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# Lesson 1: Where You Sit in the Value Chain

> Academy Foundations Module 2 Lesson 1: the Digital Product Passport Responsibility Model, the six groups it names, and how to place your own organisation among them.

**Module 2, Lesson 1 of 4. About 8 minutes.**

## Orientation

You now know what a passport is. The next question, and the one that actually gets asked of you by
name, is whether it applies to your organisation. Most people answer that question badly because
they answer it as if there were one line to stand on: in scope, or out. There is not. A product
touches several organisations on its way to a shelf, and each one holds a different piece of the
obligation, or none of it, depending on where it sits.

This lesson gives you a map for locating yourself before you commit to an answer you cannot defend.

The governance layer, because it produces no visible artefact. It is nonetheless the layer that
determines whether the passport stays accurate after launch.

## Learning Objectives

## Reading the Value Chain, Not the Company Name

A single legal question sits inside "does this apply to us": who places the product on the market.
But almost every organisation involved in getting a product to a customer does something that
matters to a passport, whether or not it carries that legal duty. Treating "we are not the legally
responsible party" as equivalent to "we have no work to do" is the single most common early mistake,
and it usually surfaces months later as a missed supplier deadline nobody flagged in time.

The value chain groups a passport touches are not abstract. A brand owner decides what the product
claims and governs the record over its life. A manufacturer holds the ground truth of how the thing
is actually built. Component and material suppliers hold the upstream facts that nobody downstream
can originate themselves. Importers and distributors move the product across a border or across a
market and carry duties tied to that movement. Retailers are where a customer actually meets the
passport, whether or not they created it. Service, repair and recycling organisations read the
record to do their own job, and increasingly feed information back into it.

Read your own organisation against those six groups rather than against a single legal test. Most
organisations occupy more than one group at once. A vertically integrated manufacturer that also
imports its own goods into the EU is simultaneously a manufacturer and an importer, with the duties
of both. A retailer selling under its own label is not really acting as a retailer for that range at
all; it has stepped into the brand owner's chair.

**The common misreading** is to search for the single sentence that settles the question, usually
by asking "are we the manufacturer or not". That question has an answer, but it is not the only
question worth asking. A supplier with no legal duty of its own can still be the reason its customer
misses a deadline, because the customer cannot publish a figure the supplier has never supplied.
Participation and legal accountability are different questions, and this lesson deals with the
first of them; Lesson 2 deals with the second.

A tieback framework that maps the six groups in a product value chain, brand owners,
manufacturers, component and material suppliers, importers and distributors, retailers, and
service, repair and recycling organisations, to what each one actually contributes to a passport.

**Use it when** you need to work out which parts of a passport programme are genuinely your
organisation's problem, and which belong to someone else in the chain you will need to coordinate
with.

**Where it fails:** it is an educational map of participation, not a legal test. It does not tell
you who carries the statutory obligation, and it will not resolve a dispute about accountability. It
also assumes clean roles: many real organisations occupy two or three of the six groups
simultaneously, and the model does not merge them for you.

#### [Who Needs a Digital Product Passport?](/docs/knowledge-base/digital-product-passports/who-needs-a-digital-product-passport)

Read both sections. The first separates the legal question from the operational one; the second
sets out all six groups and the practical scope of responsibility under each.

#### Placing the Aurelia S2 organisation

The S2 brand owner designs the trimmer, sets its claims and holds the governance layer. A contract
manufacturer in Vietnam builds it and holds the bill of materials and the batch records. A cell
supplier holds the battery composition data and has never been asked for it. The brand owner's
Dutch entity imports the finished product into the EU. Retailers, both physical and direct, are
where a buyer meets the product.

That is five of the six groups touching one product, and four different organisations. The Dutch
entity is doing double duty: it is part of the same corporate group as the brand owner, but acting
in the importer role for this product, which is the role that is likely to carry the legal duty
addressed in Lesson 2.

#### Map your own product against the six groups

Take one product line you work with. Against each of the six groups, write either the name of the
organisation that occupies it, or "unknown". Note anywhere your own organisation appears more than
once.

If two or more boxes say "unknown", you have found where your scope conversation actually needs to
start, and it usually is not with your own legal team.

## Knowledge Check

## Takeaways

* The value chain question and the legal responsibility question are different questions.
* Six groups touch a passport: brand owners, manufacturers, component and material suppliers,
  importers and distributors, retailers, and service, repair and recycling organisations.
* Most real organisations occupy more than one group for a given product.
* Own brand and private label ranges put a retailer into the brand owner's seat.

**If you remember one thing:** locate every group before you decide which ones are somebody else's
problem.

## Sources

This lesson draws on
[Who Needs a Digital Product Passport?](/docs/knowledge-base/digital-product-passports/who-needs-a-digital-product-passport),
sections Who the Question Really Applies To and The Digital Product Passport Responsibility Model.

## Related Docs

* [Lesson 2: Who Carries Which Duty](/docs/academy/foundations/module-2/lesson-2)
* [Module 2 overview](/docs/academy/foundations/module-2)
* [Who Needs a Digital Product Passport?](/docs/knowledge-base/digital-product-passports/who-needs-a-digital-product-passport)
* [tieback Frameworks](/docs/knowledge-base/frameworks/overview)