New EPR rules should be applicable from 2024! What are the main changes?

On 1 January 2024, legislation changes regarding the EPR (i.e. Extended Producer Responsibility) system came into force, including several relevant modifications to chain transactions, data reporting, the handling of reusable packaging, and take-over contracts. From 2024, the range of products subject to the EPR fee has been extended. EPR fee should be paid e.g. for sunflower seed oil, oilseed rape, rape seed oil, footwear and leg protectors.

Amendments concerning chain transactions

From 1 January 2024 the chain transactions in which a business sells its goods to another business’ Hungarian tax number, and the goods will be delivered abroad (with the required documentation) is not subject to EPR. For these transactions, the application of the EPR exemption rules becomes practically automatic: unlike in the case of the previous rules, the customer declaration is no longer a condition of the application of the exemption and the seller should not have to indicate an invoice clause to the invoice in this regard.

However, the supplier can be exempted from EPR only if there is a customer declaration in the case of supply of goods, where the goods have been delivered domestically in the scope of the domestic supply and after that, the goods have been delivered subsequently abroad in the scope of a new transaction.

Changes regarding the data reporting procedure

From 2024 the EPR data report can be modified in the case of each quarterly period once between 1 January and 31 March of the year following the reporting year. Accordingly, the report for the period of 2023 can be modified once only until 31 March 2024. Due to the respective rules, the data for the reporting year cannot be modified during the reporting year.

Rules on reusable packaging

Due to the amendment EPR exemption rules should be applicable for businesses in the following cases:

• No EPR fee is payable for the domestic placing on the market of packaging made from used packaging which is not considered as reusable packaging if the EPR fee has been paid during the first domestic placing on the market. The respective fulfillment of the condition should be proofed. Please note that the EPR registration and reporting obligation should be fulfilled in this case as well, and the application of the exemption should be indicated in the KF code of the goods.
• The final removal of the foreign-produced packaging from the product should not be considered personal use if the removal does not generate packaging waste, e.g. because the removed packaging is used to package another product.

The use of reusable packaging for products imported from abroad is also exempted from the EPR from 2024. Until the modification, only the final removal of packaging has been exempted from EPR.

Terms and conditions of the EPR take-over contract have been amended

The EPR liability may be taken over under a take-over agreement in the following two cases:

• The producer of the motor vehicle may take over the related EPR obligation from the producer of the circular products (e.g. accessory or component part of the product, such as electronic equipment, batteries, accumulators, and tires).
• In the case of a circular product placed on the market through an agricultural producer organization, the agricultural producer organization may also take over the related EPR obligation.

The legislative changes modify the content of the take-over agreement since it is required to indicate only the first 6 characters of the KF codes on the document instead of the full KF code of the circular product.

Extending the list of circular products

The change in legislation extends the list of circular products for oils and textiles. Due to the modification some of the products which have been previously exempted from EPR, should be subject to the EPR obligation.

E.g. sunflower seed oil, oilseed rape, rapeseed and mustard oil, footwear, and leg protectors EPR fee should be paid.

In addition, for domestically produced advertising paper, the provision of printing services (e.g. printing and delivery of the product) should also be considered as domestic placing on the market from 2024, thus EPR fee should be paid in this regard.

The legislation requires the customer of the printing service to provide a written declaration at the time of the ordering. The customer should be considered a producer from an EPR point of view. Accordingly, the customer should fulfill the respective EPR obligation, if contrary to the written declaration, the ordered product contains commercial advertising.

Changes affecting promotional and office paper

The change in the legislation also repeals the 50% rule for the promotional advertising content of the product, which distinguishes between office paper and promotional paper. The modification also repeals the differentiation rule between packaging and promotional paper.

This newsletter provides general information and does not constitute advice.