I think you get him wrong, I understand it this way:
Now when it's sold just be few Hi-fi retailers, they dont have to care about EU limitations. If they expand to mass market electro shops(like Saturn in Germany), they will have to do some limitations. But Fiio is far from that.
Hmm... well, I'm not sure if the European legislation is different for small retailers than for mass-market. I would think that if it is being retailed in an EU member state, then the legislation would be compulsory, regardless of the scale of marketing / retailing of the product. But James will probably already know the facts, given that Fiio products are not new to the EU marketplace.