Last call for registration of producers under the Scottish DRS for single use beverage containers

Drinks producers must register with SEPA for the Deposit Return Scheme for Scotland (“DRS”) by 28^th February 2023 if they sell drinks in Scotland in single use containers which are included in the DRS.

The DRS is set to launch on 16^th August 2023 and will mark a key milestone for the Scottish Government’s ambitions for a circular economy and extended producer responsibility. Plans to introduce similar schemes in the rest of UK are being developed (here).

Who is obligated by the DRS?

The DRS is built around the principle of producer responsibility, such that producers will be responsible for qualifying drinks containers (scheme articles) that they put on the Scottish market and the collection of the empty containers (scheme packaging) post-consumption. Under the DRS, drinks producers^[1] must do the following:-

• register as a producer with the Scottish Environmental Protection Agency (SEPA) by 28^th February 2023 and pay a registration fee;
• charge a 20 pence deposit on each scheme article made available for retail sale in Scotland;
• arrange for the scheme packaging to be returned and the 20p deposit refunded to the consumer;
• arrange for the collection of scheme packaging, and
• pay a reasonable handling fee to retailers and return point operators to cover the cost of the collection and storage at return points.

These obligations can be discharged directly by the producer, or through Circularity Scotland as the scheme administrator on the producer’s behalf.

Retailers^[2] have an important role as the public face of the DRS, providing consumers with clear information about the scheme and the applicable deposit and housing return points for scheme article packaging (such as by reverse vending machine). Retailers must only sell drinks from registered producers and will be required to accept returns of empty scheme packaging for collection. Other obligations apply depending on the type of retailer, for example online retailers will not be required to operate return points, but instead are to provide a takeback service (a proposal to restrict this obligation to large grocery retailers to be phased in after the DRS launch has been made, with takeback to be available to consumers in 2025). Voluntary return point operators also have obligations under the DRS.

Key upcoming dates for drinks producers and retailers

1. Producer registration

Producers that qualify for the DRS are legally required to register and must pay a registration fee (unless exempt).

Producers have been able to register with SEPA directly since 1^st January 2023. Registration remains open and all applications to register for the DRS must be made either to SEPA or via Circularity Scotland by 28 February 2023.

2. Return point operator registration

All retailers are required to operate return points for scheme packaging (unless exempt under the proximity or environmental health exemptions) or provide a takeback service.

Retailers that will operate a return point must register with Circularity Scotland for management purposes including day-to-day operations, collection of scheme packaging and payment/refund of deposits. Circularity Scotland have indicated that retailers will be able to register online as return point operators from March 2023.

3. Launch

For now, despite calls by some for postponement of the DRS, in a letter to MSPs dated 9 February 2023, Lorna Slater MSP, Minister for Green Skills, Circular Economy and Biodiversity, confirmed that the DRS will launch on 16th August after having been previously delayed. A number of announcements including  VAT treatment and changes to obligations have been announced over the last few months to alleviate potential financial and administrative burden on actors obligated under the scheme and should be closely monitored to ensure that those affected have a full understanding of the scheme.   

Key support for smaller producers was announced on 21^st February by Circularity Scotland (Support Package).

^[1] Drinks producers include a drinks brand owner (for scheme articles branded in the UK); an importer of drinks into the UK for sale to consumers in Scotland (for scheme articles branded outside the UK; and someone selling drinks in single-use containers that are filled and sealed by the retailer at the point of sale (e.g. a crowler).

^[2] Retailers are those who market, offer for sale or sell drinks in Scotland (including face-to-face retail, online retail, sales in a hospitality setting, sales from vending machines, and wholesalers).