Packaging law: What is important for companies | HÖPPNER | Management systems, legal register & occupational health and safety

The German Packaging Act (VerpackG) transposes the European Packaging Directive 94/62/EC into German law. It aims to protect the environment and ensure fair competition and is intended to help conserve natural resources. All companies that manufacture, import or additionally package goods in packaging in Germany must register with the Central Agency Packaging Register as so-called initial distributors.

The Packaging Act (VerpackG) has a long history in Germany. According to the Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV), the original Packaging Ordinance was passed in 1991 and was the first set of regulations to stipulate the responsibility of packaging manufacturers for the disposal of the resulting waste. Since January 1, 2019, the Packaging Act has replaced the previous Packaging Ordinance. Anyone who places goods in packaging on the German market for the first time (initial distributor), i.e. manufactures, imports or additionally packs them as an online retailer, for example, is subject to the Packaging Act.

On July 3, 2021, the updated and amended Packaging Act came into force with an amendment. The latest amendments have been in force since July 1, 2022. According to the Federal Environment Agency, the Packaging Act is intended to prevent or reduce the impact of packaging waste on the environment, regulate the behavior of obligated parties in such a way that packaging waste is primarily avoided and also prepared for reuse or recycling, and protect market participants from unfair competition.

Packaging Act aims to strengthen the circular economy

As the Packaging Act is intended to help conserve natural resources, the legislation obliges companies and manufacturers of packaged goods to take responsibility for the entire life cycle of their packaging. They should avoid waste, recycle it to the highest possible quality and use raw materials in the cycle, according to the Federal Environment Agency. This means that the Packaging Act aims to strengthen the circular economy. This refers to a model of production and consumption in which existing materials and products are used, refurbished and recycled for as long as possible. In this way, the life cycle of products is extended. According to EU Commissioner for Climate Action Frans Timmermans, a closed circular economy is needed to achieve climate neutrality by 2050, preserve our natural environment and strengthen our economic competitiveness.

No de minimis limits for small quantities

An essential obligation for companies is to register in the "LUCID" packaging register for packaging that is placed on the market (Section 9 VerpackG). Since July 1, 2022, it is irrelevant whether the packaging is generated by private end consumers, comparable sources of waste generation or commercial customers. There are no de minimis limits for small quantities, according to the Munich Chamber of Industry and Commerce. No third parties may be commissioned to register and submit data reports in accordance with Section 10 VerpackG; instead, the initial distributor must do this themselves. Important according to the Munich Chamber of Industry and Commerce: "If a distributor of packaging does not register with the Central Agency Packaging Register, they are acting in breach of regulations and may be subject to a fine." Further information is available from the Central Agency Packaging Register, which is also used to register for the "LUCID" packaging register (https://www.verpackungsregister.org). "Licensing with a system operator is mandatory for packaging that is generated by private end consumers or a comparable source of waste generation. The customers of online retailers should normally also be regarded as private final consumers. The system operator (Dual System) will dispose of the packaging for a fee. There are no de minimis limits for small quantities," continues the Munich Chamber of Industry and Commerce. The catalog of packaging subject to system participation at https://www.verpackungsregister.org/stiftung-behoerde/katalog-systembeteiligungspflicht contains a detailed list of which packaging must be licensed in addition to registration.

Extensive take-back, information and verification obligations

In addition, there are further take-back, information and verification obligations. For example, packaging that is not subject to system participation and remains mainly in retail, industry, larger craft businesses/workshops or in the commercial sector in general is subject to a take-back obligation. This means that companies, as distributors, must take back the packaging (at the customer's request). Sales and secondary packaging that is not typically generated as waste in the private sector, transport packaging, sales and secondary packaging that is incompatible with the system, sales packaging for products containing harmful substances and reusable packaging fall under the regulations for the disposal of packaging that is not subject to system participation.

The take-back and recycling obligations go hand in hand with new verification obligations in accordance with Section 15 (3) VerpackG. According to this, manufacturers must provide evidence of their compliance with the take-back and recycling requirements for packaging that is not subject to licensing and must set up "suitable mechanisms for self-monitoring" once the documentation has been secured. This explicitly applies even if there is no system obligation, and also: a manufacturer can be subject to take-back and recovery obligations for both packaging subject to system participation and packaging not subject to system participation in Germany at the same time. Different solutions may be necessary for different types of packaging.

Companies need an overview of the entire value chain

Supply chains are therefore part of the general corporate sustainability strategy. The Munich and Upper Bavaria Chamber of Industry and Commerce, for example, points this out. "Sustainable supply chain management is about taking a holistic and systemic view of all stages of the supply chain - from direct suppliers to raw material extraction. Sustainable supply chain management paves the way for avoiding negative environmental impacts and human rights violations, thereby contributing to sustainable development."

This means that companies need to gain an overview of the entire value chain right through to raw material extraction, define where key sustainability issues and fields of action lie and also whether and how a company can also encourage its own suppliers to improve sustainability in their production processes. An opportunity/risk-based approach is important here. A key factor here is communicating with suppliers and raising their awareness. The aim must be to make the entire logistics value chain as sustainable as possible. The key question is: under what working conditions and with what impact on the environment are raw materials extracted, products manufactured and put on sale?

Customers must be informed about returns

Manufacturers must also comply with information obligations for packaging that is not to be licensed (Section 15 (1) RegE-VerpackG). End consumers must be informed about return options by means of suitable measures to an appropriate extent. This information can, for example, take the form of individual agreements on the return modalities and/or the cost regulation for the disposal of the packaging. The purpose of this obligation is for manufacturers to explain to their customers why they should return packaging and what the aim of this is. These notification and information obligations must be suitable for genuinely informing the customer so that measures must be taken to make them visible.

We at Höppner Management & Consultant take over as experts for operational environmental protection advising companies on the take-back, information and verification obligations of the German Packaging Act. We can also develop individual take-back and disposal concepts and provide support with waste management, disposal and recycling of waste and recyclable materials.

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Image source: Photo by Marcell Viragh on Unsplash