New EU packaging rules contradict competitiveness and single market policy objectives
Eurochambres raises serious concerns over today’s application of the Packaging and Packaging Waste Regulation (PPWR). Businesses are being asked to comply with a regulatory framework that remains incomplete, with key secondary legislation still missing. At the same time, the regulation’s complex requirements and Extended Producer Responsibility (EPR) obligations create disproportionate costs and legal uncertainty, particularly for smaller businesses.
As from today, European businesses face yet another administrative burden as a consequence of the PPWR’s application. For example, sellers of goods operating in the EU are obliged to appoint in each member state an authorised representative for EPR schemes, who should handle registrations, packaging waste fees and compliance documentation. This often means that, especially for SMEs, the associated costs exceed the commercial value of cross-border activities. With negotiations on the proposed suspension of this obligation discontinued in the Council, many smaller businesses will be forced to stop cross-border sales altogether.
“Headline grabbing single market initiatives like EU Inc. are fundamentally undermined by disproportionate burdens like the PPWR, which block the aim of ensuring a seamless ‘home market’ for businesses and consumers across Europe. EU legislation that makes it commercially nonviable for producers to sell cross border is fundamentally flawed and runs contrary to the broad aims of restoring competitiveness and completing the single market”, reacts Eurochambres President Vladimír Dlouhý.
Not just sellers are severely affected by the PPWR. Manufacturers face the real risk of having to redesign and relabel packaging more than once, because key secondary legislation on harmonised EU labelling rules and PPWR-specific recyclability requirements is yet to be adopted. This creates unnecessary costs, delays investment decisions and exposes companies to legal uncertainty despite their efforts to comply in good faith.
The European chamber network reiterates its call for an immediate ‘stop-the-clock’ to allow for targeted simplification and the swift adoption of the missing delegated and implementing acts. The chamber network also urges Council representatives to resume negotiations on the proposed suspension of the authorised representative requirement for EPR obligations.
