A couple of things to note: 1. The EU commission wanted a single central registry 2. It was the member states, via the Council of Ministers, that torpedoed this. 3. The EU now advises its member states to not implement/enforce this 4. Until the correction, which is on its way, can be fully enacted. So the same old same old: member states do shitty stuff and blame the EU.
Good point. If I were a small seller I would just ignore this, like many sellers on Temu do. Before you get into trouble, someone must take notice that you did not register for the recipient fiefdom's protectionism racket. And if that happens, it is not sure that you really are in trouble. As with the GDPR, this kind of regulation is almost unenforcable in practice.
Chinese sellers don’t care, sure, but if you live in EU you do care.
That said while the financial penalties are in practice still not common they are chilling nevertheless.
However, EU is also now starting marketplace level enforcement, so in practice even those Chinese sellers will not be able to sell anything without registration.