Existing in its present form since 1993, the CE marking is a key indicator of a product's compliance with EU legislation and enables the free movement of products within the European market. By affixing the CE marking on a product, a manufacturer is declaring, at their sole responsibility, conformity with all of the legal requirements to achieve CE marking and therefore ensuring validity for that product to be sold throughout the European Economic Area. This also applies to products made in third countries which are sold in the EEA. As an indicator of a product's compliance with EU legislation, CE marking is not intended for the professional user or private consumer but national market surveillance and enforcement authorities.

CE marking means that the product conforms with as many EC directives as apply to the product. For example, most electrical or electronic products must comply with the Low Voltage Directive and the EMC Directive, but electrical/electronic toys must also comply with the Toy Safety Directive.

CE marking does not indicate that a product was made in the EEA^[4] but states only that the product has been assessed before being placed on the market and thus satisfies the legislative requirements (e.g. a harmonized level of safety) to be sold there. It means that the manufacturer has verified that the product complies with all relevant essential requirements (such as safety, health, environmental protection requirements) of the applicable directive(s) or, if stipulated in the directive(s), has had it examined by a notified conformity assessment body.

However, not all products need bear CE marking. Only those product categories subject to specific directives that provide for CE marking are required (and allowed) to bear CE marking. Products bearing CE marking are bought not only by professionals (e.g. medical devices, lifts, machinery and measuring equipment) but also by consumers (e.g. toys, PCs, mobile phones and light bulbs). Given that most products bought by consumers can be placed on the market subject only to an internal production control by the manufacturer (Module A), and hence with no independent check of the conformity of the product with EU legislation, ANEC has cautioned that, amongst other things, CE marking cannot be considered a "safety mark" for consumers.

CE marking is a self-certification scheme. Retailers sometimes refer to products as "CE approved", but they have misunderstood the scheme. However, certain categories of products must be type-tested against specific technical standards by an independent body: CE marking in itself does not indicate that this has been done.