Producer responsibility for packaging

For those engaged in packaging goods for sale

Below is an outline of the product liability rules for packaging in Denmark. These rules are founded on an EU directive, hence, similar regulations, albeit not necessarily identical, exist in other EU countries.

In Denmark, new regulations concerning "producer responsibility" for packaging will come into effect on 1st July 2025. Unusually, Denmark is among the last countries to adopt common EU regulations. These pertinent rules originate from the Directive 2008/98/EC of the European Parliament and of the Council of 19 November 2008 on waste and related matters. In Denmark, these regulations fall under the jurisdiction of the Ministry of Environment and are thus implemented into environmental legislation.

Although these rules will not take effect until July 2025, from April 2024, you are required to register your business and report on anticipated packaging volumes for the year 2024 at Producentansvar.dk.

Which businesses are subject to these rules?

The responsibility rests with companies introducing packaging into the Danish market, particularly:

• Producers (or fillers) introducing packaging into the Danish market
• Danish importers of packaged goods (first level of distribution only)
• Wholesalers or companies that repackage goods
• Foreign e-commerce stores selling directly to Danish consumers (Note: must be registered via a fiscal authorized representative)

What type of packaging is covered?

Both sales and transport packaging (including pallets and straps, etc.) are included, and the rules apply to both household and commercial packaging. This means the rules apply to the following material types:

• Plastic (likely divided into four different subcategories)
• Cardboard
• Paper
• Glass
• Aluminium
• Metal
• Wood
• Food and beverage cartons

What are the rules about?

The aim of these regulations is to reduce the volume of packaging and to redesign the packaging so it is less harmful to the environment. Ideally, the packaging should be made of recycled materials, etc.

The administrative duties under these rules are as follows:

1. You must register your business at www.Producentansvar.dk from 1 April 2024.

• Here, you must report specific packaging information and expected volumes that you anticipate introducing into the Danish market in 2024.
• The reporting obligation varies depending on whether you expect to introduce more or less than 8 tonnes of packaging into the market.
  
  - If you expect to introduce OVER 8 tonnes, you must report on all aspects: material fractions, main components, sub-components, chemistry, size, weight, etc., categorized into household and commercial packaging.
  - If you expect to introduce UNDER 8 tonnes, you may report the total weight of packaging for both the household and commercial categories.

2. From 1 April 2024, you must also choose a collective scheme. (Collective schemes can be chosen for both battery packaging, etc. – these exist as local arrangements in Denmark and as general arrangements in the EU.)
3. Going forward, you must inform your customers on how to dispose of the packaging through labeling and pictograms - collective schemes assist with this task.

What are the costs?

The rules are not fully defined yet, but in line with the regulations in other EU countries, the financial burdens are expected to be of the following types:

• A general administrative fee to the authorities
• An environmentally graduated environmental contribution based on an average contribution per ton per type of packaging, adjusted up/down depending on the packaging's 'environmental soundness' (i.e., the more environmentally sound the packaging, the lower the tax rate)
• An annual membership fee to the chosen Collective Scheme (for legal, administrative, and practical work)

In this context, it should be noted that the United Kingdom also has similar rules in the area of packaging – however, neither Norway nor Switzerland currently impose general requirements for the registration, etc., of packaging materials.

At IntraVAT, we specialize in advising on VAT, customs duties, and excise duties, but we also strive to alert your business to other obligations you may encounter when entering a new market.