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Beginning January 1, 2010, the European Union Council Directive 80/181/EEC1 (Metric Directive) will allow the use of only metric units, and prohibit the use of any other measurements for most products sold in the European Union (EU). Going well beyond labeling, the Metric Directive will make the sole use of metric units obligatory in all aspects of life in the European Union, extending to areas such as product literature and advertising.

Unless the Metric Directive is amended or the implementation date is extended, leaving U.S. customary units on a box or label will be illegal in the EU as of 2010. This will apply to labels, packaging, advertising, catalogs, technical manuals, and user instructions and end a longstanding practice in the European trade community of allowing manufacturers flexibility in how they label their products.

The Metric Directive will also create a standards inconsistency with U.S. law, as the Fair Packaging and Labeling Act (FPLA) will still require the labels of many consumer products to include both metric and U.S. customary units. Companies on both sides of the Atlantic who make consumer products will have to create two different labels: one for the U.S. market, including both metric and imperial units, and another for the EU market, displaying only metric units. The incompatibility of the FPLA and the EU Metric Directive will impose additional costs on many businesses engaged in transatlantic trade in consumer goods by creating the need for separate packaging, labeling, warehousing, and inventory systems, thus imposing additional costs and especially impacting small to medium sized enterprises.

However, there is a chance the legislation may be amended, depending on the outcome of a consultation on the EU Metric Directive just issued at the end of December which seeks public comment on the Metric Directive: http://ec.europa.eu/enterprise/prepack/unitmeas/uni_ms_en.htm.

American associations and companies are advised to consider how this legislation will impact their companies, to encourage their European counterparts and partners to consider the ramifications of full implementation of the Metric Directive and to respond in writing to the consultation before the closing date of March 1, 2007, if they perceive they would be negatively impacted.

For additional information on the issue, please see our market research report at http://buyusainfo.net/info.cfm?loadnav=&isprev=yes&id='137007'&keyx='FB3D0E1F32B5775694381CF9D6083CB1 or contact us at Gwen.Lyle@N0SPAM.mail.doc.gov .