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Lesson15 minChapter 11 of 14

Importer, Distributor, and Role-Switching Obligations

Understanding the supply chain obligations under Articles 23-25 for importers, distributors, and when actors become providers.

Importer, Distributor, and Role-Switching Obligations (Articles 23-25)

Learning Objectives

By the end of this chapter, you will be able to:

  • Identify all importer obligations under Article 23
  • Identify all distributor obligations under Article 24
  • Understand when importers, distributors, or deployers become providers under Article 25
  • Implement supply chain compliance measures for AI systems entering the EU market

The EU AI Act extends compliance obligations beyond providers and deployers to cover the entire AI supply chain. Importers (Article 23) and distributors (Article 24) play critical gatekeeping roles, while Article 25 ensures no actor can escape provider-level obligations by restructuring their role.

Importer Obligations (Article 23)

Who is an Importer?

Article 3(6): An importer is any natural or legal person located or established in the Union that places on the market a high-risk AI system that bears the name or trademark of a natural or legal person established in a third country (outside the EU).

The Gatekeeper Role

Importers are the EU's first line of defence against non-compliant AI entering the market. Before placing a high-risk AI system on the EU market, importers must verify the provider has done their job.

Complete Importer Obligations

ObligationArticleRequirements
Verify conformity assessmentArticle 23(1)Ensure the appropriate conformity assessment procedure has been carried out by the provider
Verify technical documentationArticle 23(1)Ensure the provider has drawn up technical documentation per Annex IV
Verify CE markingArticle 23(1)Ensure the AI system bears CE marking
Verify EU Declaration of ConformityArticle 23(1)Ensure the provider has drawn up the EU declaration of conformity
Verify authorised representativeArticle 23(1)Ensure the provider has appointed an authorised representative per Article 22
Non-compliance refusalArticle 23(2)Do NOT place the system on the market if there are reasons to believe it does not comply
Inform provider and authoritiesArticle 23(2)If non-compliant, inform the provider and market surveillance authorities
Own identificationArticle 23(3)Indicate name, registered trade name or trademark, and contact address on the AI system or packaging
Storage conditionsArticle 23(4)Ensure storage and transport conditions do not jeopardise compliance
Record keepingArticle 23(5)Keep a copy of the EU Declaration of Conformity for 10 years after the AI system has been placed on the market
Provide information on requestArticle 23(6)Provide all necessary information and documentation to demonstrate conformity when requested by competent authorities
Cooperate with authoritiesArticle 23(7)Cooperate with competent authorities on any action taken to address risks

Importer Due Diligence Checklist

Before placing any high-risk AI system on the EU market:

  • Conformity assessment procedure completed by provider
  • Technical documentation (Annex IV) prepared by provider
  • CE marking affixed to AI system
  • EU Declaration of Conformity obtained from provider
  • Authorised representative appointed by provider (Article 22)
  • Own name and contact details on system or packaging
  • Storage and transport conditions verified
  • Copy of EU Declaration of Conformity filed (10-year retention)

Compliance Note

If at any point after placing on the market, the importer considers or has reason to consider the AI system **not in conformity**, they must immediately take corrective action (bring into conformity, withdraw, or recall) and inform the provider and market surveillance authorities.


Distributor Obligations (Article 24)

Who is a Distributor?

Article 3(7): A distributor is any natural or legal person in the supply chain, other than the provider or the importer, that makes a high-risk AI system available on the Union market.

Complete Distributor Obligations

ObligationArticleRequirements
Verify CE markingArticle 24(1)Before making available, verify the system bears CE marking
Verify EU DeclarationArticle 24(1)Verify it is accompanied by the EU Declaration of Conformity
Verify provider identificationArticle 24(1)Verify the provider has complied with Article 16, points (b) and (c) (name/address and quality management system)
Verify importer identificationArticle 24(1)Where applicable, verify the importer has complied with Article 23(3)
Non-compliance actionArticle 24(2)If system appears non-compliant, do NOT make available until brought into conformity; inform provider/importer and market surveillance authorities
Storage conditionsArticle 24(3)Ensure storage and transport do not jeopardise compliance while under responsibility
Corrective actionArticle 24(4)If system is non-compliant after making available, take corrective action to bring into conformity, withdraw, or recall; inform provider, importer, and authorities
Provide informationArticle 24(5)Provide all information and documentation needed to demonstrate conformity on request
Cooperate with authoritiesArticle 24(6)Cooperate with competent authorities on any risk-addressing actions

Distributor Verification Checklist

Before making any high-risk AI system available:

  • CE marking present on the system
  • EU Declaration of Conformity accompanies the system
  • Provider name, trade name, and contact information visible
  • Importer identification visible (if applicable)
  • Storage and transport conditions appropriate

💡 Note: Distributors have lighter obligations than importers — they primarily verify documentation rather than conducting deep due diligence. However, they must still halt distribution if non-compliance is suspected.


Role-Switching: When Others Become Providers (Article 25)

The Most Critical Provision for Supply Chain Actors

Article 25 ensures that any actor who effectively takes on provider-like responsibilities cannot escape provider obligations simply by being classified as an importer, distributor, or deployer.

Triggers for Becoming a Provider

TriggerArticleWhat Happens
Putting own name/trademarkArticle 25(1)(a)Importer, distributor, or deployer who places their name or trademark on a high-risk AI system already on the market becomes provider for that system
Substantial modificationArticle 25(1)(b)Any actor who makes a substantial modification to a high-risk AI system already on the market becomes provider for that system
Changing intended purposeArticle 25(1)(c)Any actor who modifies the intended purpose of an AI system (including a GPAI system) that is not already high-risk, causing it to become high-risk, becomes provider

What "Substantial Modification" Means

Article 3(23) defines substantial modification as a change to an AI system after its placing on the market or putting into service, which:

  • Is not foreseen or planned by the provider, AND
  • Affects compliance with the requirements of the AI Act, OR
  • Results in a modification to the intended purpose
Example ModificationSubstantial?Reasoning
Retraining a model on entirely new dataLikely yesAffects accuracy, robustness, bias profile
Minor parameter tuning per provider instructionsNoForeseen by provider
Changing the AI from HR screening to credit scoringYesChanges intended purpose and risk category
Updating software per provider maintenance scheduleNoForeseen and planned by provider
Adding new decision categories not in original designLikely yesNot foreseen, affects compliance

Consequences of Becoming a Provider

When Article 25 is triggered, the new provider must:

  1. Assume all provider obligations under Articles 16-22
  2. The original provider is released from provider obligations for that specific system
  3. The original provider must provide all necessary information and technical access to enable the new provider to comply
  4. The new provider must conduct a new conformity assessment if the modification affects compliance

Information Obligations (Article 25(2))

When role-switching occurs under Article 25(1), the original provider must cooperate with the new provider by providing:

ObligationScope
Provide informationNecessary information, technical access, and other assistance
Enable complianceAllow the new provider to meet its obligations

Written Agreements (Article 25(4))

Article 25(4) requires written agreements between providers and third-party suppliers of components, tools, services, or processes used in high-risk AI systems:

ObligationScope
Supply chain agreementsWritten agreements covering provision of necessary information, capabilities, and technical access
Contractual termsAgreements enabling the provider to comply with its obligations under the AI Act

Compliance Note

This provision is frequently underestimated. Customising a vendor's AI system — even with good intentions — can trigger full provider obligations. Always assess modifications against Article 25 before implementation.


Practical Implications for Supply Chain Management

Supply Chain Compliance Matrix

RoleKey Pre-Market ChecksOngoing ObligationsRecord Retention
ImporterConformity assessment, CE marking, tech docs, authorised repCorrective action, authority cooperation10 years
DistributorCE marking, EU Declaration, provider/importer identificationHalt if non-compliant, authority cooperationAs required
Deployer (standard)Use per instructions, human oversightMonitoring, log retention (6 months min)6 months min
DeployerProviderFull conformity assessment if Art. 25 triggeredAll provider obligations (Art. 16-22)10 years

Contractual Framework

When engaging with the AI supply chain, ensure contracts address:

  • Role clarity (who is provider, importer, distributor, deployer)
  • Information flow obligations (Art. 25(2)-(3))
  • Modification notification requirements
  • Access to technical documentation
  • Corrective action responsibilities
  • Liability allocation for non-compliance
  • Cooperation with authorities

What You Learned

Key concepts from this chapter

**Importers** are gatekeepers — they must verify provider compliance before EU market placement

**Distributors** have lighter but still mandatory verification duties

**Article 25** is the "role-switching" provision — modifying, rebranding, or repurposing AI can trigger full provider obligations

Record retention for importers is **10 years** after market placement

Non-compliance at any point triggers obligation to halt distribution and inform authorities

Chapter Complete

High-Risk AI Compliance

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