Kite Environmental Solutions Guiding you through the Packaging Regulations 2021
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Kite Environmental Solutions
Guiding you through the Packaging Regulations
2021
Kite Environmental Solutions is a Government accredited Compliance Scheme for the Packaging Regulations.
an employee-owned business
Contents
Page
About Us 1
The Regulations 2
- Who is obligated
- Forms of Packaging
- How the Regulations work
- Compliance Schemes
- Demand for PRNs
- Calculating an obligation
- Activity Chain
- UK Recycling Target
Methods of compliance 9
- Allocation Method
- Data Assessment Method
Kite’s route to compliance 11
Regulating body 12
Kite’s compliance scheme 13
Environment Agency audit 14
Joining our scheme 15
- Becoming a member
- Compliance costs
Consumer information obligation 16
Membership application form 17
an employee-owned business
About Us
Our scheme was founded in 2002 and is managed by an experienced and dedicated team
The cornerstone of Kite Environmental Solutions is our employee-ownership:
• Being employee-owned, everyone is focused on providing outstanding service, which is shown
in the care we give our customers every day
• Our goal from the start is to help companies submit data efficiently by actively getting involved
in the assessment process year-on-year
• Utilising our specialist packaging knowledge & expertise to help you
an employee-owned business Page 1
The Regulations
The Producer Responsibility Obligations (Packaging Waste) Regulations 2007 and Amendments were
originally introduced in 1997 in response to an EU directive. The objective of the Regulations is to
increase the amount of packaging waste being recycled, which is funded by "taxing" companies who
introduce packaging into the UK via their business activities.
The legislation aims to minimise the impact of packaging waste on the environment by increasing the
amount of recycling undertaken within the UK by setting recycling targets for Packaging Waste. These
targets are met by putting an obligation on to UK businesses who handle packaging to fund the cost of
recycling.
However this is not offset by the waste you have collected from your site, a factor that many businesses
find frustrating.
an employee-owned business Page 2
Who is obligated?
The aim of the Regulations is to increase the recycling of packaging waste by making businesses
responsible for the cost of recycling within the UK.
However not all businesses are obligated and you only need to comply with the Regulations if you meet
all three of the following threshold tests:
1. You are a UK registered business that performs an activity on packaging
2. Have a turnover greater than £2 million in your last audited accounts
3. Handle more than 50 tonnes of packaging per year, excluding any packaging you subsequently
export
an employee-owned business Page 3
Forms of packaging
What is included in the 50 tonne threshold of obligated packaging:
• Packaging around imported raw materials, components or finished goods
• Packaging added to goods
• 1st use reusable packaging
• Packaging around UK finished goods supplied to the end user
Excluded from your obligation:
• Any customer or supplier owned packaging
• Any packaging that is reused in its original form
• Any packaging around goods exported out of the UK
How the Regulations work
In order to meet the targets, the Government’s strategy was to ask reprocessors of material waste such
as Paper, Glass, Aluminium, Steel, Plastic and Wood to start recycling more packaging waste. To
encourage this, reprocessors who became licensed with the Government would be able to issue one
Packaging Recycling Note (PRN) for every tonne of packaging waste that is recycled.
Reprocessors can sell these PRNs as evidence of recycling, providing them with a new revenue stream.
As a condition of their accreditation, reprocessors are required to invest the revenue from the sale of
PRNs back into recycling (new machinery, infrastructure etc.), thereby enabling the reprocessors to
recycle more and more packaging waste.
By doing this, all the accredited reprocessors in the UK would collectively meet the Government’s
business targets for recycling packaging waste, whilst increasing the volume of packaging waste recycled
each year.
an employee-owned business Page 4
Compliance Schemes
Compliance schemes like Kite’s, were written into the Regulations from the beginning to administer the
compliance process for obligated businesses. Schemes take on the legal obligation of their members,
to purchase PRNs. As a Scheme Kite would then submit a consolidated single return to the relevant
Agency on an annual basis, to include the obligations of all its Members.
Demand for PRNs
The Government sets annual recycling targets for businesses to achieve, which in turn creates the
demand for PRNs.
Companies who exceed the thresholds have an obligation to recycle a proportion of the packaging that
they have introduced into the UK system. This proportion is calculated according to a set of equations
based on an activity chain.
Companies are not able to physically recycle their own waste to discharge their responsibilities, instead
they must offset their obligations using PRNs.
an employee-owned business Page 5
Calculating an obligation
A company’s obligation is made up of the following equation, which is used to determine the number of
PRNs required:
% 76%
Packaging Activity UK Recycling = PRN
X X
weight percentage target obligation
(tonnes)
The Regulations state that packaging is defined as anything used for the containment, protection,
handling, delivery and presentation of goods.
The different packaging material types are Paper, Glass, Aluminium, Steel, Plastic, Wood and Other.
The material specific targets through to 2022 are:
an employee-owned business Page 6
Activity chain
The activity percentage is derived from the packaging activity chain. The responsibility for the cost of
recycling packaging waste is shared between different participants in the supply chain. The following
example demonstrates these activities in relation to a tin of beans sold at a supermarket.
Manufacturer 6%
Convertor 9%
Packer / filler 37%
Seller 48%
0% or 100%
End user rolled up end user
The Regulations require companies to provided evidence they have recycled a proportion of the
packaging they introduce into the UK according to the activities they have performed.
Additional obligations for importers
Where companies import packaging either to use or around goods, they pick up additional obligations
for activities that have not been accounted for in the UK.
For example, if you bought a vase in a cardboard presentation box from Italy, and sold it via the internet
directly to an end user, you pick up an obligation as a seller. However, as you directly imported the
goods, you pick up an additional obligation for packer / filler, convertor and manufacturer, known as a
rolled-up activity obligation.
an employee-owned business Page 7
UK recycling target
The UK recycling target refers to the UK target for the overall recycling of waste which is, set by the
Government each year. This target is used to increase the overall demand for PRNs in the marketplace.
Packaging levels
Where assessing packaging it is important to divide it into different functional groups. The Regulations
identify 3 main groups of packaging:
1. Primary or Point of Sale (POS): This is packaging which forms the actual sales unit supplied to
the end user, for example a tin containing beans
2. Secondary or Outer: This is packaging that contains a collection of the sales units, for example
an outer carton
3. Tertiary or Transit: This is packaging that groups together secondary packaging, for ease of
handling and transportation, for example a pallet
Point of Sale
Outer
Transit
an employee-owned business Page 8Methods of compliance
There are two ways in which companies can comply with the Regulations, either the Allocation Method
or the Data Submission Method. We will advise on the most suitable method for your company.
Allocation Method
Optional for
turnover
£2milData Assessment Method
This is compulsory for any company with a turnover of more than £5 million. The Data Submission
Method requires companies to assess the obligated packaging they have introduced into the UK and
complete a full packaging data return.
This method aligns the tonnages of packaging handled by material with the activities the company has
performed in the packaging chain. The data is collated in a data submission form, which is required for
registration by the Government.
an employee-owned business Page 10Kite’s route to compliance
A company’s obligation is based upon the packaging handled in the previous calendar year. In order to
comply with the Regulations companies need to follow each stage of the compliance process, as shown
in the diagram below.
Due to the complex nature of the Regulations, liaising with Environment Agencies and negotiating with
reprocessors, it is understandable that over 90% of obligated businesses choose to join a compliance
scheme to coordinate the process on their behalf.
an employee-owned business Page 11Regulating Agencies
The Environment Agencies (EA, SEPA, NRN & NIEA) regulate The Packaging Regulations. Their role is to
police and enforce the Regulations, by auditing the data of registered companies and targeting any
businesses that are not currently complying who they refer to as free riders.
Companies registering for the first time can now remedy any previous year’s non-compliance via an
Enforcement Undertaking (EU), rather than be faced with a criminal prosecution. An Enforcement
Undertaking is a voluntary offer made by a business to put right the effects of not complying with the
Packaging Regulations.
When undertaken proactively, a company establishes the costs it didn’t pay in previous years, offering
to pay 110% of these avoided costs, which are then donated to an environmental charity. This process
can typically take 6 to 18 months from start to completion. If accepted, EU’s become legally binding and
once fulfilled wipe the slate clean, avoiding a criminal sanction.
Kite has made several EU offers on behalf of our Member companies, achieving a 100% acceptance rate.
Companies should aim to get registered as quickly as possible. If you are concerned about any previous
years when you should have been registered, please contact the team on 024 7642 0080 for confidential
advice and help.
an employee-owned business Page 12Kite’s Compliance Scheme
Kite Environmental Solutions was developed to help companies meet their obligations under the
Packaging Regulations. In so doing we designed our Compliance Scheme to be distinctly different to any
other scheme. We are the only Compliance Scheme that is part of a major UK packaging company, which
means we have unparalleled specialist packaging knowledge and expertise to help you.
We deliver excellent customer service by providing you with a dedicated Account Manager who will
guide you through all stages of complying with the Packaging Regulations and we attend any
Environment Agency audits your business may have.
We appreciate that the Regulations can be complicated and that the application of the Regulations to
your business can be difficult. To solve this problem we offer on-site one-to-one consultancy for all our
Members to manage their whole compliance process.
We believe that the only way to fully understand a business and to ensure it is compliant with the
Regulations is to spend time on site looking at its operations. Our consultancy sessions are designed to:
• Help you understand the Regulations
• Advise you on your commitments under law and explain how the Regulations affect your
business
• Identify the packaging flows within your business and from this determine the main activities
you perform
• Determine what data to source and provide expert guidance to enable your company to meet
the requirement of being as ‘accurate as reasonably possible’
Once all data is collated we will then complete your calculations, produce the Data Submission for your
business and register you with the Environment Agency.
In addition, if you are a Kite Packaging customer, we will automatically generate all the information for
the packaging that you have purchased during any given obligation year. For companies that purchase
all their packaging from Kite means that there is less work involved in the data collection process, further
reducing the time and cost to your business.
an employee-owned business Page 13Rated as “Excellent”
Part of the Environment Agency’s role is to monitor the performance of Compliance Schemes to ensure
they meet their approval, requirements and obligations. Audits are an important part of the
Environment Agency’s monitoring to ensure that schemes operate effectively and submit reliable data.
Compliance schemes have a critical role to play in ensuring that the UK meets its annual recycling targets
for Packaging. It is important that schemes have sufficient resources and good systems in place to meet
their obligations, on behalf of their members, and in doing so contribute to the overall UK targets.
Our last audit from the Environment Agency was completed in 2017. The compliance visit reported the
following,
“We believe that the Scheme is demonstrating excellence, in collecting, quality assuring and
reporting accurate, consistent data and in it’s over all operation of the scheme. It is in those
key areas which we believe the scheme is doing particularly well and can be used to identify
‘Best Practice’ for other schemes”.
an employee-owned business Page 14Joining our scheme
Becoming a member
If you would like to join our Scheme, please complete and return the Membership Application Form (see
appendix) with details of the registering company. Any subsidiary or franchise details should be
discussed with us prior to completing the form.
All applications should be sent to:
Kite Environmental Solutions
186 Torrington Avenue
Tile Hill
Coventry
CV4 9AJ
Compliance costs
We work hard to minimise the cost of compliance to our Members. The fees involved are a combination
of our scheme membership fee and the Environment Agency registration fee. Where we complete a
data assessment on your behalf, the standard consultancy rate would apply.
We take on the legal obligation of our members and will purchase the PRNs you require, once your
obligation has been calculated. This is the evidence that shows you have contributed to financing the
recycling of packaging materials in accordance with the Regulations.
Members are invoiced on a quarterly basis for their PRNs and consultancy, spreading the cost of
compliance across the whole year.
The registration costs will depend upon your company structure and the method(s) of registration used,
so please contact us on 024 7642 0080 for advice regarding the most economical option.
an employee-owned business Page 15Consumer information obligation (CIO)
What is it?
The Consumer Information Obligation (CIO) applies to companies who supply packaging around product
to the end user of that packaging. The CIO requires these companies to provide information on re-use
and recycling to their consumers in order to increase the amount of packaging waste being recycled.
Am I affected?
Yes, if your primary activity in the packaging chain under The Packaging Regulations is as a seller. This
means that the majority of your obligated packaging by weight is from supplying your goods to end users
who remove the packaging.
What do I need to tell my customers?
You need to tell your customers whether the packaging around your goods can be returned or re-used.
If this is not possible then you need to inform them of the best ways to dispose of this packaging. This
includes providing information about where packaging can be recycled and where they can find out
more information about recycling.
Informing my customers
There are a variety of ways to inform your customers about recycling issues. These include:
• providing links / references on your website
• putting information on your delivery paperwork
• in store / point of sale information
• using recycling information in direct marketing
• on-packaging information
What can be recycled and where?
There are a variety of websites providing information about various aspects of recycling, including
recycling and collection facilities.
http://www.recyclenow.com
Businesses disposing of large amounts of packaging waste may be able to introduce segregation and
baling systems which enable them to sell the waste to re-processors.
The Waste Hierarchy
REDUCE - Whenever possible you should reduce the amount of packaging you use to supply goods to
your customers.
RE-USE - Where packaging is used around goods it should be used as many times as possible before
disposal, whether by yourself or your customers.
RECYCLE - When disposing of packaging it should be recycled wherever facilities are available, rather
than sent to landfill.
Please also refer to the National Waste Strategy contained in the Environmental Act 1990 Sections 44A
& 44B www.legislation.gov.uk/ukpga/1990/43/section/44A
an employee-owned business Page 16Application Form an employee-owned business Page 17
Kite Environmental Solutions Ltd
Membership Application Form
KES Number K E S
NPWD Number N P W D
(office use only)
Contact Details
Title Mr/Mrs/Ms/Miss/Dr (please delete as appropriate) Position
Name Email
Tel Mobile
Address
Town Postcode
Details of Registering Company
Company Name
t/a
Registered Office Address
Town Postcode
Registration No. SIC code /
(available from companies house)
Subsidiary / Franchise Details
No. Subsidiaries to be registered No. Franchises to be registered
(please discuss with Kite prior to completing to ensure subsidiaries / franshises are accounted for as per the Regulations)
Declaration
The information provided is accurate and correct in material fact. For Groups of companies within the UK (if applicable) the
Member hereby warrants that the Member has authority of each other Group company as of the date of this agreement, to
apply for Membership of the Scheme on behalf of itself and each other Group Company ("Group Member").
Signature Position
Print Name DateKite Environmental Solutions Ltd
Registration Contact Details
Company
The following information is required by the Environment Agency as part of your Registration
Secondary Contact Details
Title Mr/Mrs/Ms/Miss/Dr (please delete as appropriate) Position
Name Email
Tel Mobile
Address
Town Postcode
Director Contact Details
Title Mr/Mrs/Ms/Miss/Dr (please delete as appropriate) Position
Name Email
Tel Mobile
Address
Town Postcode
Accounts Payable Contact Details
Title Mr/Mrs/Ms/Miss/Dr (please delete as appropriate) Position
Name Email
Tel Mobile
Address
Town Postcode
Suitable Contact Hours
Purchase order Required Monthly Statements RequiredYou can also read
