The Regulations
The Regulations
Background
In 1997, the UK government implemented The Producer Responsibility Obligations (Packaging Waste) Regulations on the back of an EU Directive. The purpose of the regulations was to increase the amount of packaging recycled within the UK in order to meet targets set by the EU Directive.
Obligated companies must register with the Environment Agency, something Paperpak will do on your behalf. Companies must then assess their obligation through our recommended data capture and recording techniques. Based on the obligation, a levy must then be paid through the purchase of PRNs.
Who they affect
The Regulations require that all UK businesses, that have a turnover of more than £2 million per annum and handle more than 50 tonnes of packaging per year must be compliant. In order to comply UK businesses must assess packaging around raw materials, components, finished goods and packaging added for dispatch as part of a data submission.
Therefore, your obligation is based upon the amount of packaging introduced into the UK system and not the amount of waste that a company has collected from its premises, or sent for recycling. Based upon data assessment a company will be required to recycle a proportion of its packaging it has introduced into the UK system.
However, you cannot physically recycle yourself. The only way to offset your obligation is through the purchase of Packaging Recovery Notes (PRNs) or the export equivalent Packaging Export Recovery Notes (PERNs). As a compliance scheme, Paperpak takes on your obligation to purchase PRNs which it re-charges back to you.
Methods of Compliance
In relation to compliance, Paperpak will advise you on which method best suits your company and for both processes we will provide appropriate guidance. In the words of the regulations, all data must ‘be as accurate as reasonably possible’.
Small Producer Method
If your turnover is between £2 million and £5 million you have the option of complying through the Allocation Method. This is the simplest and in most cases the least time consuming method of complying. Once adopted, the Allocation method must be followed for a minimum of three years. However, if a company’s turnover exceeds £5 million during this time, then the company is required to adopt the Data Submission Method.
Data Submission Method
This method of compliance is compulsory for any company with a turnover in excess of £5 million. Your obligation is calculated from the tonnage of packaging handled in the previous calendar year. The Data Submission Method requires companies to assess, capture and record the weight of packaging around raw materials, components and finished goods. Data is captured through a full assessment or a sampling methodology to establish the companies obligation.
What are PRNs?
In order to meet mandatory EU recycling targets, the Government’s policy has been to require reprocessors of paper, glass, aluminium, steel, plastic and wood materials to recycle more packaging waste.
The revenue generated by the sale of PRNs/PERNs is used by reprocessors to fund capital expenditure in new recycling plants and subsidising new products made from recycled waste.
In order for an obligated company to comply, the correct amount of PRNs must be purchased to offset the amount of packaging waste introduced into the UK system. Acquisition of PRNs can be done through a compliance scheme. Paperpak maintains close on-going relationships with PRN and PERN issuers, enabling the process to be carried out in the most cost-effective manner to the benefit of all Paperpak members.
Not registered before?
If you've not registered before an Enforcement Undertaking is a relatively new method by which companies can remedy previous years non-compliance with the Packaging Regulations. In essence we first need to determine what your obligations should have been in previous years, then assess the avoided costs.
An application to submit an Enforcement Undertaking then will be drafted by Paperpak which will set out a number of corrective actions, an assessment of previous obligations and avoided costs. An offer will be made to an Environmental Charity or project, which meets the Environment Agency's requirements, to equal not less than 110% of the avoided costs if we do a proactive offer.
Consumer Information Obligation (CIO)
The Consumer Information Obligation (CIO) applies to companies who supply packaging around product to the end user of that packaging. The CIO requires these companies to provide information on re-use, recycling and recovery to their consumers in order to increase the amount of packaging waste being recovered and recycled.