EPR E-commerce

EPR E- commerce

Digitalisation holds many promises, to spur innovation, boost more inclusive and sustainable growth and enhance overall well-being. But at the same time, digitalisation can also be disruptive, changing familiar structures and expectations of the economy, society and even politics, raising questions about how and when regulators should intervene, and new policy challenges with regard to privacy, security, trust, consumer policy, competition, innovation, jobs and skills.

Increasing online sales pose a challenge to environmental policies, known as Extended Producer Responsibility or Product Stewardship, which aim to increase waste recovery and recycling. Extended producer responsibility (EPR) systems aim to make producers responsible for the environmental impacts of their products throughout the product chain, from design to the end-of-life phase. With about 400 EPR systems currently in operation across the globe, most of them in OECD member countries, these policies have become one of the key approaches in this area. While these systems have helped to increase recycling and collection rates, as well as generating financial resources to pay for these activities, governments are grappling with a number of issues that hinder their effectiveness and efficiency.

One of these issues is free-riding of producers or retailers, which the fast expansion of online sales in recent years has been exacerbating. Online sales are creating new free?riding opportunities as consumers are able to buy more easily from sellers in other countries. These sellers often have no physical, legal entity in the country where the consumer resides, and are not registered with national or local EPR schemes. The consequence is that they avoid producer and retailer/distributor obligations and costs.

As a result, the EU is also actively seeking cooperation with online e-commerce marketplace such as Amazon to discourage this increasingly free-rider opportunity. The e-commerce platforms will be obliged to urge producers and distributors selling through the platform to complete product compliance and fulfil their own EPR obligations to prevent them from avoiding their due obligations and costs through emerging cross-border transaction methods.

Amazon's latest EPR requirements

Recently, many sellers whose products are sold to Germany and France have received this email from Amazon:

“You are receiving this email as we have identified you as a Producer selling into Germany and/or France marketplaces, impacted by Extended Producer Responsibility (EPR)regulations. Extended Producer Responsibility (EPR) is an environmental policy that makes a producer responsible for the entire life-cycle of the products that they introduce on the market, from their design until the end of life(including waste collection and treatment) Starting in 2022, if you selling France and/or Germany, Amazon will be obliged to confirm that you are (EPR) compliant in the country you sell. Amazon will therefore collect and validate your EPR registration number(s).Amazon has created a dedicated Help Page where you will find detailed information on the Extended Producer Responsibility(EPR)requirement and on how to prepare for this regulation . If you have not already done so, we recommend you review the above help page and take appropriate steps to ensure your products meet the EPR requirements.”

Starting in 2022, if you sell in France and/or Germany, Amazon will be obliged to confirm that you are Extended Producer Responsibility (EPR) compliant in the country you sell. Amazon will therefore collect and validate your EPR registration number(s).

During Q4 2021, Amazon will share the link to upload the EPR registration number(s).
If you cannot prove your EPR compliance to Amazon, the following actions can be expected:

• Germany: Amazon will be obliged to suspend your non-compliant listings under EPR product categories.

￮ Packaging – all listings from July 1, 2022
￮ Electric and Electronic Equipment (EEE) – all listings falling under EEE from January 1, 2023

• France: Amazon is waiting for more information from French regulators. Amazon will communicate this information at a later stage.

Am I a producer?

To know the recommended steps for you, check the Producer definition below:

The Producer is the party who first places a product subject to EPR requirements (EPR product categories detailed below) in the country (France or Germany). You are considered as a Producer:

• if you manufacture a product subject to EPR requirements in the country, or

• if you import a product subject to EPR requirements into the country, or

• if you sell a product subject to EPR requirements in the country and you are not established in that country.

What does producer need to do?

If you are a Producer of products in the scope of EPR requirements, you will be obliged to provide your EPR registration number(s) to Amazon. See below the categories of products in the scope of EPR requirements for France and Germany for which you need to provide EPR registration number(s) to Amazon.

If you are a Producer and do not have an EPR registration number(s), you are required to register to obtain it. You will have to contact the respective Producer Responsibility Organisation (PRO) for each EPR product category to obtain the EPR registration number(s). Refer to respective country sections below for detailed instructions on how to register.

If you are not a Producer but you sell product(s) subject to EPR requirements, you need to obtain the applicable EPR registration number(s) from your upstream supplier and provide Amazon with this EPR registration number(s) in respect of the product as proof of compliance.

If you are not a Producer and cannot obtain the applicable EPR registration number(s) from your upstream supplier, you are required to register and provide Amazon with your own EPR registration number(s).

What does it mean to be EPR compliant?

If you are the Producer or you need to register because you cannot obtain the applicable EPR registration number(s) from your upstream supplier, follow this high-level description of the steps you need to take to become EPR compliant.

Step 1: Registration

• Registration is a one-time process to obtain the EPR registration number(s) needed to prove compliance with EPR requirements.

• Once you receive the EPR registration number(s), you will need to communicate it to Amazon as proof of compliance. During Q4 2021, Amazon will share the link to upload the EPR registration number(s).

Step 2: Declaration and Reporting

• You must declare your sales (of products covered by the different EPR categories) to the respective Producer Responsibility Organisation for the applicable reporting period.

Step 3: Payment

• You must pay eco-contributions to the relevant Producer Responsibility Organisation(s). The eco-contributions are defined by the PRO depending on the EPR product category and device type (e.g. refrigerator, baby clothing, chair), product attributes (e.g. packaging material, materials of furniture) and number and/or weight of units sold.

Frequently asked questions

I am already fulfilling my EPR obligations. Do I have to let Amazon know?

Yes. If you are already registered for all your eligible products, you should provide Amazon with your EPR registration numbers(s). During Q4 2021, Amazon will share the link to upload the EPR registration number(s). I am a Self-Ship seller.

Does this apply to me?

Yes. Amazon has to confirm that all sellers are EPR compliant irrespective of using Fulfilment by Amazon (FBA) or Self-Ship.

When am I impacted?

Before a product is listed in France and/or Germany, the producer must ensure that the EPR registration process is completed and he received the EPR registration number(s) for all applicable EPR product categories.

Do I need to register for different countries and different EPR product categories?

Yes. There are different registration requirements, processes and authorised bodies for each country and for the EPR product categories offered on amazon.de and amazon.fr.

How often do I need to report my sales and pay the EPR contributions?

Declarations and payments of EPR contributions are conducted monthly, quarterly or yearly – depending on the EPR categories/ Producer Responsibility Organisations in each country.

Do I need to pay for both primary (product packaging) and secondary (shipping) packaging?

Primary packaging (products’ own packaging) – Yes, both Fulfilment by Amazon (FBA) or Self-Ship sellers need to pay for primary packaging.

Secondary packaging (shipping packaging) – Please refer to country specific sections for further information.

Primary packaging is the packaging unit used to wrap the product, for example., the branded box of a pair of shoes or the aluminium can containing a soft drink. Secondary packaging refers to shipping boxes/bags used to protect the product during transport to the customer. This can be extended to filling material to protect the product and tapes to secure the package. Shipping labels are also a part of secondary packaging.

How much will it cost me?

EPR registration: You will have to pay registration fees to the different Producer Responsibility Organisation(s). This may range from €0 - €250+. Eco-contributions: Eco-contributions are calculated based on the sales and the EPR product categories which vary from country to country. Each Producer Responsibility Organisation maintains its own list of prices as per contractual agreements.

What additional steps do I need to take to be EPR compliant?

In France, if the EPR product category is EEE or Furniture, you need to carry-on the eco-contributions listed on your seller’s invoice onto your own invoice.

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