packaging law
Packaging Act
The sale of our products on this platform is legally carried out as a business. Registration pursuant to §9 VerpackG: Inn and out GmbH & Co.KG as the manufacturer of packaging subject to system participation, LUCID registration number DE4670314582980. For Dual System Zentek KN500009584 licensed in accordance with § 7(1) VerpackG to fulfill the obligations in compliance with the law.
We mainly use used cardboard boxes from suppliers, friends, customers, neighbors, and acquaintances, as well as filler materials such as used newspaper, cardboard leftovers, and, if that is not enough, we use purchased organic cardboard made from 100% recycled paperboard, 100% biodegradable and recyclable, from Davpack.
Information on the Packaging Act for shipping and online retail
Across Europe, the rule for packaging is that the manufacturer of a product also assumes product responsibility for the packaging in terms of avoidance, reuse, and recycling. In Germany, this is implemented through the Packaging Act (VerpackG). In this context, the Central Packaging Register Authority (ZSVR) is responsible for making the product responsibility holders registered in the LUCID packaging register publicly visible, as well as for other tasks (e.g. receiving and reviewing data reports on the packaging quantities placed on the market), which create transparency and legal certainty. This information sheet describes the topics that must be observed with regard to fulfilling the obligations under the Packaging Act in the case of shipping and online retail for packaging subject to system participation. The paper also provides information on the rule concerning the possibility of authorization, which came into force with the amendment to the Packaging Act on July 3, 2021. This rule offers relief in fulfilling obligations for foreign obligated parties.
The special characteristics of this sector, from very small to very large shipping retailers, are to be presented below. Registration in the LUCID packaging register and submission of data reports to the ZSVR are free of charge. Who is obligated? What is a manufacturer? The Packaging Act (VerpackG) uses the ambiguous term "manufacturer." In fact, however, this means the person who first fills a package with goods or first places a filled package on the market in Germany (importer) – and this packaging typically becomes waste at the private end consumer. The shipping retailer first fills the shipping packaging with goods, thereby becoming the manufacturer within the meaning of the VerpackG. They must fulfill the obligations if they act commercially (registration, system participation, and quantity reporting).
Commercial activity – no small-quantity rule The VerpackG contains no small-quantity rule for the obligations to register, participate in a system, and report data. As soon as an activity is classified as commercial, the obligations under the VerpackG must also be observed. Here, the following applies: Anyone who has reported their independent activity through a trade notification would have to notify it
or anyone who, within the meaning of income tax law, earns income from a business operation, self-employment, or agriculture and forestry is in any case acting commercially within the meaning of the VerpackG. Anyone who claims tax losses from their activity or who determines a profit from agriculture and forestry using average rates (§ 13a(6) EStG) is also acting commercially.
Private end consumer The private end consumer is first and foremost the private household. But the so-called comparable collection points also dispose of packaging waste through the (dual) system. These include, for example, restaurants, hotels, hospitals, educational institutions, and branches of freelance professionals. Also included are craft businesses and agricultural businesses if their plastic, metal, and composite packaging or paper/cardboard packaging can be collected in a household-style rhythm using a refuse container with a maximum volume of 1,100 liters. Important: what matters is where the packaging becomes waste, not who the next stage of trade is. Even if the packaging is first shipped, for example, to a wholesaler, that is not decisive. What matters is where the packaging is typically disposed of. What obligations arise in general (registration, system participation, and quantity reporting) The basic obligation is to participate the packaging in one or more system/s, which in turn collect it nationwide from private end consumers. The systems are responsible for ensuring that the legally defined recycling quotas and their specified increases are achieved. System participation is an obligation that has existed since 1993. System participation must be carried out with one or more systems approved nationwide. These compete with one another. The prices are market prices and must be obtained there. The ZSVR has published a list on its website of all systems approved in Germany, with contact persons, at https://www.verpackungsregister.org/information-orientierung/hilfe-erklaerung/uebersicht-systeme Details on how registration and data reporting are carried out can be found at the end of this information sheet.
Public register The LUCID packaging register is public. It shows the obligated companies that have registered with their brand names. In this way, these companies show that they have taken on the financial product responsibility for the collection and recycling of their packaging. This creates transparency in product responsibility. What does this mean for the shipping retailer? Shipping retail is not the same as shipping retail. There are many different constellations. Drop-shipping or direct shipping, use of fulfillment, combination with imports, etc. Below, the various constellations and their respective consequences are presented. Common constellations in the delivery or sale of packaged goods in online retail:
Basic constellation 1: Shipping retailer ships goods from a domestic manufacturer → System participation obligation: The shipping retailer first transfers the filled shipping packaging to third parties. This also becomes waste at a private end consumer. The shipping retailer is therefore obligated to participate in the system for the shipping packaging (including filler material and labels) (manufacturer with respect to the shipping packaging). → For the direct product packaging, however, the shipping retailer is only a retailer (distributor) and is therefore not obligated in this respect. The producer of these goods is responsible for the product packaging (they first transfer the filled sales packaging to third parties); they must participate in a system and fulfill all further obligations for the product packaging under the VerpackG, such as registration and data reporting. → Registration obligation: The shipping retailer is obligated to register because they are subject to system participation for the shipping packaging. In addition, they are obligated to report the quantities of these packaging materials they place on the market per year (quantity reports).
→ Indication of brand names: The shipping retailer only has to state the brand name for their shipping packaging. This is the brand name indicated on the shipping packaging. If no name is indicated there, then the name of the shipping business or the name of the shipping retailer must be stated. → Do not state: the brand names of the products, the name of the system, or the packaging manufacturer.
Basic constellation 2: Shipping retailer ships goods from a foreign manufacturer → System participation obligation: If the shipping retailer imports the product, they first transfer the packaged goods to third parties within the scope of the law (Germany). The importer is therefore treated as the manufacturer with respect to product responsibility. They must also participate in a system for the product packaging with all components. → The person who bears legal responsibility for the goods at the time of crossing the border is considered the importer. This must be clarified between the contractual partners on a case-by-case basis. It is important that this clarification is carried out in a legally binding manner between the contractual partners before placing the goods on the market in Germany and that the system participation, registration, and quantity report(s) are carried out by the importer. An online shop based abroad is also considered an importer if the goods are delivered directly to private end consumers in Germany. This applies both to the shipping packaging including filler material and to the packaging of the products themselves, provided that they typically become waste at the private end consumer. The shipping retailer first transfers the filled shipping packaging to third parties. This also becomes waste at a private end consumer. They are therefore obligated to make the system participation and thus also the data reporting in the LUCID packaging register for the shipping packaging (including filler material and labels). Shipments of goods from other EU countries are also considered imports. → Registration obligation: The shipping retailer is obligated to register because they are subject to system participation for the product packaging and the shipping packaging. In addition, they are obligated to report the quantities of these packaging materials they place on the market per year (quantity reports). → Indication of brand names: They must indicate both the brand names of the products and the brand name for their shipping packaging.
Basic constellation 3: Use of fulfillment service providers → With the amendment to the Packaging Act, which came into force in large part on July 3, 2021, the legislator expressly regulated the responsibility of distributors, which may also include shipping and online retailers, when using fulfillment service providers with regard to shipping packaging in § 7(7) and § 3(14c) VerpackG: 2 3 Information for shipping and online retail | Status: July 2021 6 | 10 → According to this, fulfillment service providers are not manufacturers within the meaning of the Packaging Act for shipping packaging subject to system participation that they fill with goods. Rather, the distributor of the goods for whom the fulfillment service provider acts is considered the manufacturer with regard to the shipping packaging. The distributor must carry out the registration and system participation for the shipping packaging. → The information required for system participation, such as quantities and material types of the shipping packaging, must then necessarily be requested from the fulfillment service provider by the distributor obligated under the law. → Under the Packaging Act, a fulfillment service provider is anyone who, under § 3(14c) VerpackG, offers at least two of the following services for distributors as part of a business activity: warehousing, packaging, addressing, and shipping of goods in which they do not have ownership rights. Postal, parcel delivery, or other freight transport service providers are not considered fulfillment service providers. → From July 1, 2022, fulfillment service providers may only provide their fulfillment services if the commissioning distributor is registered in the packaging register and has participated the packaging (shipping packaging and, if applicable, product packaging) in a system. → Special rules apply where an import constellation exists. You can find these in the topic paper
“Import.”
Basic constellation 4: Export The VerpackG applies only in Germany. If the shipping retailer sends goods abroad, the packaging law requirements of the destination country must be observed. System participation for this packaging in Germany is not required, as the packaging does not become waste in Germany at a private end consumer. Use of used packaging Packaging in which goods are delivered to (shipping) retailers is considered transport packaging if it is typically not intended to be passed on to the end consumer. Transport packaging serves the handling and transport of goods between individual distributors. It typically remains in the trade and becomes waste there (initially). Unlike sales and secondary packaging, it is not subject to system participation up to that point. A shipping retailer acts economically when reusing this or other used packaging, because they save the cost of purchasing new cardboard packaging. This helps avoid waste and saves money. At the same time, by being refilled by the shipping retailer, this packaging becomes sales/shipping packaging. This is because this filling makes it clear that it will now become waste at a private end consumer. It must therefore be included in a system. There is also no double payment. All packaging components are only subject to the obligation once. This also includes the filler material used, labels, and adhesive tape, etc. 4 Information for shipping and online retail | Status: July 2021 7 | 10 Only in the case where the shipping retailer has concrete proof that the packaging they use has already been included in a system does the obligation for system participation for the shipping packaging they use no longer apply. Use of compostable packaging/packaging with recycled material, etc. The obligation to participate in a system only depends on whether a sales or secondary packaging typically becomes waste at a private end consumer. This is independent of the material or material properties. Therefore, there are no special or exemption rules with regard to possible biodegradability. This packaging is subject to the system participation obligation, provided the criteria of the VerpackG are met. System participation related to the registration number / purchase of "licensed" packaging A contract for system participation is only possible by stating the specific registration number of the respective obligated manufacturer. Likewise, the system operator must immediately confirm to that obligated party the quantity per material type for which system participation has been made. It should also be noted that for this type of packaging (in contrast to service packaging), it is not possible to shift the system participation obligation forward. The registration obligation pursuant to § 9 VerpackG and the other obligations under the Packaging Act must therefore be fulfilled by the shipping retailer with regard to the shipping packaging they distribute and, if applicable, also for the packaging, insofar as the shipping retailer is the importer or manufacturer of the goods. This means that buying "licensed" packaging is not sufficient. It is possible to carry out system participation through a broker or upstream distributor who, for example, bundles quantities. However, this can only be done in a specific form, i.e. not in advance with respect to abstract quantities, but only specifically for a particular registration number of a manufacturer. It must also be ensured that the manufacturer receives the corresponding system operator's confirmation back. Registration and quantity reporting (see below) cannot be carried out by a third party. The shipping retailer must do this themselves; the aim is to prevent a third party from carelessly making false statements on behalf of the shipping retailer, which could lead to a distribution ban or a fine for them.
