Packaging License for Small Businesses – What You Need to Know
The introduction of packaging into the market, as well as its collection and recycling, is regulated by the Packaging Act. If you, as a company, are introducing packaging filled with goods into circulation for the first time, which then ends up as waste with the private end consumer, you must register with a dual system that handles the collection, sorting, and recycling of the packaging. The quantity is irrelevant, which is why the regulations also require a packaging license for small businesses. What you need to consider as a small business regarding the packaging license is explained in this article.
Even as a small business, you are obliged under the Packaging Act to obtain a packaging license. By registering with the Central Packaging Register and participating in a dual system, recycling rates should be improved, and packaging waste reduced. All first-time introducers of packaging that ends up as waste with the end consumer are held responsible for the packaging license in small businesses.
What is the Packaging Act for Packaging License in Small Businesses?
In Germany, the Packaging Act (VerpackG) requires that every commercial provider of packaged goods, regardless of the size of the business, must officially register their packaging and pay a fee for it. This regulation of the packaging license also includes small businesses. The goal is to improve recycling rates and reduce the environmental impact of packaging waste.
By applying for and obtaining your packaging license as a small business, you not only avoid fines but also make an important contribution to environmental protection and take on the social responsibility that every company carries.
What Packaging Requires a License for Small Businesses?
The term “packaging” affected by the packaging license in small businesses includes materials that enclose products and are not part of the actual goods. After unpacking, packaging should be collected, sorted, or recycled. Three categories are distinguished:
- Sales and product packaging like blister packs, boxes, bags, and cans that end up directly with the end consumer
- Transport packaging like shipping cartons
- Outer packaging like packing materials, filler materials, cardboard, and tape
Who Needs to Register for a Packaging License in Small Businesses?
As the first-time introducer, also known as the “manufacturer,” you are responsible for packaging that ends up as waste with the end consumer. This affects everyone, from online retailers to physical stores that package their products and bring them into circulation for the first time. According to the Packaging Act, all first-time introducers must acquire a packaging license, whether small businesses or global players, from a dual system that handles the disposal and recycling of this waste. Additionally, manufacturers are obliged to ensure the return, recycling of packaging waste, and recycling of sales packaging.
Packaging License in Small Businesses: Registration and Reporting Obligations Explained Step by Step
Before introducing packaging, you must apply for your packaging license as a small business and fulfill your obligations:
- Registration Obligation: First, you must register with the Central Packaging Register (ZSVR) in the public LUCID register.
- System Participation Obligation (Licensing Obligation): After receiving a registration number from the ZSVR, you must register with a dual system. Here, the packaging materials used throughout a calendar year must be estimated and licensed.
- Data Reporting Obligation: After licensing, the amounts of licensed packaging must be reported to LUCID along with the name of the dual system. It is crucial that the data matches between LUCID and the dual system. A packaging license for small businesses is valid for one calendar year. This means you must license your packaging for the entire upcoming year or, if you become liable during the year, for the remaining months. You need to estimate the expected packaging amounts in advance.
Packaging License in Small Businesses: Cost Overview
The license costs for all companies, including the cost of the packaging license for small businesses, are based on the amount of packaging brought into circulation, the types of materials, and the choice of the dual system.
Materials to be licensed include paper, cardboard, plastic, glass, metals, composites, and wood. The decisive factor for the licensing fees is whether the packaging ends up as waste with the end consumer.
According to the Packaging Act, there are no exceptions for small quantities – the obligation to participate in the system and the packaging license for small businesses applies from the first packaging. However, the costs for packaging licensing are manageable for small amounts.
4 Practical Tips for Shipping Goods According to Legal Requirements
Here are four essential tips for managing your packaging license as a small business:
1. Choose the Right Packaging Material For online sellers, common materials include cardboard, paper, and plastic. Ensure your packaging complies with legal standards, is sturdy, and recyclable to meet environmental regulations.
2. Ensure Correct Labeling and Documentation Label all shipments correctly and include necessary documents like commercial invoices, delivery notes, and safety data sheets if applicable. This helps avoid customs delays and legal issues.
3. Register Online with the Central Office Register through the LUCID database of the Central Packaging Register. This free registration requires your name, address, contact details, VAT ID or tax number, brand names, and responsible person’s details.
4. Handle Registration and Data Maintenance Personally Complete registration and data reports personally to ensure accuracy. Third-party appointments are not allowed. For legal entities, an authorized person must confirm the information.
