Packaging Act (VerpackG)
The Packaging Act (VerpackG) forms a legal framework that regulates the production, sale and environmentally friendly disposal of sales packaging. As a result, retailers, online retailers and manufacturers are obliged to actively participate in the disposal and recycling process. They are responsible for ensuring that the sales packaging of their products is properly licensed. The licensing costs are used to pay the disposal costs for the packaging. *In addition, the VerpackG sets recycling quotas.
What is the Packaging Act?
The Packaging Act in Germany regulates the placing of packaging on the market as well as the take-back and high-quality recycling of packaging waste. It replaced the previous Packaging Ordinance in 2019 and requires companies to take responsibility for the packaging they put into circulation. The law implements Directive 94/62/EC on packaging and packaging waste and obliges distributors to obtain packaging licenses.
Key objectives of the Packaging Act:
- Avoiding waste and conserving resources: The law is intended to promote the avoidance of packaging waste and ensure high-quality recovery through recycling.
- Increasing recycling rates: By setting binding recycling rates for various packaging materials, the VerpackG aims to ensure that the circular economy is strengthened.
- Product responsibility of manufacturers: Manufacturers and sellers are obliged to take responsibility for the packaging they place on the market, including taking it back and recycling it.
Definition of distributor: A distributor is any trader who places a product on the market for the first time or makes it available to the market for the first time.
Who does the Packaging Act apply to?
The VerpackG applies to all companies that put packaged goods into circulation for the first time in Germany. This includes manufacturers, importers, online retailers and stationary retailers. Anyone who fills packaging and places it on the market is responsible for its disposal and recycling.
The VerpackG is also relevant for companies that use shipping packaging, sales packaging or transport packaging. Foreign companies that deliver goods to the end consumer are also affected. They must ensure that their packaging is properly licensed and registered.
In order to meet the legal requirements, registration in the LUCID packaging register is required. In addition, companies must license their packaging with a dual system to ensure that it is disposed of and recycled properly. Those who do not comply with this obligation risk fines and distribution bans. By licensing your packaging with zmart.de, you are on the safe side
- license with us now for as little as €49 per year!
To licensing with zmart.de
Packaging law for small business owners
Small businesses, freelancers and retailers are also subject to the obligations of the Packaging Act. The law does not provide for a minimum quantity regulation and makes no distinction based on company size or turnover. This means that even the smallest quantities of sales, shipping or service packaging* must be registered and licensed. This obligation applies to anyone who places packaging subject to system participation on the German market for the first time on a commercial basis. This means that anyone who sells products in packaging that ends up with the end consumer must comply with the requirements.
Packaging Act for online stores
Retailers who sell their products to German customers via online stores such as eBay, Amazon, Etsy or Alibaba are also subject to the provisions of the Packaging Act. The registration and licensing obligation also applies to online retailers when they place packaging on the German market for the first time. This is regardless of whether they are based in Germany or abroad. For example, the retailers concerned must mainly license shipping packaging, unless they import their goods from abroad themselves.
Since the change on July 1, 2022, online marketplaces such as eBay and Amazon are legally obliged to ensure that their sellers comply with the requirements of the VerpackG. This means that retailers without valid LUCID registration and proof of system participation are no longer allowed to sell via these platforms.
Packaging Act: Costs?
There is one central cost item for compliance with the Packaging Act. These are the disposal costs for the packaging. These costs are paid through packaging licenses to a dual disposal system such as Zentek
- the owner of zmart.
The respective licensing costs for distributors who are subject to the packaging licensing obligation depend on various circumstances. These include e.g. These include, for example, the quantity and type of packaging or the recyclability of the packaging materials used.
At zmart.de we offer an online calculator to calculate the individual license costs.
By the way: Registration in the LUCID packaging register at the Central Agency Packaging Register (ZSVR) alone does not entail any costs or fees.
Possible penalties and fines: Anyone who violates the requirements of the Packaging Act (e.g. lack of registration or unlicensed packaging) must expect fines of up to 200,000 euros.
VerpackG: Regulations according to use case
All companies placing products on the market are obliged to register their company, products and associated brand names with the ZVSR. Manufacturers or initial distributors of packaged goods are obliged to license filled product packaging that is generated as packaging waste by private end consumers and equivalent sources of waste generation (e.g. hotels, hospitals, public offices, etc.).
Dropshipping
In the case of drop shipments (drop shipping or direct trade), the sender of the goods is responsible for packaging licensing. Dropshippers should check whether the shipper fulfills its system participation obligation in accordance with the VerpackG and request proof.
Imported goods
According to the law, the person who imports goods commercially into the area of application of the Packaging Act is deemed to be the first distributor. If an online retailer imports goods from China, for example, they are obliged to license all packaging material.
Private labels
Companies that bring their own branded products onto the market are responsible for the proper licensing and registration of their packaging in accordance with the German Packaging Act.
Marketplace traders
Operators of electronic marketplaces must check whether the retailers acting through them have properly licensed the packaging used. If proof cannot be provided, the retailer in question is subject to a sales ban.
Produced in Germany
Packaging produced in Germany must be licensed by the party that first sells it filled with goods (with the exception of service packaging). For example, a manufacturer of detergent that sells to a retailer must license the product packaging.
Fulfilment partner
The commissioning retailer is responsible for packaging licensing. The fulfillment service provider has a control obligation: it must check whether the retailers acting through it fulfill their system participation obligation.
Packaging Act: Licensing, registration, data reporting
Registration in the LUCID Packaging Register is mandatory for all companies that put packaging into circulation in Germany. Every company that sells packaged goods to end consumers must register with the Central Agency Packaging Register (ZSVR) before the first sale. Registration is free of charge, but mandatory.
In addition to registering on the LUCID portal, companies are obliged to submit regular data reports to the Central Agency Packaging Register. As a dual system, zmart also transmits the licensed packaging quantities to the ZSVR. This allows discrepancies between the company data and the actual licensed quantities to be identified.
The reports that you must submit directly to the Central Agency without the involvement of third parties include:
Planned quantity notification
Vor Beginn eines neuen Kalenderjahres lizenzieren Sie das gesamte systembeteiligungspflichtige Verpackungsmaterial, das Sie planen, im nächsten Kalenderjahr in Verkehr zu bringen. Davon ausgenommen ist das Verpackungsmaterial, welches bereits von Ihren Lieferanten lizenziert wurde.
Quantity adjustment
If you discover during the course of the year that you are putting more or less packaging material subject to system participation into circulation than originally planned, you can easily make these changes via our customer portal. This is known as a volume adjustment during the year.
Year-end report
At the end of a calendar year, at the latest at the beginning of the following year, you submit the year-end report to the ZVSR and your participating dual system. Here you can adjust your quantities once again and possibly obtain additional licenses so that the actual quantity finally includes all packaging quantities subject to system participation placed on the market during the year.
Declaration of completeness
According to the Packaging Act, companies are obliged to commission an approved expert from the Central Agency and submit a certified declaration of completeness if they exceed certain de minimis limits. These are 80,000 kg for glass, 50,000 kg for paper, cardboard and carton and 30,000 kg for all other materials.
What types of packaging are covered by the VerpackG?
The revised Packaging Act also has an impact on transport packaging. In contrast to sales packaging, which is subject to a licensing obligation, transport packaging does not have to be licensed in the same way as packaging subject to system participation.
According to § 15 paragraph 1 of the Packaging Act, the following packaging is included:
- Transport packaging
- shipping packaging
- Sales and secondary packaging that does not typically end up with the private end consumer after use
- Sales and secondary packaging that is incompatible with the system in accordance with Section 7 (5)
- Sales packaging containing harmful substances
- Reusable packaging
- Service packaging
- Disposable beverage packaging subject to the deposit requirement pursuant to Section 31
Sales packaging Definition: Sales packaging is packaging that is typically offered to the end consumer filled with goods. It is used to protect the product, ensure safe delivery to the consumer, provide information about the product and also fulfill marketing functions.
VerpackG: The most important facts
Are you unsure whether your packaging is subject to system participation?
If you have any questions, our customer service team is on hand with expert knowledge. We know the answers to your questions and are on hand with help and advice. Whether you are an SME or a small business: we are your partner for packaging licensing!