermore, the European Union has mandated that all packaging be marked with an EU-harmonized label containing information on its material composition . This requirement aims to facilitate waste separation and recycling, reflecting the EU’s commitment to environmental sustainability.
For small and medium-sized enterprises (SMEs), these evolving regulations present challenges in ensuring compliance. Understanding and adhering to the diverse packaging and labeling requirements across different markets is essential to avoid operational disruptions and financial penalties.
Small and medium-sized enterprises (SMEs) face several challenges in packaging and labeling within the global supply chain. Addressing these challenges is crucial for compliance and operational efficiency.
3.1. Navigating Inconsistent International Standards
Packaging and labeling regulations vary across regions. The United States employs a decentralized approach, with a mix of federal guidelines and state-specific programs.
In contrast, the European Union enforces standardized regulations across member states. Asia presents a diverse regulatory environment, with each country maintaining its own set of rules.
This lack of uniformity complicates compliance for SMEs. To manage this, SMEs should consult official export regulation databases for each target market. Resources such as the U.S. Fair Packaging and Labeling Act and the EU’s packaging regulations provide essential information. U.S. Customs and Border ProtectionLinkedInAPA Engineering |
3.2. Non-Compliant or Missing Labels
Errors in labeling, such as missing country of origin, incorrect language translations, or absent hazard symbols, can lead to shipment rejections. For instance, the WTO has addressed disputes related to country of origin labeling, highlighting the importance of accurate labeling in international trade.
To prevent such issues, SMEs must ensure labels meet all destination country requirements, including accurate product descriptions, proper translations, and necessary safety symbols.
3.3. Over-Packaging or Inefficient Materials
Excessive packaging increases shipping costs and environmental impact. A case study demonstrated that using a strapping machine to combine packages reduced shipping costs by 34%. SMEs should assess their packaging strategies to eliminate waste and consider sustainable materials.
Adopting efficient packaging solutions can lead to cost savings and support environmental sustainability.
3.4. Lack of In-House Packaging Expertise
Many SMEs rely on generic packaging suppliers, risking non-compliant or poorly designed packages. Engaging packaging consultants can help navigate complex regulatory requirements and ensure packaging meets all relevant standards. Investing in expert advice can prevent costly compliance issues and enhance packaging efficiency.
3.5. Delays Due to Customs Hold or Labeling Discrepancies
Minor errors, such as incorrect barcodes or missing labels, can result in customs holds, delaying shipments by weeks and potentially leading to contract penalties or lost clients. Incomplete or inaccurate documentation can lead to delays, fines, and penalties, disrupting the entire shipping process.
To avoid such setbacks, SMEs should implement rigorous quality control measures and ensure all packaging and labeling comply with international standards.
Addressing these challenges requires a proactive approach, including staying informed about international regulations, investing in expert consultation, and adopting efficient packaging practices. By doing so, SMEs can enhance their competitiveness in the global market.
4. Low-Cost, High-Impact Solutions for SMEs
Many SMEs think compliance is expensive. That’s not true. You don’t need a big budget. You need smart tools and repeatable systems. Below are simple, low-cost ways to avoid mistakes and stay compliant.
Use Free Government Tools and Databases
Governments offer many tools online. These help SMEs check rules for labels and packaging in each country.
Top sites to bookmark:
- Export.gov (USA): Guides for labeling, product codes, and shipping.
- Trade Commissioner Service – Canada: Free resources for Canadian exporters, including packaging tips.
- EU Access2Markets: Info on packaging laws in every EU country.
These tools are free. They update often. Use them before exporting to a new market.
Work with Packaging Compliance Consultants
You don’t need to hire a full-time expert. You can pay for one review. Many consultants offer flat-rate services. These include compliance audits and packaging reviews.
Ask for this:
- One-time label audit
- Flat-fee packaging compliance checklist
- Quick feedback for each target market
This prevents costly errors before shipping.
Use AI or SaaS Tools for Labeling
Affordable software can help automate your labeling process. Some tools offer ready-to-use templates based on the destination country.
Try these tools:
- Specright: Helps track packaging specs and compliance data.
- GS1 Canada: Offers barcode generation and label guidance based on Canadian trade rules.
These tools save time. They reduce human error. They also keep your data organized.
Standardize Internal Packaging SOPs
Make a step-by-step guide for packing and labeling. Use the same process for every shipment. This cuts down on mistakes.
Your SOP should include:
- Who checks the label
- What documents must be printed
- Where to put hazard symbols or barcodes
- When to run final inspection
Bonus: Create a one-page SOP. Tape it inside your packing room. Train every team member on it.
You can also build a digital version in Google Docs. That way, every team member can view and follow it easily.
5. Global Packaging Compliance Checklist (Free Download)
This checklist helps small exporters avoid costly mistakes. Use it before every international shipment. Print it. Share it. Tape it to your warehouse wall. This will keep your process fast, clean, and compliant.
Packaging & Labeling Compliance Checklist for SMEs
1. Label Accuracy
☐ Does the label show the correct product name and code?
☐ Is the country of origin printed on the label?
☐ Are all legal disclaimers or warnings included?
2. Language Requirements
☐ Is the label translated into the destination country’s official language(s)?
☐ For Canada: Is your label in both English and French?
3. Safety Symbols & Icons
☐ Are hazard symbols (flammable, fragile, toxic, etc.) printed clearly?
☐ Are the symbols based on international standards (ISO, GHS, etc.)?
4. Barcode Standards
☐ Is the barcode correct and scannable?
☐ Does the barcode format meet your importer’s requirements (e.g. GS1)?
☐ Is the barcode label placed where customs expects it?
5. Shipping Dimensions & Weight
☐ Does the package size fit freight limits (air, sea, courier)?
☐ Is the box strong enough for international handling?
☐ Is your packaging material optimized to reduce shipping costs?
6. Regulatory Documents
☐ Are product specs, safety sheets, and customs forms attached?
☐ Are the labels and packing list matching the invoice?
☐ Are green compliance markings (e.g., recyclable icons) included if required?
7. Packaging Materials
☐ Are you using approved materials for food, medical, or chemical goods?
☐ Is your filler or insulation material legal in the destination country?
8. Quality Checks
☐ Did someone inspect the label and packaging before sealing?
☐ Is there a final sign-off before the shipment leaves?
Final Thoughts
The risks are high. One label mistake can hold up your shipment. The wrong box can lead to damage, delays, or lost business. Many SMEs face these issues every day—but they don’t have to.
You don’t need to hire a big compliance team. You don’t need expensive software. What you do need is a repeatable process and trusted resources.
Use free government tools. Stick to a checklist. Train your team to follow clear steps. Ask for expert help when you’re unsure.
And when it’s time to source reliable packaging that meets shipping, branding, and compliance needs—work with experienced providers like Crownhill Packaging, who support businesses across North America with scalable, high-quality packaging solutions.
Start small. Fix one thing at a time. That’s how SMEs reduce risk and ship with confidence.
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Article and permission to publish here provided by Mahbub Murshed. Originally written for Supply Chain Game Changer and published on April 4, 2025.
Cover image provided by Mahbub Murshed.