Germany VerpackG Packaging Act and Lucid Registration

A New Regulation Affecting Online Sellers in the German Market

A recent development that closely concerns sellers engaged in online retail sales in the German market has come to the forefront. Due to this regulation, which will directly affect sales volumes, sellers who fail to comply with the requirements by 3 July 2022 may face severe financial penalties or even the suspension of product distribution in the German market.

What Is the Packaging Act (VerpackG)?

The Packaging Act (VerpackG), which entered into force in Germany on 1 January 2019, has now reached the final stage of discussions. With the latest amendments added, it was decided that the law would be fully implemented as of 1 July 2022.

This law encourages the use of reusable and recyclable packaging materials such as bubble wrap, boxes, cartons, tape, envelopes, glass packaging, hanging tags, and bags used in the packaging process. It is therefore of great importance for e-commerce platforms and sellers operating in the German market.

The primary aim of the law is to increase recycling in response to the growing threat to ecological balance worldwide, thereby ensuring ecological sustainability while also creating a financial ecosystem around recycling. Within this framework, sellers are required to obtain a certificate (LUCID). Through the fees collected for this certificate, it is ensured that packaging is either professionally recycled or disposed of in an environmentally friendly manner.

Who Does VerpackG Apply To?

VerpackG directly applies to:

• Online marketplace sellers selling in the German market,

• Parties who deliver the final packaged product to consumers,

• Companies that ship packaged goods to Germany.

How Can I Obtain a LUCID (Packaging) Certificate?

First of all, it should be noted that regardless of the raw material, every type of packaging material you use requires certification without exception.

The steps to obtain a LUCID license are summarized below:

1. You must register with the official German registration authority via the LUCID Packaging Register and obtain your membership number.

2. Next, you must obtain a certificate from one of the “Dual Systems.” These systems calculate the fee you must pay based on the annual amount and type of packaging you use. If your packaging material is neither plastic nor paper, you can calculate the fee by selecting the appropriate option via “Add Category.”

3. After obtaining your certificate, you must report the certificate number to the LUCID system.

4. Finally, after making your payment to the selected Dual System, you will receive a legal logo indicating that your packaging is recyclable. This logo must be added to all your packages. Additionally, it is important to inform customers—via a message on your e-commerce platforms—that your packages are recyclable. You must also register your LUCID number on the platforms where you sell. Even if this has not yet been requested, it is expected to be mandatory soon, so early registration is strongly recommended to avoid disruptions.

Some examples of Dual Systems include:

• Der Grüne Punkt – Duales System Deutschland GmbH

• Noventiz Dual GmbH

• Reclay Systems GmbH

• PreZero Dual GmbH

• Altera System GmbH

What Happens If I Do Not Comply with the Packaging Act?

Failure to obtain the required certificate and LUCID license, failure to declare packaging quantities to Dual Systems, or providing incorrect declarations are considered administrative offenses under the Packaging Act. Possible penalties include:

• Fines of up to €100,000 for selling unregistered products,

• Receiving formal written warnings,

• Fines of up to €200,000 for not participating in the recycling system,

• Immediate sales bans if packaging fees are not paid via Dual Systems or if the LUCID license is not obtained.

In summary, sellers who do not complete these procedures by 1 July 2022 will unfortunately be unable to continue selling in Germany or will face substantial penalties.