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Eastern European Packaging Mandates: Learning Fundamental Game Strategies

As the ten new Eastern European members of the European Union struggle to meet newly-mandated package recycling targets, exporters are facing a confusing set of taxes, fees, deposits and labeling requirements. Eastern European countries now have t…

As the ten new Eastern European members of the European Union struggle to meet newly-mandated package recycling targets, exporters are facing a confusing set of taxes, fees, deposits and labeling requirements. Eastern European countries now have to reach recycling targets set by the Directive on Packaging and Packaging Waste. To ensure this, they have nearly all adopted producer responsibility legislation.

Per-capita income is about half that in Western Europe and nearly all financing for packaging collection will have to come from industry. The current package recycling rates vary — from as little as 2 to 25%. Five new members and candidates Bulgaria and Romania imposed a tax on un-recycled packaging. These tax rates are usually set according to political criteria, but unless they bear a clear relationship to collection and sorting costs, they risk destabilizing the national recover organizations in those countries.

Other challenges include the requirement on behalf of Slovakia and Poland to mark packs with EU material coding symbols, despite the EU’s voluntary position on this requirement. It remains unclear whether or not local governments will enforce the labeling requirements; meaning exporters must comply or risk possible prosecution. Some countries have a new profusion of collection schemes, but since they are competing with one another, there is no public information on fees, making it difficult for companies to choose a scheme or plan ahead.

Source: Raymond Communications Inc. publishes the newsletters Recycling Laws International and State Recycling Laws Update, covering EPR policy for packaging, batteries and electronics worldwide.