How do packaging and recycling laws affect U.S. Exporters?
Packaging and recycling laws in other countries have been growing in importance for U.S exporters and can affect their ability to sell abroad. Many countries, particularly the members of the European Union (EU), have passed packaging and recycling laws in the past ten years. These laws are meant to make packaging materials environmentally friendly. U.S. exporters need to ensure that their packaging materials are compliant with their importer’s domestic regulations.
What is the European Directive on packaging and packaging waste?
Packaging and Recycling Requirements:
The European Union’s Packaging and Packaging Waste Directive, which entered into force in 1994, guided member states efforts to harmonize national measures on the management of packaging waste to ensure that member states’ restrictions on packaging do not create barriers to trade within the EU. Furthermore, the Directive is intended to reduce the overall impact of packaging and packaging waste on the environment.
The Directive covers a variety of packaging (paper, cardboard, glass, plastic and metal) and calls for measures to prevent the production of packaging waste and reuse, recycle and recover packaging.
The Directive sets targets for both recovery and recycling of waste by member states. These must be achieved by 2001 (2006 for Greece, Ireland and Portugal), after which they are to be reviewed. The Directive also requires member states to ensure that 50-65% of all waste is recovered from the waste stream and between 25-45% is recycled.
Article 9 and Annex 2 of the Directive set out “Essential Requirements” for packaging. The European Committee for Standardization (CEN), the EU’s standard-making agency, is developing standards by which compliance with these “Essential Requirements” can be judged. Article 15 authorizes member states to introduce national “economic instruments” (taxes or levies) to achieve the directive’s objectives, provided any such instruments are in compliance with the Treaty and do not create barriers to trade.
Implementation of the Directive by member states has been inconsistent across the European Union, with some countries far ahead of others.
What concerns does the U.S. Government have about these regulations?
In 1996, the European Commission proposed a Directive that would establish marking requirements for packaging, to indicate recyclability or re-useability. The United States expressed two potential concerns with this Directive. The first concern was that the European Union’s new marking requirements would differ from other marks widely used in the United States and being developed in the International Standards Organization (ISO). The United States is concerned that packaging, marketing and distribution operations will become more complicated and costly for both U.S. and European firms wishing to sell their products abroad, without achieving environmental benefit.
The second concern is related to Article 4 of the Directive, which would prohibit the application of other marks to indicate recyclable or reusable packaging. Based on U.S. experience, this requirement is likely to pose a particular problem for glass and plastic containers, as it would require companies to create new molds solely for use in the European market. Discussions underway in the ISO may help resolve the potential problems, especially as the Commission has indicated its willingness to review the proposed EU marks in light of an eventual ISO agreement.
What is an ‘eco-label’?
An eco-label is a label manufacturers print on their packaging to demonstrate that their product is environmentally friendly. The Eco-label program in the European Union is intended to give industry incentive to behave in a more environmentally responsible manner. The program is supposed to assist consumers in making purchasing decisions and to reward producers of “green” goods by helping increase their market share. To obtain an Eco-label valid for three years, manufacturers or importers must apply to the competent body in the member state in which the product is either manufactured or imported. That competent body will, in turn, circulate the company’s application to other EU countries to obtain EU-wide approval. For more information visit visit the Europa website or call 1-800-USA-TRAD(E) and ask to speak to a European trade specialist.
Are there any country specific requirements within the European Union?
Yes, for example Germany has established legislation that contains certain rules for the disposal of packaging materials. In response to this legislation, a cooperative effort for the collection and recycling of packaging materials was initiated. The organization involved is called the "Duales System Deutschland," and it administers the use of the "Green Dot," a recycling symbol that is found on the packaging material of virtually all products sold in Germany. While packaging material for products sold in Germany is not legally required to carry the Green Dot, it is almost impossible to market a product in Germany without it. Typically, the importer pays a license fee to the packaging company, dependent on the type and amount of packaging, and provides the exporter with the necessary information. Other European countries have initiated similar programs like the Green Dot, including; France, Austria, Belgium, Luxembourg, Spain, Portugal, Italy, Sweden, Ireland and the United Kingdom.
What other countries have similar regulations?
Japan: In April, 2000, the Government of Japan will begin full implementation of its Packaging Recycling Law, with manufacturer’s obliged to pay the associated collecting, sorting, transportation and recycling costs for all paper and plastic containers and packaging. In the case of imported products, importers will be held responsible for paying recycling costs. If the imported products are private-labeled, the corporation using the private labeling will be held responsible for recycling costs. U.S. exporters should be aware that Japanese importers might take associated recycling charges into account when choosing goods to import.
To find out if the country you are exporting to has recently enacted packaging regulations, contact the Trade Information Center at 1-800-USA-TRAD(E)
Who is responsible for meeting the regulations?
The importer is generally responsible for meeting the recycling and packaging requirements of its country. However, U.S. exporters should be aware of the EU’s, Japan’s and other countries’ packaging and recycling regulations, as many foreign buyers will take into account the type of packaging your company is using for international shipments. U.S. companies may find themselves at a competitive disadvantage if their packaging material does not meet their buyers’ domestic standards.
How can I find out more information about packaging and recycling regulations?
Call the Trade Information Center at 1-800-USA-TRAD(E), Monday through Friday, 8:30am-5:30pm EST. International Trade Specialists are available to help you find the specific information you seek. If they do not have the information you seek, they will be able to point you in the right direction of find the information with the assistance of the Commercial Service posts overseas, to identify appropriate sources.