System participation must be undertaken with one or more systems approved by the competent state authorities that ensure the nationwide, regular and free-of-charge return of used packaging for private final consumers. If a system ceases to be approved, system participation will no longer be possible once the approval has ended. The same applies before a system is approved.

The option to use a sector-specific solution instead of system participation provided for in the Verpackungsgesetz (Packaging Act) is a very narrowly regulated exception to system participation. It only comes into consideration for packaging that accumulates as waste with comparable sources of waste generation. For packaging waste at private households it is not an option.

The key requirements are the following:

• The goods are delivered to a so-called 'comparable source of waste generation' (section 3 (11) VerpackG (Packaging Act)), such as restaurants, barracks, administrative offices.

• The sources of waste generation are supplied directly or via intermediary distributors, and documentation of this can be provided.

• Regular return of the packaging occurs at these sources of waste generation free of charge.

• There is written confirmation of all serviced sources of waste generation, showing their integration in the collection structure.

• A written certification from a registered expert shows that the serviced sources of waste generation are integrated in a free-of-charge collection structure and the returned packaging is recovered pursuant to the requirements of section 16 (1)-(3) VerpackG, in particular with regard to the recycling quotas stipulated.

Further requirements include:

• notifying the Zentrale Stelle Verpackungsregister (Central Agency Packaging Register – ZSVR) of the sector-specific solution before the sector-specific solution begins;

• notifying the ZSVR of all material changes to the sector-specific solution;

• providing a volume flow record annually that complies with the requirements of the Verpackungsgesetz, and a corresponding certification from a registered expert.

If these requirements of the Verpackungsgesetz are not met, the packaging continues to be fully subject to system participation. Non-compliance constitutes an administrative offence and the packaging will be subject to a distribution ban.

Retrospective deductions pursuant to section 7 (3) VerpackG are permissible if the packaging that has participated in a system cannot be transferred to the final consumer due to damage or unsaleability and if the producer has taken the packaging back and transferred it for recovery as per section 16 (5) VerpackG. Return to the producer and subsequent recovery must be documented in a verifiable way in every instance. If this is the case, the respective packaging is no longer considered to have been placed on the market once the participation fees have been refunded.

Subject to strict conditions, a retailer/redistributor undertaking an 'independent' and/or 'unplanned' export may also lead to a retrospective exemption from the system participation requirement pursuant to section 12 no. 3 VerpackG if evidence can be produced that the packaging that has participated in a system has not been transferred to a final distributor in Germany and/or the jurisdiction of the Verpackungsgesetz. In this case, the export must, inter alia, be documented in a verifiable form by the initial distributor/producer in every instance. A legal right to a refund from the system does not arise in such a case, however.

For details, refer to the long-version FAQ which sets out the Zentrale Stelle Verpackungsregister's (Central Agency Packaging Register – ZSVR) current interpretation of the law. The ZSVR requires that this legal interpretation be used as the basis for declarations of completeness submitted for the 2020 reference year onwards.

Yes, but it must be noted that an appointed third party must report the producer information to the system, including the respective registration number, with specific volumes per producer. Furthermore, the system operator must also confirm the volumes (per material type) that underwent system participation, to every party under obligation and without delay. These legal provisions change the activities of third parties/brokers vis-à-vis the situation under the Verpackungsverordnung (Packaging Ordinance). System participation by an appointed third party can only take place in concrete terms with reference to a specific registration number, i.e. it cannot be done in advance in relation to abstract volumes or a volume package for multiple producers. It must also be ensured that the producer receives confirmation from the relevant system operator.

The data reporting of the party under obligation in the LUCID Packaging Register remains unaffected by this. The parties under obligation must undertake the reporting themselves and with regards to the approved system that was appointed by the third party. Data reporting related to third parties is prohibited.

Yes; however they must provide all the declarations that the individual producer is also required to provide. They can only undertake system participation for the producer, using the latter's registration number, so that the system in turn can fulfil its obligations to the specific producer.

The data reporting of the party under obligation in the LUCID Packaging Register remains unaffected by this. The parties under obligation must undertake the reporting themselves and with regards to the approved system that was appointed by the third party. Data reporting related to third parties is prohibited.

No, that is not possible. The possibility to pass on the system participation requirement serves to reduce the burden especially for small and medium-sized artisanal food production businesses. In the case of service packaging, they are able to shift the system participation requirement and require an upstream distributor (for example the supplier of such packaging) to undertake system participation. However, that party in turn does not have a right to shift the requirement onward.