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B.C. Recycling Obligations for Packaging - Act Before September 20 

Canadian Tax Adviser

 

September 17, 2013

 

Many businesses that sell products with packaging or printed paper in British Columbia must provide data reports relating to upcoming new recycling obligations in British Columbia by September 20, 2013 if they have signed agreements with the product stewardship agency Multi-Material BC (MMBC). While the new recycling program officially starts in May 2014, members of MMBC are required as per their membership agreement to provide the data reports ahead of the official start-up date and will be required to make their first fee payments no later than January 31, 2014. Failure to do so could result in hefty penalties.

Background
Under B.C.'s provincial recycling regulation, qualifying producers of packaging and printed paper are required to have a stewardship plan approved by the government as of May 2014 or appoint an agency to perform their duties under an approved stewardship plan. With several deadlines now passed, many businesses have opted to appoint an agency. However, obligations including payments stemming from this appointment start much earlier than May 2014.

 

The MMBC, a not-for-profit agency, has submitted a Stewardship Plan which has been approved by the B.C. Ministry of Environment. Members that have signed the Membership Agreement with MMBC and appointed MMBC to act as a stewarding agency on their behalf are required by the agreement to provide an annual data report to MMBC which basically shows the amount of qualifying packaging and printed paper supplied by each member in B.C in 2012. These first reports are due no later than September 20, 2013. These data reports will be used to calculate the initial fees for the first year of the program in 2014.

 

Hefty penalties
If your business qualifies as a producer and fails to comply with your new recycling obligations, you could face fines of up to $200,000 and/or be prohibited from selling products in B.C.

 

We can help
Your KPMG adviser can help you understand whether you qualify as a producer under the recycling regulation and if so, we can help you understand your new recycling obligations. For details, contact your KPMG adviser.

 

 

 

 

 

Information is current to September 17, 2013. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500

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