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New Rules for Extended Producer Responsibility

New Rules for Extended Producer Responsibility

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A significant part of the provisions of the Government decree on the detailed rules of the operation of the extended producer responsibility system will enter into force on 1 July 2023, however, some provisions are already applicable from 1 April.

The national introduction of the extended producer responsibility was necessary to meet the EU waste management targets and to comply with EU directives. The Government decree aims to create a circular economy in Hungary, in which fewer products become waste and the generated waste can be recycled as raw materials.

The Government decree applies to products identified by the eight-digit identification number (circular code), which are covered by the extended producer responsibility system (circular product), and to the waste from circular products and activities related thereto. The producer of the circular product must perform its extended producer responsibility obligation in two ways: by collective performance through a designated concession company, or in the case of certain circular products (e.g. industrial or automotive batteries and accumulators), by individual performance according to the choice of the producer instead of the collective performance. In order to ensure the conditions for individual performance, the manufacturer enters into a concession subcontract with the concession company.

The producers must register at the national waste management authority before starting the waste management activity. The national waste management authority can order the producer to pay a waste management fine for the violation of the registration obligation. If the producer fails to comply with the obligation to pay the waste management fine, the national waste management authority will suspend the placing on the market of the circular product. The extended producer responsibility may be taken over by contract as provided for in the Government decree.

In case of circular products, the manufacturer of the product pays the financial contribution (extended producer responsibility fee) for the performance by the concession company of the tasks of the organisation fulfilling the extended producer responsibility on behalf of the manufacturer. The producer keeps records of the circular products he has placed on the market, and, in the case of individual performance, of the quantities of waste he has received and treated, and of the quantities of waste generated from circular products he has received and treated.

By Lidia Suveges, Attorney at law, KCG Partners Law Firm

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