ECHA publishes updated Candidate List

The European Chemicals Agency (ECHA) has published the new REACH Candidate List on June 25, 2020: Four Substances of Very High Concern (SVHC) were added to the list. The Candidate List of substances of very high concern for Authorization now contains 209 substances.

The newly added substances have many different uses. For instance, 1-vinylimidazole is used in formulations and as a monomer in the production of polymers. 2-methylimidazoleis is used as a catalyst in the production of coating products and Dibutylbis(pentane-2,4-dionato-O,O’)tin is also used a catalyst and as an additive in the production of plastics. Butyl 4-hydroxybenzoate (Butylparaben) is a substance used in Cosmetics, personal care products and pharmaceuticals.

Link to the ECHA website: https://echa.europa.eu/de/-/candidate-list-update-four-new-hazardous-chemicals-to-be-phased-out

Germany – New Producer Register for Batteries

The amendment to the Battery Act (BattG) is to come into force on 1 January 2021.

A significant change for battery producers is the relocation of the battery producer register. According to the present legislation, the battery producer register (BattG-Melderegister) is currently located at the Federal Environment Agency (Umweltbundesamt).

When the new Battery Act comes into force, the Agency will entrust this task to the stiftung ear, which already maintains the register for manufacturers of electrical and electronic equipment. Battery producers entering the German market at the beginning of 2021 must be registered with stiftung ear by 1 January 2021.

This also applies to battery producers whose data is no longer up to date with the Federal Environment Agency. Producers whose market participation has been duly notified to the Federal Environment Agency do not have to be registered with the stiftung ear until 1 January 2022. The participation in a take-back system for batteries is not affected by the obligation to register with the new battery producer register.

We are happy to support you in implementing your manufacturer obligations for batteries.
Please get in touch: contact@1cc-compliance.com 

Proposed Copyright Levies Increase to Provide Support to the Right Holders

An increase in copyright levies is currently being called for in many different countries with similar arguments: before state support is granted, the crisis-ridden cultural sector should first receive the compensation that was previously planned. This applies, for example, to copyright levies, which compensate authors and performers for the legal, private copying of images, music and texts. In many places, however, the revenues from existing levy systems are insufficient because the levies are too low, because the products in question play hardly any role on the market, and because there is a lack of enforcement.

Almost all European countries are working on changing this situation. In Italy, for instance, the ministerial decree of February 2020 introduced the basis for reorganising the levy system. The controversial decree not only provides for tariff increases, but above all for a redistribution of the levy burden among the devices and storage media within the existing scope. In contrast, the right holders in France want to close gaps in the scope of application with new levies on internal hard disks, which would make PCs liable for the levy. In April, their Polish colleagues renewed long-standing claims for levies on laptops, televisions and smartphones. Even the legal limit of three percent levy on the price of products no longer seems to be indisputable now. The Polish Ministry of Culture supports the proposal to increase the margin for levies to six percent. Denmark and Estonia are also trying, either through legal action or by lodging a complaint with the European Commission, to bring their levy systems up to a new level, i.e. to make more products subject to the levy. In both countries, only a few products are currently subject to the levy, which has been a cause of the low revenue level.

Finally, in Ukraine, the rights holders did not wait for the results of further negotiations: Since Friday, 15 May 2020, the country’s levy system has been fundamentally overhauled with new tariffs.

For more information, please contact: copyright@1cc-consulting.com

Sweden – EEE Producers Located Outside Sweden To Pay Chemical Tax In The Future

In Sweden, producers of Electric- and Electronic Equipment (EEE) are obligated to pay a so-called chemical tax for products containing certain chemicals that are often used in flame-retardants.

The main purpose of Sweden’s chemical tax is to reduce such chemicals in the environment and to encourage producers to substitute them.

Starting from 2017 only manufacturers or importers of in-scope EEE located in Sweden have been obligated to pay the chemical tax. The Swedish government, however, strives to include producers located outside Sweden in the chemical tax legislation as well, so that such producers would also have to pay the chemical tax. A respective law has been proposed and is expected to enter into force in October 2020.

If you need any further information, please contact us: contact@1cc-consulting.com

Implementation of Extended Producer Responsibility for Packaging in Denmark starting in 2025

As one of the few countries in Europe, Denmark has so far not adopted extended producer responsibility for packaging. The municipalities regulate the collection and handling of household packaging. Commercial packaging waste is to be disposed of by tradesmen via waste management companies. 

Following the amendment of the Packaging Directive 94/62/EC within the framework of the EU Waste Package 2018 by Directive 2018/852/EU, Denmark considers itself obliged to introduce extended producer responsibility for packaging as well. To this end, a draft law has now been presented to amend the environmental law. This draft law essentially provides for the authorization of the Minister of the Environment to issue corresponding implementing regulations.

The following actors are to be covered by the extended producer responsibility in Denmark:

– Product manufacturers who either manufacture, packaging and market their packaged product in Denmark or only packaging and market it.

– Importers

– Distance seller

In detail, the following regulations are planned, among others:

– The actors are to ensure the return and separate treatment of household packaging and commercial packaging at their own expense.

– The granting of exemption or quantity thresholds.

– The explicit legal regulation on the possible transfer of obligations by manufacturers and importers for their distributors established in Denmark.

– Information obligations for producers and importers regarding recycling and waste treatment to be supplied to waste treatment companies.

– Financial incentives for manufacturers and importers, as provided for in Directive 2018/852 implementing the waste hierarchy.

The Environmental Act is also to be amended to allow the appointment of an Authorized Representative (AR) for foreign companies for all three product areas WEEE, batteries and packaging.

The law is scheduled to come into force on 31.12.2024.

1cc will be pleased to support you in meeting your producer obligations. Please get in touch with us: contact@1cc-consulting.com

Implementation of Extended Producer Responsibility for Packaging in Denmark starting in 2025

As one of the few countries in Europe, Denmark has so far not adopted extended producer responsibility for packaging. The municipalities regulate the collection and handling of household packaging. Commercial packaging waste is to be disposed of by tradesmen via waste management companies. 

Following the amendment of the Packaging Directive 94/62/EC within the framework of the EU Waste Package 2018 by Directive 2018/852/EU, Denmark considers itself obliged to introduce extended producer responsibility for packaging as well. To this end, a draft law has now been presented to amend the environmental law. This draft law essentially provides for the authorization of the Minister of the Environment to issue corresponding implementing regulations.

The following actors are to be covered by the extended producer responsibility in Denmark:

– Product manufacturers who either manufacture, packaging and market their packaged product in Denmark or only packaging and market it.

– Importers

– Distance seller

In detail, the following regulations are planned, among others:

– The actors are to ensure the return and separate treatment of household packaging and commercial packaging at their own expense.

– The granting of exemption or quantity thresholds.

– The explicit legal regulation on the possible transfer of obligations by manufacturers and importers for their distributors established in Denmark.

– Information obligations for producers and importers regarding recycling and waste treatment to be supplied to waste treatment companies.

– Financial incentives for manufacturers and importers, as provided for in Directive 2018/852 implementing the waste hierarchy.

The Environmental Act is also to be amended to allow the appointment of an Authorized Representative (AR) for foreign companies for all three product areas WEEE, batteries and packaging.

The law is scheduled to come into force on 31.12.2024.

1cc will be pleased to support you in meeting your producer obligations. Please get in touch with us: contact@1cc-consulting.com

Does value-added tax still apply to copyright levies?

Copyright levies are in no way connected with the value-added tax, as was unequivocally ruled by the European Court of Justice in 2017. Based on a request from a European industry association, and because, for example, one of the EU member states, Slovenia, is currently relaunching and redesigning its levy system, 1cc is assessing the outcome of the ruling almost three years after. The question of whether VAT applies to copyright levies could be answered quickly: All competent bodies in all countries are aware of the ruling and claim to implement it. However, they do so in different ways, and not necessarily in accordance with the ruling.

Today, manufacturers and importers only pay the tax-exempt copyright levies to collecting societies. Calculating VAT and levy separately is not complicated. However, it is questionable to levy the tax on the end customer as the actual debtor. Yet, it happens.

For example, it is often not mandatory for manufacturers and distributors to disclose the copyright levy separately. If the levy is already included in prices, then VAT is also charged on top of it. It is only later that it is deducted again. Finally, the money is collected and goes to the state. Furthermore, competent authorities in countries with percentage levies expressly confirm that the gross sales price of the product forms the basis for calculating the copyright levies. In both cases, the purpose of the ruling is de facto invalidated.

Thus, even three years after the  ruling has been published, there are still some questions left. There is no consistent understanding, and for the time being it remains an accounting challenge for the obligated companies to separate the one from the other.

For more information, please contact: copyright@1cc-consulting.com

Are your products ready to be put on the market?

We help you meet various regulatory requirements your products need to comply with, before they are ready to be put on the market.

Regulations like those for CE in Europe, CCC in China, FCC in the United States and EAC in the Eurasian Economic Union are essential market entry requirements. These requirements have to be carefully considered prior to an actual point of market entry.

At 1cc, we guide you through the complex regulatory framework of the market entry requirements and support your company along the way towards the market entry, starting from the first idea of a product and up to the final market access.

We are your reliable product compliance partner, experienced in supporting companies with client-tailored compliance solutions that meet your individual company- and product-specific needs.

More information: https://news.1cc-consulting.com/

Packaging Law in Germany – Central Register publishes Infringement Reports

The Central Packaging Register (ZSVR) has started to publish case reports on the administrative and enforcement measures against companies that are currently not or not fully compliant with the producer obligations for packaging in Germany. Such case reports will be continuously published from now onwards.

These publications will initially focus on significant infringements by manufacturers putting large quantities of packaging on the market.

Examples of such infringements are, among others, the missing system participation, the lack of the registration in the packaging register or its late submission, and deficiencies in the volumes report or failure to submit a declaration of completeness when exceeding the volumes threshold.

The continuous publications shall make it easier for obligated companies to review the fulfilment of their producer responsibility for packaging and to avoid possible infringements of the law.

1cc will be happy to support you in fulfilling your manufacturer obligations. Please contact us: contact@1cc-consulting.com.

1cc is still available for you

Dear customers and business partners,

Due to the current developments around the novel coronavirus (COVID-19), all of us face certain challenges. We continuously follow the information from the authorities and healthcare professionals regarding the new requirements and guidelines, which aim at slowing down the spread of the illness, and do our best to implement the required measures as soon as possible. We strive to ensure the timely processing of ongoing projects and our availability to accommodate your needs. At the same time, the health of our employees, customers and business partners and their families is our top priority.

To protect our health and assume responsibility for people around us, we have taken the recommended and necessary course of action to mitigate the spread of the coronavirus. Personal meetings are now only being held over the phone and by means of video conferences. Business trips are either postponed to a later date or cancelled. We practice good hygiene in our office, among other things by paying great attention to the cleaning processes in the office space. Our IT systems are secured for the current crisis situation through special measures.

We will continue to maintain our services as usual and your contact persons can still be reached via e-mail and phone. All employees are equipped with laptops and can carry out their tasks from home as well. In case there will be delays in delivery of results, we will inform you in advance.

Despite the current situation, we wish you a good time and hope you stay healthy.

Best regards

Ivan Blazek | Meike Ruoff

Managing Directors