Sudden burden for the importer who has just became a producer obligated to recycle
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Article
16 (Obligations of Manufacturers to Recycle) (1) A manufacturer or importer (in cases of packing materials, including
sellers of products using packing materials; hereinafter referred to as
"producers with recycling obligations") of products and packing
materials prescribed by Presidential Decree, the recovery and recycling of
which can be facilitated by improving the quality of materials, structure or
recovery system in the production stage and distribution stage, or which
generate a large volume of wastes after use, shall recover and recycle wastes
generated from the products or packing materials he or she has manufactured,
imported or sold. <Amended on May 22, 2013; Nov. 26, 2019> (2) Notwithstanding paragraph (1), if a producer with recycling
obligations operates a place of business of the type and size prescribed by
Presidential Decree, he or she may be exempt from the recycling obligation.
In such cases, the producer with recycling obligations shall prove that he or
she is eligible for exemption from the recycling obligation, as prescribed by
Ordinance of the Ministry of Environment. <Newly Inserted on Nov. 26, 2019> (3) A producer with recycling obligations (excluding business
entities subject to security deposit) shall pay contributions to jointly
fulfill the recycling obligation prescribed in paragraph (1) (hereinafter
referred to as "contributions") to a recycling business mutual aid
cooperative under Article 27: Provided, That the amount of money proportional
to the quantity of recovery and recycling, which is calculated by the
inspection method determined and publicly notified by the Minister of
Environment, shall be deducted from the contributions, in any of the
following cases: <Newly Inserted on May 22, 2013; Jan. 20, 2015; Nov. 26,
2019; Jun. 9, 2020> 1. Where the producer directly recovers and recycles the wastes
generated from products and packing materials manufactured, imported or sold; 2. Where the producer outsources the recovery and recycle process
of the wastes referred to in subparagraph 1 to any of the following persons: (a) A person licensed for any of the
waste recycling business provided for in Article 25 (5) 5 through 7 of the
Wastes Control Act; (b) A person who files a report on
waste treatment under Article 46 of the Wastes Control Act; (c) Other persons prescribed by
Presidential Decree as deemed capable of efficiently operating the recycling
business. (4) A producer with recycling obligations or a recycling business
mutual aid cooperative shall, when outsourcing the recovery and recycling
process of wastes, enter into a contract which protects the rights and
interests of the outsourcing contractor to the fullest extent as prescribed
by Presidential Decree, such as ensuring the business territory of
small-medium enterprises protected under the Act on the Promotion of
Collaborative Cooperation between Large Enterprises and Small-Medium
Enterprises, and parties to the contract shall implement such contract in
good faith. <Amended on May 22, 2013; Jan. 20, 2015; Nov. 26, 2019> (5) A producer with recycling obligations, a recycling business
mutual aid cooperative, and an outsourcing contractor that assumes the recovery
and recycling of wastes shall recycle wastes in compliance with the method
and standards for recycling of products and packing materials prescribed by
Ordinance of the Ministry of Environment. <Amended on May 22, 2013; Jan.
20, 2015; Nov. 26, 2019> (6)
A producer with
recycling obligations shall submit data on the outbound shipping volume of
products and packing materials to the Minister of Environment, as prescribed
by Ordinance of the Ministry of Environment. <Newly Inserted on Nov. 26,
2019> |
Pursuant to Article 16 (2), in the following cases (either import
amount or import weight), importers may be exempt from the obligations of
manufacturers to recycle by submitting a separate application with documentary
evidence to the KECO (Korea Environment Corporation).
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Business type |
Business size |
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Based
on sales/import amount |
Based on release/import weight |
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1. Manufacturers
or importers of food and beverages, detergents, cosmetics and shampoo and
conditioner for pets, pharmaceuticals and quasi-drugs, butane gas products,
insecticides and disinfectants, clothing, paper products, or rubber gloves
using packing materials of paper pack to which synthetic resin or aluminum
foil is attached, metal can or synthetic resin (excluding foamed synthetic
resin) |
Manufacturers whose annual sales
amount of the previous year was less than KRW 1 billion or importers whose
annual import amount was less than KRW 0.3 billion |
Manufacturers whose annual delivery weight of the
previous year was less than 4 tons or importers whose annual import weight
was less than 1 ton |
|
2. Manufacturers
or importers of food and beverages, detergents, cosmetics and shampoo and conditioner
for pets, pharmaceuticals and quasi-drugs, butane gas products, and
insecticides and disinfectants using packing materials of foamed synthetic
resin |
Manufacturers whose annual sales
amount of the previous year was less than KRW 1 billion or importers whose
annual import amount was less than KRW 0.3 billion |
Manufacturers whose annual delivery weight of the
previous year was less than 0.8 ton or importers whose annual import weight
was less than 0.3 ton |
|
3. Manufacturers
or importers of food and beverages, detergents, cosmetics and shampoo and
conditioner for pets, pharmaceuticals and quasi-drugs, butane gas products,
and insecticides and disinfectants using packing materials of glass bottle |
Manufacturers whose annual sales
amount of the previous year was less than KRW 1 billion or importers whose
annual import amount was less than KRW 0.3 billion |
Manufacturers whose annual delivery weight of the
previous year was less than 10 tons or importers whose annual import weight
was less than 3 tons |
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4. Sellers or importers of agricultural, fishery and
livestock products using packing materials of synthetic resin (excluding
foamed synthetic resin) like tray |
Manufacturers whose annual sales
amount of the previous year was less than KRW 1 billion or importers whose
annual import amount was less than KRW 0.3 billion |
Manufacturers whose annual delivery weight of the
previous year was less than 4 tons or importers whose annual import weight
was less than 1 ton |
|
5. Sellers or importers of agricultural, fishery and
livestock products using packing materials of foamed synthetic resin like
tray |
Manufacturers whose annual sales
amount of the previous year was less than KRW 1 billion or importers whose
annual import amount was less than KRW 0.3 billion |
Manufacturers whose annual delivery weight of the
previous year was less than 0.8 ton or importers whose annual import weight
was less than 0.3 ton |
|
6. Manufacturers
or importers of packing materials of PET
and PP like tray, container, etc. |
Manufacturers whose annual sales
amount of the previous year was less than KRW 1 billion or importers whose
annual import amount was less than KRW 0.3 billion |
Manufacturers whose annual delivery weight of the
previous year was less than 4 tons or importers whose annual import weight
was less than 1 ton |
|
7. Manufacturers
or importers of packing materials of
foamed synthetic resin like box for agricultural, fishery and livestock
products, tray, container, etc. |
Manufacturers whose annual sales
amount of the previous year was less than KRW 1 billion or importers whose
annual import amount was less than KRW 0.3 billion |
Manufacturers whose annual delivery weight of the
previous year was less than 0.8 ton or importers whose annual import weight
was less than 0.3 ton |
|
8. Manufacturers
or importers of electrical appliances, audio/video application equipment,
information/office equipment and personal computers (including monitors and
keyboards) that are subject to safety certification or safety verification
under the ELECTRICAL APPLIANCES
AND CONSUMER PRODUCTS SAFETY CONTROL ACT using film/sheet packing materials
of synthetic resin |
Manufacturers whose annual sales
amount of the previous year was less than KRW 1 billion or importers whose
annual import amount was less than KRW 0.3 billion |
Manufacturers whose annual delivery weight of the
previous year was less than 4 tons or importers whose annual import weight
was less than 1 ton |
|
9. Manufacturers
or importers of electrical appliances, audio/video application equipment,
information/office equipment and personal computers (including monitors and
keyboards) that are subject to safety certification or safety verification
under the ELECTRICAL APPLIANCES
AND CONSUMER PRODUCTS SAFETY CONTROL ACT using shock absorbers of foamed synthetic
resin |
Manufacturers whose annual sales
amount of the previous year was less than KRW 1 billion or importers whose
annual import amount was less than KRW 0.3 billion |
Manufacturers whose annual delivery weight of the
previous year was less than 0.8 ton or importers whose annual import weight
was less than 0.3 ton |
|
10. Large-scale comprehensive retailers using disposable bags and
shopping bags of synthetic resin and manufacturers or importers of disposable
bags and shopping bags of synthetic resin |
Large-scale comprehensive
retailers or manufacturers whose annual sales amount of the previous year was
less than KRW 1 billion or importers whose annual import amount was less than
KRW 0.3 billion |
Large-scale comprehensive
retailers or manufacturers
whose annual delivery weight of the previous year was less than 4 tons or
importers whose annual import weight was less than 1 ton |
|
11. Manufacturers or importers of antifreeze/brake fluid and
lubricating oil used for motor vehicles, military vehicles, construction
equipment, agricultural equipment, ships, and fishing vessels using packing
materials of synthetic resin |
Manufacturers whose annual sales
amount of the previous year was less than KRW 1 billion or importers whose
annual import amount was less than KRW 0.3 billion |
Manufacturers whose annual delivery weight of the
previous year was less than 4 tons or importers whose annual import weight
was less than 1 ton |
|
12. Manufacturers and importers of products using
packing materials of synthetic resin |
Manufacturers whose annual sales
amount of the previous year was less than KRW 1 billion or importers whose
annual import amount was less than KRW 0.3 billion |
Manufacturers whose annual delivery weight of the
previous year was less than 4 tons or importers whose annual import weight
was less than 1 ton |
|
13. Manufacturers and importers of products using
packing materials of foamed synthetic resin |
Manufacturers whose annual sales
amount of the previous year was less than KRW 1 billion or importers whose
annual import amount was less than KRW 0.3 billion |
Manufacturers whose annual delivery weight of the
previous year was less than 0.8 ton or importers whose annual import weight
was less than 0.3 ton |
|
14. Manufacturers and importers of air-filled films
used for shock-absorbing packaging or insulation, films used for the washing
and dry cleaning services (referring to the washing and dry cleaning services
specified in the Standard Industrial Classification) to protect fur products,
clothes, fabric products, etc., plastic bags (excluding pay-as-you-go waste
bags), disposable vinyl gloves, and wrap films for food packaging that are
made of synthetic resin except for PVC |
Manufacturers whose annual sales
amount of the previous year was less than KRW 1 billion or importers whose
annual import amount was less than KRW 0.3 billion |
Manufacturers whose annual delivery weight of the
previous year was less than 4 tons or importers whose annual import weight
was less than 1 ton |
|
15. Manufacturers or importers of industrial films,
water purifier filters for replacement, safety nets, fishing nets, ropes,
polyethylene tubes, PVC products, polypropylene household items, pallets,
plastic shipping boxes, window/door frames, flooring materials, insulating
materials for construction, power/communication lines, and parts for
automobile maintenance that are made of synthetic resin |
Manufacturers whose annual sales
amount of the previous year was less than KRW 1 billion or importers whose
annual import amount was less than KRW 0.3 billion |
Manufacturers whose annual delivery weight of the
previous year was less than 10 tons or importers whose annual import weight
was less than 3 tons |
Pursuant to Article 16 (6), an importer who is a POR shall submit
data on the packaging materials of imported goods to the KECO by every April 15
and pay recycling dues. Non-submission and submission of false data are
subject to an administrative fine not exceeding 10 million won.
Based on
the import volume declared to Customs, the KECO usually gives an importer who
seems to become a POR a prior notice of guidance in March. As
the obligations of POR is not regulated by Customs, it is common that an
importer who newly reaches the threshold of import volume gets to realize such obligations after receiving the notice.
What troubles the importer is that, prior to submitting the data
on the packaging materials of imported goods, the application for evaluation of
the quality and structure of packing materials shall be filed with and accepted
by the KECO, official processing time of which is 10 days. But it may take more
if any request for supplementing documentary evidence like certificates and
photos is made.
The importer shall complete self-assessment referring to the Ministry of Environment Notification, PACKING MATERIAL RECYCLABILITY
RATING STANDARD (포장재 재활용
용이성 등급평가 기준) for each structure of packaging
materials of imported goods. There are four type of recyclability rating – Best
for recycling, Excellent for recycling, Normal for recycling, and Difficult for
recycling. In the case of difficult for recycling, the application is
automatically approved. In other cases, the KECO examines the submitted
materials thoroughly.
It is much
easier to process difficult for recycling but it is
mandatory to indicate “재활용 어려움(Difficult for Recycling)” within 6 months after the application is
approved. If it is impossible to indicate evaluation result within 6 months for
inevitable reasons like manufacturing process change, application for extension
of indication period may be filed and the deadline of indication may be
extended up to additional 9 months.
Statement of evaluation result is issued when the application is
approved. Its number shall be included in the data set of packaging materials of imported goods, which shall be submitted to
the KECO by April 15.
Confirming packaging materials’ structure and weight of each
imported product may be a huge task itself. Besides, Korea standards can be
quite different from those of other countries implementing the system of extended
producer responsibility. So, it happens that the exporter cannot provide
required data and evidence immediately.
In principle, the evaluation shall be completed prior to importing
relevant products. Judging from the
recent amendment of the provisions related to the evaluation of the quality and
structure of packing materials, it seems that POR’s burden will increase in
2024.
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