Packaging licensing for sales packaging

Packaging, also known commercially as wrapping, is the outer shell that surrounds objects or foodstuffs in order to protect them, bundle them and make them suitable for transport. Packaging can generally be categorised according to the type of packaging, the intended use and the packaging material. All types of packaging, from sales packaging to transport or shipping packaging to service packaging, fall under the term "packaging". This term also includes secondary packaging that surrounds the primary packaging.

There are basically three main types of packaging: Sales packaging, transport or shipping packaging and service packaging. The term "secondary packaging" refers to packaging used to enclose primary sales packaging, such as blister packs for several products or larger trays containing several smaller ones. Despite these distinctions, all of the packaging mentioned falls into the category of sales packaging requiring a licence.

The sales packaging wraps the product and often emphasises the attractiveness of the product through its shape and colour design. The design of this packaging is intended to encourage purchase.

Service packaging is filled with goods by the final distributor and then handed over directly to the end consumer. Service packaging is usually pre-licensed,

i.e. the manufacturer has the packaging licensed before it is purchased by the final distributor. Well-known examples of service packaging are coffee-to-go cups or the bread roll bag at the bakery.

The main purpose of shipping packaging is to protect the product from damage during transport. Shipping packaging includes standard cardboard boxes with padding and filling material, but also barrels, canisters, pallets, foamed trays and similar containers. Even if packaging is not destined for private households but for trade or industry, it must be registered with the LUCID Packaging Register.

Any B2C packaging that is filled with goods and offered to end consumers is sales packaging, including service packaging and shipping packaging. End consumers generate sales packaging as waste. Anyone who puts sales packaging into circulation is obliged to obtain a packaging licence.

Household packaging is another term for sales packaging, whereas commercial packaging refers to transport packaging. Household or sales packaging is packaging that is filled with goods and is usually offered to end consumers for purchase. Service packaging and shipping packaging are therefore also considered sales packaging. Commercial or transport packaging is used to facilitate the transport of goods between retailers and to prevent transport damage. Transport packaging remains in the retailer and is not intended to be passed on to end consumers.

Packaging has many functions:

• Protective function: First and foremost, packaging protects the goods from damage, contamination and loss of quantity. In addition, closures and seals can prevent tampering and theft of the goods. In addition, packaging can also serve to protect people, e.g. if the goods inside have sharp edges or contain poisons.
• Storage function: Goods can be stored in a more space-saving manner using appropriate packaging.
• Loading and transport function: The transport function combines storage and protection functions in relation to transport routes. The limited space in the means of transport should be optimally utilised and transport damage should be avoided.
• Sales function: Shape, colour and feel play a role in the sales function. The sales packaging is designed to be as attractive as possible in order to appeal to the consumer and contribute to the choice of the product through a high recognition value.
• Information function: The packaging contains product labelling such as the weight and the encrypted barcode. Warning and dangerous goods information is also printed on the packaging.
• Additional function: Additional functions of packaging can be, for example, dosing aids or reclosability devices.
• Recycling/disposal: In Germany, used packaging is not considered waste, but a recyclable material. They are fed into the recycling loop by the dual system.

When the Packaging Act (VerpackG) came into force in 2019, an instrument was established to reduce the environmental impact of packaging waste and emphasise the responsibility of producers and retailers. It aims to create an effective framework for the licensing, collection and recycling of packaging waste. Under this law, companies are required to participate in a dual system and undertake packaging licensing to ensure that the packaging they place on the market is disposed of and recycled correctly. The set recycling rates, which are regularly updated, determine what percentage of packaging waste must be recycled in order to reduce the impact on the environment. These measures serve to reduce the amount of packaging waste and promote the use of recyclable materials. By complying with the provisions of the Packaging Act, companies are helping to develop more sustainable and environmentally friendly packaging that meets today's requirements.

The declaration of completeness is proof of the quantity of all system-participating packaging that a company has placed on the market in the previous calendar year.

It must be submitted annually by 15 May at the latest. Section 11 (2) VerpackG lists all the information that a declaration of completeness must contain. Once the information has been confirmed by a registered auditor, it must be filed with the Central Agency Packaging Register in the LUCID Register.

The Central Agency Packaging Register regulates various aspects relating to packaging in order to reduce the environmental impact and ensure product responsibility. This includes the registration and public notification of those responsible for products in order to create transparency and legal clarity. The LUCID packaging register facilitates the coordination of data reporting and thus contributes to the efficient implementation of the Packaging Act. The Central Agency Packaging Register also takes on tasks such as monitoring packaging licensing and ensuring the system participation of companies in order to guarantee the proper disposal and recycling of packaging waste. It also monitors compliance with ecological targets such as recycling quotas and the promotion of sustainable packaging.

The LUCID Packaging Register has been a central component of the German Packaging Act (VerpackG) since 2019. With this register, the Central Agency Packaging Register (ZVSR) records and monitors all packaging in terms of material and quantity that is placed on the market in Germany. By publishing the registered companies and the licensed packaging quantities, the LUCID register creates transparency with regard to the recycling contributions made. Registration and volume reporting in the packaging register are mandatory for all companies that place packaging on the German market. This applies to manufacturers, importers, distributors and online retailers, regardless of their size or sector.

If a company does not register with LUCID even though it places packaging on the German market, it is in breach of the statutory provisions of the German Packaging Act (VerpackG). This can lead to legal consequences, including fines and other sanctions that can be imposed by the competent authorities.

The dual system takes on important tasks in the packaging licensing process by coordinating the organisation and implementation of licensing. The dual system also takes on the collection, sorting and recycling of used sales packaging in order to fulfil the statutory recycling quotas in accordance with the Packaging Act. The fees incurred for packaging licensing are used to cover the costs of the entire disposal and recycling process. This regulation offers companies the advantage that the administrative effort involved in applying for a licence is kept to a minimum because the dual system takes over the reporting of packaging quantities to the Central Agency Packaging Register and reliably manages the process.