Minutes released in June from the last Advisory Committee on Packaging (ACP) meeting held in February have provided insight into the non-compliance fears in the UK packaging markets throughout 2022.

Non-compliance has emerged as a significant concern in recent years, largely driven by the soaring prices of certain packaging recovery notes (PRNs), with some reaching record highs. According to the Packaging Waste Regulations, companies with a turnover exceeding £2 million and placing more than 50 tonnes of packaging on the market annually are obligated to contribute to recycling costs by purchasing PRNs, either directly or through compliance schemes.

Non-compliance takes various forms, ranging from late submission of data (drop-offs) to unintentional errors. However, there are fears that a minority of producers have intentionally chosen not to comply due to the exorbitant prices of PRNs.

The ACP meeting minutes provide a breakdown of non-compliance findings from each of the four UK nations' regulators.

England
Lyn McLean and Virginia Woolley from the Environment Agency (EA) provided an update during the meeting. While all compliance schemes met their obligations, the EA expressed that it is likely that some direct registrants did not comply that year, although the exact number was unknown at the time. The majority of non-compliance in England pertained to paper and plastic packaging. Attendees emphasized the need to place greater emphasis on following up on drop-offs and ensuring timely registration. The volatility of PRN market pricing was also discussed, with the EA requesting feedback from members when guidance is misconstrued.

Wales
John Davies, representing the Welsh Regulator Natural Resources Wales, reported that in 2023, there were 38 accreditations for reprocessors and exporters in Wales, an increase from 37 in 2002. Additionally, two applications submitted late last year were still under assessment.

Scotland
Bernard Gaffney from the Scottish Environmental Protection Agency informed the meeting that all compliance schemes were in compliance. However, four out of 68 direct registrants were found to be non-compliant, and Gaffney assured that follow-up actions were being taken with these companies.

Northern Ireland
All compliance schemes in Northern Ireland complied in 2022. However, 10 out of the 111 direct registrants did not comply, with six being categorized as "total non-compliance." Additionally, one exporter in Northern Ireland was suspended in November 2022.

Enforcement
Several compliance schemes have advocated for stricter enforcement against companies that fail to fully comply, in order to act as a deterrent. The Environment Agency recently stated that it is considering appropriate responses to two producers who did not meet their 2021 packaging obligations through PRN acquisition.

The ACP expressed concerns to government representatives that they feel excluded from ongoing work and discussions related to extended producer responsibility (EPR). In response, Deep Sagar, the ACP chair, requested that ACP membership be added to Defra's digital working group. While the department clarified that the group is not led by Defra, it offered to provide relevant contacts.

Other concerns raised by ACP members included the lead-in time for labelling in the deposit return scheme (DRS) not being sufficient and the possible scarcity of reverse vending machines. Defra acknowledged these risks and referred to research conducted as well as continued supply monitoring.

The minutes demonstrate the ACP's commitment to addressing non-compliance issues and collaborating with regulators and government bodies to ensure effective management of packaging waste and promote compliance throughout the UK.

The Scottish First Minister, Humza Yousaf, has announced a delay to the start of the Deposit Return Scheme (DRS) in Scotland. The Deposit Return Scheme will now commence on the 1st March 2024.

In his speech to the Scottish Parliament on the 18th April 2023, Humza Yousaf said he remained committed to the DRS scheme as a way to increase recycling, reduce litter and achieve net zero ambitions.

He pointed to uncertainty around the exclusion of the scheme in the UK Government’s Internal Market Act which could limit the Scottish Government’s power in resources and waste, the devolved matter in which DRS sits.

Measures will be put in place to simplify and de-risk the scheme and to provide support for small businesses and hospitality.

The First Minister said further details on this package of measures aimed to assist the commencement of the Scottish DRS Scheme will be provided in the coming weeks.

There are a few useful links that can help you understand the reason for this change, as well as help you understand the Scottish Deposit Return Scheme itself:

- Zerowaste Scotland: Deposit Return Scheme

- The First Minister's statement release on the Scottish Government website

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View our previous article on 'Coffey looks to uncork Scottish DRS plans' [31/05/23]
View our previous article on 'Scottish DRS Concerns' [10/01/23]

Overview

The Scottish Deposit Return Scheme (DRS) will affect all drinks producers AND importers, regardless of size, that markets or offers drinks for sale in Scotland. Any producer and/or importer will need to register either directly with the Scottish Environment Protection Agency (SEPA) or via Circularity Scotland, the Scheme Administrator (SA). If they do not, they will be prohibited to sell any drinks products in the whole of Scotland.

Producers have until Tuesday 28^th February 2023 to register.

The scheme will see a 20p deposit placed on all single-use drinks containers made of PET plastic, steel, aluminium, and glass – HDPE plastic is NOT included. All container materials have the same deposit amount and only applies to containers sized between 50ml and 3 litres. Drinks containers that meet these criteria are referred to as ‘scheme articles’.

You are considered a drinks producer if:

• You are a brand owner of a scheme article that is branded in the UK;
• You import scheme articles that are branded by a brand owner outside the UK;
• You fill and seal scheme articles with a drink at the point of sale to a consumer.

The consumer will be able to get the 20p back once the empty container has been returned.

Some retailers will operate returns over the counter, whereas some larger retailers will operate the use of Reverse Vending Machines (RVMs). All retailers who sell drinks are required, under DRS, to operate some form of return point for consumers. There are some exemptions to operating a return point. All exemptions must be applied for via Zero Waste Scotland.

The Scottish DRS will go live for consumers on Wednesday 16^th August 2023.

Beverage Test

Use the ‘Beverage Test’ to see if your products meet the criteria:

• Must be a drinkable liquid;
• Are taken to increase bodily liquid levels;
• Are taken to relinquish thirst;
• Are consumed to fortify.

Registration Fee

The registration for both SEPA and Circularity Scotland is £365 per year. If the producer has a taxable turnover of £85,000 or less in the previous financial year, then no registration fee will apply.

You do not need to register with both organisations. If you register with Circularity Scotland, they will register you with SEPA and will undertake the reporting duties on your behalf. If you register with SEPA, you will have to fulfil take-back and reporting duties yourself.

Read our previous update about Scottish DRS here.