3. packaging company 3.1. entry into agreement · partial fermentation of the juice received as a...

3. PACKAGING COMPANY

3.1. Entry into agreement

In order to join the EPP system, please fill in the Agreement with the Packaging Company (hereinafter Agreement (P)), which you will find on the EPP website at http://eestipandipakend.ee/dokumendid-ja-kujundusfailid/.

You only need to fill in and sign the cover page of the Agreement (P) in two copies. You need not print out or sign the basic terms or annexes; however, please note that these constitute parts of the Agreement (P) and by signing the cover page, you agree to be bound by the provisions of the basic terms and annexes.

According to the provisions of the Agreement (P) and applicable law, the Packaging Company transfers (ensures transfer) to EPP and EPP accepts and agrees to perform the following obligations of the Packaging Company (EPP as a recovery organisation ensures the performance of these obligations):

Collection of packaging throughout the entire territory of the Republic of Estonia and (organisation of) recovery of the collected packaging in line with the requirements of applicable legislation;

Acceptance of returned packaging from Retailers; Performance of the Packaging Company’s obligations under the Packaging Excise

Duty Act, including payment on behalf of the Packaging Company of excise duty on the packaging in the cases and pursuant to the procedure provided by applicable law.

Accession to the EPP system is subject to a fee. The rate of the fee is provided in the price list.

Upon joining the EPP system you will receive codes to enter the EPP online environment (the codes will be sent to your e-mail as indicated in the Agreement (P)); this will allow you to submit package registration applications and monthly sales reports online at http://eestipandipakend.ee/e-keskkond/.

3.2. Products subject to a deposit

Section 21 of the Packaging Act establishes deposits for the following types of non- refillable packaging for beer, low-ethanol alcoholic beverages, cider, perry and non- alcoholic beverages: * glass packaging; * plastic packaging; * metal packaging.

Deposits are not established for packages with a volume of up to 0.1 litres or at least 3 litres.

http://eestipandipakend.ee/dokumendid-ja-kujundusfailid/

http://eestipandipakend.ee/e-keskkond/

Beer (regardless of ethanol content) is a beverage manufactured from malt, or malt and

adjuncts, and from hops and water by fermentation using yeast; beer may be pasteurised.

Based on its ethanol content, beer is divided into the following categories in the packaging register of EPP: 1) low-alcohol beer – beer with an ethanol content of up to 6 percent by volume (inclusive); 2) strong beer – beer with an ethanol content of more than 6 percent by volume.

Low-ethanol alcoholic beverages are alcoholic beverages with an ethanol content of up to 6 percent by volume (inclusive), such as LongDrink, alcohol cocktails, etc. All beverages with a higher than 6% alcohol content are not subject to a deposit (except beer, cider and perry).

Cider (regardless of ethanol content) is an alcoholic beverage that is prepared by full or partial fermentation of the juice received as a result of the dilution of apple juice or concentrated apple juice, or a mixture of such juices. Upon preparation of cider, it is permitted to add limited quantities of pear juice, sugar, water and sugar products before or after fermentation, and of concentrated apple juice after fermentation.

Perry (regardless of ethanol content) is an alcoholic beverage that is prepared by full or partial fermentation of the juice received as a result of the dilution of pear juice or concentrated pear juice, or a mixture of such juices. Upon preparation of perry, it is permitted to add limited quantities of apple juice, sugar, water and sugar products before or after fermentation, and of concentrated pear juice after fermentation. Perry may be carbonised by secondary fermentation or by adding carbon dioxide.

Non-alcoholic beverage is a beverage whose first four digits of the Combined Nomenclature are 2009, 2201, 2202

Fruit juices (including grape must) and vegetable juices, unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter, whose first four digits of the Combined Nomenclature are 2009;

Waters, including natural or artificial mineral waters and aerated waters, not containing added sugar or other sweetening matter nor flavoured; ice and snow, whose first four digits of the Combined Nomenclature are 2201;

Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured, and other non-alcoholic beverages, whose first four digits of the Combined Nomenclature are 2202.

NB! Not subject to a deposit

Syrup is concentrated juice defined by tariff headings 2106 or 1702 of the Combined Nomenclature depending on the addition of flavourings and additives; syrup does not belong to the category of non-alcoholic beverages and is not subject to a deposit.

3.3. Deposit emblem or the EPP deposit emblem

The deposit emblem is the intellectual property of EPP. The EPP deposit emblem must not be used without a legal basis. A deposit emblem on a package indicates that the Packaging Company belongs to the EPP system and has, pursuant to § 16 (2) of the Packaging Act, transferred its obligations under the Packaging Act to EPP. All Packaging Companies that have joined the EPP system must ensure that their packaging is duly marked with a deposit emblem. The deposit emblem shall indicate the amount of deposit for the package, as established by a regulation of the Minister of the Environment pursuant to § 21 (5) of the Packaging Act, which is marked by a letter according to the rotations and material of the package. According to Regulation No. 26 of the Minister of the Environment of 11 June 2009, the deposit emblem is a rectangle with a minimum height of 15 mm for non-refillable packaging and 17 mm for refillable packaging and a minimum width of 9 mm. The dimensions of a deposit emblem may be increased proportionately. The colour of a deposit emblem shall follow the colour of the text and other graphic markings on the packaging and shall be distinguishable from the background colour. The deposit emblem shall bear the image of a bottle with an arrow, a letter signifying the class of packaging, and a frame.

NB! It is prohibited to apply the EPP deposit emblem on packaging sold EXCLUSIVELY outside Estonia.

Images of the deposit emblem:

non-refillable plastic package of up to 0.5 litres:

non-refillable plastic package larger than 0.5 litres:

non-refillable metal package:

non-refillable glass package:

refillable glass package:

The image files are available from the EPP website: http://eestipandipakend.ee/en/documents-and-layout-files/.

The amounts of deposits are provided in the price list.

3.4. Registration of packaging

Please fill in an online registration application to register packages in the packaging registerof EPP: http://eestipandipakend.ee/e-keskkond/ (selection “Registration of packages”, Figure 15).

Figure 15. Application for registration of packages on the EPP website

The following fields of the application have to be filled in:

EAN;

EAN type

Package with a unique code: a unique country-specific barcode marked on the

package by the Packaging Company to identify a domestic package. A unique code

may be applied to domestic packaging only (packaging placed on the Estonian market

exclusively);

Package with a universal code: a universal barcode marked on the package by the

Packaging Company, which is not a country-specific code. A universal code may be

applied to packages sold both domestically and abroad with the same barcode;

Product name

Product category - choose the product category from the list (beer, cider, other alcoholic

beverage up to 6%, water, juice, energy drink, other nonalcoholic beverage);

http://eestipandipakend.ee/en/documents-and-layout-files/


Type of package - choose the type of package from the list (A_PET kuni 50cl, B_PET üle 50cl,

C_CAN_teras, C_CAN_alumiinium, D_ühekordne klaas (OWG), D_klaas-korduv);

Volume - enter the volume of the product (cl);

Weight - enter the weight of the empty package (package with cap);

After the online submission of the application to EPP, you have to send physical package samples to EPP at least four weeks before placing the package on the market. Send five physical samples of each article of packaging. (Samples, as they will be placed on the market.) Experience shows that if EPP has previously approved the label layout for the package and there are no problems with print quality, a package can be ready for sale as soon as 2–3 weeks after sending the physical package samples to EPP.

Once a sample package has been received by EPP, it will be checked visually by EPP using gauges issued on the basis of the GS1 international standard. EPP has the right to decide whether or not the package will be subjected to testing by GS1 Estonia, because EPP is able to perform an initial check.

Testing of packaging by GS1 Estonia (the test covers the size, legibility, contrast, and placement of the barcode):

Figure 16. Testing of packaging by GS1 Estonia

3.4.1. If a package passes the test

After testing by GS1 Estonia, EPP will forward the test results to the client. If the test is passed, the Packaging Company will be informed by e-mail, indicating the date from which the Packaging Company may place the package on the market. If the package that passed the test does not bear a deposit emblem, it has to be ordered from EPP. Security stickers are pre-printed, so all you need to do is place a purchase order for the required amounts of various deposit emblems. It is prohibited to print deposit emblems yourself, as added deposit emblems have special security attributes.

After passing testing by GS1 Estonia, the reverse vending machines (RVM) are set up so that all the RVMs in Estonia are ready to accept the package. An RVM compares the EAN and the package shape, which is why RVM operators need a physical sample, which they get from EPP (as EPP has been supplied by the Packaging Company with five physical samples of each barcoded package).

3.4.2. If a package fails the test

If a package fails testing by GS1 Estonia, the Packaging Company is promptly informed by e-mail that the package failed the test and cannot be placed on the market in its current form, as it cannot be returned via RVMs. EPP offers the solution of adding a standard EAN sticker to the product.

There are three types of stickers: if the manufacturer has already included the EPP deposit emblem in the label,

but the EAN does not comply with the applicable standard, it is possible to fix a new EAN sticker that covers the old EAN (Figure 18);

if the package does not bear the EPP deposit emblem and the EAN does not meet the standard, the Packaging Company can order a sticker with the EPP deposit emblem and a standard EAN (Figures 17 and 19);

if the package does not bear the EPP deposit emblem, the EAN does not meet the standard and the label also needs Estonian text, you can order a suitably sized sticker from EPP (Figures 20 and 21).

The stickers are printed on moisture-proof and lightproof film-like material (RP White) so that the text and EAN on the sticker do not fade or smudge upon contact with moisture.

Figure 17. Sticker 30 x 40 mm Figure 18. Sticker 40 x 18 mm Figure 19. Sticker 30 x 40 mm

Figure 20. Sticker 50 x 60 mm Figure 21. Sticker 68 x 38 mm

Registration of packaging in the packaging register of EPP is subject to a fee, as about 500 RVMs have to be updated with the addition of each new package. The security stickers and additional stickers with a standard EAN are subject to a fee. The fees are specified in the price list.

NB! IT IS PROHIBITED TO PLACE ON THE MARKET (INCLUDING GIVE AWAY FOR FREE OR FOR PROMOTIONAL PURPOSES) PRODUCTS SUBJECT TO A DEPOSIT ACCORDING TO LAW BEFORE THE PACKAGE HAS BEEN REGISTERED WITH EPP. The marketing of an unregistered package on the Estonian market will result in a penalty pursuant to clause 5.2.3 of the EPP Agreement with Packaging Company (P).

3.5. Requirements for packaging

Figure 22 Requirements for packaging

Cap

Liner

Cork

Lid Label Label

Package Package

Package

METAL PACKAGE GLASS PACKAGE PLASTIC PACKAGE

3.5.1. Metal package

MANDATORY RECOMMENDED

Met

al p

acka

ge (

CA

N)

size/shape • height: 80-200 mm • diameter: 50-100 mm • 0.1 litres<volume>3.0 litres

• The package should be symmetrically rotatable around its axis, i.e. round. An angular package would jump when rotated and the barcode would be difficult to read. Rotation around the axis is also affected by the height of the main part of the package relative to rest of the package – i.e. the centre of gravity of the package should be such that the package does not go out of balance when placed horizontally (a neck that is too long will cause imbalance).

• External added details, which are part of the package (handles, etc.) make it difficult or impossible for such packages to be crushed and move through the RVM. The height of the main part of the package relative to the rest of the package, and large variations in the package diameter also have an effect on how the package passes through the RVM.

Material – metal package

• package material: aluminium, steel

• The density of crushable package materials has an effect on the lifecycle and performance of the machines that handle them.

• The recommended density of packages (package weight (g) / volume (cl) ratio): Packages <50 cl packages – ratio of 0-0.8 Packages >50 cl – ratio of 0-0.4

Material – lid and bottom

• lid and bottom material: aluminium, steel

Label • label material: paper, OPP, PE, PET. The surface must not be rough (complicates EAN reading)

• label glue: detaches when washed at +70°C

• sleeve material: PE, OPP, PET

Deposit emblem

• C – non-refillable metal package, all volumes

• Placement: must not be on the lid, bottom, or rim (it must be on a smooth surface)

• It is recommended to place the deposit emblem in the immediate vicinity of the barcode.

EAN • Placement: vertical in relation to the package, unless the EAN has a 100% enlargement ratio, in which case the EAN may be placed horizontally.

• Size: minimum enlargement ratio 80%, unless the EAN is is placed horizontally on the package, in which case the enlargement ratio must be 100%.

• Each new label design should be checked by EPP prior to printing to make sure that all EAN requirements of EPP have been met.

• The recommended enlargement ratio for an EAN is not more than 115%.

Figure 23. Requirements for metal packages

3.5.2. Glass package


Gla

ss p

acka

ge (

OW

G)

size/shape • height: 85-380 mm • diameter: 50-130 mm

• 0.1 litres<volume>3.0 litres


• External added details, which are part of the package (handles, etc.) make it difficult or impossible for such packages to move through the RVM. The height of the main part of the package relative to the rest of the package and large variations in the package diameter also have an effect on how the package passes through an RVM.

Material – bottle

• package material: glass

Material – cork • cork material: PET, PP, PE, metal




Deposit emblem

• D – non-refillable glass package, all volumes

• D refillable glass – refillable glass package, all volumes

• Placement: must not be on the cork, bottom, or rim (i.e. the deposit emblem must be on a smooth surface). Other placements are allowed.



• The EAN must not be at the place where the label edges are glued together.

• Size: minimum enlargement ratio 80%, unless the EAN is on the neck of the bottle and the EAN is placed horizontally on the package, in which case the enlargement ratio must be 100%.

• Each new label design should be checked by EPP prior to printing to make sure that all the EAN requirements of EPP have been met.


Figure 24. Requirements for glass packages

3.5.3. Plastic package


Pla

stic

pac

kage

(P

ET)

size/shape • height: 85-380 mm • diameter: 50-130 mm

• 0.1 litres<volume>3.0 litres


• External added details, which are part of the package (handles, etc.) make it difficult or impossible for such packages to move through the RVM. The height of the main part of the package relative to the rest of the package, and large variations in the package diameter also have an effect on how the package passes through an RVM.

Material – bottle

• package material: PET • The density of crushable package materials has an effect on the lifecycle and performance of the machines that handle them.

• The recommended density of packages (package weight (g) / volume (cl) ratio): Packages <50 cl – ratio of 0-0.8 Packages >50 cl – ratio of 0-0.4

material – cap, liner

• cap/liner material: PET, PP, PE




Deposit emblem

• A – non-refillable plastic package up to 0.5l (inclusive)

• B – non-refillable plastic package larger than 0.5l

• Placement: must not be on the cap, bottom, or rim (i.e. the deposit emblem must be on a smooth surface). Other placements are allowed.



• The EAN must not be at the place where the label edges are glued together.

• Size: minimum enlargement ratio 80%, unless the EAN is on the neck of the bottle and the EAN is placed horizontally on the package, in which case the enlargement ratio must be 100%.

• Each new label design should be checked by the EPP prior to printing to make sure that all the EPP EAN requirements have been met.


Figure 25. Requirements for plastic packages

3.6. Requirements for barcode on the package

By singing the Agreement (P) with EPP, the Packaging Company agrees to ensure the compliance of the EAN or barcode on the package with the specifications and standards established by GS1 Estonia MTÜ.

The objective of the non-profit association GS1 Estonia is to enable the issue of barcodes complying with the requirements of the international GS1 organisation (GS1 aisbl).

The main activities of MTÜ GS1 Estonia are:

issue of barcodes (EANs) to legal and natural persons registered in Estonia; maintenance of the GS1 product register; advising and training in barcodes; introduction of the international GS1 system and its standards, offering

better business solutions; improvement of the supply chain management by reducing costs and/or

adding value to both products and services.

Reverse vending machines (RVM) read the EAN on the package and compare it to the shape of the package. A standard EAN is the basis for the smooth return of packaging via RVMs.

3.6.1. EAN13 barcode

The EAN13 code must correspond to an enlargement ratio of at least 80% of the original (Figure 26) (this is the smallest allowed size) and be placed vertically on the package (Figure 27). Packages are allowed to have a horizontal EAN13, but in such case the enlargement ratio of the EAN13 code must be at least 100%.

Below is the smallest allowed size for the EAN13 code (enlargement ratio of 80%).

Figure 26. EAN13 with an 80% enlargement ratio (mm)

vertical placement horizontal placement

Figure 27. Placement of EAN13 on the package

Barcode width INCLUDING the white areas

Barcode height

Left white area Right white area

Barcode width (from the first to the last black bar)

It is recommended to use an enlargement ratio of 100% if space allows. Below are the

dimensions of an EAN13 code with an enlargement ratio of 100% (Figure 28).

Figure 28. EAN13 with a 100% enlargement ratio (mm)

Other enlargement ratios above 80% are allowed, e.g. 85%, 90%, up to 115%. An enlargement ratio over 115% is not recommended, as it would be too large for RVMs, which may have problems reading the EAN.

Various allowed enlargement ratios and their exact dimensions are presented in the Table below. ENLARGE- MENT RATIO

left white area (x 11)

right white area (x 7)

EAN13 barcode width INCLUDING white areas

EAN13 barcode width from the first to the last black bar

EAN13 height

80% 0.264 2.904 1.848 29.83 25.08 20.73

85% 0.281 3.091 1.967 31.7 26.64 22.02

90% 0.297 3.267 2.079 33.56 28.21 23.32

95% 0.313 3.443 2.191 35.43 29.80 24.61

100% 0.33 3.63 2.31 37.29 31.35 25.91

105% 0.346 3.806 2.422 39.15 32.92 27.21

110% 0.363 3.993 2.541 41.02 34.49 28.5

115% 0.379 4.169 2.653 42.88 36.06 29.8

3.6.2. EAN8 barcode

The EAN8 code must correspond to an enlargement ratio of at least 80% of the original (Figure 29) (this is the smallest allowed size) and be placed vertically on the package.


Barcode height



Packages are allowed to have a horizontal EAN8, but in such case the enlargement ratio of the EAN8 code must be at least 100%. Below is the smallest allowed size for the EAN8 code (enlargement ratio of 80%).

Figure 29. EAN8 with an 80% enlargement ratio (mm)

It is recommended to use an enlargement ratio of 100% if space allows (Figure 31). Below are the dimensions of an EAN8 code with an enlargement ratio of 100%.

Figure 30. EAN8 with a 100% enlargement ratio (mm)


Barcode height




Barcode height



Other enlargement ratios above 80% are allowed, e.g. 85%, 90%, up to 115%. An enlargement ratio over 115% is not recommended, as it would be too large for RVMs, which may have problems reading the EAN.

Various allowed enlargement ratios and their exact dimensions are presented in the Table below. ENLARGE- MENT RATIO

left white area (x 7)

right white area (x 7)

EAN8 barcode width INCLUDING white areas

EAN8 barcode width from the first to the last black bar

EAN8

height

80% 0.264 1.848 1.848 21.38 17.68 17.05

85% 0.281 1.967 1.967 22.72 18.79 18.11

90% 0.297 2.079 2.079 24.06 19.90 19.18

95% 0.313 2.191 2.191 25.39 21.01 20.24

100% 0.33 2.31 2.31 26.73 22.11 21.31

105% 0.346 2.422 2.422 28.07 23.23 22.38

110% 0.363 2.541 2.541 29.40 24.32 23.44

115% 0.379 2.653 2.653 30.74 25.43 24.51

3.6.3. UPC-A barcode

Figure 31. UPC-A with a 100% enlargement ratio (mm)

3.6.4. UPC-E barcode

Figure 32. UPC-E with an 80% enlargement ratio (mm)

3.6.5. Colours

The choice of colours is as important as the size of an EAN.

Below is a listing of allowed and prohibited colours for an EAN (Figure 33). Black bars are the best.

Figure 33. Recommended (BEST/YES) and prohibited (NO) colours for EANs

The best background is white. Below is a listing of allowed and prohibited background

colours for an EAN (Figure 34).

Figure 34. EAN background colours

3.6.6. IMPORTANT

The EAN must not be placed on a conical surface, i.e. the bottleneck, unless the EAN is vertical and has an enlargement ratio of 100%. It is difficult for RVM scanners to read the barcode from a conical surface;

The EAN must not be at the place where the label edges are glued together; The height of the EAN may be reduced to 15 mm. This means, for example, that

where the 80% enlargement ratio standard for EAN13 provides for 20.73 mm as the height of the EAN13, it may be reduced to 15 mm. Such reduction is allowed for all enlargement ratios with the exception of horizontal barcodes on glass packages. A horizontal EAN on a glass package must be at least 20 mm high (Figure 35).

Figure 35. Height of EAN (mm)

An EAN must not be lower than 15 mm because a scanner cannot identify a lower EAN without problems. Below is an illustration of how the rays of a scanner read an EAN (Figure 36).

Figure 36. Position of scanner rays

The material of the label must not be rough; The surface under the label should not be rough or uneven; A NEW EAN is always required whenever the material and/or volume of the

package is changed; A NEW EAN is always required whenever the shape and/or weight of the

package is changed by more than 20%; A new EAN is also required when e.g. a non-refillable glass package

becomes refillable or vice versa. A single type of package in terms of shape must not be used for multiple package groups. For example, if you have a certain shape of package (regardless of colour), it must not be used as a refillable and a non- refillable package at the same time;

A package must not have two different visible EANs;

In order to ensure problem-free package testing, it is highly recommended to

supply the EPP with the label design files. The design files should be sent

for approval to the e-mail: [email protected] EAN of a glass package must be changed if the colour of the package is

changed.

3.7. Special packages

Any packages not complying with the requirements of clause 3.5 of the EPP Handbook are considered by the EPP to be special packages. The EPP reserves the right to make exceptions.

3.8. Reporting

The Packaging Company shall submit to the EPP a sales report (Figure 37) for every calendar month, indicating the quantity of packages placed on the market in the Republic of Estonia by the Packaging Company during the previous calendar month (specifying the quantities for each article of packaging with the respective barcode). NB! The sales report shall include information on packages that: the Packaging Company has written off; are past the best before date; the Packaging Company has utilised for its own use; have been used for promotions; have been given away as gifts.

mailto:[email protected]

Figure 37. Sales report form for online submission to the EPP

Sales reports are submitted online on the (http://eestipandipakend.ee/e-keskkond/) by the

7th day of the following month.

3.9. FAQ

1. How much does it cost to register a package? The package registration fee is indicated in the price list.

2. What to do if a package fails the test? If a package fails the test the barcode has to be covered with a sticker bearing a standard barcode.

3. Where can the EPP deposit emblems be ordered? If a package does not have an EPP deposit emblem, such emblems with special security attributes can ONLY be ordered from the EPP. It is prohibited to print deposit emblems yourself.

4. How much does it cost to join the system? The fee is specified in the price list.

5. What are the rates of excise duty on packaging? Excise duty is applicable to packaging of goods placed on the market in Estonia and

packaging acquired and imported from other EU Member States. According to § 111 of the Packaging Excise Duty Act, payers of excise duty may transfer the obligations provided by the Packaging Excise Duty Act by written contract to a recovery organisation. If a payer of excise duty has not transferred its obligations to a recovery organisation, the taxable period for excise duty is the calendar quarter.

The following are fully exempt from excise duty: packaging concerning which a deposit has been established by the Packaging Act, except

metal packaging of beverages, and from which at least 85% of each class of packaging shall be recovered;

metal packaging of beverages from which at least 50% shall be recovered;


other packaging recovered to the extent provided for in § 36 of the Packaging Act.

Excise duty rates per quantity of packaging: Taxable packaging Excise duty rate in EUR per kg

1) glass and ceramic 0.6

2) plastic 2.5

3) metal 2.5

4) paper and cardboard, cardboard products

including composite 1.2

5) other 1.2

6. Where can the EPP deposit emblem be placed on a package? The EPP deposit label must be placed on a package so that it is visible to consumers. It must not be placed on the bottom and/or cap of the package or on the EAN.

CONTACTS

Customer Service:

telephone: 647 0010 mobile phone: e-mail:

516 1219

[email protected]

Accounting: telephone: e-mail:

647 0015, 647 0017 [email protected]

Registration of packaging: telephone: e-mail:

647 0010

[email protected]

Contracts: telephone:

e-mail:

647 0010

[email protected]





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