Legislation amendment in 2019 • 23.07.2018

New Packaging Act in Germany: Online retailers must register

In the future, it will be public record whether companies license their packaging

Online retailers and mail order companies that have not licensed their packaging yet should do so no later than the beginning of 2019. So-called first-time producers of packaging (“Erstinverkehrbringer”) are legally obligated to participate in a dual system and pay license fees. The new Packaging Act (Verpackungsgesetz) ensures transparency, but can also result in fines and prohibition in sales for non-compliance.

All distributors that ship goods to customers for commercial purposes and put packaging into commercial circulation for the first time are considered "packaging producers" (Verpackungshersteller). This also applies to online retailers, mail order companies, and commercial importers of packaging materials. They are legally obligated to state how much packaging material they are using for the first time and that accumulates as waste with end customers.

A more equitable distribution of recycling costs: The new "Central Office Packaging Registry”

Gunda Rachut; copyright: Gunda Rachut / ZSVR
Gunda Rachut, chairwoman of the Executive Board of the Foundation Central Office Packaging Register (Zentrale Stelle Verpackungsregister, ZSVR)
Source: Gunda Rachut / ZSVR

By taking part in a dual system, packaging producers share the costs of disposal and recycling. "We advise retailers who are not yet registered to contact a system operator as soon as possible because they are already under legal obligation to participate in the system. If they have not done so yet, they are acting unlawfully at the present time, "says Gunda Rachut, chairwoman of the Executive Board of the Foundation Central Office Packaging Register (Zentrale Stelle Verpackungsregister, ZSVR).

The ZSVR officially takes up its work as a government agency on January 1, 2019, and is subject to the supervision of the German Federal Environmental Agency (UBA). At that point, the new German Packaging Act (VerpackG) will replace the current German Packaging Ordinance (VerpackV) enacted in 1991. With this measure, the German government aims to increase recyclable materials and reduce the distortion of competition. According to the ZSVR, companies that don’t license their packaging cause annual damages between 200 and 500 million euros. Registered companies have to pick up these costs.

This is why the ZSVR now introduces a mandatory registration. The public packaging registry LUCID provides transparency and indicates who has or has not licensed their packaging materials. This increases pressure on manufacturers and retailers because "the experience gained from the EAR Foundation (Stiftung elektro altgeräte registry pertaining to waste electrical and electronic equipment) has revealed a lot of competitive monitoring. Those who considered themselves exempt from fulfilling their obligations quickly stood out,” says Gunda Rachut of the ZSVR. Anyone who puts unlicensed packaging into circulation can face fines of up to 200,000 EUR per individual case.

What are the steps that retailers must take?

To avoid fines, the first step for online retailers and mail order businesses is to register at a dual system of their choice and provide information on packaging quantities (type of material and total weight) they intend to use for shipments during a predetermined period of time. This also applies to the commercial import of packaging materials.

Examples of approved dual systems: BellandVision GmbH, Der Grüne Punkt (Dual System Germany GmbH), Interseroh Dienstleistungs GmbH, Noventiz Dual GmbH, RKD Recycling Kontor Dual GmbH & Co. KG, Zentek GmbH & Co. KG

This is followed by a free registration with the ZSVR. This requires the company name, the name of the authorized representative, an e-mail address and a password. The second step completes the registration process by indicating the national business registration number and tax ID number of the company. In addition, the information that has been provided to the system operator must also be reported. Pre-registration for 2019 is expected to begin in August of this year.

After the year has ended, companies must report the actual packaging consumption data to the system operator as well as the Central Office. In addition to the materials that are subject to licensing such as boxes, cartons and envelopes, this also includes packaging components such as labels, foils, padding and adhesive materials.

Graphics of total packaging recycling statistics; copyright: German Federal...
Graphics of total packaging: Consumption, recovery, quota from 1991 to 2015.
Source: Gesellschaft für Verpackungsmarktforschung mbH (GVM)

 "The disposal of non-recyclable or difficult-to-recycle packaging must become more expensive in the future. Packaging that is part of the closed substance cycle and can be reused to produce new products and packaging is given preferentiality.“ (Gunda Rachut,
chairwoman of the Executive Board, Central Office Packaging Register (ZSVR).

System participation fees are calculated based on these specifications. In the future, this license fee will decrease for recyclable materials. This is why a switch to the corresponding packaging is beneficial and worthwhile.

The license fees apply to all first-time producers of packaging, regardless of the number of packages shipped. "De-minimis limits only pertain to the Declaration of Completeness, a kind of audited year-end statement. This Declaration must be submitted if the producer has exceeded specific quantities of mandatory-participation packaging during the calendar year, "says Rachut. Those limits are 80 tons glass, 50 tons of paper, board or cardboard and 30 tons of any other material such as plastic. The Declaration of Completeness must be submitted annually to the ZSVR by the May 15 deadline.

Author: Julia Pott; iXtenso.com – Magazine for Retailers

related articles:

popular articles:

Thumbnail-Photo: Sustainable delivery routes in neighborhoods...
22.03.2019   #sustainability #delivery

Sustainable delivery routes in neighborhoods

Farmstead plans with customer groups and delivery windows

Farmstead, an online grocer, announced the launch of its weekly Sustainable Routes to reduce the amount of vehicles on the road, reducing carbon emissions and Farmstead’s delivery costs. The savings are passed on to customers in the form of ...

Thumbnail-Photo: Blockchain: Protecting the retail sector from counterfeit products...
09.04.2019   #security #customer relationship management

Blockchain: Protecting the retail sector from counterfeit products

Fake products reduce consumer confidence in a brand

What if something would allow manufacturers, retailers and customers to verify at any time that a product on the shelf is authentic?Counterfeit products often look deceptively like the real deal, but the quality is inferior to the original goods and ...

Thumbnail-Photo: Logistic data as solid ground for successful omnichannel commerce...
10.01.2019   #data analysis #enterprise resource planning (ERP)

Logistic data as solid ground for successful omnichannel commerce

Instagram, Twitter and Co.: New ways to customer loyalty

Instagram, Twitter and Co.: Retailers and brands must find new ways to get in touch with their customers and remain like that. With the right software, they can extract and use important information from all logistical processes.The contemporary ...

Thumbnail-Photo: New challenges and opportunities for businesses...
06.03.2019   #logistics

New challenges and opportunities for businesses

Businesses are challenged to better manage their shipping and mailing operations

Pitney Bowes Inc. (NYSE:PBI), a global technology company that provides commerce solutions in the areas of ecommerce, shipping, mailing, and data today noted that the recent rate increases by FedEx® and UPS® and the pending January 27 rate ...

Thumbnail-Photo: LogiMAT 2019 wraps up with record attendance...
26.02.2019   #logistic solutions #event

LogiMAT 2019 wraps up with record attendance

Final report for LogiMAT 2019 in Stuttgart

The 17th International Trade Show for Intralogistics Solutions and Process Management attracted well over 60,000 industry professionals from around the world. LogiMAT has proven to be more than just a magnet for visitors: It’s also a ...

Thumbnail-Photo: Transport logistic trend barometer 2019
11.04.2019   #logistic systems #economy

Transport logistic trend barometer 2019

Economic situation, Brexit, digitalization—logistics feels ready for the challenge

In spite of many political and economic uncertainties as well as numerous business challenges ranging from the lack of skilled personnel to digitalization, the logistics industry is confident that it will meet the challenges. Companies are getting ...

Thumbnail-Photo: First-hand material handling technology
21.01.2019   #logistic systems #logistic solutions

First-hand material handling technology

LOGIMAT 2019

All the world’s leading forklift truck manufacturers are coming to the 17th International Trade Show for Intralogistics Solutions and Process Management. Industry professionals from around the world gather in Stuttgart for a sneak peek at ...

Thumbnail-Photo: Rural convenience stores
14.03.2019   #marketing research #customer analysis

Rural convenience stores

“Indispensable Hub” for thousands of isolated communities

The Association of Convenience Stores has called on the Government to ensure that there is a level playing field for the UK’s 16,944 rural convenience stores which allows them to keep pace with new technology and continue providing essential ...

Thumbnail-Photo: Mintel announces top global packaging trends for 2019...
09.04.2019   #sustainability #packaging

Mintel announces top global packaging trends for 2019

implications for consumers, brands, and manufacturers

Looking ahead, David Luttenberger, Global Packaging Director at Mintel, discusses the major trends influencing the packaging sector worldwide during 2019, including implications for consumers, brands, and manufacturers.Connected ...

Thumbnail-Photo: Revolutionizing the global supply chain
04.02.2019   #supply chain management (SCM) #logistics

Revolutionizing the global supply chain

IoT technology will provide opportunities for improved efficiency and transparency in the supply chain

The Internet of Things (IoT) is changing the world around us in several different ways. Beyond influencing things like on-demand app development, it’s poised to make our lives significantly easier. We now have a vast array of physical objects ...

Supplier

EUROEXPO Messe- und Kongress-GmbH
EUROEXPO Messe- und Kongress-GmbH
Joseph-Dollinger-Bogen 9
80807 München