Targeting the EPR obligors! This is how the waste management authority will audit

After the 20 October 2023 deadline, companies have passed the first major test of the EPR system, by the submission of quarterly EPR data report. Although the EPR obligors can breathe a sigh of relief for a while, it is worth being aware of the forthcoming controls and potential legal consequences regarding the new EPR regime.

Who is the supervisory authority?

Compliance with the EPR obligations is monitored both by the National Waste Management Authority and by the waste management authority with competence and jurisdiction..

Given the opportunities offered by "big data", the Waste Management Authority will draw information from various sources:

• From the Tax Authority in the scope of the environmental product charge returns and real-time reporting.
• From the manufacturers themselves and from MOHU.
• From the subcontractors contracted by MOHU are also required to provide quarterly data.

Possible audit directions

The Ministry of Energy has published the National Waste Management Authority Audit Plan. The authority will primarily audit the followings, by the use of the Tax Authority’s audit data:

• Compliance with the record keeping and data report obligations related to EPR;
• Compliance with the registration obligation of the producer of a voluntary product with a redemption fee.

What are the legal consequences?

In the case of non-compliance, the Authority can impose a number of sanctions on manufacturers, e.g.:

• Provision of notification regarding the fulfilment of the default obligation or correction of the incorrect obligation performance.
• Suspension of the placing on the market of the circular product affected until the manufacturer has complied with the relevant EPR rules.
• The suspension of the removal of the concession waste by the MOHU concession subcontractor or by the relevant regional entity.
• The imposition of waste management penalties. The amount of the penalties may be calculated lump sum. In the case of a more significant non-compliance, the Authority may impose penalties in the amount of several million HUF.

17 November, 2023

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This newsletter provides general information and does not constitute advice.