Preparing for the plastic packaging tax

The upcoming introduction of the plastic packaging tax means that using non-recycled plastic will come with added costs – but manufacturers and dealers are prepared for this

Pressure has been increasing on manufacturers to reduce their use of plastic, in recent years, as consumers seek ever more sustainable products, and a new tax on plastic packaging is focusing minds to cut plastic use even further.

The plastic packaging tax will be introduced on 1 April and will see a tax of £200 per tonne levied on any plastic packaging that does not have a minimum of 30% recycled content. If companies manufacture or import packaging they will need to take steps to establish their status within the tax. Companies that manufacture or import more than 10 tonnes of plastic in 12 months will have to register and keep additional records to calculate and pay the tax if they are the company performing the last substantial modification before filling, packing and labelling.

Businesses impacted in the sector are preparing for the tax and its implementation is involving costs for businesses such as creating the reporting frameworks needed to complete tax returns, storing suitable records and training employees, according to BOSS Federation.

“The plastic packaging tax should definitely reduce the quantity of plastic polluting the ocean, being transported to landfill, or incinerated,” says Martin Eames, BOSS SUP Forum chair. “Incentivising companies to make use of plastic with 30% and higher recycled content will establish a broader market scope for recycled plastic, providing companies with a financial stimulus to collect and recycle packaging rather than disposing of it – all of which supports a more circular economy and a wider move to greater sustainability. Whether it will have an impact like that of the 5p charge on single-use carrier bags, which resulted in plastic bag sales at major supermarkets falling by 86%, is yet to be seen.”

Preparation

Manufacturers have been preparing for the introduction of the tax by devising ways to present, pack and supply products without compromising the security or stability at the point of sale or in transit. For example, Pentel has recently replaced its key blister cards with a range of plastic-free packaging made from 100% recyclable cardboard. “Moving away from conventional blister cards, with their single-use plastic, is the right thing to do for the environment, but it’s not without its challenges,” says Pentel’s marketing manager, Wendy Vickery. “The obvious benefit of the plastic bubble is that it affords full product visibility to the consumer – which is a real advantage in those precious few seconds at the point of sale.

“When we do find it occasionally necessary to use plastic – for example, in wallets to hold heavier products – we use recycled material, which exceeds the minimum requirement set out in the plastic packaging tax. As we develop new products and packs in the future Pentel will use sustainable packaging materials and methods to meet the needs of our customers and end-users alike.”

Stuart Seymour, European sales and marketing director at Hopax Europe Ltd, says that plastic is used to package most products because it is the least expensive option. “So, it become inevitable that there is an extra cost to change to another form of packaging material,” he explains. “If consumers can accept an additional premium for greener packaging, the supply chain has the opportunity to increase sales revenues.

“Since the spotlight has been turned onto plastic packaging, the biggest impact has been importers requesting the weights of plastic used to package every sales unit. This leads to the question, ‘Is it necessary to wrap each pad, or will the market accept a larger pack size?’ For example, a pack of 12 pads without the individual pad wrapper; such a development could reduce plastic usage, while increasing order values.

“Manufacturers may see the trend towards the reduced use of plastic packaging as an opportunity to make positive change. There are benefits to differentiating their range from competitors, while offering the market options – for example, packing boxes made of recycled card, and shipping cartons made with recycled cardboard. Thus, the products and packaging are ‘plastic free’.

“Dealers should make customers aware of these benefits; the product and packaging are sustainable, recyclable and environmentally friendly, enhancing the impression that they are an ethical supplier.”

Global trend

Dr Liz Wilks, EU director – sustainability and stakeholder at APP – notes that governments, including Canada, USA and in Latin America, are all passing similar, plastic-related, legislation to the UK and Europe. “Companies need new, innovative solutions to meet these new demands – ones that are functional and sustainable,” she says. “They are working closely with their packaging converters and paper mills to invest in R&D and develop new, innovative, plastic-free solutions. This includes the development of new water-based coatings that result in sustainable, compostable and recyclable materials.

“Global brands have all made sustainability commitments and developed policies and now they need to deliver on these. They are working more closely with their supply chains – all elements from paper producer to converter – to innovate new solutions.”

Reducing impact

For Ian Whitcombe, packaging product manager at Antalis, the key is to examine where and how plastic is being used. “One of the most heavily used plastic products for businesses involved in packaging and distributing goods is stretch film, which is frequently over-used,” he says. Antalis recently introduced plastic packaging tax-exempt films. “It’s worth stressing, however, that whatever film is being used, whether tax-exempt or not, using the correct film for the machine, and having it calibrated correctly, can help reduce usage and avoid waste,” he says.

“This tax could prove very costly for businesses that aren’t prepared. Fortunately, there are several options office resellers and dealers can explore to minimise its impact on their businesses and help their customers mitigate the risk too.” These include:

• Reducing use.
• Using recycled plastic packaging containing at least 30% recycled plastic.
• Switch to paper-based products – if, for example, a reseller or dealer is using plastic-based void-fill, they could look to switch to something like the Fillpak TT system in which fan-folded kraft paper sheets are crumpled to form filling material.
• Speak to their packaging supplier. They may offer free audits and advice on how to manage the use of plastic packaging.