What does the Packaging Act mean for online retailers?
The amendment to the Packaging Act has been in force since 3 July 2021. This has brought about a number of changes for online retailers, particularly with regard to the obligations of fulfilment service providers and operators of electronic marketplaces. Find out what this means in detail here.
Why is online retail affected by the Packaging Act?
Anyone who commercially distributes packaging in Germany is affected by the Packaging Act. This applies to sales packaging that becomes waste after use by end consumers, as well as to all other packaging filled with goods. Since the amendment to the Packaging Act, manufacturers and distributors of transport packaging, reusable packaging and returnable disposable packaging are also required to register with the ZSVR, for example.
Online retail is covered by the Packaging Act because shipping cartons, filling materials and other packaging materials are particularly prevalent in this sector. These become waste after use by end consumers and are therefore classified as packaging subject to system participation.
Important to know: There are no de minimis limits in the Packaging Act. This means that even small quantities of packaging material must be licensed, i.e. participate in a dual system. This means that anyone who, for example, already places small quantities of shipping cartons on the market via their own online shop is subject to the Packaging Act.
What obligations do online retailers have under the Packaging Act?
Both online retailers who operate their own shops and those who sell via electronic marketplaces (e.g. Amazon, eBay, etc.) are subject to obligations under the Packaging Act. Packaging placed on the market for the first time, such as shipping cartons, is subject to system participation. This means that an online retailer must participate in a dual system via packaging licensing.
In this context, there are further obligations for online retailers:
Even before placing goods on the market, online retailers must register with the Zentralen Stelle Verpackungsregister (ZSVR) . This agency monitors compliance with the legal obligations under the Packaging Act. Without registration, manufacturers are not permitted to place packaged goods on the market in Germany.
The second step involves licensing the planned packaging quantities for the coming year. This refers to the quantities that online retailers must also participate in under a dual system. It can be helpful to use a calculator for this purpose, as it provides an overview of your own quantities and participation costs before the licensing process is completed.
Finally, online retailers are obliged to report data to the ZSVR. This means that the quantities involved must be specified under the personal registration number. The dual system involved also specifies the quantities so that data can be compared.
Incidentally, goods from abroad that are imported into Germany for resale are also subject to the Packaging Act. Anyone importing goods must be registered with the ZSVR and license their packaging.
Furthermore, online retailers are also subject to EPR, or extended producer responsibility, if they operate on the European market.
What applies to fulfilment and import under the amendment to the Packaging Act?
The amendment to the Packaging Act will also change the obligations for fulfilment service providers and operators of electronic marketplaces on 1 July 2022.
A fulfilment service provider handles both the storage and packaging of goods on behalf of the online retailers who use its services. When a product is ordered, the fulfilment service provider can ship it in its own shipping boxes, while the product and its direct outer packaging come from the online retailer. Amazon is one example of this.
WHAT WILL CHANGE AS OF 1 JULY 2022?
Fulfillment service providers must register with the ZSVR. However, participation in the system is no longer automatically part of their obligations.
Instead, online retailers who use fulfillment services are considered to be the initial distributors. As such, they must comply with their system participation and data reporting obligations and take over packaging licensing.
From 1 July 2022, fulfilment service providers and operators of electronic marketplaces will be legally obliged to check that their retailers are properly registered and participate in the system. If they fail to comply with this obligation, they will not be allowed to provide their services. They will then only have to license the packaging that is placed on the market for the first time by their company (such as company-owned shipping boxes, as used by Amazon).
Online retailers can provide the necessary proof with a so-called system participation confirmation.
In the case of imports, the party responsible for registration and system participation is the party that imports the goods into the scope of the Packaging Act. This also applies to online retailers who import products from abroad for resale in this country. This rule also applies if the importing online retailer uses a dropshipping or fulfilment service provider.
I am an online retailer: where can I obtain confirmation of system participation?
If you are an online retailer who does not have your own shop but sells goods via a fulfilment service provider or an electronic marketplace, you will need a system participation confirmation from 1 July 2022. This provides proof that you are properly registered with the ZSVR and that your packaging is participating in a dual system
You can obtain such a system participation confirmation directly from zmart, for example, if you participate in the Dualen System Zentek for small quantities. You will also receive the confirmation upon completion of your legally compliant packaging licensing.
Conclusion: The amendment to the Packaging Act will result in stricter monitoring of online trade.
Even before the amendment to the Packaging Act, online retailers were obliged to participate in the system for the packaging they place on the market. From 1 July 2022, they will also have to provide proof of system participation to demonstrate that their packaging quantities are properly included in the system. This is particularly important if they cooperate with a fulfilment provider or an electronic marketplace.
The amendment requires the latter to verify the system participation of the online retailers operating through them. Without proper registration and system participation by the retailers and without fulfilling the verification obligation, neither party may distribute goods in Germany.
If you, as an online retailer, would like to license your packaging directly online, for example via zmart, you will receive the system participation confirmation directly. This means that with just a few clicks, you have fulfilled all your obligations under the Packaging Act.
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