Existing regulations – EPR and Packaging

Last week, we reported that as awareness over the need for sustainability continues to grow, several countries have started implementing Extended Producer Responsibility schemes – otherwise known as EPR.

GEPR schemes ensure that ‘producers’ – including most merchants and resellers – are responsible for the environmental impacts over the life-cycle of their products, especially when it comes to disposal and/or recycling at the end of the product lifespan.  

EPR schemes can vary depending on the specific impact targeted, and this week we will focus specifically on Germany.

On the 1st July 2022, Germany began stricter enforcement of the German Packaging Act (VerpackG), an EPR scheme for packaging.  Previously, compliance with the legislation was voluntary as the regulations were gradually phased in.

This legislation implements a ‘dual system’ – producers are first required to register with LUCID, a recycling register run by Zentrale Stelle Verpackungsregister (ZSVR) – the central authority responsible for EPR packaging compliance. The legislation covers most forms of packaging, including both original product packaging, as well as any additional packaging materials such as shipment boxes and protective materials.

Following registration, LUCID provides the producer with an EPR registration number and licence.  Online marketplaces such as Amazon are required to check the EPR registration of any merchants with selling activity in Germany, and will delist any non-compliant product listings.

There is an additional reporting requirement for sales over the course of each calendar year, and producers may be liable to pay an additional packaging disposal/recycling fee depending on their sales volume reported.

New regulations – WEEE

Following the successful implementation of VerpackG, Germany also began stricter enforcement of the German Packaging Act (ElektroG) on the 1^st July 2023.  As was the case for VerpackG, compliance was previously voluntary while the specific regulations were being finalised. 

In a similar vein to the EPR packaging regulations, any producer of electrical and electronic equipment will need to register with Stiftung Elektro-Altgeräte Register (EAR).  Electrical and electronic equipment is split into six different categories:

• Category 1: Temperature exchange equipment
• Category 2: Screens, monitors and equipment containing screens (surface area > 100cm²)
• Category 3: Lamps
• Category 4: Large equipment (>40cm), including but not limited to – household appliances, IT and telecoms equipment, consumer equipment, musical equipment, toys and leisure appliances, sports equipment
• Category 5: Small equipment (<50cm), including but not limited to – household appliances, consumer equipment, toys and leisure appliances, sports equipment
• Category 6: Small IT and technology appliances (<50cm)

Individual electric/electronic parts designed for installation in another appliance are considered exceptions, and only the finished end-product will need to be categorised.  For example, individual light-bulbs would not be considered under Category 3 (Lamps). 

Upon successful registration, producers will be issued a WEEE registration number, and online marketplaces such as Amazon are obligated to check the registration of any merchants with selling activity in Germany.  Product listings that are not registered with a valid WEEE number will be automatically delisted by the online marketplace. 

As is the case for VerpackG, there are additional reporting requirements for all WEEE registration holders, but reporting is instead done on a monthly basis.  Likewise, fees may be applied depending on the sales volume reported.

It is important that producers register themselves appropriately, and that any subsequent reporting is done accurately – additional penalties exist for the declaration of inaccurate information, such as a fine of up to €100,000, and potential legal proceedings.  In addition, producers who fail to register and report their products properly may be liable for legal proceedings by other producers for violating competition law, as complying with WEEE imposes additional costs on producers.  Those who have failed to comply with WEEE regulations can be seen as having an unfair competitive advantage, and liable to pay damages to competitors.

Producers should also bear in mind that batteries do not fall under WEEE, but are instead considered under their own separate category, and follow a similar process where the producer must register with EAR.  There are three separate categories of batteries: portable, industrial, and automotive.