Packaging regulations - new ruling for bottles

Businesses or a group of businesses handling more than 50 tonnes of packaging per year, with a turnover in excess of £2m needs to comply with the Producer Responsibility Obligations (Packaging Waste) Regulations 1997 as amended. Under these Regulations, such companies must register and recycle an amount of packaging waste determined by (i) how much packaging they handle; and (ii) where they fit into the packaging supply chain.

Companies regarded as 'Sellers' of packaging (e.g. retailers of packaged goods) proportionally pick up the biggest share of the recycling obligations whereas those earlier in the supply chain, such as pack-fillers, converters and raw material manufacturers pick up progressively smaller proportions. These obligations don't apply to commercial or domestic end users of UK packaging.

Consequently, where a company fits into the chain can make a big difference to how much waste they are required to recycle and the costs they are likely to face.

Until recently, it was widely understood that the pubs were the final users of these bottles and that the companies supplying the pubs (e.g. brewers) were to be regarded as the sellers of the bottles to the final user. This position seemed sensible as publicans generally do not hand-over unopened bottles to their customers and sometimes don't hand over a bottle at all.

In May 2002, this interpretation was challenged via a Judicial Review in the High Court. The Court held that pubs are to be regarded as sellers of the bottles even where bottles are retained by the publican and not physically transferred to pub customers.

The Agency will be acting on the judgement in respect of the current compliance year (i.e. registrations in 2002).

We recognise that the ruling may have significant implications for many businesses including pubs, clubs, hotels, and cafes and those companies supplying bottled drinks to such premises. Further details of the judgement, the likely implications, and the Agency's strategy for dealing with affected companies can be found in the position statement.