Understanding EPR Germany - A Guide For Businesses

Businesses involved in the production, import, and sale of various goods in Germany are required to comply with the country’s Extended Producer Responsibility (EPR) rules. In this guide, we take a closer look at the German EPR system, from registration to fulfilling ongoing obligations. Businesses must manage their packaging waste effectively to comply with EPR regulations.

What is Extended Producer Responsibility Germany?

Extended Producer Responsibility is a policy framework introduced by the German government in 2022. Obtaining an EPR registration number is essential for demonstrating compliance with EPR regulations. It’s aimed at holding manufacturers, importers, and retailers accountable for the environmental impact of their products across their entire lifecycle—including disposal and recycling.

Who needs to comply?

This policy affects all companies operating within Germany, regardless of their size or the amount of packaging they handle. Essentially, any company that first places a piece of packaging, an electrical appliance, or a battery on the market in Germany has responsibility. 

EPR Germany: the legal framework

The German EPR scheme encompasses three major legislative acts:

• The Packaging Act (July 2022)

• The Electrical and Electronic Equipment Act (January 2023)

• The Battery Act (January 2023)

German EPR categories

German EPR regulations are applicable to products belonging to any of the following categories:

• Packaging: All packaging materials used in the German market must be licensed under EPR laws. This includes primary product packaging and additional shipping materials.

• Electrical and Electronic Equipment (EEE): Devices exposed to a voltage up to 1,000 volts (AC) or 1,500 volts (DC) are included. This generally encompasses any item with a plug.

• Batteries: Automotive, industrial (for commercial or agricultural use), and portable batteries (for hand-carried consumer products) are all included under this category.

Eco-operators (PRO) and license fees

Eco-Operators, also known as Producer Responsibility Organizations (PROs), are pivotal in helping businesses navigate the complexities of Extended Producer Responsibility (EPR) regulations. These organizations manage the waste generated by products at the end of their life cycle, ensuring that recycling and disposal processes are handled efficiently and in compliance with the law.

Businesses have two main options for managing their EPR obligations: they can either establish their own waste management systems or delegate these responsibilities to approved PROs. The latter is often the more practical choice, especially for smaller companies or those new to the German market.

The license fees associated with EPR compliance can vary significantly, ranging from as low as 40 euros to as high as 2000 euros, depending on the country and the specific category of products. In Germany, a general fee of around 200 euros per category is common. These fees are crucial as they fund the waste management and recycling efforts of PROs, ensuring that environmental impacts are mitigated effectively.

Understanding the EPR requirements and associated fees is essential for businesses to remain compliant and avoid hefty penalties. By partnering with a reliable PRO, companies can streamline their compliance processes and focus on their core business activities.

Registration and compliance

To comply with German Extended Producer Responsibility regulations, businesses must:

• Identify their obligations: Determine if their products fall under the categories regulated by the EPR scheme.

• Choose and register with a compliance scheme: These organizations help businesses meet their EPR obligations and offer various services and fee structures.

• Provide necessary information and pay fees: Companies must report the quantities and types of products they produce, import, or sell, and contribute financially to the recycling and disposal processes.

• Fulfill ongoing obligations: This includes updating product data and meeting specific recycling targets.

Reporting deadlines and data collection

Meeting EPR compliance involves adhering to specific reporting deadlines, which can vary based on the type of products sold and the volume of sales. For instance, companies dealing with a high volume of electronic products might need to report their data quarterly, while those with lower sales volumes might only need to report annually.

Accurate data collection is a cornerstone of EPR compliance. Businesses must meticulously gather and report information on their products, including packaging data, sales volume, and weight. This data is essential for calculating eco-contributions—fees paid to PROs to support waste management and recycling initiatives.

Special considerations for online marketplace sellers

Marketplace sellers, including those on platforms like Amazon, must ensure they are EPR compliant to avoid suspension. This involves registering for a German EPR number and providing it to the marketplace as proof of compliance.

The process of EPR registration  

Here's a quick guide on how to register:

• Packaging: Secure a licensing agreement and register as a 'producer' with the Central Agency Packaging Register via LUCID.

• Electrical and Electronic Equipment (EEE): Register with the Foundation for Waste Electrical Equipment Register (EAR) and appoint an authorized representative if based outside Germany.

• Batteries: Similar registration process with EAR, with optional appointment of an authorized representative for those outside Germany.

Penalties for non-compliance

Failure to comply with EPR regulations in Germany can result in fines of up to €200,000 or a distribution ban, emphasizing the importance of strict adherence to the laws.

Product changes and re-registration

When businesses make changes to their products, such as altering packaging materials or design, they may need to re-register with the relevant authorities. These changes can impact the environmental footprint of the products and, consequently, their EPR obligations.

For example, if a company switches from plastic packaging to biodegradable materials, it must update its EPR registration to reflect this change. This ensures that the environmental impact is accurately assessed and managed according to the latest standards.

Failure to re-register can lead to non-compliance and significant penalties. Therefore, businesses should regularly review their products and EPR obligations to ensure they meet all necessary requirements. Staying proactive in managing product changes and re-registration helps maintain compliance and supports sustainable business practices.

How Taxually can help

Registering for EPR in Germany can be a complex process. Each EPR category has its own specific requirements, and it can be easy to miss things or make unintended mistakes. That's why it's recommended to seek professional advice to ensure your company is complying with all the requirements of the scheme.

EcoTax by Taxually offers specialized assistance to ensure compliance with EPR regulations, providing services that help businesses understand their obligations, register properly, and manage their reporting and financial contributions effectively.

Book a free call with one of our experts to find out how we can help your business succeed in this new and evolving regulatory environment.