Government Decree 94/2002. (5.V.) the specific rules concerning packaging and packaging waste treatment

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1 Government Decree 94/2002. (5.V.) on the specific rules concerning packaging and packaging waste treatment Under powers conferred upon it by paragraph a) of Section 14(6) and paragraph h) of Section 59(1) of the 2000 Act XLIII on Waste Management (hereinafter referred as AWM ), the Government directs as follows: Scope of the Decree (1) The scope of the Decree covers Section 1 a) a) the packaging of products marketed in the territory of the country and the related packaging waste, b) natural persons, legal entities and business organisations (paragraph c) of Section 685 of the Civil Code) who or which produce packaging material, generate packaging waste and/or carry on an activity related to packaging waste. (2) The scope of the Decree does not cover a) the packaging and packaging waste of radioactive materials, b) road, rail, shipping and air containers. (1) For the purpose of this Decree: Explanatory provisions Section 2 a) packaging means any packaging material, container or product that is used to wrap, preserve, handle, transport, group and offer a product/goods; b) packaging material means any packaging rated as waste; c) feedstock recycling means waste recovery as defined by paragraphs a)-b) of sub-section (1) and by sub-section (2) of Section 18 of the WMA; d) utilisation fee (licence fee) means a fee charged to the co-ordinating organisation in return for the assumption thereby of the take-back, recovery and related data supply obligation of

2 the obligor as defined by the WMA depending on the type and quantity of packaging waste taken over; g) producer means the initial marketer or, in case of importation, importer of a packaged product. (2) Packaging may be a) consumer (primary) packaging which forms a selling unit for the end user or consumer at the time of purchase, including disposable, throw-away dishes and cutlery used in fastfood outlets; b) collective (secondary) packaging which combines a particular selling unit at the point of sale, irrespective of whether it is sold to the end user or consumer, or can be separated from the consumer packaging without changing the properties thereof; c) transport (tertiary) packaging which facilitates the handling and transportation of consumer or collective packaging and helps avoid damage during physical handling and transportation. Requirements for the production and marking of packaging Section 3 (1) It is prohibited to market a packaging or put a product in a packaging in which or in the packaging of which or in the components thereof, except as provided for in sub-section (2), the total concentration of lead, cadmium, mercury and chromium(iv) (hereinafter collectively referred to as heavy metal ) exceeds 0.01 mass percent. (2) The prohibition set forth in sub-section (1) does not cover: a) lead glass packaging, b) glass used for packaging purpose if it is made from feedstock recycled glass tile, c) plastic crate or pallet if it is produced by feedstock recycling. (3) In the case as per paragraph c) of sub-section (2), the prohibition in sub-section (1) is not applicable if a) plastic-based crate or pallet rated as packaging waste is used, b) the mass of the new feedstock does not exceed 20% of the mass of waste used, c) no heavy metal is used for production, d) the plastic crates or pallets produced are brought into a distribution and/or recovery system where they remain at a rate of 90% during their lifetime, and e) the use of plastic crates or pallets is individually registered. (4) Plastic crates or pallets as per paragraph c) of sub-section (2) shall be provided with an identification marking that indicates their heavy metal contents. The collection, reuse and recovery 2

3 of plastic creates or pallets provided with an identification marking shall be the responsibility of the producer and/or distributor. Section 4 General requirements for the composition of a packaging as well as for the reusing or recycling potential thereof (including feedstock recycling) are set out in Appendix No. 1. Pursuant to paragraph b) of Section 14(6), specific technical requirements shall be established in a decree by the minister responsible for the regulation of this type of activity. Section 5 (1) Producer may apply an identification marking that indicates the material and waste of packaging as well as the method of treatment of packaging waste (hereinafter referred to as identification ). If a producer elect identification, it may only apply an identification system and/or method as set out in Appendix No. 2 in addition to other markings defined in a special law. Non-compliant or false identifications and markings shall be removed from the packaging prior to putting into circulation. (2) The identification on the packaging or on the label attached to the packaging shall be a) readily visible, b) durable, and c) readily legible even after opening the packaging, while meeting the requirements of the special law. (3) A law may provide for the compulsory application of an identification or other marking indicating the material of packaging and the method of treatment of packaging waste. Regulations for the treatment of packaging waste Section 6 (1) To reach the recovery rated defined in Section 56(8) of the WMA, the take-back of packaging waste separated from other waste materials as well as the reuse and recovery thereof shall be the responsibility of the producer or, pursuant to a special law, of the distributor. (2) The producer or, pursuant to a special law, the distributor shall itself fulfil the obligation as per sub-section (1) or may fulfil it by transfer to a business organisation having authorisation for recovery and shall ensure the reuse of packaging suitable for such purpose. The take-back and recovery obligation may be performed alone, jointly with other producers or through a recovery coordinating organisation as per Section 11 of the WMA (hereinafter referred to as co-ordinating organisation ). (3) Producer selling a product to a consumer shall be exempt from the take-back and recovery obligation, provided the quantity of consumer (primary) packaging of the product sold to the consumer per annum does not exceed 3

4 a) a total of 200 kg in the case of plastic or metal, b) 500 kg in the case of paper, and c) 800 kg in the case of glass. (4) Producer selling a product to a consumer may enter into an agreement with the packaging producer on the transfer of take-back and recovery obligation, provided the quantity of consumer (primary) packaging of the product sold to the consumer per annum does not exceed a) a total of 500 kg in the case of plastic or metal, b) 1000 kg in the case of paper, and c) 2000 kg in the case of glass. If a producer selling a product to a consumer procures packaging not directly from its producer, the first purchaser of the packaging material or container shall be deemed as such producer. Indication of a marking as specified by the co-ordinating organisation whose name is entered on the packaging material or container shall be regarded as an agreement. Section 7 (1) Consumer may request distributor to deliver a product/goods without transport (tertiary) or collective (secondary) packaging or may leave packaging with the distributor. Such request of the consumer may be rejected only if a) compliance with it would jeopardise the safe putting into operation of the product, b) compliance with it would jeopardise the safe use of the product, c) the product cannot be transported safely without a packaging, or d) compliance with it is prohibited by law. (2) A distributor who uses transport (tertiary) or collective (secondary) packaging in an annual quantity exceeding a) a total of 500 kg in the case of plastic or metal, b) 1000 kg in the case of paper, and c) 2000 kg in the case of glass for the product sold by it shall not refuse the take-back of transport (tertiary) or collective (secondary) packaging, unless provided otherwise by a law. 4

5 Registration and maintenance of records Section 8 (1) The co-ordinating organisation or, if not admitted as member of the co-ordinating organisation, the producer as well as the distributor defined by a special law (hereinafter collectively referred to as obligor ) shall be registered with the General Inspectorate of Environmental Protection and Nature Conservation (hereinafter referred to as General Inspectorate ). (2) Any producer not admitted as member of the co-ordinating organisation as well as the distributor defined by a special law shall file an application for registration within 15 days following the imposition of obligation by the WMA or this Decree. Such application shall contain: a) the name, registered office and tax number of the obligor, and b) the manner of fulfilment of obligation as per Section 6(2), including data specified in Appendix No. 3. (3) Any producer admitted as member of the co-ordinating organisation who carries out recovery of any type of packaging alone or jointly with other producers shall be deemed as a producer not admitted as member of the co-ordinating organisation with respect to registration. (4) The application for registration shall be accompanied by: a) authentic public instruments certifying the fact of legally binding court registration of an economic organisation not operating as a business company; b) in the case of a business company or one-man firm, an original certificate of incorporation not older than three months as well as an authentic copy of application for registration of a change which has already filed by the court of registration but has not yet been decided on; c) the original specimen of signature of the person authorised to represent or sign on behalf of a company or a copy thereof certified by a notary public; d) an authentic copy of the licence/official certificate provided for by special laws in association with a particular activity. (5) A co-ordinating organisation may be registered only if it has a public benefit legal status in accordance with the special law 1 and complies with the provisions of paragraph a) of sub-section (2) and of sub-section (4), further providing that a) its services are available to anybody in case of compliance with the terms and conditions set forth in the Articles of Association or Deed of Foundation thereof, b) it is capable of management of data related to the fulfilment of the recovery obligation, c) it has an amount of capital and initial assets required for the core activity, and d) it attaches its draft business regulations, including the general conditions of contract. (6) A co-ordinating organisation is capable of data management in accordance with paragraph b) of sub-section (5) if Act CLVI on Public Benefit Organisations 5

6 a) it undertakes to comply with the data supply obligation associated with the take-back, reuse and recovery obligation of all producers admitted as members of the co-ordinating organisation, and b) it is able to keep a record of the producers concerned as well as of the reuse of packaging and the recovery of packaging waste, thus allowing to establish whether the compulsory recovery rate as specified by the WMA has been reached or not. (7) A co-ordinating organisation shall be deemed to have an amount of capital and initial assets required for core activity if a) they are worth at least HUF 25 million in the case of a co-ordinating organisation intending to carry on regional activity, b) they are worth at least HUF 50 million in the case of a co-ordinating organisation intending to carry on nation-wide activity. Section 9 (1) The General Inspectorate shall decide on registration within 30 days following the filing of application. (2) The General Inspectorate shall register an obligor initially for a period of two years which can subsequently extended for five years repeatedly. (3) The General Inspectorate will reject the application if an obligor fails to make up deficiency despite a request to do so or comply with the terms and conditions of law. (4) The registration shall include the following: a) the obligor's identification data and field of operation, b) the manner of fulfilling the obligation to reuse packaging and/or recover packaging waste, c) in the case of the co-ordinating organisation, a symbol prescribed for members indicating their membership of the co-ordinating organisation in addition to information included in paragraphs a) and b). (5) Following registration, obligor shall report in writing to the General Inspectorate any change in data listed in sub-sections (2) to (4) of Section 8 within 15 days following the occurrence of such change, attaching a document certifying the fact of change. (6) The co-ordinating organisation may commence its activity following the registration. Section 10 (1) If an obligor fails to comply with the obligation set out herein, the environmental authority will oblige it to pay a waste management fine as established in the special law. (2) Should a repeatedly levied fine prove to be ineffective, the General Inspectorate will deregister the obligor affected on the 90th day following the establishment of ineffectiveness. During the period between receipt of a decision on deregistration and its entering into legal effect, the coordinating organisation shall not conclude any new contract in association with its activity. 6

7 (3) When the decision on deregistration enters into legal effect, a) the co-ordinating organisation shall not proceed with its activity, b) other obligor shall not, in turn, carry on an activity which relates to its obligation prescribed herein. Setting of the recovery fee Section 11 (1) Under obligations to supply data and recover packaging waste, the co-ordinating organisation shall, at regular intervals, set the rate of recovery fee for various types of packaging and establish the method of calculation thereof as well as the conditions of admission as member of the coordinating organisation which shall be applied without discrimination. (2) The rate of recovery fee, the method of calculation and the date of setting thereof as well as the conditions of admission as member of the co-ordinating organisation shall be reported by the coordinating organisation to the General Inspectorate, taking into consideration the proposal of an advisory body set up with the participation of producers and waste recovery companies affected, municipal associations and public organisations formed for environmental protection purposes. (3) The recovery fee established by the co-ordinating organisation shall be applicable for at least one but maximum two years. If a substantial change occurs in the economic conditions, the recovery fee set may be applied for a shorter period subject to a decision made by the advisory body referred to in sub-section (2) above by a qualified majority of votes. (4) The rate of the recovery fee and the method of calculation thereof shall be published in the official journal of the ministry responsible for environmental protection. (5) Producers, distributors and recovery companies affected, municipal associations and public organisations formed for environmental protection purposes will delegate in equal proportion representatives to the maximum 15-member advisory body referred to in sub-section (2). The advisory body will itself establish its rules of procedure. The decision on the rules of procedure and recovery fee will be taken at a session of the body which is attended by all members and its approval requires 86% of the votes of members. (1) A record shall be kept Information system concerning packaging and packaging waste Section 12 a) by the producer of the nature of packaging, the name of the materials used for packaging (using the international so-called HS code numbers), the type and quantity thereof, as well as of the suitability of packaging for reuse or recovery, b) by the obligor of quantity of packaging taken back and reused, and by the obligor and waste recovery company of the nature, recovery and quantity of packaging waste taken back as well as of the compliance with their obligations hereunder. 7

8 (2) The producer and obligor shall furnish data based on the record as per sub-section (1) to the General Inspectorate by 31 January of the year following the year under review. (3) Data supply shall contain without limitation: a) in the case of the co-ordinating organisation, the list of business organisations being in contractual relationship with it; b) data concerning the quantity of packaging used in breakdown by each category of material as well as the quantity reused, c) in the case of packaging waste generated in and outside households, the quantities recovered and disposed of with their contribution in breakdown by each category of material as well as data concerning recovered and feedstock recycled quantities in breakdown by each category of material. Data supply by the obligor shall have a content as prescribed by Appendix No. 4 hereto. (4) The consistency of the data supply with the records maintained by the obligor as well as the producer s records will be checked by the General Inspectorate. (5) From data available from data supply and official checks, the General Inspectorate shall establish a public information system concerning packaging and packaging waste. (6) The information system shall contain, in breakdown by type of material and in an aggregated form, the quantity of materials used for packaging, their name (using the international so-called HS code numbers), their recovery potential, their suitability for feedstock recycling or reuse as well as the properties and quantities of packaging waste to be recovered and disposed of. Checks by competent authorities Section 13 The provisions of the special law 2 shall be applied to a) checking the use of the identification marking as per Section 3(4) and the identification as per Section (4) herein by the consumer protection authority, b) checking the observance of limit value in Section 3(1) by the health authority. (2) Performance of obligations beyond the scope of sub-section (1) as well as of other obligations under the WMA and this Decree shall be checked by the General Inspectorate Act CLV on Consumer Protection 1995 Act XC on Foodstuffs 8

9 Closing provisions Section 14 (1) This Decree shall enter into force on 1 January Products and packaging produced not in compliance with this Decree shall be withdrawn from circulation by 1 January (2) The exemption in Section 3(2) shall be applicable a) until 30 June 2006 in the case as per paragraph b) of Section 3(2), b) until 09 February 2009 in the case as per paragraph c) of Section 3(2). (3) This Decree, within the scope of the European Agreement signed on 16 December 1991 in Brussels on entering into a partnership between the Republic of Hungary and the European Communities and the Member States thereof and in line with Section 3 of the 1994 Act I on Proclamation of the European Agreement, contains regulations partially consistent with the following laws of the European Communities: - Council Directive 94/62/EC on packaging and packaging waste, - Committee Resolution 97/129/EC on establishment of a marking system for packaging materials in compliance with the Directive 94/62/EC of the European Parliament and the Council on packaging and packaging waste, - Committee Resolution 97/138/EC on introducing data sheets required for setting up a database in compliance with the Directive 94/62/EC of the European Parliament and the Council on packaging and packaging waste, - Committee Resolution 1999/177/EC on establishing the conditions of deviations for plastic crates and pallets in association with heavy metal concentration levels set in the Directive 94/62/EC on packaging and packaging waste, - - Committee Resolution 2001/171/EC on deviation from heavy metal concentration limits set in Directive 94/62/EC for glass packaging. 9