Extended Producer Responsibility (EPR) for Plastics and Packaging

Obligated Producers

Producers with the obligation to comply with the Act include the following categories.

1. Large Enterprises

   This category encompasses producers whose total assets exceed that of medium enterprises stated under Republic Act No. 9501 or the Magna Carta for Micro, Small and Medium Enterprises (MSMEs) (₱100 million). It includes brand owners who sell any commodity under a brand, product manufacturers that either directly or indirectly produce products under their brands, and importers of consumer goods intended to be sold, whether in original packaging or to be repackaged for distribution, to the general public.

2. Micro, Small and Medium Enterprises (MSMEs)

   Some MSMEs are also obliged to implement EPR when the total value of assets of all enterprises carrying the same brand exceeds that of medium enterprises (₱100 million).

3. Other

   Other persons and entities, as may be determined by the DENR Secretary.

Packaging Items Covered

The EPR Act 2022 regulates the mandate for obliged enterprises to manage plastic packaging waste specified below:

Flexible plastic packaging products

Including sachets, labels, laminates, and other flexible plastic packaging products, whether single layer or multi-layered,

Rigid plastic packaging products

Whether layered with any other materials, and their coverings, caps, or lids as well as their promotional materials,

Plastic bags

Including single-use ones, provided or utilized at the point of sale, and

Polystyrene

Mechanism of Implementation

Under the Act, Obliged Enterprises (OEs) are required to prepare and register an EPR Program with the National Solid Waste Management Commission (NSWMC). The program components include specific types of materials used, volume or weight of plastic packaging introduced into the market and their respective targets for recovery, reuse, and recycling. Implementation of the EPR Program may be conducted individually or collectively, with or without a Producer Responsibility Organisation (PRO).

The table below outlines the activities and strategies that may be encompassed within the EPR Program.

Beyond the defined set of activities, the OE's EPR Program should also entail a plan for expanding its coverage to encompass as much of the country as possible. This initiative is known as the Geographic Implementation Program or Roll-out plan.

Enterprises with a complete EPR programme submission are then ordered to pay the EPR Registration Fees and Annual Compliance Monitoring Fees, which will be accumulated into the EPR Special Fund, and start implementation. Based on ongoing analysis of data from the Philippine Statistics Authority, there are 2,130 enterprises that are considered plastic-producing industries that would be covered by the EPR Act. This number will further be evaluated based on analysis of assets data from the Security and Exchange Commission. As of May 2024, 917 EPR Programs have been submitted by OEs, collectives, and PROs.

In the year following the implementation period, obliged enterprises need to submit an audited report on their compliance performance with the Act, referred to as the EPR Compliance Audit Report (ECAR). This report must be certified by an independent third-party auditor before being submitted by July 15th every year, starting from 2024.

Implementation Timeline

Targets

The targeted recovery rate (relative to the OE's plastic product footprint from the previous year) at the end of each implementation year is, as follows:

Incentives and Penalties

The Government of the Philippines provides incentives for companies to comply with the Act in the forms of:

1. rewards and recognitions, in the form of monetary, which will be sourced from the EPR Special funds, or otherwise;

2. an incentive scheme to develop effective solid waste management, including recovery and diversion;

3. tax incentives;

4. EPR expenses are deductible from annual gross income; and

5. tax and duty exemption of donations, legacies, and gift.

In the event of a failure to register an EPR Program or meet the plastic recovery rate targets, the DENR has the authority to impose fines on obliged enterprises. These collected fines will be deposited into the EPR Special Fund. The specified amounts for these fines are outlined in the table below.

Roles and Responsibilities