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Government of Canada explanation of CE

A valid CE Marking affixed to a product indicates that it complies with the relevant European 'New Approach' product safety Directives.

The 'New Approach' Directives resulted from a 1985 agreement between EC Ministers to implement a 'New Approach to Technical Harmonisation and Standards' in order to ease the free movement of goods within Europe.  The Directives contain the essential requirements that a product must meet to be sold in the European Union (EU). These Directives are then supported by European Standards listed in the Official Journal of the European Union (OJEU).  Meeting the applicable Standards confers compliance to the relevant 'New Approach' Directives. 

Compliance with the CE Marking Requirements:
It is the responsibility of manufacturers both within and outside the EU to ensure that their products, where applicable, comply with the relevant Directives before affixing the CE Marking and placing them on the market in Europe.  Failure to do so can result in sanctions such as removal of products from sale or use and in some cases prosecution.

Compliance with European Directives is achieved by applying either specific product safety standards or the Directives' essential requirements during the design and manufacturing of a product.  Once a product is placed on the market or brought into service the person within Europe responsible for it must be in a position to demonstrate that the correct standards or Directives have been applied successfully.  Product standards, many of which are standardised (harmonised) across the EU are published locally within each member state, whilst the methods by which a responsible person can demonstrate compliance are specified within the Directives.