packaging law

Packaging Act

The sale of our products on this platform is legally carried out in the capacity of a business. Registration pursuant to Section 9 VerpackG:  Inn and out GmbH & Co.KG as a producer of packaging subject to mandatory system participation, LUCID registration number DE4670314582980. With Duales System Zentek KN500009584 licensed in compliance with the law within the meaning of Section 7 (1) VerpackG to fulfill the obligations.

We mainly use used boxes from suppliers, friends, customers, neighbors, and acquaintances, as well as fillers such as used newspaper, leftover cardboard, 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 mail order and online retail

Across Europe, the rule for packaging is that the producer of a product also assumes product responsibility for the packaging in terms of prevention, reuse, and recovery. In Germany, this is implemented through the Packaging Act (VerpackG). In this context, the Central Agency Packaging Register (ZSVR) is responsible for making publicly available the product stewards registered in the LUCID packaging register, as well as carrying out other tasks (e.g. receiving and reviewing data reports on the quantities of packaging placed on the market) that ensure transparency and legal clarity. This information sheet describes the topics that must be observed with regard to fulfilling obligations under the Packaging Act in the case of mail order and online retail for packaging subject to mandatory system participation. In addition, this topic paper also provides information on the provision concerning the option of authorization, which came into force with the amendment to the Packaging Act on July 3, 2021. This provision makes it easier for foreign obligated parties to fulfill their obligations.

The specific features of this sector, ranging from very small to very large mail-order retailers, are outlined 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 producer? The Packaging Act (VerpackG) uses the ambiguous term “producer.” In fact, however, it means the party that fills packaging with goods for the first time or places it on the market in Germany for the first time already filled (importer) - and whose packaging typically ends up as waste with the private end consumer. The mail-order retailer fills the shipping packaging with goods for the first time, thereby becoming the producer within the meaning of VerpackG. They must fulfill the obligations if they operate commercially (registration, system participation, and quantity reporting).

Commercial activity - no small-quantity exemption The VerpackG does not contain any small-quantity exemption for the obligations of registration, system participation, and data reporting. As soon as an activity is classified as commercial, the obligations of the VerpackG must also be complied with. The following applies:  Anyone who has declared their self-employed activity by means of a business registration, or would be required to do so
or  anyone who, within the meaning of income tax law, earns income from a commercial business, self-employed work, or agriculture and forestry, is in any case acting commercially within the meaning of the VerpackG. This also applies to anyone who claims tax losses from their activity or determines profit from agriculture and forestry according to average rates (Section 13 a (6) EStG).

 

Private end consumer The private end consumer is, first and foremost, the private household. But so-called comparable places of accumulation also dispose of packaging waste via the (dual) system. These include, for example, restaurants, hotels, hospitals, educational institutions, and offices of freelance professionals. Craft businesses and agricultural operations are also included if their plastic, metal, and composite packaging or paper/cardboard/cartons can be collected in a household-typical rhythm using a maximum 1 100 liter emptying container. The important point is: what matters is where the packaging becomes waste, not who the next stage in the trade chain is. Even if the packaging is initially shipped, for example, to a wholesaler, that is not decisive. What matters is where the packaging is typically disposed of. What obligations generally arise (registration, system participation, and quantity reporting)? The basic obligation is to participate in one or more systems that, in turn, collect the packaging nationwide from private end consumers. These systems are responsible for ensuring that the legally defined recycling quotas and their prescribed increases are achieved. System participation has been a legal obligation since 1993. System participation must take place with one or more systems approved nationwide. These systems compete with one another. Prices are market-based and must be requested there. On its website, the ZSVR has published a list of all systems approved in Germany, including contact persons, at https://www.verpackungsregister.org/information-orientierung/hilfe-erklaerung/uebersicht-systeme  Details on how to carry out registration and data reporting 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. By doing so, these companies demonstrate that they have assumed financial product responsibility for the collection and recycling of their packaging. This creates transparency in product responsibility. What does this mean for the mail-order retailer? Mail order is not always the same. There are very different constellations: direct shipment or dropshipping, use of fulfillment services, combinations with imports, etc. Below, the various constellations and their respective consequences are presented. Common case constellations for the delivery or sale of packaged goods in online retail:

 

Basic constellation 1: Mail-order retailer ships goods from a domestic producer → Obligation to participate in a system: The mail-order retailer is the first to hand over the filled shipping packaging to third parties. This packaging also ends up as waste with a private end consumer. The mail-order retailer is therefore obligated to arrange system participation for the shipping packaging (including filler material and labels) (producer with regard to the shipping packaging). → For the direct product packaging, however, the mail-order retailer is only a retailer (distributor) and is not obligated in this respect. The producer of these goods is responsible for the product packaging (they are the first to hand over the filled sales packaging to third parties); they must participate in a system and fulfill all other obligations for the product packaging under the VerpackG, such as registration and data reporting. → Registration obligation: The mail-order retailer is obligated to register because the shipping packaging is subject to mandatory system participation. In addition, they are obligated to report the quantities of these packaging materials that they place on the market each year (quantity reports).

→ Specification of brand names: The mail-order retailer only has to specify the brand name for their shipping packaging. This is the brand name stated on the shipping packaging. If no name is stated there, the name of the mail-order business or the name of the mail-order retailer must be provided. → Not to be specified: the brand names of the products, the name of the system, or the name of the packaging manufacturer.

Basic constellation 2: Mail-order retailer ships goods from a foreign producer → Obligation to participate in a system: If the mail-order retailer imports the product, they are the first to hand over the packaged goods to third parties within the scope of the law (Germany). The importer is therefore treated as equivalent to a producer for product responsibility purposes. They must also ensure system participation for the product packaging with all components. → The importer is the party that bears legal responsibility for the goods at the time they cross the border. This must be clarified on a case-by-case basis between the contracting parties. It is important that this clarification is made in a legally binding manner between the contracting parties before the goods are placed on the market in Germany, and that system participation, registration, and quantity reporting are carried out by the importer. An importer is also an online shop based abroad 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 these typically end up as waste with the private end consumer. The mail-order retailer is the first to hand over the filled shipping packaging to third parties. This packaging also ends up as waste with a private end consumer. They are therefore also obligated to arrange system participation for the shipping packaging (including filler material and labels), and thus also data reporting in the LUCID packaging register. Shipments of goods from other EU countries are also considered imports. → Registration obligation: The mail-order retailer is obligated to register because both the product packaging and the shipping packaging are subject to mandatory system participation. In addition, they are obligated to report the quantities of these packaging materials that they place on the market each year (quantity reports). → Specification of brand names: They must specify 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, large parts of which came into force on July 3, 2021, the legislature expressly regulated the responsibility of distributors, which may also include mail-order and online retailers, when using fulfillment service providers with regard to shipping packaging in Section 7 (7) and Section 3 (14c) VerpackG: 2 3 Information for mail order and online retail | As of: July 2021 6 | 10 → According to this, fulfillment service providers are not producers within the meaning of the Packaging Act for shipping packaging subject to mandatory system participation that they fill with goods. Instead, the distributor of the goods for whom the fulfillment service provider is acting is considered the producer 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 therefore necessarily be obtained by the legally obligated distributor from their fulfillment service provider. → Under the Packaging Act, a fulfillment service provider is anyone who, pursuant to Section 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 to which they have no 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 arranged system participation for the packaging (shipping and, where applicable, product packaging). → If there is an import constellation, special rules apply. These can be found in the topic paper
"Import".

Basic constellation 4: Export The VerpackG applies only in Germany. If the mail-order retailer ships goods abroad, the packaging law requirements of the destination country must be observed. System participation for this packaging in Germany is not required, because the packaging does not arise as waste in Germany with a private end consumer. Use of used packaging Packaging in which goods are delivered to retailers (including mail-order 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 trade and initially becomes waste there. Unlike sales and secondary packaging, it is specifically not yet part of a system up to that point. When a mail-order retailer reuses this or other used packaging, they are acting economically, because they save the cost of purchasing new cartons. This contributes to waste prevention and saves money. At the same time, this packaging becomes sales/shipping packaging for the mail-order retailer through the new filling. This is because this filling makes it clear that it will now become waste with a private end consumer. It must therefore participate in a system. Nor is there any double payment. All packaging components are subject to the obligation only once. This also includes the filler material used, labels, adhesive tape, etc. 4 Information for mail order and online retail | As of: July 2021 7 | 10 Only if the mail-order retailer has concrete proof that the packaging they use has already participated in a system does the obligation of system participation cease for the shipping packaging they use. Use of compostable packaging/packaging with recycled material, etc. The obligation of system participation is linked only to whether sales or secondary packaging typically ends up as waste with a private end consumer. This is independent of the material or material properties. Therefore, there are no special or exceptional rules with regard to possible biodegradability. This packaging is subject to mandatory system participation if the criteria of the VerpackG are met. System participation in relation to the registration number/purchase of “licensed” packaging A contract for system participation is possible only by stating the specific registration number of the respective obligated producer. Likewise, the system operator must immediately confirm to that obligated party for which quantity per material type system participation has been carried out. In addition, it should be mentioned that for this type of packaging (in contrast to service packaging), it is not possible to shift the system participation obligation upstream. The registration obligation pursuant to Section 9 VerpackG as well as the other obligations under the Packaging Act must therefore be fulfilled by the mail-order retailer with regard to the shipping packaging they distribute and, where applicable, also for the packaging if the mail-order retailer is the importer or producer of the goods. This means that purchasing “licensed” packaging is not sufficient. It is possible to arrange system participation via a broker or upstream distributor that, for example, bundles quantities. However, this can only be done in concrete form, i.e. not in advance with regard to abstract quantities, but only specifically in relation to a particular producer's registration number. It must also be ensured that the producer receives confirmation back from the relevant system operator. Registration and quantity reporting (see below) cannot be carried out by a third party. The mail-order retailer must do this themselves; the aim here is to prevent a third party from carelessly submitting incorrect information in the name of the mail-order retailer, which could lead to a sales ban or a fine for them.