Frequently Asked Questions

Simplifying packaging compliance

What are the regulations trying to achieve?

The regulations have been instigated by the government to meet the UK’s packaging recovery and recycling targets set out in the European Directive 94/62/EC. The aims of the regulations are to:

• Achieve a more sustainable approach to dealing with packaging waste.
• Reduce the amount of packaging waste going to landfill.

Who needs to comply with the regulations?

Any company that has an annual turnover of more than £2m AND handles more than 50 tonnes of packaging per year.

What or who is a producer

A producer is anyone (usually a business or company) who:

• Performs an activity on the packaging.
• Provides new materials for packaging or supplies packaging, which he owns, to another stage in the chain (where another activity is performed) or to the final user of the packaging.

What are the obligations placed upon a company?

The three main obligations are:

i. Registration
A companyis required to register with the Environment Agency (EA), either directly or through a compliance scheme such as TaGPack. The company must pay a fee to the EA, and submit to the Environment Agency or compliance scheme packaging data for the obligated year

ii. Recovery and Recycling
A company is required to take reasonable steps to recover and recycle specific tonnages of packaging waste calculated on 3 factors:
a) The tonnage of packaging handled in the obligated year
b) The “activities” that the producer performs and the “percentage obligation” attached to each activity
c) The national recovery and recycling targets

iii Certifying
A producer must certify to the EA by 31 January following the obligated year that it has recovered and recycled the necessary tonnage of packaging waste.

If you join a compliance scheme all the above obligations are taken on by the scheme.

How do I know what constitutes packaging?

Packaging is defined as being: “All products, made of any material of any nature, to be used for the containment, protection, handling, delivery and presentation of goods from raw material to processed goods from the producer to the user or the consumer, including non-returnable items”

What is meant by "activities" and what percentage of packaging has to be recovered/recycled under each activity?

The activities referred to in the legislation are:

• Manufacturing  packaging raw material 6%.
• Converting packaging raw materials into packages 9%.
• Packing/Filling of packages with products 37%.
• Selling of the full packages to the final user 48%.

A company may fall into more than one of the above categories, and therefore will have to account for the relevant percentages on each of the activities.

Note:
The percentage for each activity given above is correct at January 2008, but is subject to review by the EA for subsequent years.

Do I have to join a compliance scheme to discharge my obligations?

No! You can register directly with the  Agency if preferred. In this case you must submit an operational plan (if your turnover is greater than £5M) and complete the Agency Data Submission Forms, register with the Agency, purchase  the necessary Packaging Recovery Notes (PRN's), and submit a Compliance Certificate as evidence of compliance.

What can TaGPack do for me?

TaGPack  discharges the obligations of its members by taking on the responsibility for those obligations.

Compliance schemes apply for registration to the Environment Agency and must supply evidence to the Agency that it has
a) an operational plan to satisfy the regulations (eliminating the need for members to submit their own.)
b) obtained the approval of the Secretary of State for the Environment

The approval of the Secretary of State is evidence that the operator of the scheme is a fit and proper organisation for the running of the scheme. The scheme may only be registered once such approval has been given and is subject to annual review.

TaGPack has satisfied the above and will gather the necessary data from its members, and submit that data to the Environment Agency on behalf of the member.

TaGPack purchases the necessary Packaging Recovery Notes (PRNs) to provide evidence of the member’s compliance.

TaGPack submits a Certificate of Compliance to the EA on the member’s behalf as evidence of compliance.

The EA registration fee for companies joining a compliance scheme is significantly less than direct registration with the EA.

TaGPack is able to offer advice on reducing your obligations

TaGPack can advise and assist in preparing for Environment Agency monitoring visits.

Does a company with several subsidiaries, none of which are individually obligated, still have obligations under the legislation?

The requirements for groups of companies are very specific. If a group has several subsidiaries, each of which does not have at least £2m turnover and 50 tonnes of packaging on its own, the group still has to register if the total turnover and packaging of the group exceeds these amounts.

Can a group register?

A group of companies may register as a group, individually for each subsidiary, or register some of the subsidiaries together, as long as they include the holding company of the group, and some separate.

What is a PRN

A Packaging Recovery Note (PRN) is the most common form of evidence of recycling and/or recovery. A material reprocessor who has been accredited by the EA sells the PRN to the producer (or its compliance scheme) for the necessary tonnage of packaging. The cost of the PRN is market driven, and can rise or fall depending upon the availability of the recycled commodity (plastic, steel, etc.) to which it refers.

Do I have to recycle or recover the specific packaging that I sent to my customer?

No! The reprocessor will recycle the equivalent amount and type of material, and supplies the PRN as evidence that this has been done.

I recycle my waste material, so am I already meeting the requirements of the legislation?

No. The legislation is specifically aimed at the recycling of packaging material. The recycling of production residues, even if they are cardboard, plastic, glass or other material that can be used for packaging purposes, cannot be used to meet the requirements of the legislation. In all cases, the recycling of the material is only one aspect of the legislation. You still have to register with the EA and supply evidence of recycling through the purchase of PRNs
TaGPack  offers a complete recycling service through Trees are Green (see www.treesaregreen.co.uk). If you are a member of TaGPack and join the Waste Directive Services through Trees are Green the financial cost of PRN’s may be offset against recycled materials

Are there any obligations on imports or exports?

Imports: Where packaging or packaging material is imported, the Importer has the “Rolled-up” obligation on all the activities carried out outside the UK.  Therefore, if the importer imports packaging to pack/fill they are also obligated for the manufacturing and converting obligations.

Exports: If a company exports goods outside the UK, it has no obligation on that packaging, as it will not be discarded within the UK

What will happen if I don't register with the EA or a compliance scheme?

The EA has access to all companies currently registered directly or with a compliance scheme. They monitor registrations and if a company is not on the list the EA may carry out an audit to determine whether the company has an obligation, and if so, why they have not registered.

If the EA conclude that a company has failed to discharge its obligations under the legislation, it can set a fine for each year that the company failed to comply with the legislation.

Typical fines are between £4,000 and £20, 000, although the largest fine so far imposed in England and Wales is £96,000.