Enterprises’ Agreements

According to Eurostat, on average every EU citizen generates 159 kg of packaging waste every year (Eurostat report for 2011 published in October 2013). This quantity has been steadily rising every year, resulting in directive 94/62/EC on Packaging and Packaging Waste, which imposes on Enterprises Placing Packaged Products on the Market an obligation to participate in waste management costs, i.e. packaging fees. At the same time all Member States have committed themselves to reaching certain levels of packaging waste recovery and recycling, categorised by the raw material of which the packaging was made. Two legal acts transposed the directive into the Polish legal system: the Packaging and Packaging Waste Act and the Act on the Obligations of Enterprises Regarding the Management of Specific Types of Waste and on Product Fees and Deposit Fees, both of 11^th May 2001. The new Legal Act on Packaging and Management and Packaging Waste Management entered into force on 1^st January 2014 (O.J. 2013. item 888).

The new Packaging Act of 2013 introduced significant changes in this respect, especially as regards composite packaging waste and hazardous material packaging waste. The aim of this new legal act is to change producers’ approaches towards packaging. It is not enough to merely produce and sell, it is also necessary to manage waste. The key packaging obligations are binding for those entities which place packaged products on the market, i.e. producers or importers placing packaged products on the market.

In accordance with Art. 18 of the Legal Act of 13^th June 2013 on Packaging Management and Packaging Waste Management (O. J. 2013, item 888) enterprises placing products in composite packaging or packaged hazardous material on the market are required to set up a system for the collecting and recovery, in this case the recycling, of packaging. At the same time entities placing hazardous material on the market, e.g. plant protection products, are required to meet the above-mentioned requirements with regard to plant protection products. It must however be noted that enterprises placing the above-mentioned packaged products on the market may fulfil the obligations of Art. 18 para 1 of the above-mentioned legal act on their own or by concluding an Agreement referred to in Art. 25 para 1 of the same legal act. In the latter case a local enterprise takes over the tasks referred to in Art. 18 of the Packaging Act. Therefore packaging recovery entities will no longer tackle this type of packaging.

Moreover, if an enterprise decides to carry out its legal obligations regarding recovery and recycling on its own, the limits set out in Annex 1 to the above-mentioned legal act shall be binding. It should however be mentioned that in carrying out its obligations on its own, as referred to in Art. 18 para 1 of the above-mentioned legal act, by setting up a collection system for packaging waste from packaging produced by other entities, the level of recovery and recycling is 100% of the packaging placed on the market (Art. 17 para 1 point 2 of the above-mentioned legal act). If a company decides to join the Agreement, the minimum required levels in particular years are specified in the Minister of Environment’s Regulation of 16^th April 2014 on the Minimum Annual Recovery and Recycling Levels for Composite Packaging and Hazardous Material Packaging, and the levels in the Agreement concluded with the Marshal of the Voivodeship cannot be lower than these (O. J. 2014, item 618).

Due to the entering into force of the new Packaging Management Act of 13^th June 2013 (O.J. 2013, item 888) on 27^th March 2014 the Polish Chamber of Commerce (KIG) concluded with the Marshal of the Masovian Voivodeship two Enterprises’ Agreements on setting up and running a system for the collection, transport, recovery or safe disposal of composite packaging waste and hazardous material packaging waste, in accordance with the provisions of the above mentioned legal act (Art. 25). Supporting enterprises is KIG’s statutory goal, thus with the above-mentioned agreements the Chamber supports the effective carrying out of recovery and recycling obligations in accordance with the law. The effective carrying out of concluded Agreements through synergies and partnership with the Polish Chamber of Commerce and enterprises subject to the legal act, as well as with other participants in the packaging waste management system — ensuring at the same time the economic and ecological effectiveness of this collaboration — is an important goal for KIG. The Enterprises Agreements project may be a potential source of support for the development of the system for the collection and sorting of packaging waste in communes. It is linked to our previous involvement in the creation of the new economic governance system with regard to urban waste management in Poland, including support for sensible solutions implemented in certain voivodeships. Thus, responding to market demand, KIG decided to conclude and carry out as efficiently as possible the Enterprises Agreements for composite packaging waste and hazardous material packaging waste. For the financial year of 2014 we carried out all subcontracted tasks in full with regard to recovery and recycling at the levels set by the Ministry of Environment, however our collaboration with enterprises is not limited to this particular year and covers the period 2014-2020. As the levels fixed for this period will grow fast, in order to reach 50% in 2020 we have to establish an effective system for the collection, transport and processing of packaging waste referred to in the Packaging Act, including ensuring the appropriate  levels of recovery and recycling throughout the whole period, till 2020. It is our intention to continue the Agreements beyond 2020.

The Polish Chamber of Commerce receives from the Enterprises Placing Packaged Products on the Market, which joined the Agreement and concluded an appropriate contract with the Chamber, a previously fixed remuneration for services rendered to the Enterprises, including representing them as part of the Agreement.

Due to the entering into force of the new Packaging Management Act of 13^th June 2013 (O.J. 2013, item 888) on 27^th March 2014 the Polish Chamber of Commerce (KIG) concluded with the Marshal of the Masovian Voivodeship two Enterprises’ Agreements on setting up and running a system for the collection, transport, recovery or safe disposal of composite packaging waste and hazardous material packaging waste, in accordance with the provisions of the above-mentioned legal act (Art. 25).

The new obligations may be carried out by an Enterprise on its own or as part of the Agreement concluded with the Marshal of the Voivodeship by an economic organisation, representing Enterprises. In accordance with the Legal Act on Chambers of Commerce, economic organisations include chambers of commerce, which are solely entitled to conclude such agreements. The minimum levels for the recovery and recycling of such waste are fixed in the Minister for Environment’s Regulation of 16^th April 2014.

The legal Act of 13^th June 2013 on Packaging Management and Packaging Waste Management stipulates new obligations with regard to the recovery and recycling of composite packaging waste and hazardous material waste:

Art. 18 provides for the establishment of a system for the collection of packaging waste as well as its recovery and recycling;

Art. 19 provides for an obligation to organise public awareness campaigns.

Art. 25 obliges Enterprises which joined the Enterprises’ Agreement with the Marshal of the Voivodeship to reach certain minimum annual levels of recovery and recycling in particular years, but should they choose to fulfil the obligation on their own — to reach “levels of waste recovery and recycling equal to the weight and the type of packaging placed on the market”  (Art.17).

Main Responsibilities and Rights of the Chamber:

1. preparing and negotiating the Agreements with the Marshal
2. concluding the Agreement with the Marshal on behalf of interested Enterprises Placing Packaged Products on the Market
3. concluding contracts and agreements with interested participants of the Agreement
4. coordinating the effective carrying out of the Agreement
5. keeping reliable records and financial reporting
6. preparing and submitting reports, as referred to in Art. 25 para 6 of the Packaging Act
7. carrying out other activities, including but not limited to:

–  contacting the Marshal

–  negotiating any changes to the Agreement with the Marshal

–  concluding Annexes to the Agreement

1. informing the Parties to the Agreement about non performance or bad performance of the Agreement by other Parties, including any decision of the Parties to exclude an Enterprise Placing Packaged Products on the Market from the Agreement
2. the Chamber of Commerce is generally responsible for the effective execution of the Agreement with Enterprises Placing Packaged Products on the Market.

The Polish Chamber of Commerce receives from Enterprises Placing Packaged Products on the Market, which joined the Agreement, a previously set remuneration for services rendered to the Enterprises, including representing them as part of the Agreement. The level of the remuneration is set on the basis of real costs of services and market prices for recovery and recycling.

Main rights and duties of Enterprises Placing Packaged Products on the Market

1. authorising the Chamber of Commerce to conclude on its behalf agreements with companies collecting, recovering and recycling packaging waste
2. authorising the companies dealing with recycling or recovery indicated by the Chamber to submit requests for documents confirming recycling (DPR) and documents confirming other recovery activities (DPO), as well as other documents related to waste management
3. authorising the Chamber of Commerce to receive DPRs and DPOs on behalf of the Enterprise Placing Packaged Products on the Market from companies dealing with the recovery and recycling of specific packaging waste
4. providing the Chamber of Commerce with written information on the weight of packaging placed on the market, in order to fix limits and conclude agreements for a defined amount with companies collecting, recovering and recycling packaging waste
5. regular payments of fees, as agreed in the Agreement, to the Chamber of Commerce
6. additionally contracting the Chamber of Commerce or recovery entities to organise public awareness campaigns referred to in Art. 19 of the Packaging Act
7. additionally contracting the Chamber of Commerce or recovery entities to draw up reports provided for in Art. 45 of the Packaging Act and a report provided for in Art. 19 para 6 of the Packaging Act.

The collaboration offer prepared by the Polish Chamber of Commerce covers the two main financial aspects of the partnership, i.e. the costs of carrying out legal obligations with regard to the recovery and recycling of packaging waste and participation in the long term costs of setting up the system for the collection and processing of waste. The fees (rates) for enterprises were calculated on the basis of a non-profit formula and real necessary expenditures.  It is possible to fully monitor the annual performance of contracted obligatory tasks.

In order to join the Agreement, including signing an appropriate contract, an enterprise shall submit an initial declaration, including details of the type and amount of packaging placed on the market in the previous year (the declaration is available for download). Following this declaration an enterprise will receive an offer specifying the rates for attaining appropriate recovery and recycling levels, as well as all necessary information. By joining the Polish Chamber of Commerce’s Agreement the Enterprise does not incur any additional costs or acquire extra obligations relating to membership of the Polish Chamber of Commerce. Should you be interested, please send your declaration to the Polish Chamber of Commerce at the following e-mail address:  dzawadzka@kig.pl  or porozumienia@kig.pl  Phone: +48-22-630 94 45.