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Jurisdiction: Scotland
Commencement: 1st March 2024
Amends: The Deposit and Return Scheme for Scotland Regulations 2020
The Deposit and Return Scheme for Scotland Regulations 2020 are made under section 84 of the Climate Change (Scotland) Act 2009, which allows for the creation of a deposit and return scheme in Scotland for the purpose of waste reduction and promoting recycling.
They set out the legal requirements for producers* and retailers** of scheme articles*** for a deposit and return scheme where consumers are charged a deposit of 20p for each scheme article sold.
* The definition of a producer depends on where the scheme article produced has been branded. Producers are defined as:
A retailer of scheme articles can also be classed as a producer if they package and seal scheme articles themselves and then sell them to consumers for consumption off of the premises.
**Retailers are persons who market or sell scheme articles in Scotland.
***Scheme articles*are drinks sold in packaging that:
In addition to charging deposits, these Regulations require:
These Regulations come into force in the following stages and are expanded upon in the duties section:
These Regulations were bought into force by the Scottish Government to promote a circular economy, encouraging people through monetary incentives to return waste so they can be recycled.
Various duties apply.
The scheme is delayed and now fully comes into force on 1st March 2024.
Low Volume Drink Sales
The marketing or sale (including through online retail or vending machine sales to a consumer in Scotland) of a low volume drink product (a drink product with fewer than 5000 units sold per year) will now be prohibited, unless the producer is listed or registered with Scottish Environment Protection Agency (SEPA). The seller must also inform the purchaser that the product is not eligible under the return scheme.
Further guidance is issued in the addition of Schedule 5.
Information to be included in the application for producer registration for low volume drink sales can be found here.
Date changes
Regulation 5 (obligations relating to charging deposits and marketing, offering for sale or selling articles) now comes into force on 1st March 2024.
Producers must now apply for producer registration before 12th January 2024 or within 28 days from becoming a producer. In subsequent years, applications must be made before 1st March each year.
SEPA now has 42 days in receipt of an application to either grant or refuse it. The registration takes effect from March 2024 and then 1st April in any subsequent relevant year.
Return points
A retailer whose number of sales of eligible scheme items to consumers for consumption on the premises constitutes 90% or more of that retailer’s total number of sales of scheme articles is exempt from operating a return point. Any exempt premises are required to display exemption information on the premises.
Return point operators are allowed to refuse returned items of a particular material if that material would put them in breach of legal obligations relating to food safety or health and safety. If this is the case then the operator must display signage explaining which materials will not be accepted, and where the nearest accepted return point is.
Hospitality retailers are required to retain scheme packaging for collection by a producer or scheme administrator.
Takeback services
A large retailer must provide a takeback service free of charge to a consumer that:
A large retailer providing a takeback service must now:
Where a takeback service is provided voluntarily by a retailer other than a large retailer, that retailer must comply with the obligations of a large retailer in this regulation.
Review
The 2020 Regulations are now required to be reviewed by 21st October 2027.
Collection Targets
Beginning from 1st January 2025 and ending 31st December 2025, the collection target of the scheme is 80%.
From 1st January 2026 the collection target is increased to 90%.
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Jurisdiction: United Kingdom
Commencement: 1st July 2023
Amends: The Plastic Packaging Tax (General) Regulations 2022
Various duties apply.
Amendment
Changes are made to the method in which tax credits are claimed in respect of the Plastic Packaging Tax (PPT). It allows organisations to claim for a tax credit which arises in the same accounting period as the claim.
Previously, organisations were prevented from doing so due to technical issues, and as an interim measure, they were provided guidance on how to claim a tax credit in this circumstance.
This change ensures that The Plastic Packaging Tax (General) Regulations 2022 is aligned with guidance on the process of claiming a tax credit using the PPT online service.
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A ban on single use plastics is due to come into force from October 2023. Following on from bans such as the 2018 ban on microbeads and the 2020 ban on single use plastic straws, this draft legislation under the title “The Environmental Protection (Plastic Plates etc. and Polystyrene Containers etc.) (England) Regulations 2023” aims to continue to minimise environmental plastic pollution.
This ban comes as a follow up from a consultation that ran through from November 2021 to February 2022 with 95% of the responses in favour of the ban. The summary of responses has been published and can be viewed here.
The ban will make it an offense to supply the following:
The current state of the legislation clarifies that this legislation only applies to food and drinks containers, or packaging of items intended for immediate consumption without further preparations. It does not apply to items such as meat packaging or pre-packaged shelf ready items.
The ban is also likely to include packaging made from recycled or biodegradable plastics if they fall under the “single use” definitions.
People or businesses caught supplying these items after the ban has come into force will face a fine. Failure to comply with a compliance notice could result in criminal proceedings being initiated.
The aim of the ban is to try and encourage businesses to develop more sustainable alternatives and to try and reach the goal of eliminating all avoidable plastic waste by 2042.
A copy of the draft legislation can be found here.
Jurisdiction: United Kingdom
Commencement: 1st April 2022
Amends: New Legislation
Part 2 of the Finance Act 2021 introduced the Plastic Packaging Tax and set out its framework and key definitions. Powers are also given to make secondary legislation that further set out the scope and procedures of the tax.
Exercising the powers of the Finance Act 2021, these Regulations put forward detailed administrative requirements for the Plastic Packaging Tax, which comes into force on 1st April 2022.
A plastic packaging component becomes chargeable to the tax when it is considered ‘finished,’ i.e. a finished product that was manufactured in the United Kingdom (UK), or imported into the UK.
A plastic packaging component is classed as finished after it has completed its final substantial modification.
Definition of substantial modification
Substantial modification is the final manufacturing process that changes the features of a packaging component. These include changes of its:
These manufacturing processes include:
The following are not considered substantial modification processes:
If multiple processes are carried out at the same time to finish a packaging component, and at least one is the last substantial modification process, then all other processes that are carried out at the same time would also be regarded as the substantial modification process.
If plastic packaging components are imported into the UK, and they have already undergone their final substantial modification process, they would be regarded as finished and would be chargeable to the tax.
There are various duties for organisations which can be read in The Legislation Update Service.
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Jurisdiction: United Kingdom
Commencement: 1st April 2022
Amends: New Legislation
The Plastic Packaging Tax was introduced by the Finance Act 2021 to encourage the use of recycled plastic instead of new plastic material within plastic packaging. The tax will apply to chargeable plastic packaging components produced in the United Kingdom (UK) or imported into the UK by an organisation.
Section 48 of the Finance Act defines packaging components as products that are designed for containing, protecting, handling, delivering or presenting goods at any stage in the supply chain from producer to user or customer; these can be either alone or in combination with other products.
An amendment to the definition of packaging components is necessary to ensure that the tax is properly targeted. Instead of an exhaustive list, the definition uses categories to describe the products, which will allow additional products to be added without the need for further legislation.
The definition is amended by the:
The definition of ‘packaging component’ is changed by removing the following categories of packaging products that do not contribute towards environmental harm.
Packaging products that are mainly designed for long-term storage by consumers, and are suitable for re-use as storage for similar goods, are removed from the definition of ‘packaging component’. These products typically do not contribute to plastic pollution. Examples of these include:
For the full list of exceptions & exemptions, the full piece of legislation is available in The Legislation Update Service.
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Jurisdiction: Northern Ireland
Commencement: 1st April 2022
Amends: The Single Use Carrier Bags Charge Regulations (Northern Ireland) 2013
The Single Use Carrier Bags Charge Regulations (Northern Ireland) 2013 writes into legislation that a 25 pence charge must be applied to all single-use carrier bags (supplied new) in Northern Ireland.
The Regulations are made under Sections 77, Section 90, and Schedule 6 of The Climate Change Act 2008.
The charge will apply from 1st April 2022, to all single-use bags, including those made from plastic, paper, plant-based material and natural starch. However, exemptions have been put in place for bags that are used to contain medical products, take-away hot food and drinks and bags used solely for unpackaged food.
250 million single-use carrier bags are consumed in Northern Ireland every year; the introduction of the levy is hoped to reduce this number by 80%. The funds generated by the scheme will be reinvested into environmental projects.
Changes are made to the carrier bag levy.
The definition of ‘net proceeds of the charge’ is updated to reflect the new minimum price sellers are required to charge for new single-use carrier bags. Sellers are required to charge customers at least 25 pence for each carrier bag.
Sellers are also required to keep a record of the new 25 pence charge. The record must include the monetary value and the chargeable VAT resulting from the charge.
The 25 pence levy applies to all new carrier bags with a retail price of £5 or less, regardless of material used and whether they are single-use or reusable.
Charge exemptions are removed for:
*A gusset is an extra piece of fabric which is added to increase the space and strength of a bag.
Single carrier bags are now exempt from the 25 pence charge if they:
The Single Use Carrier Bags Charge (Amendment) Regulations (Northern Ireland) 2021 are revoked.
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Jurisdiction: Scotland
Commencement: 1st June 2022
Amends: New Legislation
These Regulations are made to restrict the manufacture and supply of certain single-use plastic items in Scotland (outlined in the duties section). The Scottish Government is implementing these restrictions as part of its commitment to reduce the environmental impact of single-use plastic item products and to move towards a more circular economy. These Regulations apply in Scotland and come into force on 1st June 2022.
Restrictions on single use plastic products
The restrictions on both the supply and manufacture of certain plastic products are detailed below.
Restrictions on supply
It is an offence to supply, offer to supply or have in your possession for supply, any of the following products:
Single-use plastic straws may still be supplied in the following cases:
Restrictions on supply and manufacture
It is an offence to supply, offer to supply, have in your possession for supply or manufacture any of the following products:
Offences and penalties
A person in breach of the requirements under the restrictions on single use plastic products (outlined above) is committing a criminal offence and is liable on summary conviction to a fine of up to £5,000.
Enforcement officers are given powers, including the power of entry, to carry out investigations to determine whether an offence has been or is being committed. The local authority may authorise anybody that it sees as suitable to act as an enforcement officer.
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If you are a UK producer or importer of plastic packaging, including an importer of plastic packaging that already contains goods (e.g. plastic bottles filled with drinks), you must prepare for it.
Put simply, the Plastic Packaging Tax is a new environmental tax coming into effect on 1st April this year, to encourage the use of recycled rather than new plastic in plastic packaging for a more sustainable business practice. If you are a UK producer or importer of plastic packaging, including an importer of plastic packaging that already contains goods (e.g. plastic bottles filled with drinks), you must prepare for it.
The new tax will be payable for chargeable plastic packaging components* produced in or imported into the UK by an organisation for commercial purposes. The rate of tax will be £200 per metric tonne (1,000 kg) of plastic packaging. (N.B. In the case of imported plastic packaging that already contains goods, the tax will only apply to the plastic packaging itself.)
*Chargeable plastic packaging components are finished plastic packaging components (meaning they have undergone their last substantial modification which is when they are packed or filled), with less than 30% recycled plastic when measured by weight.
A few examples of plastic packaging items that could be subject to the tax, depending on their recycled plastic content, are plastic:
Some organisations may be exempt from the tax, however if the plastic packaging they produce, or import is for:
You will need to register for the Plastic Packaging Tax if you have manufactured or imported 10 or more tonnes of plastic packaging within the last 12 months, or will do so in the next 30 days. But, keep in mind that you only need to pay the tax for chargeable plastic packaging components, so if your plastic packaging contains at least 30% recycled plastic, or is exempt from the tax, you will not have to pay.
Every manufacturer and importer of plastic packaging must keep records of the packaging they manufacture or import, even if they are not required to register or pay the Plastic Packaging Tax. This is to prove that their organisation is exempt.
If you manufacture or import plastic packaging components, you will need to submit a tax return to HMRC every financial quarter, then pay any tax due no later than the last working day of the following month. Where plastic packaging intended for export is shipped within 12 months however, the tax liability will be cancelled.
These are the key things to know about for now, but further information on how to register for the tax, record keeping, and tax returns will be published by the Government within further regulations and guidance prior to April 2022, so keep an eye out for them in your register.
The Plastic Packaging Tax is a tool that is implemented by the HM Revenue and Costumes that encourages the use of recycled material in plastic packaging. Overall, the aim is to create a positive impact on the natural environment by reducing the processes of landfill and the incineration of plastics.
From 1 April 2022, certain plastic packaging material manufactured in and imported to the UK would be taxable.
Firstly, are you a manufacturer or importer of 10 or more metric tonnes of plastic packaging over a 12-month period? Does your business produce or import any plastic packaging that contains less than 30% of recycled plastic? If the answers to these questions are ‘yes,’ then you are liable to pay the tax.
Though the criteria seem straightforward, there are a few yet important details that should be noted. For example, manufacturers and importers of less than 10 tonnes of plastic packaging a year would be exempted from paying the tax but would still need to keep records. These records are expected to be simple and only serve to prove that your business falls under 10 tonnes of plastic packaging a year.
Also, if the plastic packaging you import or manufacture contains more than 30% recycled plastic, you will still need to register if you import or manufacture over 10 tonnes of plastic packaging annually.
This tax also applies to imported packaging which already contains goods such as drinks. In this case, the tax only applies to the actual plastic packaging.
It is also important to note that the Finance Act 2021 is the primary legislation that has introduced the tax and associated duties, however further regulations are expected to provide more detail on the duties in the coming months, which we will notify you of as they are published.
It is important to know that your business may be exempt from the tax if the plastic packaging contains:
For now, if you are certain that the Plastic Packaging Tax applies to you and that this tax has a significant impact on your business, you may consider if any changes could be done to reduce the impact. For example, is it possible to increase the recycled content of the plastic packaging to over 30%? Is sourcing alternative products an option? Ideally, you should start asking these questions now.
Jurisdiction: England
Commencement: 21st May 2021
Amends: The Single Use Carrier Bags Charges (England) Order 2015
The minimum amount that all sellers (i.e. a person who sells goods) must charge for a single use carrier bag in England is increased to 10 pence.
Small retailers, employing less than 250 staff, will no longer be exempt from the obligation to charge for a single use carrier bag.
Airports are now required to charge for single use carrier bags, to reduce their usage and the litter associated with them.
The expiry date of 5th October 2022 is removed from The Single Use Carrier Bags Charges (England) Order 2015.
Sealed transit bags (a bag which is intended to be used to carry alcohol or tobacco) are now included in Schedule 2 to the list of excluded bags.
The requirement to report on the number of single-use plastic bags is not extended to Micro, Small, and Medium Enterprises. This obligation remains with large retailers only.
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