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.
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.
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.
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).
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.
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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