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Licensing

What is system participation?

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System participation plays a central role as soon as your company brings products onto the market in packaging that later accumulates as waste with private end consumers. According to the German Packaging Act, you are then obliged to register this packaging with a dual system and thus actively participate in recycling. In this way, you not only make a valuable contribution to environmental protection, but also avoid legal consequences. But what exactly is behind system participation and why are both the system participation obligation and a system participation contract so essential? We will show you step by step what you need to know and help you to prepare your company for all the requirements in the best possible way.

Packaging Act: Legal Foundations and Obligations

The Packaging Act (VerpackG) sets out how companies must bear responsibility for the environmentally sound disposal and recycling of packaging subject to system participation. You are considered a “manufacturer” or “initial distributor” if you supply goods in packaging to end consumers. In such cases, you are required to register with a dual system and pay the corresponding licensing fees. These fees enable the nationwide setup of collection, sorting, and recycling infrastructures to ensure that materials like plastic, glass, paper, or metal can be efficiently recycled.

Why Is a System Participation Agreement Necessary?

The system participation agreement is the core element of your licensing obligation. By signing this contract with a system operator of your choice, you contribute to the financing of the disposal and recycling of your packaging. This agreement ensures your legal compliance, as it covers all obligations under the Packaging Act. You will typically report the quantities of packaging you place on the market on a regular basis so that the system operator can calculate costs and organize effective disposal.

System Participation Costs: Dependent on Quantity and Material

The costs associated with system participation vary between businesses. Key factors include the volume and type of packaging: for example, lightweight plastic film incurs different fees than sturdy glass bottles or multilayer composite cartons. Recycling properties of different materials also influence the fee structure. Since there are multiple dual systems, comparing prices is worthwhile. Ultimately, the fees reflect the principle of product responsibility: whoever places packaging on the market must finance its environmentally responsible disposal.

System Operators and Their Role

System operators are private companies that provide nationwide collection systems such as yellow bins, paper bins, and glass containers (or contract others to do so). These infrastructures collect, sort, and process packaging waste from households and similar sources for recycling. This ensures that millions of tons of packaging waste can be recycled annually. Whether paper bags, beverage bottles, or tin cans – dual systems provide a foundation for sustainable business practices and compliance with the Packaging Act's system participation requirements.

How to Identify Packaging Subject to System Participation

Whether it's sales, grouped, or shipping packaging, nearly all packaging typically discarded by private end consumers is subject to system participation. The key factor is that the packaging is filled with goods and disposed of via household waste or appropriate collection systems. Export and transport packaging that remains solely in commercial settings are subject to different regulations. Therefore, it's essential to carefully check whether your packaging is subject to system participation. If so, you must conclude a system participation agreement to ensure legal compliance.

Act Now to Ensure Legal Security

System participation is a legal obligation for all companies placing goods in packaging subject to participation on the market. A legally compliant system participation agreement ensures you meet the requirements of the Packaging Act and avoid legal risks such as fines or sanctions. At the same time, you actively contribute to the circular economy by helping valuable raw materials be recycled and reused. Check your packaging early, compare dual systems, and ensure comprehensive reporting of your packaging volumes. This way, your company not only remains compliant but also positions itself as a responsible player in a sustainable economy.

 
 
 

Frequently Asked Questions

What is system participation?

System participation means that packaging which ends up with private end consumers must be licensed and financed through a dual system to ensure proper recycling and disposal.

What does not subject to system participation mean?

Not subject to system participation means that certain packaging does not need to be licensed through dual systems, for example because it remains in wholesale or is intended for export.

Are transport packaging materials subject to system participation?

Transport packaging is generally not considered subject to system participation, as it typically does not end up with private end consumers. However, the distributor is still required to take back and dispose of it properly.

Are pallets considered system-participating packaging?

Pallets are usually classified as transport packaging and are therefore not subject to system participation, provided they circulate exclusively between businesses and do not remain with the end consumer.

What are examples of packaging not subject to system participation?

Export packaging, transport packaging, and reusable containers that remain with commercial users are often not subject to system participation, but require separate regulations or documentation.