This guide is designed to simplify packaging compliance and help demystify the process to becoming compliant.
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1 A Guide to Packaging Compliance This guide is designed to simplify packaging compliance and help demystify the process to becoming compliant. Content What is Packaging Compliance? What constitutes packaging? Does my Company need to register for Packaging Compliance? If we need to register, what do we do now? What if we need to register, but we don t? Why register with Enpack? Membership Small Packaging Producer Status Membership Standard Registration Status Description of packaging activities The cost of Packaging Compliance registering with Enpack The cost of Packaging Compliance registering direct with the EA The Next Step if you need to register for Packaging Compliance What Enpack can do for you If you have any queries that have not been covered in this guide, please feel free to contact us either by or telephone. Page 1
2 What is Packaging Compliance? When Packaging Compliance is referred to, it means that a company has complied with Government Legislation, in the form of The Producer Responsibility Obligations (Packaging Waste) Regulations The Regulations work on the principle of 'Collective Producer Responsibility' - enforcing producers of packaging to take responsibility for their environmental impact. These producers are to pay a proportion of the cost of the recovery and recycling of their packaging. The UK has packaging waste recovery and recycling targets which ensure that the country continues to meet EU Directive targets each year. 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. Does my Company need to register for Packaging Compliance? If your company has an annual turnover of 2m+ and handles 50 tonnes of packaging annually, then you are legally required to register. If we need to register, what do we do now? You must register with the Environment Agency by joining a compliance scheme that does this on your behalf or registering direct with the Environment Agency in the National Packaging Waste Database (NPWD). What if we need to register, but we don t? If you choose to do nothing and continue being non-compliant your company is at risk facing prosecution under criminal law and also being fined by the Environment Agency as a civil penalty. Page 2
3 Why register with Enpack? If you choose to register directly with the Environment Agency, you will have higher EA fees and you will be responsible each year for registering, calculating packaging obligations, submitting packaging tonnages, producing and uploading an Operational Plan, procuring PRN s and providing evidence of proof of compliance. If on the other-hand you join a scheme, your sole responsibility will be to collate and report all packaging handled for the previous calendar year. What Enpack Provides to Members; Strong commitment to Quality Customer Service Administrative support in completion of forms Customised invoicing as required updates on upcoming deadlines Collation of subsidiary data Technical advice and support from a Scheme Manager Verification of data supplied Calculation of packaging obligation against Government targets Annual checks to ensure compliance Checks to ensure that you are not over obligated Assistance with packaging methodology Assistance with data gathering Identification of what is and what is not designated as packaging Regular newsletters provided via Current PRN prices supplied Consumer Information Obligation information provided PRNs provided at cost + admin fee No hidden or inflated costs and charges No additional charges for compliance monitoring visits Fully auditable costs and charges Page 3
4 Membership Small Packaging Producer Status You are classed as a small producer if your annual turnover is between 2-5m. A small producer s recycling obligation is based on turnover (to the nearest 10,000) and the main packaging material handled, not weight of packaging handled. You will need to provide proof of turnover or a set of audited accounts, this is known as the allocation method. You can still join a compliance scheme, which shall register you for Packaging Compliance with the Environment Agency, and ensure that all of the correct documentation is completed. Membership Standard Registration Status For companies who have a turnover in excess of 5m they need to register as a standard producer. For standard registration the Company, (or group of Companies when there are subsidiaries), need to provide details on the packaging handled for the previous year. The Company would need to understand the packaging flows through their business and provide a methodology to show their ability to collate the packaging information using a variety of sources; purchase records, sales records, supplier records and sample weighing. Weights for packaging activities would be required each year, and these would be registered with the Environment Agency, on a data template or if through a Compliance Scheme, an annual Data Form. Description of Packaging Activities The packaging activities which would need to be reported on are as follows; Activity Manufacture Conversion Pack/fill Selling Importing Exporting Description Produce raw materials for packaging manufacture Convert raw materials into packaging Putting goods into packaging or putting packaging around goods Supplying packaging to the end user Importing packaged goods or packaging materials from outside the UK Exporting packaged goods or packaging materials from outside the UK Page 4
5 The cost of Packaging Compliance registering with Enpack The fees are made up of: Compliance Scheme Membership Fee Environment Agency Fees PRN Fees Enpack Membership Fee Enpack offer competitive packaging compliance membership fees, which covers the administration of the scheme and the support offered to all members. There are three fee structures; Standard Membership, Premier Membership and the Allocation Method which can be accessed by small producers (annual turnover of 2-5 million). Standard Membership The majority of our Members with 5m+ turnover have this membership. With the support of one of our Scheme Managers, they develop a methodology to collect their own packaging data and then provide annual packaging weights to the Enpack scheme each year. We check their submission before calculating their PRN* obligation and registering this data with the Environment Agency. Premier Membership Some of our Members require additional support, which Premier Membership provides. This Member would provide the base data to the Enpack scheme, for us to calculate their annual packaging weights each year. Again, we check the submission before calculating the PRN* obligation and registering this data with the Environment Agency. Allocation Method Membership When the Member has between 2-5m annual turnover we can register them for the Allocation Method, which is a simple calculation rather than obtaining packaging weights from activities performed each year. Page 5
6 Environment Agency Fees When registering through a Compliance Scheme, the scheme collects any monies owed by the member and arranges payment to the Environment Agency. These are the costs to the Member when registering through a registered Compliance Scheme: Annual Registration Fees Great Britain Northern Ireland Small Producers Registration Fee ( 2-5million turnover and allocation method) Standard Registration Fee Subsidiary Registration Fees Applies to groups of companies, fees are charged for each subsidiary company that handles packaging, in addition to the above fee for the main group company. 1 st to 4 th subsidiary company 180 each 5 th to 20 th subsidiary company 90 each 21 st and additional subsidiary companies 45 each There are also additional costs levied by the Environment Agency for Late Registration Fees and Resubmission Fees, when a scheme member has not submitted data by EA deadlines or needs to resubmit data after 7th April of any given year. PRN Fees The legislation stipulates that companies who are obligated under the Regulations must prove they have paid for the requisite amount of tonnes to be recovered each year. A Packaging Recovery Notes (PRN) is provided by Reprocessors for each tonne of specific material they have recovered. For a percentage of each tonne of packaging waste generated, a PRN is required as proof that a tonne of that material (wood, paper, glass, plastic, aluminium or steel) has been recycled. The price of PRNs is set by the reprocessors according to the availability of material being recycled. If you are a member of a Compliance Scheme, the scheme shall calculate the quantity and type of PRN s that you require. Once your obligation is known, the scheme shall procure the PRN s for you, to discharge your obligation. Page 6
7 The cost of Packaging Compliance registering direct with the EA The fees are made up of: Environment Agency Fees PRN Fees As stated previously, the EA fees are higher and a Company registering direct with the EA will be responsible each year for registering, calculating packaging obligations, submitting packaging tonnages, producing and uploading an Operational Plan, procuring PRN s and providing evidence of proof of compliance. Environment Agency Fees When registering direct with the Environment Agency, the EA would require payment direct, usually electronically. These are the costs to a company when registering direct with the Environment Agency: Annual Registration Fees Great Britain Small Producers Registration Fee ( 2-5million turnover and allocation method) Standard Registration Fee 776 Subsidiary Registration Fees Applies to groups of companies, fees are charged for each subsidiary company that handles packaging, in addition to the above fee for the main group company. 1 st to 4 th subsidiary company 180 each 5 th to 20 th subsidiary company 90 each 21 st and additional subsidiary companies 45 each There are also additional costs levied by the Environment Agency for Late Registration Fees and Resubmission Fees, when a Company has not submitted data by EA deadlines or needs to resubmit data after 7th April of any given year. PRN Fees A Company registering direct with the EA for packaging compliance would need to procure their own PRN s and register these with the EA to discharge their obligation. Page 7
8 The Next Step If you need to register for Packaging Compliance, you need to decide the best course of action for you and your Company; you can register direct with the Environment Agency or register through a Compliance Scheme. Any Compliance Scheme would be pleased to provide a quotation for registering through them, and Enpack is no exception. What Enpack can do for you We offer unrivalled support for Companies new to packaging compliance and take the time to visit all new Members to perform an on-site assessment, providing all of the support required to guarantee compliance. Environment Agency Audit of Enpack: Overall Assessment - Excellent. We believe that this Scheme is demonstrating excellence in collecting, quality assurance and reporting accurate, consistent data and in its overall operation of the scheme. June 2014 If you would like to further information, a breakdown of costs or would like to join the Enpack scheme, then please get in touch with one of our Scheme Managers, who would be more than happy to help: Tracey Gibbons Kevin Gibbons tracey.gibbons@enpackcompliance.com kevin.gibbons@enpackcompliance.com Page 8
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