What you need to know about the packaging licence in the online shop

Online shopping has experienced a real “boom” in recent years. Whether forced by the pandemic or in the course of digitalisation, one thing is certain – digital shopping has long since become part of our everyday lives. As convenient and comfortable as it may be to have all products well packaged and delivered directly to your home, the accompanying increase in packaging is proving to be a burden on the environment. To reduce the impact of the abundance of packaging waste, the legislator introduced the so-called packaging licence. The basis for this is the strict Packaging Act (VerpackG), which came into force in 2019 and was introduced in stages.

What does the packaging licence mean for online shops, what do you have to consider and how do you as an online retailer comply with your obligation? In this article, we at uptain would like to give you an overview of everything that is important about the packaging licence.

What is the packaging licence for online shops and why does it exist?

The topics of sustainability and resources have not only taken on a high status in society, but also in customer satisfaction. This is contrasted by the fact that we produce a high mountain of packaging waste per capita through online shopping. In recent years, online retailers have had to resort to millions of additional cardboard boxes, shipping bags and filling materials. With the growing waste problem, the legislator felt compelled to intervene and replaced the old Packaging Ordinance with the Packaging Act. The Packaging Act came into force on 1 January 2019 and forms the legal basis.

The Packaging Act with further innovations, which have been in force since 2022, obliges every trader who fills goods into packaging to contribute to the costs of professional recycling of the packaging. With the help of the fee-based packaging licence in the LUCID registration register of the ZSVR (Central Packaging Register Office), all your packaging will be collected, sorted and professionally recycled accordingly. By participating in one of the dual systems, you bear part of the costs and assume responsibility for your packaging recycling. In addition, compliance with the regulations is ensured. The ZSVR assumes the leading control function with the LUCID reporting register.

The Packaging Directive and the Packaging Licence ensure that raw materials are returned to the recycling cycle. The aim is thus on the one hand to conserve resources and reduce environmental pollution and on the other hand to ensure fair competition.

What is the German Packaging Act (VerpackG)?

The Packaging Act, VerpackG, contains all laws concerning the placing on the market, the return and the recycling of packaging. It replaced the previously applicable Packaging Ordinance on 01.01.2019. This was done in the course of implementing the European requirements from the Single-Use Plastics Directive (EU) 2019/904 and the amended Waste Framework Directives (EC) 2008/98. A gradual introduction was planned with further amendments on 1 July 2022.

Who needs a packaging licence?

Every company that puts sales packaging into circulation for the first time needs a packaging licence. If you use outer packaging as well as service and shipping packaging such as shipping cartons, shipping bags or envelopes including padding, filling material and adhesive tape commercially for the first time and send them to the consumer, you have the obligation to participate in one of the dual systems with the packaging licence. The basis of the definition of such typical packaging accumulating at the end consumer or equivalent points of accumulation such as the catering trade, public institution, etc. is § 3 para. 8 of the Packaging Act (VerpackungG).

In addition to operators of their own online shops, marketplace traders on Amazon or eBay are also affected. The size of the mail order business or operation is irrelevant. Equally irrelevant are the quantities and contents of the mail-order packaging. The decisive factor for the packaging licence is that you fill packaging for the first time and put it into circulation. The packaging quantity influences the amount of the packaging licence fee. This is an important factor that you should take into account when calculating the price of your products.

If you ship goods abroad – regardless of the distribution channel – you may have to purchase an additional packaging licence. This is due to the fact that each country operates its own packaging recycling with its own laws. There is no uniform EU standard, as the anchoring and shaping of the EU Packaging Directive into national law offers a lot of freedom. Some examples: In France, the packaging licence is dependent on the number of units sold. In Denmark, only those manufacturers and traders are obliged to have a packaging licence if they have a branch there. In Belgium, the packaging licence is dependent on turnover. The complexity of the packaging licence therefore increases considerably for international shipments. Therefore, find out exactly about the respective regulations before you send goods in packaging to EU and third countries.

Since 1 July 2022, there has also been an amendment to the Packaging Act. In the course of this, it was decided that transport packaging must also be licensed.

However, fulfilment service providers are no longer obliged to license shipping packaging. This is the sole responsibility of the commissioning trader. However, they must control the packaging licence. Online marketplaces also have this duty with their traders.

Furthermore, packaged goods may only be distributed in Germany if the manufacturer is registered in the LUCID packaging register.

How do you register the packaging licence?

If you fall under those online traders who require a packaging licence, you must register with the Central Packaging Register (ZSVR), acquire the packaging licence with the system participation and make a quantity declaration.

1. Step to the packaging licence

Go to the website of the Central Packaging Register (ZSVR) and register in the LUCID register by entering your company data.

2. Step to the packaging licence

In the second step, you must license your packaging with one of the Dual Systems of your choice. To do this, you submit your registration number and the packaging quantities that determine the fee. The Dual System then manages the collection, sorting and proper recycling for you.

3. Step to the packaging licence

Once you have received your packaging licence from a Dual System, go back to the ZSVR page and finally enter the name of the Dual System you have chosen and report the packaging quantities you have already submitted to the Dual System.

What happens if you can’t prove you have a packaging licence?

If, despite your obligation, you do not have a packaging licence, you will receive a warning and, due to the new regulations of the Packaging Act, high fines. In addition, a sales ban will be imposed. According to § 34 VerpackG, the violation is an administrative offence that can be punished with a fine of up to 200,000 €. As an online retailer and trader, take special care to comply with your packaging licence obligation.

Packaging licence: easier than expected

What seems complicated at first with the Packaging Act is simple in principle thanks to the digital reporting principle. The registration in the LUCID register of the ZSVR, which complies with the law, is done in a few minutes. Only the selection of a dual system for the packaging licence can take a little more time. In many cases, they make use of voucher marketing and offer volume discounts. A comparison can be worthwhile.

Customers, but also competitors, can incidentally view the LUCID registration register at any time and see whether you are registered as an online trader. This transparency is intended to ensure fair competition.

Tip: By avoiding returns and the resulting repeat orders, you can reduce your packaging volume. This will save you money on your packaging licence. We tell you how to do this in our article on smart returns management.

Frequently asked questions about Packaging licence

How do you register the packaging licence?

Registration takes three steps. First, go to the website of the Central Packaging Register (ZSVR) and register in the LUCID register with your company data. Second, license your packaging with a dual system of your choice by submitting your registration number and the packaging quantities that determine the fee. Third, return to the ZSVR and report the chosen dual system and those quantities.

Do you need a packaging licence when shipping abroad?

Possibly yes, because every country runs its own packaging recycling under its own laws and there is no uniform EU standard. In France the licence depends on the number of units sold, in Belgium on turnover, and in Denmark only manufacturers and traders with a branch there are obliged. Clarify the respective national rules before shipping packaged goods to EU and third countries.

What happens if you can’t prove you have a packaging licence?

Trading without the required packaging licence results in a warning, high fines under the current Packaging Act, and a sales ban. According to § 34 VerpackG the violation is an administrative offence punishable by a fine of up to 200,000 euros. Registration in LUCID is publicly visible, so customers and competitors can check at any time whether you are registered.

What is the German Packaging Act (VerpackG)?

The Packaging Act (VerpackG) is the German law containing all rules on placing packaging on the market, taking it back and recycling it. It replaced the previous Packaging Ordinance on 1 January 2019, implementing European requirements from the Single-Use Plastics Directive (EU) 2019/904 and the amended Waste Framework Directives (EC) 2008/98. It was introduced gradually, with further amendments taking effect on 1 July 2022.

What is the packaging licence for online shops and why does it exist?

The packaging licence obliges every trader who fills goods into packaging to contribute to the cost of professional recycling. You register in the LUCID register of the Central Packaging Register (ZSVR) and participate in one of the dual systems, which then collect, sort and recycle your packaging. It exists to return raw materials to the recycling cycle, conserve resources, reduce pollution and ensure fair competition.

How complicated is it to obtain a packaging licence?

Less complicated than it looks. Thanks to the digital reporting principle, the legally compliant registration in the LUCID register of the ZSVR takes only a few minutes. Only choosing a dual system takes longer, and comparing providers pays off because many offer volume discounts. Avoiding returns and the repeat orders they cause reduces your packaging volume and therefore your licence costs.

Who needs a packaging licence?

Every company that puts sales packaging into circulation for the first time needs a packaging licence. That includes outer, service and shipping packaging such as cartons, shipping bags or envelopes including padding, filling material and adhesive tape. Operators of their own shops and marketplace traders on Amazon or eBay are equally affected; business size, quantities and contents are irrelevant, though quantity determines the fee.