The UK imposes a "plastic packaging tax", which has a great impact on foreign trade companies, and PCR PE can also take a share

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UK plastic packaging tax

From April 1, 2022, the United Kingdom officially began to levy a new tax on plastic packaging and products with a volume of more than 10 tons and the use of recycled plastics less than 30% - the plastic packaging tax (PPT), which is administered by the British Revenue and Customs General Office.
A new tax issued by the HMRC at a rate of £200/t
.

main content

a Plastic packaging and products with less than 30% recycled plastic packaging are subject to a tax rate of £200/ton

b Tax exemption for production and/or import of less than 10 tons of plastic packaging within 12 months

c Determine the types of taxable products and recyclable products, and determine the scope of taxation

d Tax exemption for a small number of plastic packaging producers and importers

e Who is responsible for paying tax and needs to be registered with HMRC;

f How taxes are collected, recovered and enforced
.

The UK officially introduced the policy at the end of November 2021.
This tax applies to UK plastic packaging manufacturers, plastic packaging importers, and commercial customers of plastic packaging manufacturers and importers, including UK and non-UK sellers.
obligations, and consumers buying plastic-wrapped goods in the UK
.

This new tax law will have important implications for a range of industries including (but not limited to) manufacturing, consumer goods, retail, food, beverages, pharmaceuticals and cosmetics
.

HMRC's position is that if you can't prove the plastic box product meets the 30% recycled plastic requirement, you have to pay tax
.

Three types of products are defined as not within the scope of taxation

The first category is that the product in the package needs to be used together with the package throughout the product life cycle, such as: tool kits, first aid kits, earphone or earplug cases, nail art sets, glasses cases, CD, DVD and video game cases, board game cases, etc.

.

The second category is packaging that is an integral part of the product, including water cartridge filters, printer or toner cartridges, inhalers, tea bags, room deodorants, perforated rice bags, lighters, dental floss boxes,
etc.

The third category is designed to display commodities, including commodity shelves, commodity display stands,
etc.

many objections

Many food manufacturers have objected to the implementation of the new UK packaging tax, saying the government has not provided any exemptions for materials that come into contact with food and cannot be recycled
.

Nicky Hunter, Director of Sustainability at the Food and Beverage Federation, said production of food-grade recycled resins is in short supply globally due to restrictions on materials that come into contact with food.
Consumer prices rose
.
The industry hopes that the government will take steps to further support and encourage innovation in recyclable packaging materials
.

Re-Gen Waste managing director Doherty said the tax was not nearly enough
.
It won't have much impact on the buyer's decision
.
The price of plastic pellets fluctuates by far more than £200/ton
.
Businesses will obviously try to pass the cost on to customers, who in turn will pass it on to consumers
.

Importers will also find it "difficult and expensive" to obtain proof of recycled content in packaging from overseas suppliers, warned Andrew Thurston, a customs adviser at accounting group MHA
.
This could lead businesses to ignore calls to use more sustainable materials
.

Impact on Chinese companies

At present, there are many domestic plasticizing enterprises exporting plastic packaging products to the UK, especially in the southeast coastal areas
.

In the future, any Chinese-made packaging that uses less than 30% of recycled materials will be subject to an additional tax of 200 pounds per ton.
According to the China-UK exchange rate on April 11, a tax of 1,655.
66 yuan per ton will be paid
.

A ton of goods is nearly 1,700 yuan more expensive, and the profit margin and competitiveness of the product will be greatly reduced
.

The measures that can be taken are extremely to increase the recycled plastic content of plastic packaging, or to avoid large-scale sales of plastic products as much as possible
.

New opportunities for PCR materials

As an important plastic packaging material, PE is mainly used in packaging containers and bags
.

According to statistics and calculations in the CPRRA China Waste Plastics Recycling Industry Development Report (2021), the total amount of waste plastics recycled in 2020 will be 40.
59 million tons, including 5.
53 million tons of HDPE, 2.
73 million tons of LDPE and 2.
73 million tons of LLDPE.
2.
72 million tons
.
In 2020, the total amount of waste plastic processing and utilization will be 36.
53 million tons, of which HDPE recycling is 4.
97 million tons, LDPE recycling is 2.
45 million tons, LLDPE recycling is 2.
45 million tons, and PE recycling accounts for 27% of the total processing volume
.

The plastic packaging tax is a national policy issued by the international community that is conducive to the use of PCR plastics.
For the recycling and recycling enterprises engaged in PCR plastics, it is equivalent to gaining a cake in the foreign trade industry at once
.

At the same time, many large domestic enterprises have to fulfill the social responsibility issued by the local government, which makes domestic and foreign brands increase their efforts to select PCR plastics
.

In the future, packaging materials will develop towards a more environmentally friendly and recyclable idea, and the use of recycled plastics will be a shortcut for plastic packaging to gain international recognition
.