Packaging EPR Laws in Eastern Europe - CD Available from September 2004 Teleconference

2005 Country Pages Available Now, 2006 Country Pages coming soon!

Download our packaging presentation "What You Need to know Before Designing the Package -- or Compliance with Recycling Laws Can Save You Money!"
Adapted from Michele Raymond's presentation to the HBA Prestige Packaging Conference April 23, 2003. Covers the basics of US and international package recycling regulation; why you should be tracking; recent enforcement actions; plus highlights of the "best" packaging case histories from the Take it Back! conferences since 2001.

Q. Do manufacturers physically take back their package?

Q. Who pays for what?

Q. Are the countries enforcing these takeback laws?

Q. Can our distributors take care of all of this compliance for us?

Q. How do I know if my distributors are in compliance?

Q. Are the 'essential requirements' laws being enforced?"

Q. Are fees the only thing we need to worry about?

Q. Our distributors are doing a good job of compliance. Why should we take the time to track these laws worldwide?

Q. Are any packaging materials banned?

Q. We use durable, reusable packaging. Are we liable for fees?

Q. Are there exemptions for small manufacturers, or those sending only a few packages into a country?

Q. We use recycled content in our packaging. Do we get any credit for this in any of the fee schedules?

Q. Does any country mandate recycled content?

Q. Can we manage all of the fee systems, forms and payments centrally from headquarters?

Q. Is there software or service that can calculate fees for us?

Q. This sounds complicated. Why should we go to this trouble?

Q. Do the RLI country pages have enough information to enable us to comply and pay fees?

Q. We are a supplier to large exporters. Should we track these law too?

Q. Does RLI provide full text service on law and proposals?

A: The term "extended producer responsibility" is used when manufacturers ensure that their package or product is collected and recovered at its end of life. In Europe, there are laws in all 25 countries that require "takeback" or otherwise tax manufacturers to ensure recovery of used packaging. Japan, Taiwan, and Korea also have such laws in various forms. Peru has a law authorizing takeback regulations. Ontario and Quebec also have EPR laws. The U.S. is one of the few industrialized countries with no national EPR scheme.

In all there are 30 countries with mandates on packaging; 15 have EPR laws for batteries, and 11 countries have "takeback" on electronic products.

In the U.S. there is a national law for recycling of rechargeable batteries, because eight states do have their own EPR laws. Container deposits are considered a form of "EPR." European countries have mostly voluntary deposits on refillable containers. In the U.S. ten states have mandatory deposits on beer and soft drinks – two states expanded this to other drinks and more are reviewing their bottle bills to do likewise. Top

Do manufacturers physically take back their package?

A: No, unless it is a specialized commercial product, or unless the company owns its own distribution chain. In general, manufacturers pay a collection organization as known as a "producer responsibility organization" or PRO, to "guarantee" recovery of the package or product in most countries.

The EU directive on packaging and packaging waste, enacted December 1994 and recently amended, requires 25% recycling – 50% "recovery" of packaging – 15% recycling of each type of packaging material. These goals were increased when the European Parliament amended the directive, though not by much and the Accession states have a different schedule to reach the goals.

There are collection schemes that require fees per kilogram of packaging in 24 countries worldwide. For electronics, there are about 25 countries in which manufacturers and importers pay fees to PRO's.

The PRO's are non-profits, generally run by industry, which collect the money, contract with haulers and recyclers so they can meet mandated recovery goals. Top

Who pays for what?

A: That varies from country to country. The packaging directive did not standardize anything except the goals. Each country is free to set up the system as it chooses, complete with taxes or deposits. In the case of Germany, (which passed its famous ordinance before the directive in 1994 and updated it recently) industry was required to take over collection of all packaging of all types – this mean separate trucks going down the street. In most countries, responsibility is "shared," that is government continues to collect packaging material, but industry must guarantee markets. Local governments cannot sell the material.

In the case of Britain, there is a complex formula which places financial responsibility on all parts of the packaging chain, from raw materials to retailers. This has proved very expensive to enforce, (as the number of players increases exponentially) and the country still suffers from a low recycling rate, as there were no provisions to finance curbside costs. Top

A: The U.K., France, and the Nordic countries are enforcing their laws. However, there are thousands of manufacturers affected by the laws, and most countries are finding it is difficult to get around to everybody and force them to pay into a PRO. However, many PRO's are doing their own enforcement, forcing companies to join or face prosecution. DSD has sued many companies for using the Green Dot but not paying fees.

It should be noted that 13 countries have licensed the "Green Dot" symbol. The Green Dot symbol is owned by the Duales System Deutschland in Germany, and it set up Pro Europe to license the symbol in other countries. It is trademarked in 160 countries. The Green Dot is required in some countries – it only shows you have paid the fees for recovery in that country. If you use the symbol in another country that recognizes the symbol, but do not pay your recycling fees, you can be sued by the licensee in that country. This now includes Canada!

If you are exporting to a nation with an EPR law, and your distributor has not paid any fees, they could be fined and/or forced to join the PRO, and possibly pay retroactive fees. More countries will be moving to enforce their laws in the future.

There are still many "free riders," and since this means lost revenue and higher fees for the PRO's thus they have an incentive to move against those that do not pay. Top

Can our distributors take care of all of this compliance for us?

A: Only if you design and make everything in those countries. The European packaging directive has a provision for "essential requirements" which requires the manufacturer to keep records on each SKU. You must assess if each package can be recycled, safely burned, composted or reused at end of life. In fact, amendments just passed that require yet another assessment of each package! This must be done where the package is designed. Top

How do I know if my distributors are in compliance?

A: In order to comply, your distributor must have data on all of your packaging material. For example, he must calculate how many kg of plastic packaging is going to Germany; how many kg of paper packaging, glass, metal, or composites, etc. broken out for each country where fees exist. The fees, policies and frequency of reporting vary from country to country.

For example, one metric ton of paper sales packaging would cost you about $31 (US) in Belgium; $62 in France, $72 in Austria; and $171 in Germany. One ton of plastic sales packaging would cost $292 in Belgium; $70 in France, and $267 in Germany.

If your distributor is not asking you for data, chances are he is not in compliance. Moreover, if you have not done the tests and paperwork for "essential requirements," then you can still be fined by several countries. Top

Are the "essential requirements" laws being enforced?

The European Commission has not approved all of the CEN standards that were to be used for the essential requirements. However, France and the U.K. have already written laws, rules and have enforcement mechanisms in place. There have been some cases, and plans to start asking for data from importers. Top

Are fees the only thing we need to worry about?

A: No. Besides the "essential requirements," Spain and Belgium require that producers file package reduction plans every few years. This is usually done through associations. There are also labeling regulations in several countries, including Japan, South Korea, and Taiwan. Three countries even have layer restrictions on packaging for some items.

In addition, some countries have labeling requirements. We are following the issues in RLI. In addition, we have released a Special Report on green labeling this fall. Top

We use durable, reusable packaging. Are we liable for fees?

A: That will depend on the country. Some collection organizations do not count tote bags and reusable tool boxes as a "package," but others do. There is no pan-European definition of packaging. However, there is some new guidance in the proposed amendments to the directive. Again, we are following this issue in RLI. Top

Are there exemptions for small manufacturers, or those sending only a few packages into a country?

A: People that do mail order, and sell through the Internet have mostly escaped paying collection fees in the various countries. The collection organizations and governments are very aware of this, however. Technically, there are few exemptions for small manufacturers, but some countries have a threshold – if you sell below a certain number of kg of packaging you are exempt. We know that in a few countries, the general trade associations have cut deals with the big collection organizations to enable the smaller manufacturers to pay very small set fees through their groups, and thus meet their legal obligation. We have not heard of this for importers, however. Top

We use recycled content in our packaging. Do we get any credit for this in any of the fee schedules?

A: Unfortunately, recycled content will only help reduce some of your taxes in Denmark, and packaging fees for Eco-Emballages in France. Otherwise, use of recycled content carries no advantage. However, there are proposals at the EU and on the country level that surface – we follow the issue in RLI. Top

Does any country mandate recycled content?

A: No, not for packaging. The only content mandate is on rigid plastic containers in California. A country cannot enforce such a law on imports under GATT (General Agreement on Trade & Tariffs) rules. It can apparently enforce in domestic manufacturers. However, Japan is now requiring recycled content and other eco-design elements on various products, not yet enforced on imports. Top

Can we manage all of the fee systems, forms and payments centrally from headquarters?

A: You can manage the system, and calculate your fees centrally, but you can only join certain collection organizations directly. Some PRO's only take memberships from regional companies – for example, DSD is Germany only takes membership from EU-based companies, so your distributor or EU office would have to join and pay fees.

It is critical that in order to calculate the fees, that you centralize your packaging information, including the weight of each package. Once your Bill of Materials (BOMs) are all placed in one central database, you are in a better position to manage all of your costs. Most companies do not have this information centralized. Top

Is there software or service that can calculate fees for us?

A: The most sophisticated software available is PackNet from Foresite Systems. Foresite started out helping the retailers in the UK, which carry a portion of the EPR financial responsibility. It now has more than 200 users.

There are a few consultants out there who will handle fee calculations and other compliance issues for you. However, you will have to get all of your packaging data together anyway, and your far-flung engineers will have to have a convenient way to enter new and changing packaging data to keep the database up to date. If you haven't weighed your packaging, it is not expensive to hire a graduate student to do so. Top

A: Besides the liability issue, we found the companies which do centralize their packaging data are able to save money, not only be reducing fee overpayments, but by re-designing their packaging that not only saves money on fees, but on packaging material as well. Some of the major exporters are saving millions in fees and packaging materials annually.

In fact, many major manufacturers are already using software that enables their engineers to design quickly online and share certain packaging design specs with various parts of the packaging chain – e.g. suppliers and distributors! Top

A: The RLI country pages cover 40 countries on three continents. It is 250 pages of information. You will find it a valuable reference tool, and it will help you get started. .

The Country Pages will save you thousands of dollars and many hours of time in initial research, and they provide phone numbers. They list most of the major fee schedules. They will enable you to determine which countries to concentrate on, and which countries you need to handle compliance from headquarters on versus delegating to distributors.

If you sell in many countries, and/or have a large number of SKU's, we recommend you consider automating the fee calculation function.

The more important issue, however, is news. No consultant will keep you abreast of new regulatory developments as well as Recycling Laws International, and it is the only news service covering all three continents.

And if you need more research or regulatory analysis, we can provide custom research. We have researchers that can handle most major country research, from Asia to Germany to Latin America. And we work with consultants who specialize in certain areas, such as Japan, packaging design for source reduction, lifecycle analysis, use of recycled plastics and even green marketing. We can determine your needs, and refer you to an appropriate consultant. Top

A: Yes! If you are a supplier, RLI can help you get or retain business, because you will be able to answer customer questions, and help your customers purchase the right materials and designs and equipment to ensure they are compliant. For example, if you are selling paperboard, you may be able to persuade a customer to switch when you can show them they will save money on fees in Europe over some plastics. If you sell a plastic product, you can point them to the specialized plastics collection PRO's that ensure your product is recycled. Top

A: We currently have about 150 full text documents posted on the web site for our Global Password service, including many packaging laws. We keep up with all major EU directive drafts, and we post the paper from our Take it Back! conferences. Many of the full text documents are available pay-per-view. The GPS holders access everything in the Library. If you need certain full text documents and don't see them or they are not available PPV, please give us a call. Also see the page on the Global Password Service. Top