New: Kite’s Packaging Regulations Division donates £1,000 to Coventry Cyrenians
Kite’s Packaging Regulations team has selected Coventry Cyrenians as our nominated charity to support in 2018.
Read below for more details
Packaging Regs - Kite’s Packaging Regulations Division donates £1,000 to Coventry Cyrenians
Kite’s Packaging Regulations team has selected Coventry Cyrenians as our nominated charity to support in 2018.
Coventry Cyrenians do amazing work: they provide individualised support to promote and enhance the life chances of people in Coventry
and Warwickshire who are homeless, or at risk of homelessness, empowering them to live as independently as possible.
They support vulnerable adults by providing shelter & support through numerous hostels they manage throughout the city.
Two of Kite’s team were fortunate enough to meet support workers from the charity and a person they have helped within Coventry.
We were welcomed in to one of their residential properties and were given the opportunity to speak with someone who had been helped and supported by the charity.
There are always triggers of why people end up on the streets such as relationship breakdowns, job loss, abuse and addiction.
People facing this need help, support and to be listened to, rather than ignored and left to deal with the consequences of living on the streets such as; gangs, drugs, violence and abuse.
We learnt that people living on the streets just want to be treated as human beings like everyone else. Being homeless is devastating,
dangerous and isolating so sometimes just having a conversation can help, rather than being ignored or worse.
The traditional view of homelessness has tended to focus on negative stereotypes and the charity tries to break these down.
To improve the lives of homeless people the charity focuses on understanding the underlying issues an individual may have.
By doing this they can provide the best support plan, whist providing shelter with the aim of helping people to get back on their feet and with a home to call their own.
The person we met couldn’t thank the charity enough; having shelter and feeling safe at night is transformational when you have been
subject to the horrific world of homelessness.What makes the charity special is how they rebuild lives to make sure people don’t end up in
the same circumstances in the future.
Coventry Cyrenian’s are a fantastic charity, which we are proud to support. We hope our donation and this article will raise awareness
of the real problems on our doorstep so that others can help too.
Packaging Regs - Make a Date with Kite
Let Cupid shoot his arrow and inject a bit of love back into your life.
Whilst dealing with the Packaging Regulations is not all hearts and flowers we can make the process as simple as possible so you come up
smelling of roses. Whatever issues you may encounter, our team of experts can help. With over 14 years of experience there are
few problems we haven’t encountered and solved through our love of the Regulations.
Are you having trouble with calculating your obligations? We can help. We pride ourselves on our one to one service.
We also offer a beginning to end service from assessing your company’s obligated packaging, to crunching the numbers required for
your annual data submission, purchasing your PRNs and submitting everything to the Environment Agency.
Whether you are looking for a little bit of help or management of the whole process, then Kite Environmental Solutions is the
Compliance Scheme for you. Once on board with us we assign a dedicated Account Manager who will help, guide and support you.
They will get to know your business leaving no stone unturned, it’s like a match made in heaven.
Regardless of whether you are registering directly with the Environment Agency or using any other compliance scheme, our door
is always open. We will tailor our service to your needs…a blossoming romance in the making!
In 2017 we were rated as ‘Excellent’ in an audit conducted by the Environment Agency. We are extremely proud of this achievement.
We hope this proves that the team at Kite Environmental Solutions LOVE what we do and would LOVE to help you.
Call us today on 02476 420080 - we’d love to be your significant other!
A Desirable WIN WIN
Reduce your packaging and your PRN obligation under the Packaging Regulations with Kite’s Winning Approach.
The Producer Responsibility Obligations (Packaging Waste) Regulations 2007 are a legal obligation that operates like a tax on
companies that handle over 50 tonnes of packaging per year and have more than a £2 million turnover .
Affected companies are legally required to register which is usually through a Compliance Scheme such as Kite. The level of tax you
must pay is dependent upon the weight of packaging handled, so reducing this weight will reduce costs.
According to a recent survey by the online marketplace Clouder, 70% of consumers say online retailers use too much packaging and
46% of these said they received packaging that was difficult to dispose of.
The survey also showed that 62% of shoppers would view a retailer more positively if they made an effort not to over use packaging.
This is where the Kite Group with Kite Environmental Solutions as its Government Accredited Compliance Scheme and
Kite Packaging as its packaging distribution business, can really help.
Reducing your packaging reduces your packaging tax bill and keeps your customers happy: A very desirable WIN WIN.
Packaging Regulations Contact: 02476 420080 or email@example.com
Packaging Products contact: 02476 420065 or firstname.lastname@example.org
Companies Pay £3,500,000 for failing to comply with the Packaging Regulations
UK businesses have paid over £3.5mil since 2011 for breaching the Packaging Regulations.
The rules mean that any UK company with a turnover >£2mil needs to assess how much packaging around goods that they have placed onto the UK
market as a result of their business activities. If this packaging exceeds 50 tonnes a year, then companies must pay a levy (green tax),
which is used to fund recycling of packaging waste.
The Packaging Regulations were introduced in 1997 to reduce the amount of packaging waste heading to landfill. The tax levied on business
is calculated depending on the weight of packaging, by material type that a company ‘places’ onto the UK market during a calendar year.
The amount of tax due also depends on the activities performed on the packaging. Companies can be a manufacturer of packaging; a convertor
of packaging; a packer/filler of packaging and a seller of packaging around goods. Each separate activity attracts a % of the overall tax;
although this is further complicated if a company imports raw materials, components or finished goods into the UK.
The majority of companies join a Packaging Compliance Scheme and one of the UK’s leading schemes is Kite Environmental Solutions.
Unfortunately, many companies approached by Kite are unaware of the Regulations and that they might be affected. This then leads to the
question – what to do about the previous years?
Kite’s team of specialists have championed a remedy for this under the Civil Sanction rules which were introduced by the Environment Agency in 2011.
These rules enable companies to do an ‘Enforcement Undertaking Offer’ to wipe the slate clean for any years of missed registration. Prior to
this the only enforcement tool that the Environment Agency could use was to prosecute companies through the courts.
Enforcement Undertakings are designed to level the playing field, by enabling companies to own-up to having missed registration in previous years and
to settle outside of the courts. The process involves assessing the registration and levy costs a company avoided by not registering each year and
then offering to pay 110% of these costs to an Environmental Charity. This can be a minefield which is why Kite prepares, submits and manages
these Enforcement Undertaking offers on behalf of its Members.
Where the Environment Agency approaches a business about previous year’s non-compliance then companies may be asked to submit a ‘reactive’
Enforcement Undertaking offer. In these circumstances the offer must be 130% of the avoided costs. Since 2011 the majority of the
offers have been reactive (64%) implying the Environment Agency found the company not to be compliant. Kite however has been far more positive
in helping companies, with 100% of its Enforcement Undertakings being ‘proactive’ reducing the costs to its Members via the lower cost, 110% route.
Kite’s advice is simple: All affected companies should get registered as quickly as possible and Kite specialises in helping companies understand how the
Regulations affect them through to completing the annual data assessments on their behalf. If following registration a company should have registered in
previous years then Kite’s Enforcement Undertaking team can prepare all the necessary documentation and calculations to get your business back to being compliant.
If you would like confidential advice about the Regulations and how they may affect your business, call the team on 02476 420 080 – one of our specialists will be pleased to help you.
Kite is an employee-owned business – depend on us.
Not sure where you stand? – Don’t be shy, ask us if you need to comply!
Although Brexit and the General Elections might be causing some uncertainty, the Packaging Waste Regulations remain a legal
responsibility companies must adhere to.
They are effectively a packaging tax used to fund recycling; they will apply to you
if you meet the following tests:
UK Registered Company
Annual Turnover >£2million
Handle >50 tonnes of packaging annually
The turnover figure will be based on your last accounts submitted to Companies’ House.
To handle packaging means you are putting any form packaging onto the UK market either as a product or as something surrounding the goods.
This affects companies more than they think, so it is always worth checking!
If you meet the tests and do need to get registered, doing your packaging tax return can be taxing.
The good news is help is at hand, at Kite we can assess if you are affected and if you’re not, at least you’ll have peace of mind.
So don’t be shy, give us a call on 02476 420080 and one of the team will give you the help and advice that you need.
Meet the team at Kite Environmental Solutions:
Kite is an employee owned business – depend on us to look after you.
Missed the Deadline?
The deadline to register your business for the Packaging Regulations passed on the 7th April 2017.
What happens if you missed the boat?
Producer Responsibility Obligations (Packaging Waste) Regulations 2007 and amends affects companies with a turnover >£2mil and who
place packaging on to the UK market as packaging product or as packaging around goods.
There are two things you need to know:
Firstly, if your company is legally obligated to register, it is now in breach of the Regulations and therefore subject to enforcement
action from the Environment Agency.
Secondly, all is not lost – you can still register your company with a Compliance Scheme such as Kite’s, but similar to a late HMRC
tax return, there is a late fee now due.
To avoid enforcement action, your company needs to press on with assessing the amount of packaging it has placed on to the UK market.
This assessment must stand up to an Environment Agency audit and Kite’s government accredited Compliance Scheme focuses on completing
assessments for companies to give you total peace of mind.
So don’t worry if you missed the deadline – it happens to the best of us. Simply call one of us on 02476 420080 and our
team will give you the help and advice you need.
Meet the team at Kite Environmental Solutions:
Kite is an employee owned business – depend on us to look after you.
Cinderella's Letter to Santa
I hope that this letter finds you well.
This year has been like the others, my ugly sisters have shown me no kindness and my step mother has been nothing but difficult.
As you probably know, they get me to do all the paperwork for their business venture, as they are too lazy. By the way between us,
I think it is utterly ridiculous, who would want to buy magic mirrors with their faces imprinted on them?
I’ve had great difficulty with the Packaging Regulations in 2016. What with the growth in sales, hitting targets and looking after
our customer’s needs, I didn’t have time to really focus on getting to grips with what I should be doing. Data submission was horrendous;
I spent days and days trying to complete the assessment.
To top it off I was audited by the Environment Agency and they said we had to resubmit because the figures were incorrect. Mother and
my sisters were not very happy and didn’t let me go to the Summer Ball, which I think was really mean as I really felt this was the year
I would meet my Prince Charming.
Santa you’re my last resort, this year I’m not asking for anything else on my wish list, just please, please, please take the stress
away and help me get it correct. I really want to go to the ball next year.
P.S. Milk, mince pies and carrots for you and Rudolph will be by the chimney.
Far Far Away
I hope you are well my child and your family are treating you better.
We here in Santa HQ, are also busy throughout the year getting all the presents ready for the children of the world.
The Packaging Regulations aren’t really something I personally get involved in – too many presents to think about, but our
head elf Bernard sorts it all out for me. I really need him… can you can image how much packaging I’m putting into the UK!!
Elf Bernard informs me that we use Kite Environmental Solutions to help with our data assessment - the team are so friendly and will
help anyone in need. He really trusts their advice… apparently we have to include all that wrapping paper as well!
Give them a call on 024 76 420080 and don’t worry, with their help you’ll get to your summer ball where I’m sure your Prince
Charming will be waiting for you ;) .
Have a lovely Christmas and try not to worry too much my dear, Kite will help you :).
Lots of love
p.s. I’ll leave you a little something to cheer you up!
Get a Free Health Check for your company
With the flu season upon us, the last thing your need is for your company to catch an unexpected cold by failing to comply with the Packaging Regulations.
Here, prevention is definitely better than cure. The big problem is that many companies don’t know what the Packaging Regulations are and that they might be
affected. In short, they are a packaging tax affecting companies who have a turnover above £2million and who buy and sell goods surrounded by packaging
(which may be anything from aerosols, a cardboard box, through to a pallet).
To help you avoid catching an unexpected cold why not ask Kite Enviornmental Solutions to give your business a free ‘Packaging Regulations’ health check:
Our experts can examine your business to see if it is likely you will be affected.
Based on the examination if you are affected we arrange to meet up and explain in detail what the Packaging Regulations are and how they specifically affect your company.
Kite can assess your packaging tax liabilities and submit them to the regulatory body (The Environment Agency) to ensure you meet your legal obligations. You know your business
and Kite knows the Packaging Regulations, together we can keep this aspect of your business in good health.
“How Packaging Compliance helps businesses to be more profitable and efficient as well as being green.”
Increase profitability and efficiency as well as becoming greener through complying with the Packaging Regulations. The Regulations force
businesses who handle goods surrounded by packaging to pay a green tax, which is used to fund recycling of packaging waste. The short
term costs of Compliance are apparent, but what can sometimes be overlooked are the long term positive effects.
Compliance and Regulations are often met with resistance, however embracing these issues head on can have underling benefits to a companies
finances and efficiency, as well as their environmental stance. One of the most overlooked legislations within the UK is compliance with
the “Packaging Regulations”. Although the infrastructure for complying to the Packaging Regulations can be questioned, its overall
intentions are clearly positive and have real benefits to our environment.
A deliberate benefit that has arisen from complying with the Packaging Regulations is that more thought is now being given to into the
amount of packaging that companies are introducing to the UK system. In the past many organisation's have leant towards over packing
goods to ensure that they minimise damage in transit, or to improve presentation. Now, knowing that they themselves will have to bear
the cost of recycling, they think twice about the implications of over-packing.
Profitability & Efficiency
An understandable concern for many businesses when having to comply with the Packaging Regulations can be costs and the effect that it
will have on profitability; however these costs can be outweighed by the long term benefits.
Due to the nature of the Regulations, businesses are required to assess the amount of packaging that they are handling. Under the
Regulations the more packaging the business introduces into the UK system, the more of a levy they will have to pay. This has given
businesses the opportunity to examine their packaging usage. By imposing a financial incentive, companies such as Heinz and Marks &
Spencer's have used the Regulations to reduce the amount of packaging they use.
Heinz wanted to reduce the amount of steel packaging they used for their baked bean cans. By redesigning their packaging they were
able to reduce 1,400 tonnes of steel used. This not only reduced their compliance costs but also global production costs of
approximately £500,000. (DEFRA, 2009)
There are other factors that strengthen profitability. Taking into consideration the supply chain for the production of packaging
products, the use of recycled materials will help to reduce the raw material costs used in the manufacture of packaging. These cost
savings can be reaped by businesses along the supply chain.
Approaching the Regulations head-on can also benefit a business in the eyes of their customers. Companies that have an environmental
policy or go as far as being accredited for environmental management, i.e. ISO 14001, place themselves in a prime position for
business growth by leveraging their green credentials.
Compliance also aids in increasing efficiencies within a business. Northern Foods found that by redesigning the packaging around its
Goodfella’s pizza range it was able to reduce 4,000 tonnes of transit packaging. This subsequently allowed the company to reduce its
transport miles and also lead to a reduction in damages by 75%. (DEFRA, 2009)
Redesigning packaging to be environmentally friendly has been a key feature for Kite Packaging. Kite have helped businesses to not
only reduce their environmental impact, but also make cost savings in the thousands through its innovations. A prime example of this
is the Enviro-box range which uses less paper and allows twice the amount of cartons per pallets. This equates to 8.5 million tonnes
of paper and pulp saved, 2.9 million tonnes of timber saved and 3,835 trucks being taken off the road! Another environmental benefit
gained includes a 30% reduction of co2 emissions.
The Green Tax
As much as profitability and improving efficiencies is high on the agenda to businesses, the primary aim of the Packaging Regulations
is environmental sustainability. The Packaging Recovery Note (PRN) system is a key feature of reducing the amount of packaging waste
within the UK. Complying with the Regulations instructs companies to purchase PRNs, depending on the amount and types of packaging
materials that they handle. The arrangement of the PRN market allows for the cost of recycling to be funded by businesses based on
how they handle packaging. Unlike other “taxes” that business will pay, PRNs directly fund the waste infrastructure to increase the
amount of recycling and recovery that is taking place in the UK.
The initial negativity surrounding Compliance is often founded on preconceptions regarding cost and inconvenience. However, there are
many direct benefits that businesses can experience through Compliance. One being the creation of opportunity for production innovation
and smoothing out inefficiency within your business. Environmental concerns can also be positively impacted. Although there are
costs to begin with they can be repaid in the long term if businesses embrace Packaging Compliance face on.
Packaging Regulations Workshop
Kite Environmental Solutions are delighted to offer a workshop specifically on the Packaging Regulations, focusing on those businesses that are
already registered and looking for ways to improve and streamline compliance.
For those with experience with the Regulations it is an excellent chance to share some best practice and network with other businesses in and
around your area. And for those who want to learn more it’s a great way to develop their understanding of the Regulations. If you bring your
previous years Data Submission we are also offering a free review from one of our team.
The workshop will be delivered by the Managing Partner here at Kite Environmental Solutions, Andy Fay, at our offices in Coventry. The workshop
which will run for approximately 3 hours, on Wednesday 14th September, will cover the following:
The Packaging Regulations
The PRN markets
How they affect your business
And how Kite can help
Get a Free Review of your current Data Submission
Refreshments will be provided
We pride ourselves on ensuring our members identify and assess their handled packaging correctly. This ensures they do not over-obligate
themselves and significantly reduces the risk of failing an Environment Agency audit.
Our Scheme which has been rated excellent provides a comprehensive service to all our members from the initial contact with a member to
completing your calculations, registering your data and buying your PRNs.
Being the only packaging company with our own Packaging Compliance Scheme, Kite can make complying with the Packaging
Regulations a lot simpler, more efficient and cost effective, by saving you time.
About Andy Fay
Andy Fay is the Managing Partner at Kite Environmental Solutions. He studied Automotive Engineering at Loughborough University
and has a Master of Science (MSc) in Business from Aston Business School. He has been with Kite since the start in 2001. In 2002 he
set up Kite’s Packaging Regulations Compliance Scheme to help our customers comply with what is essentially a complex ‘packaging tax’.
He was made a Managing Partner in January 2006.
Spaces are limited on our workshop so to reserve a place please give us a call and book your spot now.
Contact Andy, Ams, Dilesh, Rav or Ruth on 02476 420080
Why Kite can do a better job for you…
The secret to our success is we offer a service which is 2nd to none; we take care of our existing customers as well as new members,
to ensure we keep building on our prosperous relationships. Kite Environmental Solutions has a reputation for high quality, integrity
and innovation resulting from many years of building relationships with its members based on trust, mutual respect and solid advice.
Kite provides you with a dedicated team of experienced, intuitive packaging professionals. Our offerings extend beyond customer service to a
level of partnership where both sides work collectively to craft a bespoke service to fit your business.
Our service offering is different from any other compliance scheme on the market. Our team offers a collaborative, fresh and determined
approach which enables us to provide valuable strategic insights and direction to find the best solutions to even the most complex of
problems. But more importantly, into quickly finding cost effective solutions for companies to comply with the Packaging Regulations.
Our consultants use their problem solving skills daily to get companies compliant as quickly and efficiently as possible.
There are tons of perks to regularly using problem solving skills including: excitement, gratification, busy days and being creative
all to help our clients become compliant. We work closely in our team environment, with the opportunity to work with team members who
share interests, expertise, ideas, and work ethic behaviours similar (and different). Using problem solving skills daily creates the
perfect opportunity for bespoke solutions to expertise to help us manage our clients and operational efficiencies to meet our client’s
The main part of our consultant’s job is to meet with clients, consult on the Packaging Regulations, keep a communication flow between
clients & ourselves and have a hands on approach to data collection, getting members registered correctly and off setting their
Every day is very different we’ve all had awesome training to get things started off on the right foot, but the goal was to set
us up for success, so during this training we received the resources, knowledge, and tools to make us successful in meeting our
We as consultants are the experts, which means we are always learning and adapting to different industries and client requirements,
we hope that this enables us to develop relevant and successful ideas.
We conduct a collaborative audit, which includes on-site observation and analysis to provide you the best service possible. We get
to work with amazing clients of all sizes and from all types of industries.
Every client has different expectations, needs, audience, service, there’s no one specific type of client that we work with and
that’s why helping companies comply and develop bespoke solutions is exciting because every situation is different.
We support our clients as they develop their own strategies for the Packaging Regulations, if this something that you wish to
discuss please do not hesitate to give us a call on 024 76 420080.
The Packaging Regulations – Don’t leave yourself exposed!
With the Euro 2016 football tournament underway, fans are pretty excited by the prospect of their team reaching the finals and
maybe even winning. The last thing you need is a curved ball catching you unawares.
So what could knock the wind out of your sales and leave you and your business feeling bruised? It is of course the Packaging
Regulations, which fall into two camps – you have either never heard of them (like my sweep stake team) or you don’t really know
what they are. The bottom line is they are a legal requirement, they are essentially a tax and you will get penalised for not
registering your ‘Packaging Tax’ return should you need to.
The solution thankfully is simple. Get out of a defensive postion and make a game plan with our help.
Buy raw materials and components
Buy finished goods for resale, or
Buy packaging to add to goods
In less time than it takes for a footballer to recover from a tackle we can advise whether the Packaging Regulations affect you.
If they do, we’ll happily meet up to explain them to you and put together a strategy for how you can move forward.
Get in touch with the team today on 02476 420080 and Ams, Dilesh, Rav or Ruth will ensure you don’t get an unpleasant encounter with a curved ball.
Do your Packaging Regulations better, and feel great like Tom
Tom is one happy camper, he has completed his company’s assessment for the packaging Regulations and submitted it before the deadline.
Most important of all though he is confident that his data is accurate and will pass an Agency audit. All this has given Tom an
enormous sense of well-being.
Now, not being Tom isn’t a great feeling.
You might be relieved that you have submitted data before the deadline, but how confident are you that it is right? Might your
data be over, or under obligating your business? Neither is great. The first puts you at risk of enforcement action and the
second at risk of you over paying, by miscalculating the number of PRNs you need.
This might not be your fault; you’re busy, the Packaging Regulations are complex, but the result nevertheless is the same and it
feels like it’s out of your control.
What can you do?
Ensuring your data is accurate is the starting point; as every tonne of packaging handled by your company affects the number of
PRNs you need. But it’s sadly not that simple. You take a % of the packaging according to what your business does with it and
you need to assess all the packaging around imported raw materials, components and finished goods as well as the packaging you
buy to add to goods for despatch.
You therefore need a reliable, repeatable approach that ensures your data is accurate. Time too is important, which is why Tom
uses Kite Environmental Solutions.
Kite helps companies comply from start to finish, tailoring our help and support to your business. In essence we do most of
your packaging assessment for you, leaving you with time to focus on other parts of your business. This means accurate data,
less work and of course that enormous sense of well-being.
So don’t wait until the end of the year, get some well-being today and give the team at Kite a call. We’ll start you on the
road to feeling like Tom – one less thing to worry about.
“Turnover above Two”?
Jane McDonald was a fantastic MD,
And her business made bottles for the drinks industry.
There were large ones and small ones and thin ones and tall ones,
All produced by machine in her immaculately clean factory.
Now Jane was a smart girl and followed the rules,
She never wanted to be thought of as one of the fools.
Paying her taxes and every last bill,
To Jane was a pleasure – it gave her a thrill.
At night she slept easy, as sound as a pound,
Her conscious clear with her values profound.
But all was not well, little did she know
Jane really wasn’t in any position to crow.
There was one Regulation she just simply didn’t see,
The Packaging Regs which affect you and me.
One day an Officer knocked at the door,
Poor Jane jumped with fright, her feet left the floor!
The officer said, ‘listen here, look you’,
Your company must pay a tax if your turnover is above 2 (£2mil)
But Jane just couldn’t figure out what the Packaging Regs meant,
She needed some help, perhaps heaven sent?
So she called a nice bunch from Kite Environmental
Who assessed her obligations, they were ever so gentle.
Jane with Kite’s help is once again a happy bunny,
As failure to comply is never, ever very funny.
"Got your Ducks in a Row?"
January has flown by and so will the next 11 months of the year, so now is absolutely the right time to get your ducks in a row and ensure that you are aware of all the legislation
affecting your business. One piece of legislation frequently over-looked is the Packaging Regulations.
There are certain conditions a business needs to meet before they are affected by the Packaging Regulations:
1) Be a UK registered business or have a UK presence, so this can mean a single employee in the UK
2) If your company has a turnover over £2 million and
3) You purchase goods surrounded by packaging and/or add packaging to goods.
The Packaging Regulations cover all the packaging that comes in around your goods, the packaging you purchase to add to goods and any packaging supplied on to your customers.
This can include all the material types and anything used for the containment, protection, handling, delivery or presentation of goods.
So what does this mean in practice?
Companies who meet the criteria above have to assess and submit an annual ‘Packaging Tax’ return.
But it’s not as simple as that, understanding all the permutations of the Packaging Regulations can mean that gaining expertise in this area can take a lot of time.
This is where Kite can help.
We can take the stress out of understanding what is obligated packaging and whether a company needs to submit a ‘Packaging Tax’ return. Kite can help you gain an understanding of
the Packaging Regulations and work with you to develop a bespoke data assessment system to collect the right information first time; saving you a lot of time and ultimately money.
Now is the time to get you ducks in a row and a great place to start is give Kite’s team of experts a call to help you understand the Packaging Regulations and what you need to do.
Contact Andy, Ams, Dilesh, Rav or Ruth on 02476 420080
“Get off on the right foot for 2016”
For many, New Year is a time to start a-fresh, to take forward the positive aspects from 2015 and to tackle new challenges with a renewed enthusiasm and energy.
So why not kick start the New Year and get off on the right foot by making sure that your company is complying with the Packaging Regulations, a tax that many companies are
totally unaware of and yet a legal obligation.
But what is considered as packaging? We all view packaging as something different. In short, in terms of how the Regulations define packaging, its easier to say what isn’t.
Essentially freight containers and lorries are not considered packaging. Which leaves everything else, from an aerosol, a pallet, a presentation box, a carrier bag, all the through to
a cardboard box as packaging.
This of course makes life a little tricky. How do you calculate a packaging tax liability on so many different packaging types and materials?
Well the good news is you don’t have to, this is exactly where Kite can help. We help you understand the Packaging Regulations, how they affect your business and what you need to do to comply.
In addition, like your most comfortable pair of shoes, we’ll tailor our help to meet your needs.
So get off on the right foot in 2016 with Kite’s help and we’ll make sure that you have one less challenge, and moreover, one less task on your New Year’s to-do list. Give Kite’s team of experts
a call to help you understand the Packaging Regulations.
“A Christmas Tale – Beware the Packaging Regulations”
It was a cold, biting and bleak December morning, when a rushed and overworked businessman sped through the office.
“Morning Mr Smith” said the Health and Safety Manager, Bob Crawly.
“Morning Bob” Said Mr Smith as he rushed past.
Mr Smith was a very busy man. Since the death of his business partner, a year to the day, he had become more and more distant; he cared deeply about his business and worked tirelessly to
ensure it succeeded. He was much loved by his employees, he gave them jobs and security but he was just too busy to properly engage anymore.
As his secretary read the list of payments he would need to sign off, he was already looking at the next task he needed to complete.
“One of our machines has gone down, and the suppliers are struggling to find the right part, I need to go sort that out, can I reschedule with Bob” He said out of breath with the thought of the
extra traveling weighing down on him.
“Bob’s outside, he’s been waiting a while, I think it’s important” She responded trying to persuade him to hear Bob out.
“Okay, send him in but tell him I don’t have long” He said relenting.
Bob Crawly was in charge of dealing with Regulations and it was his role to keep the business up to date and compliant with all the regulations that affected them. The Packaging Regulations had been
something Bob really got behind; helping to improve recycling within the UK was a noble task. He had been meeting with Kite Environmental Solutions and spoke to Packaging Regulation’s Experts; he now
understood the Packaging Regulations and greatly appreciated the help and support Kite had offered. Everything was in place to make sure Smith and Spenser’s Fantastical Toy Emporium was going to Comply.
Before Bob had even got in the room, Mr Smith interjected:
“Sorry Bob I don’t have much time, one of the machines has gone down!”
“I know Ed, I’ll make this quick. The Packaging Regulations affect us, were handling a lot of packaging, and with all the work you’ve been doing recently were now turning over more than the £2million
threshold. I’ve been speaking to Kite Environmental Solutions and they’re very good….”
“Is that the same Kite we get our packaging from?”
“Sort of, but they deal with the Packaging Regulations”
“Yup” Bob was starting to feel encouraged; this was the longest they had been speaking to Mr Smith in a while.
“Oohh, no Bob don’t worry, we recycle our packaging already.”
And with that the meeting was over, a decision had been made. Mr Smith rushed past before Bob could utter another word.
“Cheers Bob, I’ll be back tomorrow, hopefully.”
Snow started to fall; it was going to be a white Christmas. The cold continued all through the night. Mr Smith was going through his various to do lists, checking and re-checking everything
he had done and everything planned for the next few days.
The grandfather clock let out a deathly chime, it was 12:00.
An icy chill woke Mr Smith from his slumber; he was slumped at his desk with a to-do list was still in his hand. A white fog appeared before him, he rubbed his eyes and as he did the mist took shape.
It was an old man standing before him, Mr Smith was frozen with fear; a cold sweat ran down him. From the fog a familiar face appeared. It was his old business partner, Marley Spencer.
“I have been sent to help you Edward; I have seen you working yourself to an early grave. Rushing around you have missed an important detail. You will be visited by three ghosts, The Ghost of
Regulations, The Ghost of Obligation and the Ghost Civil Sanctions; heed their warnings!”
And with that cryptic message he was gone.
The next night, as the clock struck 12:00, a ghost appeared at the foot of Mr Smith’s bed.
“I am the Ghost of Regulation, I am here to show you the past and how the world once was before the Packaging Regulations” boomed the ethereal apparition.
He whisked Mr Smith to when he was a child playing on a beautiful green, the majestic oaks towering above him as he made forts and played in the lush meadows. They then flashed forward to 1994 and
the forest was desolate; with plastic and rubbish strewn across its once delicate ecosystem, it was ruined. It was a world where investment in recycling and reprocessing was running thin,
the planet faced more and more environmental pressures and the EU knew it had to act.
“The Packaging Regulations help increase the recycling and reprocessing in the UK; it’s up to businesses such as yours to make sure you comply to make this happen”
Seeing the beautiful greenery Mr Smith felt a tinge of guilt, he had always cared for that forest and wanted others to enjoy its natural beauty.
The phantom dropped him back in bed and he fell fast asleep.
The second night came, and at the strike of 12:00 the second ghost appeared, the Ghost of Obligation.
“I am the Ghost of Obligation, I am here to show you the work the Packaging Regulations have done to help the UK” boomed the apparition.
The ghost whisked him away to the work being done in a recycling plant. He was moved again, he never thought so much was being done already, and how much help they needed to ensure they
continued to grow.
“With our help the world will be a greener place” Said Bob in a proud voice.
The third night came, and at the strike of 12:00 the last ghost appeared, the Ghost of Civil Sanctions.
“I am the Ghost of Civil Sanctions, I am here to show you what will happen if you fail to comply with the Packaging Regulations” boomed the final apparition.
The ghost whisked him away to his desk, and there lay a fine. He was being fined for non-compliance.
“But we do recycle, why are we being fined?” pleaded Mr Smith
“You have misunderstood the Packaging Regulations; take the time to speak to the people who know the Regulations, speak to the Experts and get the right advice”
“I will, I will change my ways in the hope that the writing from my stone may be washed away”
And with that he was dropped into bed.
Mr Smith awoke suddenly, and raced to the calendar.
“It’s not yet Christmas, I still have time” said Mr Smith with joy in his voice.
He rushed to the office and immediately called in Bob. They spoke for hours and agreed to go ahead and join the Kite scheme to ensure Smith and Spenser’s Fantastical Toy Emporium would comply.
With a clear conscience and the sense of pride that came with doing the right thing. Mr Smith enjoyed his Christmas break safe in the knowledge that he would become compliant in the New Year and
meet the April deadline.
Kite Environmental Solutions are here to help, get in touch today and have a free confidential visit from one of our team and let us help you avoid any Christmas mishaps that could spoil your holiday.
"Don’t get indigestion - The perfect recipe for complying with the Packaging Regulations’"
A treasured family heirloom or a well-guarded secret; the right recipe can make or break a business. In the food sector all businesses aspire to get the balance
right and when dealing with the Packaging Regulations finding the perfect recipe is vital; it’s the difference between being a winning formula or a recipe for disaster.
Companies in the food sector can use a lot of packaging, from the packaging around the ingredients that come into the business, to the display packaging around your
products when they are stocked on the shelf. Packaging is a big deal; we all know it has an impact on our perception of the product and it’s brand; making a huge difference as to the
condition the food reaches your customer, but also playing an important part in how you market your products. This all boils down to your business handling a lot of packaging,
which means you must legally comply with the Packaging Regulations
The Packaging Regulations are essentially a packaging tax affecting companies with a turnover >£2million and who purchase goods surrounded in packaging (ingredients etc)
and packaging added to goods (Point of sale, outer and transit).
In the food industry the reputation of a business is critical and customer perceptions matter. Customers could take a negative view on your business following a
prosecution: “if they fail to comply with these Regulations, savvy consumers may question how ethical a brand is.
The food industry is growing with new routes to market for food manufactures and producers created all the time. This means a lot of business within the food
sector can find themselves suddenly obligated. Something they may not have considered whilst they were growing their sales.
Whether making food or supplying produce Kite Environmental Solutions can help your business comply with the Packaging Regulations. Helping you to understand why
they affect you, what you need to do each year and sharing our experience to give you peace of mind.
Kite Environmental Solutions are here to help, get in touch today and have a free confidential visit from one of our team; let us worry about the Packaging
Regulations, leaving you free to do what you do best; making wonderful things for the rest of us to enjoy.
Contact us on 02476 420080
"Avoiding the PRN Market Turmoil’"
The Quarter 3 data has been published and the results for many in the industry has come as a shock.
The data at this point is still in its provisional stage as all reprocessors have not yet provided their returns,
but it’s not set to change things significantly. The finalised report will be ready in mid-November, but this provisional report
has already created waves in a large section of the PRN market, impacting on the final quarter PRN prices.
Paper, Glass and Wood
Firstly, the good news, Paper, Glass and Wood have performed well this quarter, with big surges in the amounts being
recycled and recovered; Glass has managed its highest output in recent times. Their success is reflected in their PRN prices, all
three have remained consistent, with little change predicted and a good surplus for the end of the year to be carried forward
After the rocky data from the first two quarters, Aluminium seems to have improved, but it is not out of the woods yet.
The changes to the accreditation process and the increased recovery from incinerator bottom ash (IBA) going through the system,
has meant that Aluminium is now getting closer to hitting the recovery and recycling targets.
Plastic and Steel
Without doubt the two biggest surprises in the Q3 data has been with Plastic and Steel; it can be argued that both are
casualties of the second largest economy; China, where demand for imported packaging waste is down. This has been fuelled by
internal recycling low oil prices and material being collected internally as domestic consumption rises. Plastic PRN prices have
consequently seen a dramatic rise of late, with prices having doubled since the mid-year.
The problems for Steel are better known and arguably more severe. Numerous steel mills around the UK are shutting down;
with operations moving overseas resulting in fewer companies recycling their cans and steel products. All this has meant the
outlook for Steel looks bleak. This too has been reflected in the markets, with prices up four fold. Worryingly the problems for
Steel are set to last well into 2016 unless the regulators respond to the situation promptly.
All this market activity has meant that buying your PRN’s at the right time is critical. No one can predict the
future, but with a robust purchasing strategy and real expertise in the PRN market, Kite can save businesses money. Kite’s
Members have been able to avoid the majority of the doom and gloom now faced by many others.
In addition, with these pressures in the PRN market, getting your data right has never been more important, which is
where Kite’s integrated approach really pays dividends.
Avoid being caught out by the market turmoil. Take control of your Packaging compliance and enjoy peace of mind with
Kite team of experts.
For free confidential meeting or advice over the phone, please call Ams, Andy, Ruth or Rav on 02746 420080 – we’re here to help.
"A Bitter Pill to Swallow?’"
The pharma industry is synonymous with the world of compliance and regulation, which makes for a very bitter pill when companies discover
they should be and aren’t complying with the Packaging Regulations.
Many companies report that they are confused by the Packaging Regulations as their title (The Producer Responsibility Packaging
Waste Regulations) implies that the Regulations are concerned with the waste the company generates and disposes of. Sadly, this is
not the case. Instead the Packaging Regulations are a ‘tax’ on the packaging surrounding goods.
The Packaging Regulations affect companies with a turnover >£2mil and who handle goods surrounded by packaging. Of course, all
medicines and medical equipment is surrounded by packaging and even if it is to keep the products sterile, this is still classed as
The prognosis may not look good for companies unaware of the Regulations as they could be subject to Enforcement Action and the
embarrassment of negative publicity, however, all is not lost! Companies who find they have accidentally missed complying can remedy
this via an out-of-court settlement with the Environment Agency, known as an Enforcement Undertaking. This avoids criminal action
being taken against companies for failing to comply.
Kite specialises in getting such companies compliant through their Government Accredited Compliance Scheme, by helping companies
understand their obligations: What they need to do to become compliant; Completing assessments and Registering their Packaging ‘tax’
returns with the Environment Agency.
Once registered, if a company has missed previous years compliance, Kite can also help prepare and submit an Enforcement Undertaking to offset this, avoiding the trauma of legal action.
So although the pill will be a bitter surprise for those unware, Kite may just be the spoonful of sugar that helps you through and gets your company back on its compliance feet.
For free confidential meeting or advice over the phone, please call Ams, Andy, Ruth or Rav on 02746 420080 – we’re here to help.
"The Packaging Regulations: Avoid being ‘Sin Binned’"
With the excitement of the Rugby World Cup approaching the last thing a company needs is to drop the ball and have unnecessary distractions at a time where our focus is on supporting the home
nations of England, Wales and Scotland in what is one of the most exciting sporting contests in the world.
So avoid being tackled by the Environment Agency, and check if your company is compliant with the Packaging Regulations, which are essentially a Packaging ‘ Tax ‘.
The Packaging Regulations affect companies with a turnover >£2mil and who introduce packaging around goods into the UK, either by purchasing raw materials, components or finished goods which
are surrounded by packaging, or by adding packaging to goods for despatch.
Similar to Rugby, which has laws, not rules – the Packaging Regulations are a legal requirement and the referee to ensure fair play (i.e. compliance) is the Environment Agency.
You won’t get sin binned for non-compliance but you will face Prosecution or Enforcement Action if you don’t play ball – not to mention the bad publicity and of course distracting you from the World Cup.
So try and avoid dropping the ball and put a game plan into place. A good starting point is to have a health check and this is where Kite can help. Kite operates a Government Approved
Compliance Scheme for the Packaging Regulations. Our role is to help companies understand how the Packaging Regulations affect them and then advise how a company can quickly become compliant.
Avoid being penalised for breaking the law and call us for free confidential advice, after all the last thing you need is an unpleasant distraction when you’re supporting your team in the World Cup.
Team selection is everything so call Andy, Ams, Ruth or Rav on 02746 420 080 and we’ll help you understand how this Packaging ‘ Tax ‘ affects you.
"The Packaging Regulations: The Seduction of Price"
The age old dilemma, buy cheap or buy quality; whether buying a vacuum or hiring a builder, the choice often comes down to this simple question, cost or quality.
For many people it is an easy choice - they will say, “save your money, they all do the same things anyway”.
But when you break it down is this true – does buying cheap actually save you money? The answer is, it depends!
If you look at buying a product (e.g. an IPhone 6), with an exact brand and specification, supplied in the same format, with the same lead time, with the same after sales
service and warranty guarantee, then perhaps yes. But there were a few caveats in addition to the product itself and it is important to remember that this is also a product
we are talking about.
Let’s imagine a scenario when buying the cheapest might seem like a good idea: You are looking for a builder to do an extension on your house. You get two quotes: one from a low cost builder
and one from a builder who is highly rated and decide to go for the cheapest as the priority is to save money.
However, after months of no shows, poor advice, shoddy workmanship and numerous arguments about schedules, the low cost builder has turned your dream extension into a nightmare.
This can often be the same when complying with the Packaging Regulations, if you employ the wrong business you end up with a scheme that doesn’t offer you the help and support you need.
And with the complexity of the Regulations this can leave you scratching your head and wasting time that could be better spent elsewhere in your business.
Like the homeowner with the failed extension, you are left thinking “If I’d only known at the start how complex this was; how much time it would consume and the help I really needed.”
Not to mention the rectification costs of selecting another builder to redo the work to the required standard and the extra time and stress incurred by this.
So, paying a bit extra upfront can actually save you money.
Many smart businesses have started to learn from this and now apply a new rule to their purchasing called Total Cost of Ownership (TCO)
It is all about thinking of the greater consequences relating to the purchase; in short you must consider the hidden costs, such as labour costs, implementation costs, opportunity costs of time spent, etc. These costs can quickly add up.
That’s why we have started seeing a change in purchasing priorities; where just having the best headline price is no longer the most attractive or important consideration – company’s are thinking strategically.
For businesses complying with red tape such as the Packaging Regulations it is more important that they get tangible help and support with a professional service. This means you significantly
reduce your risk of failing to comply with the Packaging Regulations; and have a robust data assessment system and methodology to ensure peace of mind.
When Kite started its Scheme in 2002, unlike other schemes, we focused on helping companies by directly getting involved in the assessment process, to identify obligated packaging, develop a system for
collating the required information, calculating our Members obligations through to completing their data submission form. All to ensure a company passes an Environment Agency audit first time.
So when it comes to complying with the Packaging Regulations avoid the lure of cheap offers and low cost promotions; instead look for excellent advice, help and support.
It comes down to a simple thought, if you were building an extension, would you risk trusting a low cost offer and be seduced by price or would you rather not run the gauntlet and pay for a
professional service to get it right first time by partnering with someone you can rely on. I know the choice I would make.
For peace of mind use Kite’s unsurpassed service and get in touch today!
Contact Andy, Ams, Rav or Ruth on 02476 420080
"Compliance: Growing Pains for the UK Manufacturing Industry"
Do not let compliance stifle your growth. This article looks at the Packaging Regulations and their impact on the manufacturing sector within the UK.
UK manufacturing success is in the blood; those of us in the UK have always found a way to manufacture goods that the rest of the world wants.
After a small blip the UK has returned to manufacturing might, but with great power comes great responsibility.
As businesses grow the regulations affecting a business grows, however with the right help, getting to grips with them can be a lot easier than you might think.
The manufacturing sector has seen some unprecedented expansion making the UK the 11th largest manufacturing nation in the world -
Click here for more info
In addition, firms are moving their operations back home, with drivers such as increased reliability, improved lead times and exceptional quality making the UK a better bet than
overseas manufacturing – Click here for more info
“The fastest growing sectors within the manufacturing industry”
And as you grow, the chances are that you will reach new regulatory thresholds and be required to comply with new regulations.
We often hear manufacturers say “red tape is a major barrier to growth, as the time taken for our business to comply could be better spent helping the business grow”.
We have to agree, having a dedicated person within the business for each regulation can mean hours upon hours of legal sprawling for some poor sole, and it
ultimately means someone’s time is spent on compliance rather than dealing with the company’s core business activity.
In our experience manufacturing businesses are often very prepared when it comes to regulations, as it can often be the difference between life and death, literally.
But when the regulations do not fall with a specific job remit, complying can often fall through the cracks, and level the business with a hefty bill for not complying –
Click here for more info
One prime example of this is the Packaging Regulations which are just the type of prickly regulations most manufactures fail to notice and as they cover “packaging handled” most manufacturers
do not have a specialist to deal with it, unlike Health and Safety regulations for example
It can get even more confusing trying to figure out what department should be responsible for it and when something goes wrong, the time spent dealing with the Packaging Regulations can
There are three thresholds a business must meet if they need to comply with the Packaging Regulations:
Being a UK registered business
Turning over more than £2million a year
And handling more than 50 tonnes of packaging
Whilst the first two are easy enough to get information on, the third can be very tricky to assess.
The difficulty can often be in the wording, how much packaging do you HANDLE? I once asked this to a perspective client, who responded with, “none, we import our goods on pallets and then
use a fork lift to move the goods, no one ever manually handles it!”
This simple misunderstanding may have cost his business tens of thousands of pounds if he were doing this alone. When I pointed out that the Packaging Regulations look at the packaging a
business introduces into the UK, we quickly rectified the misunderstanding and were well on our way to making his business compliant.
The key message here is don’t assume you are not affected – find out for sure.
The Packaging Regulations require companies to assess the packaging they handle each year by material and activity. With most manufacturing being a complicated operation, this can mean
looking at a lot of different areas of the business.
So manufacturers often say they feel the Packaging Regulations can be confusing and hard to figure out, leaving many scratching their heads and asking themselves if all the headache is
worth it. The problem is you have no choice.
The good news is with the right guidance from Kite, we can make compliance with the Packaging Regulations a quick and easy process, which costs less than you might think.
For a confidential chat, please contact one of our friendly and knowledgeable team to help future proof your business.
Enjoy the growth, but don’t endure the growing pains!
Contact us on 02476 420080
to speak to a friendly meember of the team.
New "How Much Packaging is 50 Tonnes?"
With the deadline for 2015’s packaging data submission fast approaching, many companies not familiar with the
Regulations are considering whether or not they are over the 50 tonne threshold that requires a company to register.
Whilst some companies are aware that they are over the threshold, all too many companies significantly underestimate
the amount of packaging that is going through their business and unwittingly leave themselves liable for prosecution by the
“Surely our company handles less than 50 tonnes!”
Whilst 50 tonnes may seem like an amount your business wouldn’t even begin to handle on a yearly basis, it’s important to
consider what this 50 tonnes covers. Most business owners that are unfamiliar with the Regulations are shocked to discover
that they cover:
All packaging (including heavier items such as pallets) which are imported into the UK around Raw Materials,
Components and Finished Goods.
Any packaging that you’re adding to your products, whether it be Point of Sale, Outer or Transit packaging.
Any packaging around goods that you supply to either a person or a company that remove some or all of the packaging.
“But our goods don’t require much packaging?”
Even if your goods don’t require a lot of packaging when they leave your business, the Regulations cover
all packaging materials coming in to your business. If you’re using a large amount of raw material and it’s coming
from outside the UK, all of the surrounding packaging is going to count towards the 50 tonnes. If your company has
been expanding in the last few years, this may be the first year you become legally obligated.
“Ok, we might be close, but is anyone really checking these things?”
Absolutely! Last year the Environment Agency had their enforcement budget increased and the onus is on
your company to either prove it is under the threshold or face Enforcement Action which may result in prosecution!
The Environment Agency is extremely active and not facing the music now could lead to having to fork out a much larger
amount in the future.
“How can I be sure of how much packaging is coming through my business?”
The only real way to be sure that you are under the 50 tonnes threshold is to perform a packaging audit.
Kite Environmental is happy to carry this out on your behalf. Upon completion of the audit, you will either be under the
threshold (and have a means of proving to the Environment Agency that you are), or need to register and we can help you do
this through a Government Registered Compliance Scheme.
If you think you may be approaching the limit or in excess of it, give the Regulations experts a call today
on 02476 420080 or email email@example.com
New "DIY Compliance Schemes – What You Didn’t Know"
On face value many compliance schemes appear to offer the world in terms of service but few actually deliver, masking true service
by investing in marketing rather than in delivering an outstanding customer experience.
The video below gets to grips with the issue of perceived value in relation to kitchens, an example which translates
very well to complying with the Packaging Regulations via a scheme. Give it watch before reading on and you’ll know what we’re
The advert plays on our perceptions of cost/value and how sometimes they may not be right. Translate this to the world
of Packaging Compliance Schemes – often the perception is that a low cost “DIY” compliance scheme costs you less and of course
saving money is important… but is this really the case?
The true cost of complying with the Packaging Regulations are often buried beneath the surface and can far out-weigh
the headline fees for many companies wrestling to pull their annual data submissions together.
The Iceberg Theory
At Kite, we recognised this as an important issue when we started as a Compliance Scheme in 2003. Accordingly we
fix this problem for our customers by doing the majority of the work for them. We assess our Members obligations by:
Completing an on-site audit of the packaging flows within your business to include a site tour
Assessing what is (and is not) obligated packaging
Developing a data collection system tailored to you
Analysing raw data and reports where sampling of products is required
Completing the necessary calculations in relation to the packaging activities performed
Documenting how the raw data has been assessed
Completing your data submission form
Registering you with the Environment Agency
Obtaining your Packaging Recovery Notes (PRNs)
We are so confident of our service that we will attend your Environment Agency audit, for no additional cost, ensuring you
pass with flying colours – it is easy to be confident when we’ve done all the number crunching.
So, focusing on the tip of the iceberg can be a red herring and headline costs don’t give the full picture.
Joining Kite’s scheme means that you don’t have to worry about what you can’t see, and what is under the water we do for you,
leaving you with peace of mind and the total confidence that your data will pass a regulatory audit whilst strategically
saving you cost.
So, as per the advert: Is it in fact the low cost “DIY” scheme that is costing you more?
To find out more, give us a call on 024 76420080 and see how we do things differently.
"Where your PRN money goes?"
The PRN (Packaging Recovery Note) System is the means by which companies in the UK offset their obligations under the Producer
Responsibility Obligations (Packaging Waste) Regulations. The system as a whole is designed to enable the UK to meet the recycling
and reprocessing targets set by EU Packaging Directive.
Companies in the UK who have a turnover >£2million and introduce more than 50 Tonnes of packaging into the UK as a result
of their business activities, essentially have to do a packaging “tax return”. (Am I Obligated?
Instead of paying the “tax” as a cash sum, companies are required to purchase Packaging Recovery Notes (PRNs), or be a
member of a Government accredited Compliance Scheme such as Kite’s who purchase the PRNs on their behalf.
The money paid for the PRNs then helps reprocessors of packaging waste to finance improvements and projects that will
increase the amount of packaging waste they can recycle year on year.
The system has a track record of success. Not only has the UK met its EU targets since the Regulations were introduced
but the cost of meeting those targets has been lower in the UK than within other EU countries such as Germany, Austria and Spain.
The below graph shows the where the revenue from 2013 was spent:
PRN market dynamics
The cost of PRNs is driven by supply and demand and reflects both the net collection volumes and recycling at any given time,
against the PRN obligation of all obligated within the UK.
Increasing targets for producers increases their demand for PRNs and therefore drives growth in the recycling and recovery
sector. However, if there have been too many PRNs produced in a given year this may result in less investment into recycling in
future as it is no longer of financial interest to reprocessors. Particularly if coupled with an increase in demand the following
year due to higher targets or market bottlenecks this can result in a temporary shortage of PRNs.
Shortages can lead to price spikes and PRN prices can be inflated by the gap between perception and reality of PRN
availability. There have been perceived shortfalls in availability of PRNs due to a number of cases of fraud in the system, which
have caused the price of materials like glass and plastic to sky rocket.
In contrast, when the price of PRNs increases there is more investment into recycling. This may result in a future
surplus of PRNs once the market has balanced out.
If you need more help with understanding the PRN system or need us to purchase PRNs for you please get in touch with
Andy who can provide you with help and confidential advice. You can call 02476 420080, email
for more information.
"Latest Q2 Recycling Figures"
The latest recycling rates issued by the Environment Agency on the 22nd July show that there has been an overall improvement across all materials, suggesting that the UK is on course to
meet this year’s targets. This is good news for businesses and if recycling rates persist it will put pressure on reprocessors to lower their PRN prices.
In addition following a Government consultation earlier this year the glass packaging recycling targets were revised downwards from 81% to 75% for
2014 which will be a welcome relief for those companies requiring Glass PRNs.
The original glass targets set through to 2017 were based upon false information and were potentially un-achievable, due to fraud having been identified in the system.
Coupled with the improvement in recycling rates glass is now projecting a surplus of ~10% for Glass Re-melt and a shortfall of just 4% for Glass Aggregate. This has started to be reflected in
PRN prices where we have seen prices soften in Glass and we would expect this to continue if the recycling rates maintain.
"Our September workshops: Are you handling it?"
Complying with the Packaging Regulations can be a struggle. As a direct registrant could you have benefited from additional support to make registering quicker and easier?
We are welcoming direct registrants to come to our free September “Are you handling it?” workshops, where our team will take you through a presentation covering the Packaging Regulations, the PRN market, common problems with
complying and a look to the future. It will also showcase our hands on approach as compliance scheme.
We pride ourselves on ensuring our members identify and pick up their handled packaging correctly. This ensures they do not over-obligate themselves and significantly reduces the risk of failing an Environment Agency audit.
Being the only packaging company with our own packaging compliance scheme, Kite can make complying with the Packaging Regulations a lot simpler, more efficient and cost effective.
Our scheme is based on the excellent service provided to all our members from the initial contact with a member to completing your calculations, registering your data and buying your PRNs.
If this sounds good to you why don’t you give us a call and we will get you booked onto one of our workshops either on Wednesday 3rd or Thursday 4th September,
we will even provide you with lunch. (Call 024 76 420 080 ask to speak to Ruth or Ams)
Why don’t you also have a look at our member’s testimonials on the service that we provide at Kite Environmental Solutions Click here
"Do you need to remedy any previous year’s non-compliance?"
Kite is one of the leading compliance schemes stopping companies from being prosecuted under the Packaging Regulations.
During the summer months, the Environment Agency actively focuses on targeting companies who are obligated but not registered under the Packaging
Regulations. The most common cause is that businesses misinterpret the Regulations and think they are to do with back door waste,
this leads to them thinking they are already compliant.
Recently HIPP UK was required to pay £415k for failure to comply with Packaging Regulations. In this situation the company was able to settle ‘out of court’ by submitting an Enforcement Undertaking.
At Kite we recommend being pro-active if you have previous years non-compliance.
Kite are specialists in preparing and submitting
Enforcement Undertakings, advising and guiding you through the whole process from registering for the first time to actually compiling
your Enforcement Undertaking.
If you think your company may have been obligated in previous years get in touch and we’ll provide you with help and confidential
advice. Contact us
"Red Tape and Enforcement Undertakings"
Now that the deadline for submitting data as part of the Packaging Waste Regulations has passed,
it is this point in the year when Kite Environmental Solutions hear from companies who although obligated,
did not register with the Environment Agency in time, and are now facing prosecution or a hefty fine.
At KES we understand that this is usually through no fault of the business alone, often we find that companies have not heard/been informed of the Packaging Waste Regulations, or in the past have not been obligated and recently went over the thresholds.
Companies who have been obligated under the Packaging Regulations in previous years and not been registered could be subject to enforcement action. The Environment Agency has recently introduced Enforcement Undertakings which help businesses that failed to comply with the Packaging Regulations remedy any previous year’s non-compliance through donations to charities, thus avoiding prosecution.
Kite Environmental Solutions, the compliance division of Kite Packaging Group has been busy in preparing and submitting Enforcement Undertakings, and guiding companies through the whole process from start-to-finish. 20% of the Enforcement Undertakings submitted the Environment Agency under the Packaging Regulations between August 2013 and January 2014 were achieved via our compliance division through Kite Environmental Solutions.
If accepted, Enforcement Undertakings become legally binding and once fulfilled wipe the slate clean. Kite has made several Enforcement Undertaking offers on behalf of our member companies, achieving a 100% acceptance rate.
DEFRA decrease Glass Recycling Targets from 81% down to 75%
Following Defra’s consultation on the Glass targets, the Government opted to “Lower the glass recycling target to 75% and amend the split between remelt and other”.
There has been a lot of speculation that a reduced target will make it easier than last year to comply, as volatility in the market over the last few years and has
been a cause for concern. Alterations have also been made to alter how much of the target must be met through increasing the glass
sent to ‘re-melt’ rather than sent to ‘aggregate’. The re-melt target has increased from 63% to 65%.
We are encouraged by the Governments decisions which will make compliance in glass easier this year we hope will be translated in lower PRN prices for our members.
However there are still other factors which may impact the PRN pricing during 2014.
As a compliance scheme we will endeavour to keep you posted on any other changes.
DEFRA Consult on Glass Recycling Targets January 2014
After industry input, DEFRA look likely to reduce glass packaging targets for obligated businesses from April 2014 in order to ease the cost of compliance with the Packaging Regulations.
At present, obligated producers must account for the recycling of 81% of the total glass packaging placed on the PRN market until 2017.
The five options put forward for consultation were:
1. Do nothing, keep the glass recycling target at 81%
2. Lower the glass recycling target to 75% and maintain the current split between remelt and other the same – remelt 63%, other 37%
3. Lower the glass recycling target to 75% and amend the split between remelt and other
4. Lower the glass recycling target to 77% and maintain the current split between remelt and other
5. Lower the glass recycling target to 77% and amend the split between remelt and other
Has your compliance scheme contacted you?
Our route to becoming compliant sees us contact our customers as early as October to undertake update audits. We pride ourselves
in knowing our customers, their demanding periods and best ways of gathering data for the Packaging Regulations.
Each year we undertake update audits and make sure all changes are documented and individual bespoke templates are amended
accordingly. The earlier we are able to prepare you for your annual data collection, the earlier you can proactively plan
and the more efficiently we can help resolve any issues or queries.
2014 Website Launch
To kick off the New Year Kite Environmental Solutions, has launched its brand new website.
All the team are incredibly excited about the launch. The website has not only been given a fresh, cleaner and more modern look
but has been developed to make it quicker and easier to find relevant information regarding the Packaging Regulations.
Follow our company pages on Twitter
to keep yourself updated on the Regulations and what is happening in the industry.
“New year? New to the Regulations?” see our guide to registering and submitting your data for 2014 (2013)…
If you’re looking for information on the current Packaging Regulations, who they affect and whether you’re obligated,
please look take a look at our 60 second overview.
If you do think you are affected, give us a call and we will come and see you to explain how these Regulations affect your business.