Questions about system participation
What requirements must be met for system participation?
System participation must occur in one or more systems licensed by the responsible state authority. This ensures that private final consumers across Germany can regulary return their used packaging free of charge. If a system's licence expires, system participation is no longer possible through that system. The same applies before a system is licensed. Effective system participation with a given system operator requires that the system has started operating by the date of licensing.
Click here for an overview of system operators.
Am I required to participate packaging with a system if I also have to pay the single-use plastic fee for that packaging?
Yes.
While the system participation requirement pursuant to the Verpackungsgesetz (Packaging Act) and the payment obligation pursuant to the Einwegkunststofffondsgesetz (Single-Use Plastic Fund Act) apply to the same object, they operate independently. Each regulation has its own reference points, content and goals, and they function side by side without affecting one another.
Specifically, system participation fees are used to fund the kerbside collection and recovery of packaging, while the single-use plastic fee helps cover the costs of recovering single-use plastic products from public spaces. These fees cannot be offset against each other, nor can volumes be deducted from one fee to reduce the other.
When is it permissible under the Verpackungsgesetz (Packaging Act – VerpackG) to make retrospective deductions from packaging volumes that have already participated in a system and have been placed onto the German market?
Retrospective deductions pursuant to section 7 (3) VerpackG (Packaging Act) are permitted if the packaging that has participated with a system cannot be handed over to final consumers due to damage or unsaleability and the producer has taken the packaging back and transferred it for recovery as per section 16 (5) VerpackG. In such cases, the return and recovery must be clearly documented. If these conditions are met and the system participation fees have been refunded, the packaging is no longer considered to have been placed on the market.
However, if the packaging has already been handed over to a final consumer – for example through mail order – then no refund is possible.
If retailers or redistributors decide on their own to export the packaging, without the packaging's producer having planned for the packaging to be exported, this may also qualify for a retrospective exemption from the system participation requirement pursuant to section 12 (1) VerpackG if i) strict legal criteria are met and ii) it can be evidenced that the packaging that has participated with a system was never handed over to final consumers in Germany, which is where the Verpackungsgesetz applies.
The export must always be clearly documented by the initial distributor or producer. Even if all conditions are met, there is no legal right to a refund from the system for a system participation fee that has already been paid.
For details, refer to the long-version FAQ which sets out the Zentrale Stelle Verpackungsregister's (Central Agency Packaging Register – ZSVR) current interpretation of the law. The ZSVR requires that this legal interpretation be used as the basis for declarations of completeness submitted for the 2020 reference year onwards.
Is bundling participation volumes by a third party permissible?
Yes, but it must be noted that an appointed third party must report the producer information to the system, including the respective registration number, with specific volumes per producer. Furthermore, the system operator must also confirm the volumes (per material type) that underwent system participation, to every party under obligation and without delay. These legal provisions change the activities of third parties/brokers vis-à-vis the situation under the Verpackungsverordnung (Packaging Ordinance). System participation by an appointed third party can only take place in concrete terms with reference to a specific registration number, i.e. it cannot be done in advance in relation to abstract volumes or a volume package for multiple producers. It must also be ensured that the producer receives confirmation from the relevant system operator.
The data reporting of the party under obligation in the LUCID Packaging Register remains unaffected by this. The parties under obligation must undertake the reporting themselves and with regards to the approved system that was appointed by the third party. Data reporting related to third parties is prohibited.
Can an appointed third party (broker, auditor, consultant, chamber of foreign trade) with power of attorney (or similar authority) undertake system participation on behalf of a producer (within Germany or abroad)?
Yes; however they must provide all the declarations that the individual producer is also required to provide. They can only undertake system participation for the producer, using the latter's registration number, so that the system in turn can fulfil its obligations to the specific producer.
The data reporting of the party under obligation in the LUCID Packaging Register remains unaffected by this. The parties under obligation must undertake the reporting themselves and with regards to the approved system that was appointed by the third party. Data reporting related to third parties is prohibited.
Can an upstream distributor of service packaging to whom the system participation requirement has been shifted pass on the system participation requirement?
No, that is not possible. The possibility to pass on the system participation requirement serves to reduce the burden especially for small and medium-sized artisanal food production businesses. In the case of service packaging, they are able to shift the system participation requirement and require an upstream distributor (for example the supplier of such packaging) to undertake system participation. However, that party in turn does not have a right to shift the requirement onward.
Can I select a sector-specific solution instead of system participation?
The option to use a sector-specific solution instead of system participation provided for in the Verpackungsgesetz (Packaging Act) is a very narrowly regulated exception to system participation. It only comes into consideration for packaging that accumulates as waste with comparable sources of waste generation. For packaging waste at private households it is not an option.
The key requirements are the following:
The goods are delivered to a so-called 'comparable source of waste generation' (section 3 (11) VerpackG (Packaging Act)), such as restaurants, barracks, administrative offices.
The sources of waste generation are supplied directly or via intermediary distributors, and documentation of this can be provided.
Regular return of the packaging occurs at these sources of waste generation free of charge.
There is written confirmation of all serviced sources of waste generation, showing their integration in the collection structure.
A written certification from a registered expert shows that the serviced sources of waste generation are integrated in a free-of-charge collection structure and the returned packaging is recovered pursuant to the requirements of section 16 (1)-(3) VerpackG, in particular with regard to the recycling quotas stipulated.
Further requirements include:
notifying the Zentrale Stelle Verpackungsregister (Central Agency Packaging Register – ZSVR) of the sector-specific solution before the sector-specific solution begins;
notifying the ZSVR of all material changes to the sector-specific solution;
providing a volume flow record annually that complies with the requirements of the Verpackungsgesetz, and a corresponding certification from a registered expert.
If these requirements of the Verpackungsgesetz are not met, the packaging continues to be fully subject to system participation. Non-compliance constitutes an administrative offence and the packaging will be subject to a distribution ban.