Shanghai’s First Local Commodity Packaging Reduction Regulation to Take Effect on February 1

Starting February 1, the Several Provisions of Shanghai Municipality on the Reduction of Commodity Packaging (the “Provisions”) will come into force in Shanghai. Recognized as China’s first local regulation aimed at reducing commodity packaging in the campaign against excessive packaging, it is expected to serve as a nationwide model. Since the draft was released in July last year, the measure has remained a focal point for industry players, and Shanghai has moved ahead by formalizing its approach into law.

With the Provisions in place, the previous practice of targeting only selected product categories—such as mooncakes, zongzi and cosmetics—will change. To clarify how excessive packaging is identified, what limits apply to production and sales, how enforcement will proceed and who bears inspection costs, a China Press and Publication News reporter reviewed the policies and spoke with industry experts.

Non-compliant companies face fines of up to 50,000 yuan

How is excessive packaging defined? The Provisions state at the outset that packaging must be reasonable: while meeting normal functional needs, its materials, structure and cost should match the characteristics, specifications and cost of the packaged product, and packaging waste should be reduced.

While maintaining existing national standards that restrict excessive packaging, the Provisions add local rules for products not yet covered. Mooncake and zongzi packaging, for example, will be subject to priority supervision in Shanghai. For products without national standards, the Shanghai municipal quality and technical supervision department may work with relevant administrative departments and industry associations to issue guiding specifications for commodity packaging.

A key point for the packaging sector is that the Provisions apply to commodity packaging produced and sold within Shanghai’s administrative area, as well as related supervision and administration. Where sellers offer goods that violate mandatory provisions, the quality and technical supervision department must order a halt to sales and require correction within a set period. If sales continue, fines range from 2,000 yuan to 20,000 yuan; in serious cases, fines range from 20,000 yuan to 50,000 yuan.

Serious violators may also face media exposure. Under the Provisions, producers, sellers and products involved in severe violations will be publicized through radio, television, newspapers, periodicals and websites.

Alongside penalties, the Provisions offer policy incentives for compliant businesses. When goods are purchased with fiscal funds, priority should be given under equal conditions to products that meet Shanghai’s guiding specifications, and products that violate mandatory provisions must not be purchased.

Supervision and inspection costs to be covered by public finances

What testing procedures will be used, and who pays? Addressing these public concerns, the Provisions set clear rules based on a combination of corporate self-discipline, government guidance, industry self-regulation and joint social oversight, with several notable features.

The quality and technical supervision department is responsible for supervising commodity packaging reduction. Inspections will combine random spot checks with special checks. Testing must be entrusted to qualified technical institutions, and inspection funds will be allocated by public finances at the same level; no fees may be charged to the entities being inspected.

Industry experts note that funding has long been a barrier to both corporate packaging reduction and government oversight. By making clear that the government will pay for testing, the Provisions ease concerns about fairness and remove a lack of funds as an excuse for inaction, giving implementation of the new rules a stronger foundation.

Even more noteworthy, the Provisions not only continue to address excessive packaging at the production stage but also bring the sales stage under supervision for the first time, strengthening sellers’ gatekeeping duties and requiring that sellers not sell goods that conflict with mandatory provisions.

Sellers are required to agree with suppliers that packaging must comply with mandatory provisions, and to check packaging during incoming inspection and acceptance. Where necessary, they may ask suppliers to provide proof of compliance. If packaging violates mandatory provisions or a supplier refuses to provide proof, the seller may refuse delivery according to the contract.

The public becomes an important oversight body

In the area of social supervision, the Provisions highlight the public’s principal role in limiting excessive packaging. The Shanghai municipal quality and technical supervision department will publish national and municipal standards and norms on government websites for easy public access. If the public finds packaging that violates mandatory provisions, they may report it to the department, which must investigate and handle the matter promptly.

Industry experts say excessive packaging has long drawn criticism partly because of consumer habits. Deep-rooted purchasing preferences have encouraged manufacturers and sellers to repeatedly “knowingly violate” the rules on that basis. The Provisions break with convention by making public supervision an important part of social oversight, which should encourage greater public participation in curbing excessive packaging.

Beyond testing standards and social supervision, the Provisions also emphasize the guiding role of industry associations. Building on national mandatory rules, Shanghai will use associations’ deep understanding of their sectors and government-association cooperation to promote norms stricter than the standards, urge companies to follow laws, regulations, standards and norms on excessive packaging, guide companies to make public commitments on packaging reduction, and organize certification for simple commodity packaging to advance packaging reduction.

Source: China Packaging Network (pack.cn); original link: http://news.pack.cn/show-361982.html