This is our fourth article in a series of articles about the Producer Responsibility Obligations.
The first article, ‘Packaging waste – An introduction to the producer responsibility obligations’, provided an overview of The Producer Responsibility Obligations (Packaging Waste) Regulations 2007, SI 2007/871 (PRO(PW)R 2007), by discussing fundamental questions such as:
- What is the producer responsibility principle?
- What is meant by a producer under the PRO(PW)R 2007?
- What is meant by packaging?
- What are the producer responsibility obligations under PRO(PW)R 2007?
- What are Packaging Recycling Notes (PRNs) and Packaging Export Recycling Notes (PERNs)?
- What is the purpose of compliance schemes?
The second article in this series, ‘Understanding packaging waste under the Producer Responsibility Obligations (Packaging Waste) Regulations 2007’, delved into more detail regarding the meaning of packaging waste under PRO(PW)R 2007.
The third article in this series Producer responsibility obligations – The role of reprocessors and exporters focused on the role of reprocessors and exporters in the context of the Producer Responsibility Obligations.
This article focuses on the role of registered compliance schemes in assuming responsibility for meeting the recycling targets on behalf of their members.
Regulatory framework
The Producer Responsibility Obligations (Packaging Waste) Regulations 2007 (SI 2007/871) establishes a system of obligations for businesses involved in the production and handling of packaging.
These regulations require producers to ensure that a certain proportion of the packaging they handle is recycled.
Compliance is demonstrated by acquiring Packaging Waste Recycling Notes (PRNs) or Packaging Waste Export Recycling Notes (PERNs) from accredited reprocessors or exporters.
Amendments in 2020 updated the definitions of PRNs and PERNs to focus on recycling rather than recovery.
Transition to Extended Producer Responsibility (EPR)
The UK government is moving towards an Extended Producer Responsibility (EPR) regime, which will shift the full cost of managing packaging waste from local authorities to producers, in line with the ‘polluter pays’ principle.
This transition is part of broader strategies to promote a circular economy, as outlined in the 2018 Resources and Waste Strategy for England and similar initiatives in Wales.
The EPR system is expected to eventually replace the current obligations under the 2007 Regulations.
Registration and compliance
Producers operating in England must register with the Environment Agency and provide a certificate of compliance as evidence that they have met their recycling (and, before 2021, recovery) targets.
The role of compliance schemes
Instead of registering individually, producers may join a registered compliance scheme.
Membership in such a scheme exempts the producer from direct compliance with certain obligations, as the scheme assumes responsibility for meeting the recycling targets on behalf of its members.
The main responsibilities of the scheme are:
- The compliance scheme must fulfil the recycling obligations of its members by acquiring the necessary PRNs and PERNs.
- The scheme is also responsible for any consumer information obligations applicable to its members.
- Producers must provide accurate and timely information to the scheme and pay any applicable scheme fees.
The scheme follows a strict approval process.
Regulation 13 of the 2007 Regulations sets out the requirements for scheme approval.
Before a scheme can be registered, it must be approved by the relevant regulator.
The operator must provide:
- The name and address of the proposed operator.
- Evidence that the scheme can operate for at least five years and meet its recycling obligations during that period.
- The scheme’s constitution and rules.
- Procedures for enforcing scheme rules against members.
A new application for approval is required if:
- There is a change in the scheme operator.
- The operator is convicted of an offence under the Regulations.
- The operator notifies the regulator of non-fulfilment of obligations.
- The operator fails to comply with specific conditions imposed by the regulator.
In accordance with Regulation 13A, there are additional conditions that may need to be satisfied.
In this case, the operator must:
- Comply with general scheme obligations (regulation 12(1)).
- Monitor the accuracy of information provided by members.
- Acquire PRNs/PERNs in a manner that does not hinder other operators.
- Maintain sufficient financial resources and access to necessary expertise.
- Provide information requested by the regulator for compliance monitoring.
- Notify the regulator of any changes in operator or material information.
- Submit required records and returns.
Regulation 13B addresses refusal of approval, and Regulation 13C covers withdrawal of approval.
Application for registration
Once approved, schemes must register annually with the regulator by 15 April via the National Packaging Waste Database.
Applications must include:
- Details of each producer member.
- Classification and main activity of each producer.
- The amount of packaging waste each producer must recycle.
- Aggregated recycling obligations.
- Turnover statements for smaller producers.
Scheme operators may appeal against refusal or cancellation of registration.
The procedure is set out in regulation 28 of the 2007 Regulations.
Registration fees
Fees are payable by compliance schemes upon registration of producers:
- £564 for individual company registration (lower than direct registration).
- £345 for small producers.
- Group registrations: £564 plus £180 for each of the first four subsidiaries, £90 for the next 5–20, and £45 for each subsequent subsidiary.
- Additional fees (£1,540–£3,080) may apply if the scheme operates under conditional approval due to non-compliance.
Records and returns
Scheme operators must submit an annual return to the regulator by 31 January, detailing:
- The tonnage of packaging waste delivered for recycling.
- The total tonnage of each material recycled.
Records must be retained for at least four years.
Operators must also confirm annually whether they have met their obligations.
Failure by a scheme operator to comply with the obligations of registered producers constitutes an offence under the Regulations.
The National Waste Packaging Database maintains a public register of compliance schemes registered with the Environment Agency and other UK regulators.
Producers should contact individual compliance schemes for details on membership processes, rules, and fees.
Accurate information regarding packaging handled and activities performed must be provided to the scheme, which will then calculate the producer’s specific obligations.
If you have any questions or concerns about your obligation, we are on hand to help you.
Our specialist team can support you with compliance awareness so that you do not get caught out. Contact James Edes today for help.