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Interpretation of EPR Policy and Related Regulations

Extended Producer Responsibility (EPR) is an environmental policy defined by the OECD that extends the producer's responsibility for a product beyond the consumption phase to the entire lifecycle, including design and disposal (waste collection and recycling).

According to EPR regulations, responsible companies must reduce their environmental impact throughout the entire lifecycle of their products.

This policy came into effect on January 1, 2022. If you sell goods in France and/or Germany, the marketplace platform must verify whether you comply with the Extended Producer Responsibility (EPR) regulations of the respective country. Under the EPR framework, specific regulations have been implemented in various EU member states, such as common packaging laws, battery laws, and WEEE (Waste Electrical and Electronic Equipment) regulations.

EPR policy has the following characteristics:

  1. It shifts the responsibility (either partially or entirely, physically or economically) from local governments to producers, encouraging producers to consider environmental factors in product design.
  2. It provides incentives for producers to consider environmental factors in product design.

Other policy tools often target individual stages of the product chain, while EPR aims to integrate signals related to the product and production process's environmental characteristics.

The scope of EPR certification includes:

  1. Local manufacturers.
  2. Local importers.
  3. Companies that are not established locally but sell goods locally.

Currently, although EPR is an environmental policy in Europe, it primarily involves Germany and France.

Germany (3 categories): Packaging (Packaging Law), Waste Electrical and Electronic Equipment (WEEE), and Batteries (Battery Law).

France (7 categories): Packaging, Waste Electrical and Electronic Equipment, Batteries, Furniture, Tires, Paper, and Textiles.

Packaging Law

This regulation pertains to sales packaging, which refers to the packaging used to protect goods and products and ensure their safe delivery to consumers. Sales packaging is considered the unit of sale, comprising the product and its packaging, provided to the end-user.

Transport packaging for online sales refers to the packaging used to deliver goods to the end-user, such as shipping cartons, cushioning materials like bubble wrap, etc. For transport packaging, all platform sellers or online retailers selling to the German market have a direct obligation. They need to register and become members of a packaging compliance scheme (PRO).

In rare cases, the sales packaging (product packaging) may already fulfill the obligations in Germany and be a member of a scheme. In such cases, proof of registration and scheme membership needs to be provided. If no proof is available, the responsibility still lies with the platform seller/online retailer.

In Germany, sellers are obligated to fulfill the obligations for all packaging they sell in the German market. Therefore, these obligations apply to all sales channels, not just goods sold through marketplace platforms.

The main duties for marketplace sellers are as follows:

  1. Join a PRO: The packaging sold on the marketplace must have a license from a PRO. A contract needs to be signed with the PRO at this stage.
  2. Register with the Central Agency Packaging Registry (https://www.verpackungsregister.org) before selling any packaging products on the German market.
  3. Report the quantities of packaging sold on the German market: Reports need to be submitted to both the Central Agency (LUCID platform) and the PRO. The reports must be submitted in kilograms, categorized by material type.

WEEE

Devices that operate with a maximum alternating voltage of 1,000 volts or a maximum direct current voltage of 1,500 volts and possess one of the following characteristics:

  1. Depend on current or electromagnetic fields to function normally.
  2. Used for generating, conducting, and measuring current and electromagnetic fields.

If electronic and electrical equipment (EEE) provided by a seller contains batteries, both the EEE and the batteries must be registered.

Marketplace sellers have the following 5 duties:

  1. Register your electrical equipment by category and brand.
  2. Appoint an authorized representative (AR) in Germany, applicable to electrical equipment manufacturers/distributors without a subsidiary in Germany.
  3. Join a compliance scheme (PRO) to ensure the recycling and reuse of electrical equipment.
  4. Report to the registration agency.
  5. Fulfill other obligations, such as labeling or implementing a 1:1 take-back system.

Battery Law

The Battery Law differentiates between three types of batteries:

  1. "Portable batteries" refer to sealed handheld batteries. Industrial batteries and automotive batteries are not considered portable batteries.
  2. "Industrial batteries" encompass all batteries specifically used for industrial, commercial, or agricultural purposes. Industrial batteries can also be used for electric vehicles such as e-bikes or hybrid cars.
  3. "Automotive batteries" pertain to batteries used for vehicle starting, lighting, or ignition power supply.

Manufacturers of all battery types must register them with the competent authority (Stiftung ear) under the correct brand and battery type before placing them on the market.

Manufacturers of portable batteries are obliged to accept waste portable batteries collected by distributors or local collection points free of charge and ensure their nationwide recycling. To fulfill this recycling obligation, manufacturers must participate in an approved recycling program as stipulated by Article 7 of the Battery Law. This recycling program implements the recycling and reuse of waste batteries and achieves a minimum recycling rate of 50% as required by law, starting from the reporting year 2021.

Manufacturers of industrial and automotive batteries are obligated to accept waste batteries. They must provide a free and reasonably convenient recycling solution in accordance with Article 14 of the Battery Law.

Marketplace sellers have the following 4 duties:

  1. Register your batteries by category and brand.
  2. Manufacturers/distributors without a subsidiary in Germany can appoint an authorized representative.
  3. Join a battery recycling program.
  4. Report the quantities of batteries sold on the German market.

If you have any questions or requirements regarding German EPR (Packaging Law, WEEE, Battery Law), please contact us. ARTxDIGI, through our partner organizations, provides solutions to help clients register and obtain EPR packaging authorization, ensuring compliance while saving costs.

If you are interested in expanding your operations in China and digitalize your HR operation, but are unsure where to start, contact us today. Our team of experts can provide the guidance and support you need to succeed in the Chinese market.

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Grace Shi
Partner
18610805757
grace.shi@artxdigi.com
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