Liability and provisions for packaging

With regard to the EU Packaging Regulation (PPWR), the German Foundation Central Agency Packaging Register (ZSVR) is issuing an urgent warning about considerable legal uncertainty – with potentially far-reaching consequences for sellers, producers and the entire waste disposal system. The trigger is, in particular, the new, Europe-wide uniform definition of “producer”, which will take effect on 12 August 2026 and fundamentally alters the previous understanding of German packaging law.

This is reported by Euwid. According to the PPWR, the definition of “producer” will be handled uniformly in the future: a “producer” will no longer necessarily be the party that first places packaging on the market, but the party that opens the supply chain in the EU member state where the packaging actually becomes waste. This leads to a significant shift in responsibility, particularly in the case of import and cross-border supply chains: For the first time, sellers, especially importers and online retailers, could be considered “producers” themselves within the meaning of the packaging regulations – even if they have previously only acted as downstream market participants. This entails extensive obligations, such as registration, data reporting, system participation and financing the collection and disposal of packaging waste.

What risks does the “producer” definition in the EU Packaging Regulation pose for sellers and producers?
For companies, this means not only considerable additional organisational effort, but above all new financial risks. The ZSVR points out that the dual systems in Germany currently only function stably due to the fact that a very large share of packaging volumes is correctly accounted for in the system. If the new definition of “producer” means that a significant proportion of these quantities are excluded from financing or remain unaccounted at times, there is a risk of a massive shortfall in the waste disposal systems. From the ZSVR's point of view, there is a risk that the financing basis of the systems will erode so severely by the end of 2026 that a system collapse cannot be ruled out.

Is there a threat of a patchwork of national special regulations for packaging?
The ZSVR is particularly critical of the planned transition period. At the EU level, discussions are ongoing to permit member states to have a certain degree of flexibility in applying the definition of producer from August until the end of 2026. The ZSVR considers this to be problematic under European law and warns against a patchwork of national special regulations. This would result in a lack of clarity for months regarding who qualifies as a “producer” and who bears the responsibility for financing disposal, for sellers and producers alike. This uncertainty not only makes it difficult to implement the obligations in a legally compliant manner, but also complicates business planning.

Do sellers and producers have to set aside provisions for packaging?
Provisions are a key issue in this context. Companies must be prepared for the possibility that, from 2026 onwards, they could be called upon at short notice and possibly retroactively to pay system participation costs. Without clear legal guidelines, there is a risk that provisions will either be set too low – with considerable risks of additional payments – or be set too high out of caution, which would strain liquidity. At the same time, dual systems cannot reliably calculate their revenues, which further jeopardises the stability of the entire system.

Is there a threat of a system collapse for packaging recycling?
Overall, the ZSVR makes it clear that although the PPWR aims to harmonise packaging law across Europe, the current wording of the definition of “producer” poses significant practical risks. Sellers and producers would be well advised to consider their possible future role as “producers” at an early stage, analyse their supply chains and make financial provisions. Without a swift clarification at the European level, there is a risk of legal uncertainty and significant costs for individual companies, as well as structural issues in financing packaging disposal. This could lead to distortions and even a systemic collapse by the end of 2026.

Can sellers face liability risks due to packaging?
As reported by the Federal Association of Building Materials (bbs), a legal opinion commissioned by the law firm Franßen & Nusser concludes that key terms in the regulation – including the definition of the "producer" of packaging – remain imprecise.

What is the legal opinion on liability for packaging about?
The legal opinion, which the bbs prepared on the basis of an expert opinion, emphasises above all the considerable legal uncertainties in the PPWR because key terms such as "producer" or "manufacturer" of packaging are not clearly defined. This can lead to companies being unintentionally classified as producers or manufacturers, exposing them to liability and compliance risks, even when they merely use or combine packaging, rather than manufacturing it themselves.

Overall, bbs warns that without rapid clarification from the European Commission, considerable uncertainties remain, which companies should now actively address in order to avoid liability consequences and market disruptions.

What does this explicitly mean for sellers and producers?

  • There is uncertainty about who will be legally considered a manufacturer or packaging producer in the future because the definitions in the text of the regulation are imprecise.
  • This can lead to liability risks, e.g. if a seller is held responsible for packaging that it only uses or passes on.
  • To reduce risks, companies should already clearly define and contractually stipulate responsibilities and roles along the supply chain instead of waiting for further guidelines from the European Commission.

What should distributors of packaging do now?

  • Check and document whether and to what extent your supply chains, packaging processes and roles could qualify you as a manufacturer or producer under the PPWR.
  • Help in determining who is a manufacturer, producer, importer or distributor within the meaning of the EU Packaging Regulation can be found on the "The producer definition under the PPWR" page of the ZSVR website and in the document "Definitions PPWR".
  • Adjust contracts and agreements with suppliers, logistics partners and customers to define clear responsibilities for packaging.
  • Seek advice and, if necessary, set up your own compliance processes before the regulation comes into force in August 2026.

VERE e.V. is in contact with the parties involved and keeps its members informed about further developments via the "VERE Insider".

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If you require individual training on the EU Packaging Directive or an assessment of your role within your supply chain, VERE e.V. recommends the PPWR training course offered by trade-e-bility. Please feel free to contact our colleagues at trade-e-bility directly via +49/40/750687-300 or send an email.

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Christoph Brellinger
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Christoph Brellinger
Executive secretary

info@vereev.de