On May 15, 2023, Germany took a significant step toward sustainability by enacting the Single-Use Plastics Fund Act (EWKFondsG). This legislation introduces new obligations for manufacturers of single-use plastic (SUP) products, requiring them to contribute to the costs associated with the collection, cleaning, and disposal of plastics that are discarded in public areas, such as streets and parks. The primary objective is to mitigate the environmental impact of these plastics, particularly common litter items like takeaway containers and tobacco filters.

Key Aspects of the Law

Obligations Beginning in 2024: Starting in 2024, manufacturers are required to register their SUP products with a newly established system and pay levies into the Single-Use Plastic Fund. This levy system will be administered by the German Environment Agency (UBA) through its digital platform, DIVID, accessible at www.einwegkunststofffonds.de.
Registration Deadlines: Manufacturers operating prior to January 1, 2024, must complete their registration on the DIVID platform by the end of 2024. New businesses that begin operations after this date must register immediately. Notably, levies on SUP products will be effective from 2024, regardless of when a company registers.
Contributions to Waste Management Costs: Effective from 2025, manufacturers will be required to contribute financially to the Single-Use Plastic Fund, based on the type and volume of their products. Municipalities will subsequently claim reimbursements from this fund for their collection and disposal efforts, thereby transferring financial responsibilities for waste management to manufacturers.

The Single-Use Plastics Fund Act (EWKFondsG) enforces stringent regulations for manufacturers distributing SUP products in Germany. It mandates precise reporting of the quantities of SUP products and compliance with various auditing and verification processes to establish environmental levy contributions. This guide outlines the essential compliance requirements, emphasizing critical aspects such as audits, reporting, and the auditor’s role.

Mandatory Expert Confirmation and Verification Process

The EWKFondsG requires manufacturers to submit detailed reports on the quantities of SUP products they place on the German market. This information must be verified by a registered expert under Section 3 (15) of the Packaging Act (VerpackG) or by a registered auditor, tax consultant, or sworn accountant under Section 27 (2) of the Packaging Act.

Key Aspects of the Verification Process:

Expert Verification: A qualified expert is responsible for confirming the accuracy of the data submitted by manufacturers, ensuring compliance with legislative requirements and proper reporting of SUP product quantities.
Clear Guidelines: The German Environment Agency (UBA), in collaboration with the Federal Cartel Office, provides comprehensive guidelines for the verification process. These guidelines outline the necessary steps for auditors or experts to validate reported data.
Electronic Submission: The confirmation report must be electronically signed and submitted to the UBA alongside the notification and verification report. This approach guarantees that all data submissions are secure, traceable, and compliant with legal standards.
Standardized Forms: To aid compliance, the UBA offers standardized electronic forms for notifications, confirmations, and communications with manufacturers. Utilizing these forms ensures a uniform reporting system.

Adhering to these guidelines allows manufacturers to mitigate potential penalties and maintain compliance with the law.

The Importance of Quantity Notifications for Levy Calculation

Accurate reporting of the quantity of SUP products placed on the market is vital, as this data is used to determine the environmental levy that each manufacturer must pay.

How the Levy is Calculated:

Type and Mass of SUP Products: The environmental levy is calculated based on the type and mass of the SUP products introduced to the market by the manufacturer. Accurate reporting is essential to avoid under-reporting or discrepancies that may lead to fines.
Levy Rates: The levy is defined by the Single-Use Plastics Fund Regulation (Einwegkunststofffondsverordnung), which outlines product-specific levy rates that are periodically reviewed to reflect environmental goals and market conditions.
Annual Levy Notices: The UBA will issue an annual levy notice based on the reported quantities, informing manufacturers of their payable levy amount. Accurate reporting is crucial for ensuring the correct determination and payment of levies.

Manufacturers must prioritize the accuracy of their notifications and submit them promptly, as this data directly impacts their financial contributions to the Single-Use Plastics Fund.

Audit Requirements for Manufacturers Exceeding 100kg of SUP Products Annually

Manufacturers who place more than 100kg of SUP products on the German market within a calendar year are subject to audits. These audits are conducted to ensure that the reported data and corresponding levies paid into the fund are accurate and compliant with the EWKFondsG.

Key Elements of the Audit Process:

Verification of SUP Quantities: During the audit, experts will verify the total weight of SUP products placed on the market by cross-referencing internal records, such as purchase orders and invoices, with the quantities reported through the DIVID platform.
Accuracy of Reporting: The audit process ensures the accuracy of data related to the type and volume of SUP products. Any discrepancies found between reported data and actual quantities may result in penalties or additional levies.
Compliance with Reporting Deadlines: Auditors will also check that manufacturers have met all reporting deadlines. Failure to submit data or make payments on time may lead to fines or sanctions

The Role and Responsibilities of the Auditor

Audits under the EWKFondsG must be conducted by a qualified expert, typically a certified auditor or a professional with expertise in German environmental compliance regulations, especially those related to packaging compliance audits under the VerpackG. Auditors play a vital role in ensuring that manufacturers fulfill their reporting obligations.

Key Responsibilities of the Auditor:

Review of Data Declarations: Auditors conduct thorough reviews of the manufacturer’s data declarations to ensure alignment with the quantities of SUP products placed on the market. This process includes verifying supporting documentation, such as sales figures, purchase orders, and invoices.
Issuance of Audit Reports: Upon completion of the review, auditors issue a formal audit report verifying the accuracy of the data declaration. This report must be submitted to the UBA as part of the company’s compliance obligations.
Recommendations for Improvement: If discrepancies are identified, auditors may provide recommendations for improving the manufacturer’s internal processes, including data tracking and reporting practices. This guidance helps ensure more accurate reporting in the future.
Point of Contact for Authorities: Auditors act as a key point of contact for the UBA during the compliance process, providing an impartial expert opinion on the company’s adherence to legal requirements.

Preparing for the Audit: Best Practices for Manufacturers

Manufacturers facing audits should proactively prepare to ensure compliance and minimize the risk of discrepancies or penalties. Below are critical steps to facilitate effective audit preparation:

Steps to Prepare for the Audit:

Organize Data Efficiently: Manufacturers should maintain comprehensive records of all SUP products placed on the market. This includes detailed documentation such as purchase orders, sales contracts, shipping manifests, and other relevant financial documents. Well-organized records will streamline the audit process and reduce the likelihood of discrepancies.
Engage with Auditors Early: Manufacturers exceeding the 100kg threshold should engage a qualified auditor early in the reporting process. Early engagement allows the auditor to review the company’s compliance before submission, helping to identify and rectify potential errors.
Consider Compliance Specialists: Manufacturers may benefit from working with compliance consultants specializing in the EWKFondsG. These professionals can provide expert guidance on regulatory obligations and assist businesses in avoiding common pitfalls.

Consequences of Non-Compliance

Failure to comply with the EWKFondsG can result in severe penalties, both financial and operational. Below are potential consequences for manufacturers who do not meet their obligations:

Fines Up to €100,000: Manufacturers that inaccurately report data or fail to meet audit requirements may face fines of up to €100,000. These fines can be imposed for discrepancies in data declarations, late submissions, or non-compliance with audit processes.
Market Restrictions and Legal Sanctions: Continued non-compliance may lead to further sanctions, including restrictions on market access or legal actions initiated by German authorities. Such measures could significantly impact a manufacturer’s ability to operate within the German market.

Ensuring Compliance with the Single-Use Plastics Fund Act

“The Single-Use Plastics Fund Act (EWKFondsG)” imposes rigorous compliance, reporting, and auditing requirements on manufacturers of SUP products. To ensure adherence to these requirements, manufacturers must accurately track the quantities of SUP products placed on the market, comply with reporting deadlines, and prepare for audits by engaging qualified experts.

By following these guidelines, manufacturers can avoid substantial fines and contribute to the overarching goal of reducing plastic waste in the environment. Engaging with auditors early, organizing data effectively, and adhering to the UBA’s requirements are essential steps for ensuring smooth compliance with the legislation.

Compliance with the Single-Use Plastics Fund Act (EWKFondsG)