Who is a manufacturer under the PPWR Regulation? Definition, examples and obligations

The PPWR Regulation not only amends the requirements regarding the design and labelling of packaging, but also the method for determining the entity responsible for fulfilling the obligations arising from extended producer responsibility (EPR). Find out who is considered a producer under the PPWR and learn how to correctly determine your company’s role in various EU markets.

Who is considered a manufacturer under the PPWR Regulation?

The PPWR Regulation defines a producer as a manufacturer, importer or distributor who – depending on the type of packaging, place of business and method of distribution – places the packaging or the product in its packaging on the market of a given Member State for the first time or unpacks the product from its packaging without being the end user. The packaging or the product within the packaging may be made available through traditional sales channels or any form of distance selling, including online sales and telephone sales.

The aim of this regulation is to identify an entity which is located at the start of the supply chain in the Member State in question, and, consequently, should be held liable for packaging or packaged products placed on the market in that country for the first time.

In practice, a ‘manufacturer’ within the meaning of the PPWR regulations may be:

• manufacturer the packaging or the product inside the packaging,
• importer the packaging or the product inside the packaging,
• distributor the packaging or the product inside the packaging,
• an online retailer, who makes the packaging or the product in its packaging available directly to end users in another EU Member State,
• a trader who unpacks or repacks goods prior to their further distribution (only if the above points do not apply).

The PPWR Regulation introduces the principle „one manufacturer for each packaging unit”. This means that, in a given Member State, for every packaging unit, there is always one entity responsible for fulfilling the obligations of the ROP (. EPR) – regardless of how complex the supply chain is.

Are you a manufacturer of packaging or packaged products? Check your EPR obligations in various EU markets >>

‘Producer’ and ‘manufacturer’ in the PPWR Regulation

One of the most common mistakes made by companies operating within the supply chain is to equate a producer with a manufacturer. A manufacturer may also be a producer, but not in every case – The PPWR Regulation distinguishes between these two entities and assigns different responsibilities to each of them.

Manufacturer an entity that manufactures the packaging or the product in the packaging itself, or an entity that commissions the packaging and determines its specifications. Every package placed on the EU market has only one manufacturer, who is primarily responsible for ensuring that this packaging complies with the requirements of the PPWR Regulation regarding design, sustainability and labelling.

Example: Company X orders boxes for sports shoes from Company Y – specifying their exact shape, dimensions and colours, and requesting that its logo be printed on the lid of each box. In this situation, Company X is the manufacturer of the boxes.

Who is the packaging manufacturer? Check the definition and exceptions (article coming soon)

Manufacturer whereas they place the packaging or the packaged product on the market of a given EU Member State for the first time. They are responsible for fulfilling the obligations arising from extended producer responsibility in that Member State.

Example: Company Z operates a chain of supermarket stores in Poland, where it sells packaged products under its own brand. Company Z is the packager of these products (across the whole of the EU) and, at the same time, their manufacturer (within Poland).

When is an importer or distributor considered a manufacturer?

If the packaging manufacturer does not meet the definition of a producer within the meaning of the PPWR (i.e. does not place the packaging or the product in packaging on the market in a given Member State), then the importer or distributor of the packaging or the product in packaging, who meets the conditions set out in the definition of a producer, may be deemed to be the producer of the packaging or the product in packaging within the meaning of the PPWR Regulation, and makes them available for the first time within the territory of a given EU Member State.

If a natural or legal person purchases packaging (empty or containing a product) from another Member State or from outside the EU, and is then the first to place it on the market in one or more EU countries, that person may become the producer of the packaging or the product contained therein and will be required to fulfil the EPR producer’s obligations in each of those countries.

Example: A Polish company imports wholesale quantities of packaged cosmetics from Italy and begins selling them on the domestic market. Although it has not manufactured either the cosmetics or their packaging, it is regarded as the manufacturer in Poland because it was the first to make the packaged products available on the Polish market.

The owner of an online shop as a manufacturer of packaging and packaged products

If a business or an individual sells packaging or packaged products directly to end users in another Member State, rather than the country in which it is established, may be regarded as a producer within the meaning of the PPWR in that country and will be required to fulfil the obligations arising from the local EPR scheme. This means that any entity selling online to individual end-users located in a dozen or so EU countries is simultaneously a producer in all those countries and is subject to local EPR obligations in each of them. This mainly applies to businesses operating online shops, teleshopping and other distance selling channels.

Importantly, the PPWR Regulation explicitly states that in the case of distance selling simply offering the packaging or product to the end user (e.g. via an online shop or an e-commerce platform) is regarded as placing it on the market.

Example: This Polish jewellery manufacturer handcrafts its products and packages them in decorative boxes. It offers all its products via its online shop to end customers – private individuals throughout the EU. The manufacturer is therefore both the producer and the packager of the products in each EU Member State.

Unpacking and repackaging of products in accordance with the PPWR Regulation

A manufacturer, importer or distributor may also meet the definition of a producer where they unpack products from their packaging prior to their further distribution. This applies, amongst others, to logistics companies that are not end-users, which they repackage the goods into smaller packs, and then pass them on to other entities for sale.

How can you determine whether your company is a manufacturer within the meaning of the PPWR?

Assessing whether a given entity is a manufacturer within the meaning of the PPWR requires an analysis not only of the company’s activities themselves, but above all of its role within a specific supply chain.