Navigating Germany’s VerpackG: Key points for e-commerce sellers

The Extended Producer Responsibility (EPR) packaging directive in Germany, known as the VerpackG (Packaging Act) can’t be ignored if you’re selling products in Europe. Given that it is the German implementation of the European law, failing to comply could lead to hefty fines. Let’s explore what the VerpackG entails, why it was introduced, how it works, when you need to comply, and the steps to achieve compliance.

What is the VerpackG?

The VerpackG, or the Packaging Act, is a regulatory framework established in Germany to ensure businesses take responsibility for the packaging waste they generate. It’s designed to promote recycling, minimize waste, and encourage sustainable packaging practices.

Why was the VerpackG introduced?

The VerpackG was introduced to address the growing environmental concerns of packaging waste. Germany, one of Europe’s largest economies, generates substantial amounts of packaging waste. The VerpackG aims to:

1. Reduce packaging waste: Minimize the volume of packaging waste entering landfills.
2. Promote recycling: Ensure that a significant portion of packaging materials are recycled and reused.
3. Encourage sustainable practices: Motivate businesses to adopt eco-friendly packaging solutions and designs.

How does the VerpackG work?

The VerpackG lays down specific obligations for producers, importers, and sellers placing packaged goods on the German market. Here’s a breakdown of how it operates:

1. Registration with LUCID: Businesses must register with the LUCID Packaging Register, a public database managed by the Central Agency Packaging Register (Zentrale Stelle Verpackungsregister). This step ensures transparency and accountability.
2. Participation in a dual system: Companies are required to participate in a dual system, which is a network of organizations responsible for the collection, sorting, and recycling of packaging waste. These systems ensure that packaging is properly managed from end to end.
3. Reporting and documentation: Businesses must regularly report the types and quantities of packaging they place on the market. Accurate documentation is crucial for compliance and auditing purposes.
4. Ecological design incentives: The VerpackG encourages businesses to design packaging that is easier to recycle and has a lower environmental impact. This is not just a regulatory requirement but also a competitive advantage.

When do you need to comply with the VerpackG?

As an e-commerce seller, you need to comply with the VerpackG if you:

• Sell packaged goods in Germany: Whether you’re based in Germany or another country, if you distribute packaged goods in the German market, compliance is mandatory.
• Own brand products: If you own private label products and sell them in Germany, the responsibility rests with you.
• Import products: Importers bringing packaged goods into Germany must also adhere to the VerpackG requirements.

Steps to comply with the VerpackG

Complying with the VerpackG involves several steps:

1. Register with LUCID: How to register: Visit the LUCID Packaging Register website and fill out the registration form. Ensure all details are accurate and up-to-date.
2. Join a take-back system: You’ll need to choose a take-back system provider that will manage the actual recycling process for your packaging waste. That’s why you pay a fee to the take-back system
3. Report packaging data: You need to submit your packaging data to the LUCID packaging register and to your take-back system periodically. That’s why it’s encouraged to maintain records of the types and quantities of the packaging materials you use.
4. Stay updated: Since EPR is relatively new, it’s subject to change. If you stay informed about any changes or updates, you will stay compliant and not risk any fines or penalties.

Benefits of complying with the VerpackG

Avoiding penalties is important, as non-compliance can lead to significant fines and legal repercussions. Additionally, embracing sustainability can enhance your brand image, as demonstrating commitment to such issues can impact your reputation positively. By adhering to the packaging act, you’re not only complying with regulations but also contributing to a more sustainable future and promoting a circular economy.

Are you EPR-ready?

EPR adds another layer of rules to be compliant with as an e-commerce seller in Europe. Do you want to be sure if you need to be compliant with the VerpackG, or do you need help with managing your EPR compliance? Give Staxxer’s EPR experts a call! They’re here to help.

This article was created with Staxxer, experts in making international business straightforward and stress-free. Staxxer simplifies VAT and EPR compliance with technology, ensuring you’re always up to date and ready for cross-border sales.