Selling compliant in Europe – What Amazon Sellers need to know about the packaging law
In the EU, handling of packaging waste is regulated by the Packaging Directive. This requires all Member States to implement laws and regulations to prevent the impact of waste on our environment – according to the circular economy and accompanying with EPR. So this also affects online retailers from all around the world who sell in Europe. The problem, however, is that while the EU packaging law is in place, different member states put different laws in place, with sometimes high penalties for non-compliance or when doing mistakes.
So let's look at what you need to know about complying with the EU Directive and possible penalties in Europe.
Content:
- What is the Packaging law Europe and what does it aim to achieve?
- What is circular economy, EPR and compliance?
- How does it work? Where are the laws particularly strict?
- How to get registered and what else do you need to keep in mind?
- What are the penalties for non-compliance?
- How can you be sure you are doing it right?
What is the Packaging law Europe and what does it aim to achieve?
The Packaging law Europe sets out rules for the management of packaging and packaging waste in the EU - formally known as Directive 94/62/EC of 20 December 1994 and renewed by the amending Directive EU 2018/852. One goal is to harmonize national rules on the disposal of packaging waste. In addition, it aims to minimize environmental impacts in order to achieve a high level of environmental protection. It applies throughout the European Union to all packaging placed on the market, regardless of whether it is produced in industry, commerce, administration, trade, households or elsewhere - and regardless of the materials from which it is made of. In particular, the amending Directive (EU) 2018/852 aims to promote and prioritize reuse, recycling and other forms of recovery of waste as part of the circular economy.
The EU's objectives are therefore
- Conservation of resources
- Waste prevention
- Recycling and reuse
- Labelling of materials
- Moving towards a circular economy
These laws and regulations are partly transferred to waste producers and importers under the EPR.
What does circular economy, EPR and compliance mean?
Circular economy
The circular economy is a model in which materials and products are reused, repaired and refurbished or recycled for as long as possible before they ultimately have to be disposed of at the end of their life cycle. For this process and especially for recycling products, it is important to know exactly what materials they are made of.
EPR - Extended Producer Responsibility
Companies must ensure the proper disposal or reuse of their products in the appropriate market within the EU. Anyone who puts products on the market must ensure that they - including their packaging - can be recycled and reused after they have been disposed of by the end consumer. This is legally described in the Packaging Directive and implemented in local laws.
Compliance
Means meeting the legal requirements of the country in which you are operating. Being compliant is actually not questionable, as otherwise you as a retailer can face heavy penalties. For Amazon sellers, this means knowing the laws in your target countries.
How does it work and where are the laws particularly strict?
To make sure the circular economy model can work well, it is necessary for producers and distributors of goods and waste be registered at the relevant disposal systems in the individual countries.
Theoretically, the Packaging Directive is supposed to ensure uniformity within the EU. Unfortunately, this is not yet the case. Rather the opposite.
Many countries enact their own rules and laws, so it is often difficult for outsiders to keep track of everything. Especially in Germany, France and Italy, there are concrete and strict regulations - also regarding the labelling of your packaging. For Amazon sellers, this is very important, as in Germany and France you can no longer sell your goods via marketplaces without a full EPR registration.
Here, therefore, is a brief summary of what is important in these 3 countries:
Germany:
All packaging that is imported into Germany must be licensed. This is regulated in §36 of the Packaging Act. Non-registration, non-licensing or false/missing quantity declarations are considered an administrative offence. Registration is carried out at the Central Packaging Register (ZSVR), which keeps a publicly accessible register of all registered companies. There you get your individual LUCID Packaging number which you need for selling online on amazon.
For electrical appliances and batteries, there is also the “Stiftung ear” foundation, where products in these categories must be registered.
There is no obligation to label packaging in Germany.
Italy:
In Italy there is a strict obligation to label packaging. Online traders are obliged to label the material precisely. This is described in Decree No. 116. This labelling is done with an alphanumeric code, which must be created individually for the packaging, as well as a sorting advice in Italian language.
France:
In France, analogous to Germany, there is an obligation to license packaging. Registration takes place at the French environmental authority ADEME and you receive a so-called Unique Identification Number (UIN), which Amazon, among others, uses to check whether sellers are properly registered. Different UINs are required per waste stream, meaning that sellers need individual registrations and report data separately for household packaging, electronics (WEEE), textiles, furniture, toys, and other product categories.
In addition, there has been a legal labelling obligation in France since 2022 with the Triman Logo and the Infotri separation notice. For this, there is a number of criteria that must be met in the design.
If you are confused about what applies where and how – Don’t worry! We are happy to help! Just check out ecosistant. We offer a digital service for all European countries. It's quick and easy to become compliant and you don't have to worry about any penalties.
How do Amazon sellers obtain their EPR number and fulfill their recycling obligations?
Unfortunately, this also varies from country to country. In Germany, for example, there are 3 different registration systems - depending on the different waste streams. In France, there are even 10 different systems for 7 different product categories. You can also find out where and how to find the right contact point on ecosistant.eu.
The general process is more or less the same for all of them.
- Register with the competent authority in the respective country
- Acquire a licence from a national recycling scheme
- Report sales quantities on a regular basis
Register and obtain the EPR number:
You can obtain the required EPR number by registering with the relevant registration authority in the relevant country. Usually this works easily and can be done online – if you know the right website and system.
Licensing & payment of fees
After the registration process, you now have a registration number - which is sufficient for Amazon. However, this does not mean that you are compliant and protected from penalties. In order to do so, products have to be in licensed and recycling fees have to be paid. So it is necessary to calculate how many products and packaging is used. Depending on the country, the fees must then be paid to the recycling systems.
Regular quantity reporting
Now you have to report your quantities at regular intervals - usually annually. This has to happen so that the systems know how much waste is generated in each case.
What penalties do sellers face if they fail to comply?
Penalties for non-compliance are as varied as the different regulations. On marketplaces such as Amazon, sellers are often punished with blocking or exclusion, or they are not even allowed to sell in the country in question. General penalties of the countries are much more drastic here. High fines or sales bans can be imposed for the respective countries.
In Germany, for example, fines of up to 200,000 euros or a distribution ban can be imposed for a violation of the Packaging Act according to § 36 VerpackG (non-registration, non-licensing, declaration of incorrect quantities). The biggest risk, however, is the loss of profit when Amazon blocks your listing due to lack of compliance. Worst case it can take months to get your listing back online.
Therefore, it is important not to lose track of all EPR/recycling laws in Europe. However, as it is almost impossible to research all the laws and the regular updates yourself, our (digital) advisory service can be very helpful.
How can you make sure you get it right?
By knowing all the laws of your destination countries and properly registering your quantities. But – that’s easier said than done.
As an Amazon seller you are kind of lucky. Amazon already provides partial information about the relevant obligations of the countries. However, Amazon does not collect any penalties for disregarding the regular quantity reports, for example. So you have to be aware of this on your own.
Although this may sound difficult and complicated to get through is a necessary thing for our environment. These rules and laws make sure, that e-commerce companies are aware of their waste management and deal with the question “how can I make my business a little more sustainable” regularly.
About the author and ecosistant:
ecosistant is your digital advisor on packaging licensing in Europe. We offer services for online retailers on EPR and recycling regulations as well as labelling obligations for all European countries - from simple digital solutions to personal advice and stands therefore for more sustainability in e-commerce.
Jessica Krahl is the Head of Marketing and wants to spread ecosistant´s message as far and as loud as possible. In addition to creating and editing content for blog and social media, she is always looking for exciting players in the e-commerce sector to get in touch and exchange with.
