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Welsh Statutory Instruments

2026 No. 103

ENVIRONMENTAL PROTECTION, WALES

The Deposit Scheme for Drinks Containers (Wales) Regulations 2026

Made

25 March 2026

Coming into force in accordance with regulation 1(2), (3) and (4)

The Welsh Ministers make these Regulations in exercise of the powers conferred by sections 54 and 143(1) of, and Schedule 8 to, the Environment Act 2021(1).

In accordance with the Senedd approval procedure applied by section 143(6)(b) of the Environment Act 2021 a draft of this Welsh statutory instrument was laid before, and approved by resolution of, Senedd Cymru.

Part 1 Introductory

Title and coming into force

1. —(1) The title of these Regulations is the Deposit Scheme for Drinks Containers (Wales) Regulations 2026.

(2) Except as provided in paragraphs (3) and (4), these Regulations come into force on 1 October 2027.

(3) The following provisions come into force on the day after the day on which these Regulations are made—

(a) this Part;

(b) Part 2 (interpretation);

(c) regulation 12 (requirement for scheme producers to be registered to supply SP container drinks) so far as it relates to registration of scheme producers;

(d) Chapter 1 of Part 6 (items subject to overseas schemes);

(e) regulation 35 (requirement for groceries retailers who supply deposit items to operate a return point at, on or from MRP premises) so far as it relates to—

(i) registration of in-scope retailers as mandatory return point operators, and

(ii) applications for return point exemptions;

(f) regulation 36 (exemption for small in-scope retailers in urban areas);

(g) regulation 38 (voluntary return point);

(h) Part 7 (the scheme administrator: the deposit management organisation), except regulation 73;

(i) Part 9 (enforcement), in so far as it relates to the functions of the deposit management organisation under Part 7;

(j) Part 10 (appeals), in so far as it relates to the appointment of the deposit management organisation and the revocation of any such appointment.

(4) Regulation 73 (reuse of returned refund items) comes into force on 1 October 2030.

Extent and application

1. —(1) These Regulations extend to England and Wales.

(2) These Regulations apply in relation to Wales.

(3) But nothing in these Regulations applies in relation to—

(a) the supply of container drinks in export shops,

(b) the supply of existing container drinks, or

(c) the bottles or cans in which any of those drinks are or were supplied.

(4) In this regulation—

“ existing container drink ” (“ diod gynhwysydd presennol ”) means a container drink which is first supplied in any part of the United Kingdom before 1 October 2027;

“ export shop ” (“ siop allforio ”) has the meaning given in regulation 2(2) of the Excise Goods (Export Shops) Regulations 2000(2).

Transitional arrangements for glass deposit items

1. —(1) During the transitional period—

(a) where a person provides a glass container from a glass deposit item to a scheme collector, regulation 11(2)(a) is to be read as if “(including where it is not carrying a scheme logo or scheme return code)” were omitted,

(b) where a scheme supplier supplies a glass deposit item regardless of whether the glass deposit item is or is intended to be supplied to consumers in a scheme multipack, regulation 25 does not apply,

(c) regulations 61, 62 and 63 do not apply in respect of a glass deposit item, and

(d) the amount of the deposit in respect of a glass deposit item is 0 pence.

(2) In these Regulations “ transitional period ” means the period beginning with 1 October 2027 and ending with 30 September 2031.

Part 2 Interpretation

Meaning of “drink”

1. —(1) In these Regulations “ drink ” means—

(a) water suitable for human consumption;

(b) a beverage suitable for human consumption, including a sports drink;

(c) a liquid which satisfies the conditions in paragraph (2).

(2) A liquid satisfies the conditions in this paragraph if it constitutes a beverage suitable for human consumption if it is—

(a) diluted,

(b) combined with crushed ice or processed to create crushed ice,

(c) combined with carbon dioxide, or

(d) prepared by way of a process which involves any combination of the processes mentioned in sub-paragraphs (a) to (c).

(3) Liquids which satisfy the conditions in paragraph (2) include liquids such as fruit cordials or squashes.

(4) But a liquid does not satisfy the conditions in paragraph (2) if it is used in a beverage suitable for human consumption only for one or more of the following purposes (whether or not it may be used for any other purpose)—

(a) to add flavour to a beverage,

(b) to enhance the flavour of the beverage, or

(c) to sweeten the beverage.

(5) Liquids referred to in paragraph (4) include liquids such as coffee flavouring syrups, sugar syrups, and hot sauces.

(6) “ Sports drink ” means a liquid, suitable for human consumption, which is advertised or marketed as a product to enhance physical performance, accelerate recovery after exercise or increase muscle mass.

Meaning of “supply” and related matters

1. —(1) For the purpose of these Regulations, a person (“ S ”) supplies a container drink if, in the course of a business, S supplies, offers, or agrees to supply the container drink by way of sale, or in connection with the supply of goods or services—

(a) for consumption in Wales, or

(b) with a view to the drink being consumed in Wales.

(2) But where a container drink is offered for supply or supplied in connection with the supply of goods or services through a means of distance communication, S supplies that container drink only if—

(a) S determines that it is to be offered for supply or supplied in connection with the supply of goods or services through that means of distance communication, and

(b) S provides it for supply.

(3) In paragraph (2) it does not matter who undertakes—

(a) to obtain payment for the container drink or the other goods or services, or

(b) to operate or provide the relevant means of distance communication.

(4) In the case of a cross-border distance supply of a container drink, the container drink is to be treated as supplied in Wales, where the person to whom it is supplied is located in Wales.

(5) In paragraph (4), “ cross-border distance supply of a container drink ” means the supply of a container drink through a means of distance communication where the person who orders the container drink, or the connected goods or services, from the scheme supplier, is located in Wales and the scheme supplier is located outside Wales.

Meaning of “scheme producer”, “scheme retailer”, “scheme supplier” and related matters

1. In these Regulations—

“ importer ” (“ mewnforiwr ”) means a person who—

(a) imports a non-UK container drink into the United Kingdom, and

(b) is the first person established in the United Kingdom to offer for supply, in Wales, that non-UK container drink;

“ manufacturer ” (“ gweithgynhyrchydd ”), in relation to a container drink, means—

(a) the person who manufactures the container drink, or

(b) if the container drink is marketed or otherwise offered for supply under the name, trade mark or other distinguishing mark of another person, that other person;

“ non-UK container drink ” (“ diod gynhwysydd nad yw’n dod o’r DU ”) means a container drink from outside the United Kingdom;

“ scheme producer ” (“ cynhyrchydd cynllun ”) means a person who is established in the United Kingdom and is one or more of the following—

(a) a manufacturer of container drinks,

(b) an importer, or

(c) a person who fills to order;

“ scheme retailer ” (“ manwerthwr cynllun ”) means a scheme supplier who supplies deposit items to consumers;

“ scheme supplier ” (“ cyflenwr cynllun ”) means a person who—

(a) is established in the United Kingdom, and

(b) supplies deposit items.

Meaning of “established in the United Kingdom”

1. In these Regulations, a person is “ established in the United Kingdom ” if—

(a) in the case of an individual, the individual is resident in the United Kingdom;

(b) in any other case, the person has—

(i) a registered or principal office in the United Kingdom, or

(ii) a permanent place in the United Kingdom from which the person carries out activities which the person is constituted to perform.

The refund

1. —(1) In these Regulations the refund in respect of a refund item is an amount equal to the greater of—

(a) the amount of the deposit on the date on which the refund item is returned, or

(b) the amount of the deposit on the date on which the refund item was supplied.

(2) The references in paragraph (1) to the deposit are to be read as the deposit for a deposit item which is comparable to the refund item.

(3) In this regulation, a deposit item is comparable to a refund item if the container of the deposit item—

(a) is made wholly or mainly from the same in-scope material as the refund item,

(b) is the same size as the refund item, and

(c) is offered for supply to consumers in a scheme multipack, if the refund item was supplied to a consumer in a scheme multipack.

General interpretation

1. —(1) In these Regulations—

“ the 2021 Act ” (“ Deddf 2021”) means the Environment Act 2021;

“ brand name ” (“ enw brand ”) means the primary name by which a drink is known;

“ brand owner ” (“ perchennog brand ”), in relation to a container drink, means the person under whose name, trade mark or other distinguishing mark that container drink is marketed or otherwise offered for supply in Wales;

“ charitable purpose ” (“ diben elusennol ”) has the meaning given in section 2(1) of the Charities Act 2011(3);

“ charity ” (“ elusen ”) means a body established for charitable purposes only (whether or not it is registered as a charity in any part of the United Kingdom);

“ code ” (“ cod ”) means a bar code, QR code or other code from which information can be obtained by scanning it electronically;

“ code requirements ” (“ gofynion cod ”) has the meaning given in regulation 58(1);

“ collection targets ” (“ targedau casglu ”) has the meaning given in regulation 84(1);

“ connected goods or services ” (“ nwyddau neu wasanaethau cysylltiedig ”) means any goods or services which, when purchased or received by a consumer, results in the consumer being provided with a free container drink;

“ consumer ” (“ treuliwr ”) means a person acting otherwise than in the course of a business who purchases or receives goods or services solely for personal use;

“ container ” (“ cynhwysydd ”) means a bottle or can, including any label affixed to it and its lid or other means of closure, in which drink is supplied and which—

(a) is made wholly or mainly from in-scope material,

(b) has a capacity of at least 150 millilitres but no more than 3 litres of liquid, and

(c) is likely to be used only once, or for a short period of time, before being discarded;

“ container drink ” (“ diod gynhwysydd ”) means a drink in a securely closed container;

“ container line ” (“ llinell gynwysyddion ”) has the meaning given in regulation 19(7), as read with regulation 19(8);

“ convenience store ” (“ siop gyfleustra ”) means a retail store offering a limited selection of basic items including packaged food, drinks and household products and which is open for long hours for the convenience of consumers living primarily within its vicinity;

“ deposit ” (“ ernes ”) means—

(a) except as provided in paragraph (b), in relation to a deposit item, a deposit of an amount determined under Chapter 4 of Part 7;

(b) in relation to a glass deposit item during the transitional period, a deposit of the amount specified in regulation 3(1)(d);

“ deposit item ” (“ eitem ernes ”) means a container drink other than a registered low volume product;

“ deposit management organisation ” (“ sefydliad rheoli ernes ”) has the meaning given in regulation 51(1);

“ deposit scheme ” (“ cynllun ernes ”) has the meaning given in paragraph 1(2) of Schedule 8 to the 2021 Act;

“ DMO function ” (“ swyddogaeth SRhE ”) means a function conferred on the deposit management organisation by or under the Scheme;

“ DMO instruction ” (“ cyfarwyddiad SRhE ”) means a request in writing from the deposit management organisation which—

(a) may be given to a specified registered scheme producer, all registered scheme producers of a specified description or all registered scheme producers;

(b) may be given to a specified scheme supplier, all scheme suppliers of a specified description, or all scheme suppliers;

(c) may request specified information to be provided—

(i) in a specified form or manner (or both);

(ii) by a specified time or at specified intervals;

(iii) in respect of a specified period;

(d) sets out the reasons why the specified information is reasonably required for the purposes of the deposit management organisation carrying out its functions under, or in connection with, the Scheme;

“ drink ” (“ diod ”) has the meaning given in regulation 4(1);

“ England and Northern Ireland deposit scheme ” (“ cynllun ernes Lloegr a Gogledd Iwerddon ”) means a deposit scheme established by the Secretary of State in relation to England and Northern Ireland under section 54 of, and Schedule 8 to, the 2021 Act;

“ England and Northern Ireland refund amount ” (“ swm ad-daliad Lloegr a Gogledd Iwerddon ”), in relation to an England and Northern Ireland scheme item, means a sum equal to the deposit payable for that item under the England and Northern Ireland deposit scheme;

“ England and Northern Ireland scheme administrator ” (“ gweinyddwr cynllun Lloegr a Gogledd Iwerddon ”) means a person exercising the functions of a scheme administrator in relation to the England and Northern Ireland deposit scheme;

“ England and Northern Ireland scheme item ” (“ eitem cynllun Lloegr a Gogledd Iwerddon ”) means a container that is a deposit item under the England and Northern Ireland deposit scheme;

“ fill to order ” (“ llenwi yn unol ag archeb ”) means the filling of a container with drink in response to an order from a consumer and the closing of that container securely (irrespective of whether the consumer is present);

“ filled to order container drink ” (“ diod gynhwysydd wedi ei llenwi yn unol ag archeb ”) means a container drink that has been filled to order;

“ First-tier Tribunal ” (“ Tribiwnlys yr Haen Gyntaf ”) means the First-tier Tribunal established under section 3(1) of the Tribunals, Courts and Enforcement Act 2007(4);

“ glass container ” (“ cynhwysydd gwydr ”) means a bottle, including any label affixed to it and its lid or other means of closure, in which drink is supplied and which—

(a) is made wholly or mainly from glass,

(b) has a capacity of at least 150 millilitres but no more than 3 litres of liquid, and

(c) is likely to be used only once, or for a short period of time, before being discarded;

“ glass container drink ” (“ diod gynhwysydd gwydr ”) means a drink in a securely closed glass container;

“ glass deposit item ” (“ eitem ernes wydr ”) means a glass container drink other than a registered low volume product;

“ groceries ” (“ nwyddau groser ”) means one or more of the following—

(a) food suitable for human consumption;

(b) deposit items or other drinks;

(c) pet food;

(d) cleaning products;

(e) toiletries and household goods, but excluding petrol, clothing, DIY products, pharmaceuticals, newspapers, magazines and books, greetings cards, CDs, DVDs, video and audio tapes, toys, plants and flowers, perfumes and cosmetics, electrical appliances, kitchen hardware, gardening equipment, tobacco and tobacco products;

“ groceries retailer ” (“ manwerthwr nwyddau groser ”) means a supermarket of any size, a grocery store, a convenience store, or a newsagent but does not include—

(a) premises where the main business activity is selling prepared food for consumption off the premises as part of a takeaway service;

(b) a coffee shop selling food and drink for consumption on and off the premises;

(c) a hospitality venue such as a bar, restaurant, cafe or club selling food and drink for consumption on the premises;

(d) an indoor attraction such as an amusement arcade, bingo hall, museum, gallery or cinema selling food and drink for consumption off or on the premises;

(e) a recreational facility such as a community centre, sports centre or gym selling food and drink for consumption off or on the premises;

(f) any retail premises selling food and drink for consumption off or on the premises, which is located within the grounds of—

(i) a school within the meaning of section 4 of the Education Act 1996(5);

(ii) a nursery school within the meaning of section 6 of the Education Act 1996;

(iii) an institution within the further or higher education sector within the meaning of section 91 of the Further and Higher Education Act 1992(6);

(iv) a hospital within the meaning of section 206 of the National Health Service (Wales) Act 2006(7);

“ handling payment ” (“ taliad am drin eitemau y gellir eu dychwelyd ”) has the meaning given in regulation 69(1);

“ importer ” (“ mewnforiwr ”) has the meaning given in regulation 6;

“ in-scope material ” (“ deunydd a gwmpesir ”) means—

(a) aluminium,

(b) glass,

(c) polyethylene terephthalate (PET) plastic, or

(d) steel;

“ in-scope premises ” (“ mangre a gwmpesir ”) means any premises which are not—

(a) MRP premises, or

(b) premises at which the deposit management organisation operates a return point (see regulation 39);

“ in-scope retailer ” (“ manwerthwr a gwmpesir ”) has the meaning given in regulation 35(3);

“ interim scheme administrator ” (“ gweinyddwr cynllun interim ”) means the Welsh Ministers or the person appointed under regulation 83(4)(b);

“ local weights and measures authority ” (“ awdurdod pwysau a mesurau lleol ”) has the meaning given in section 69(2) of the Weights and Measures Act 1985(8);

“ low volume line ” (“ llinell swmp isel ”) has the meaning given in regulation 19(1);

“ mandatory return point ” (“ man dychwelyd mandadol ”) means a return point which an in-scope retailer is required to operate under regulation 35;

“ mandatory return point operator ” (“ gweithredwr man dychwelyd mandadol ”) has the meaning given in regulation 35(5);

“ means of distance communication ” (“ cyfrwng cyfathrebu o hirbell ”) means—

(a) a website,

(b) application software designed and developed for use on mobile devices, such as smartphones and tablets, or

(c) any other method of communication which can be used, without the simultaneous physical presence of the person supplying an item and the person to whom it is supplied, for the conclusion of a contract by the two parties for the supply of an item or connected goods or services;

“ mixed retail premises ” (“ mangre manwerthu cymysg ”) means premises where a scheme retailer supplies deposit items for consumption on and off those premises;

“ MRP premises ” (“ mangre MDM ”), in relation to a groceries retailer, means a premises at or from which the retailer sells groceries to consumers other than—

(a) a motor vehicle, ship or boat, train, tram, aircraft or hovercraft, provided that, in each case, the motor vehicle, ship or boat, train, tram, aircraft or hovercraft are not permanently stationary,

(b) premises at, on or from which the retailer sells deposit items and other groceries to consumers only by means of a vending machine, or

(c) on-sale premises;

“ multipack ” (“ pecyn aml-gynnwys ”) means any packaging which contains (whether fully or partially enclosing) SP container drinks which are, or are intended to be, presented for supply to consumers;

“ NRW ” (“ CNC ”) means Natural Resources Wales;

“ NRW costs ” (“ costau CNC ”) means the costs incurred by NRW in exercising the functions conferred on it by these Regulations;

“ on-sale premises ” (“ mangre yfed lle y gwerthir ”) means premises where a scheme retailer supplies deposit items only for consumption on those premises;

“ operational plan ” (“ cynllun gweithredol ”) means a plan prepared by the deposit management organisation for the administration of the Scheme and the exercise of the deposit management organisation’s functions and includes any revisions made to the plan under regulation 53;

“ opt-out decision ” (“ penderfyniad optio allan ”) has the meaning given in regulation 29(2);

“ opted-out premises ” (“ mangre wedi ei hoptio allan ”) means premises in respect of which a scheme supplier has, for the time being, made an opt-out decision;

“ other scheme administrators ” (“ gweinyddwyr cynllun eraill ”) means the England and Northern Ireland scheme administrator, the Scottish deposit administrator and any overseas scheme administrator;

“ overseas refund amount ” (“ swm ad-daliad tramor ”) has the meaning given in regulation 33(1);

“ overseas scheme ” (“ cynllun tramor ”) means a scheme which is established outside the United Kingdom and is equivalent to a deposit scheme;

“ overseas scheme administrator ” (“ gweinyddwr cynllun tramor ”) means a person who exercises functions in relation to a specified overseas scheme, equivalent to those of the scheme administrator of a deposit scheme;

“ overseas scheme item ” (“ eitem cynllun tramor ”) means a container that is the subject of a specified overseas scheme;

“ premises ” (“ mangre ”) includes land, buildings, moveable structures, a motor vehicle, ship or boat, train, tram, aircraft or hovercraft;

“ pre-packed drink line ” (“ llinell diodydd wedi eu pacio ymlaen llaw ”) has the meaning given in regulation 19(7), as read with regulation 19(8);

“ product line ” (“ llinell gynhyrchion ”) has the meaning given in regulation 19(7);

“ proper address ” (“ cyfeiriad priodol ”) means—

(a) the address of a person’s registered or principal office,

(b) a person’s address for service, if different from the address mentioned in paragraph (a), or

(c) the address of the premises where there is, or there is proposed to be, a return point;

“ publication ” (“ cyhoeddiad ”) means a catalogue, newspaper, magazine, periodical, or other similar publication;

“ refund ” (“ ad-dailiad ”) has the meaning given in regulation 8(1);

“ refund item ” (“ eitem ad-daliad ”) means the container from a deposit item;

“ registered low volume product ” (“ cynnyrch swmp isel cofrestredig ”) means a container drink which—

(a) at the time it is made available for UK retail sale, is part of a pre-packed drink line which is registered as a low volume line, or

(b) in the case of a filled to order container drink, is in a container from a container line which is registered as a low volume line at the time the container is filled to order;

“ registered scheme producer ” (“ cynhyrchydd cynllun cofrestredig ”) means a scheme producer who is registered with the deposit management organisation under regulation 12;

“ registration fee ” (“ ffi gofrestru ”) has the meaning given in regulation 65(2);

“ relevant enforcement function ” (“ swyddogaeth orfodi berthnasol ”) means a function of NRW under Part 9 in respect of any act or omission by the deposit management organisation;

“ return amount ” (“ swm dychwelyd ”) means—

(a) in relation to an England and Northern Ireland scheme item, the England and Northern Ireland refund amount;

(b) in relation to an overseas scheme item, the overseas refund amount;

(c) in relation to a Scottish scheme item, the Scottish refund amount;

(d) in relation to a refund item, a refund;

“ return point ” (“ man dychwelyd ”) means a place in Wales where a person can return returnable items to a return point operator and obtain the return amount for those items;

“ return point exemption ” (“ esemptiad man dychwelyd”) has the meaning given in regulation 35(2);

“ return point operator ” (“ gweithredwr man dychwelyd ”) means a person who operates a return point;

“ returnable item ” (“ eitem y gellir ei dychwelyd ”) means—

(a) an England and Northern Ireland scheme item;

(b) an overseas scheme item;

(c) a Scottish scheme item;

(d) a refund item;

“ reuse ” (“ ailddefnyddio ”) means any operation by which refund items are used again for the same purpose for which they were conceived;

“ the Scheme ” (“ y Cynllun ”) means the deposit scheme established under regulation 10(1);

“ scheme collector ” (“ casglwr cynllun ”) means—

(a) a return point operator, or

(b) a take-back service provider;

“ scheme information ” (“ gwybodaeth cynllun ”) has the meaning given in regulation 27(8);

“ scheme logo ” (“ logo cynllun ”) has the meaning given in regulation 56(1)(a);

“ scheme multipack ” (“ pecyn aml-gynnwys cynllun ”) means a multipack which contains deposit items (whether or not it contains any other items);

“ scheme packaging logo ” (“ logo pecynwaith cynllun ”) has the meaning given in regulation 56(1)(b);

“ scheme producer ” (“ cynhyrchydd cynllun ”) has the meaning given in regulation 6;

“ scheme retailer ” (“ manwerthwr cynllun ”) has the meaning given in regulation 6;

“ scheme return code ” (“ cod dychwelyd y cynllun ”) has the meaning given in regulation 58(1);

“ scheme supplier ” (“ cyflenwr cynllun ”) has the meaning given in regulation 6;

“ scheme year ” (“ blwyddyn gynllun”) means—

(a) the period beginning with 1 October 2027 and ending with 31 December 2028 (“ first scheme year ”), or

(b) any subsequent period of 12 months beginning with 1 January;

“ Scottish deposit administrator ” (“ gweinyddwr ernes yr Alban ”) means a person exercising the functions of a scheme administrator in relation to a Scottish deposit and return scheme;

“ Scottish deposit and return scheme ” (“ cynllun ernes a dychwelyd yr Alban ”) means a deposit and return scheme under section 84 of the Climate Change (Scotland) Act 2009(9);

“ Scottish refund amount ” (“ swm ad-daliad yr Alban ”), in relation to a Scottish scheme item, means a sum equal to the deposit payable for that item in accordance with the relevant Scottish deposit and return scheme;

“ Scottish scheme item ” (“ eitem cynllun yr Alban”) means a container that is the subject of a Scottish deposit and return scheme;

“ SP container ” (“ cynhwysydd CC ”), in relation to a scheme producer, means the container from an SP container drink;

“ SP container drink ” (“ diod gynhwysydd CC ”), in relation to a scheme producer, means—

(a) a container drink which is manufactured by the scheme producer,

(b) a container drink which is imported by the scheme producer, or

(c) a container drink which has been filled to order by the scheme producer;

“ the SP register ” (“ y gofrestr CC ”) has the meaning given in regulation 13(1);

“ specified overseas scheme ” (“ cynllun tramor penodedig ”) has the meaning given in regulation 32(1);

“ take-back service ” (“ gwasanaeth cymryd yn ôl ”) means a service under which returnable items are collected from consumers from any place other than premises at or on which a scheme retailer sells groceries to consumers;

“ take-back service provider ” (“ darparwr gwasanaeth cymryd yn ôl ”) means a scheme retailer who is registered to provide a take-back service;

“ transitional period ” (“ cyfnod trosiannol ”) has the meaning given in regulation 3(2);

“ UK retail sale ” (“ gwerthu drwy fanwerthu yn y DU ”) has the meaning given in regulation 19(7);

“ vending machine ” (“ peiriant gwerthu ”) means an automatic machine for the supply of deposit items (whether alone or together with other products);

“ voluntary return point ” (“ man dychwelyd gwirfoddol ”) means a return point which is not a mandatory return point.

(2) In these Regulations, a reference to the size of a multipack is a reference to the number of SP container drinks contained in the multipack.

(3) In these Regulations, it does not matter whether deposit items are—

(a) intended to be presented for supply to consumers in scheme multipacks or as single items;

(b) presented for supply to consumers in scheme multipacks or as single items;

(c) supplied to consumers in scheme multipacks or as single items.

(4) In these Regulations, a person acts in the course of a business if they act in the ordinary course of conduct of a trade, business, craft or profession, and any reference to a person acting otherwise than in the course of a business is to be construed accordingly.

(5) Where a scheme supplier—

(a) offers to supply deposit items for immediate consumption at any premises, and

(b) opens the relevant containers before supplying the drinks (whether wholly or partially) in those containers to the persons who have ordered them,

the containers are to be treated as being securely closed when they are supplied (and accordingly are “ deposit items ”).

(6) Any reference to “ consumption of a drink ” (however expressed) includes the consumption of the beverage resulting from the preparation of a liquid as described in regulation 4(2).

(7) A reference to a person supplying container drinks for “ immediate consumption ” on premises includes where the container drinks are supplied for consumption in an area in close proximity to those premises—

(a) where seating is available for that person’s customers (whether by that person or another person), or

(b) which the person’s customers habitually use for the consumption of drinks supplied by that person.

(8) A reference to a requirement that an application, approval, authorisation, direction, decision, determination, undertaking, notification or notice, including the withdrawal or amendment of a notice, the making of representations or objections, or the provision of information, must be in writing (“ written notifications ”) includes written notifications sent by any electronic means.

(9) Where an email address is provided by a person, documents may be sent to that email address under these Regulations.

(10) A notice or other document (the “ document ”) given by the Welsh Ministers, NRW, the deposit management organisation or a local weights and measures authority to any person under these Regulations is to be treated as having been received—

(a) if the document is left at the proper address, on the business day after the day on which it is left at that address;

(b) if the document is posted to a proper address in the United Kingdom, on the second business day after posting;

(c) if the document is sent by electronic means, on the business day after the day on which the document is transmitted.

Part 3 Establishment of a Deposit Scheme for Drinks Containers

Establishment of Deposit Scheme for Drinks Containers in Wales

1. —(1) These Regulations establish in Wales a deposit scheme in respect of containers in which drinks are supplied, for the purposes of—

(a) sustaining, promoting and securing an increase in the reuse of refund items and recycling of materials, and

(b) reducing littering and fly-tipping.

(2) Under the Scheme—

(a) a person supplied with a deposit item by a scheme supplier pays a deposit to the scheme supplier, and

(b) a person who provides a returnable item to a scheme collector is entitled to be paid the return amount for that item by the scheme collector.

(3) Paragraph (2)(a) is subject to regulations 3(1)(d) and 29 and paragraph (2)(b) is subject to regulation 11.

Circumstances in which a person is not entitled to a return amount for a returnable item

1. —(1) A person who provides a returnable item to a scheme collector is not entitled to be paid a return amount for that item if the scheme collector has a reasonable excuse not to accept the returnable item.

(2) The circumstances in which a scheme collector has a reasonable excuse not to accept a returnable item include—

(a) the scheme collector not being able to identify the container as a returnable item (including where it is not carrying a scheme logo or scheme return code);

(b) the returnable item being soiled;

(c) the returnable item not being empty;

(d) the returnable item not being intact;

(e) the returnable item being the container for a drink which the scheme collector does not or would not supply for reasons of the scheme collector’s faith or belief;

(f) where the scheme collector is a scheme retailer, the person providing the returnable item is attempting to return a number of returnable items which is disproportionately greater than the average number of deposit items that the scheme retailer would supply to a consumer in a single transaction.

(3) A returnable item is to be treated as intact under paragraph (2)(d) regardless of whether the lid or other similar item used to close it—

(a) is not returned with the returnable item, or

(b) is returned with the returnable item but is not attached to it.

(4) A scheme collector cannot refuse to accept a returnable item solely on the ground that it is a drink which the return point operator does not, or, if the return point operator were a scheme supplier, would not, supply otherwise than as provided for in paragraph (2)(e).

Part 4 Scheme producers

Chapter 1 Registration, information and related matters

Requirement for scheme producers to be registered to supply SP container drinks

1. —(1) A scheme producer must not supply SP container drinks unless the scheme producer is registered with the deposit management organisation as a registered scheme producer.

(2) Part 1 of Schedule 1 contains provision about the registration of scheme producers.

Register of registered scheme producers

1. —(1) The deposit management organisation must publish and maintain a register of registered scheme producers (“ the SP register ”).

(2) The entry in the SP register for a registered scheme producer must state—

(a) whether or not the scheme producer is a brand owner;

(b) whether or not the scheme producer is an importer;

(c) if the scheme producer is a brand owner or an importer (or both), the brand name of each drink for which the scheme producer is the brand owner or importer;

(d) whether or not the scheme producer fills to order;

(e) the date on which the scheme producer’s registration application was granted;

(f) whether or not the scheme producer produces, imports or fills to order any registered low volume products and, if so, what those products are and the date on which the product line was registered as a low volume line.

(3) The deposit management organisation must—

(a) add an entry for a registered scheme producer to the SP register as soon as reasonably practicable after the scheme producer’s registration application is granted;

(b) update the entry for a registered scheme producer as soon as reasonably practicable after the producer registers a low volume line.

(4) The deposit management organisation must—

(a) make the SP register available for inspection by members of the public at all reasonable times, free of charge, and

(b) permit members of the public to obtain copies of entries on the SP register on payment of a reasonable charge.

Requirement for registered scheme producers to keep records about supply of SP container drinks

1. —(1) A registered scheme producer must—

(a) as soon as reasonably practicable after it supplies an SP container drink, make a record of the information specified in paragraph (2) for that SP container drink, and

(b) keep that record for a period of 7 years beginning with the day on which it is made.

(2) The information mentioned in paragraph (1)(a) is—

(a) the in-scope material from which the SP container is wholly or mainly made;

(b) the capacity of the SP container;

(c) if the SP container drink is intended to be presented for supply to consumers in a scheme multipack containing two or more such drinks, the size of the scheme multipack;

(d) whether the SP container drink is a registered low volume product.

Deposit management organisation: power to obtain information from registered scheme producers

1. —(1) The deposit management organisation may direct a registered scheme producer to provide it with such information as is specified in a DMO instruction.

(2) A registered scheme producer who receives a DMO instruction must comply with it by the date specified in the DMO instruction (the “ compliance date ”).

(3) Where a registered scheme producer has provided, in response to a DMO instruction, information which the deposit management organisation reasonably believes to be inaccurate, false or misleading, the deposit management organisation must, within 28 days beginning with the day after the compliance date, notify NRW and provide to NRW all relevant information and documents.

(4) Where a registered scheme producer has provided, in response to a DMO instruction, information which the deposit management organisation reasonably believes to be incomplete, the deposit management organisation must, within 28 days beginning with the day after the compliance date, notify NRW and provide to NRW all relevant information and documents.

(5) Where a registered scheme producer has failed to respond to a DMO instruction by the compliance date, the deposit management organisation must, within 28 days beginning with the day after the compliance date, notify NRW and provide to NRW all relevant information and documents.

(6) In this regulation “ specified ” means specified in a DMO instruction.

Persons ceasing to be registered scheme producers: cancellation of registration

1. Part 2 of Schedule 1 contains provision about the cancellation of a person’s registration with the deposit management organisation as a registered scheme producer.

Persons ceasing to be registered scheme producers: continuing duties and requirements to record and provide information

1. —(1) The duties specified in paragraph (2) continue to apply to an outgoing producer on and after the registration cancellation date in so far as they relate to SP container drinks supplied by the outgoing producer before that date.

(2) The duties mentioned in paragraph (1) are the duties in—

(a) regulation 14(1)(b),

(b) regulation 15(2) (whether the DMO instruction is given before, on or after the registration cancellation date), and

(c) regulation 23.

(3) The deposit management organisation may direct an outgoing producer to provide it with such information as is specified in a DMO instruction on or after the registration cancellation date.

(4) The deposit management organisation may only specify information which relates to matters arising, or SP container drinks supplied, before the registration cancellation date.

(5) For the purposes of this regulation, any reference to a registered scheme producer in regulations 14, 15 and 23 (however expressed) is to be read as including a reference to the outgoing producer.

(6) In this regulation and regulation 18—

“ outgoing producer ” (“ cynhyrchydd ymadawol ”) means a person whose registration as a registered scheme producer is cancelled by the deposit management organisation under Part 2 of Schedule 1;

“ registration cancellation date ” (“ dyddiad canslo cofrestriad ”) means the day on which the cancellation of an outgoing producer’s registration as a registered scheme producer takes effect.

Persons ceasing to be registered scheme producers: updating the SP register

1. The deposit management organisation must—

(a) remove the entry relating to an outgoing producer from the SP register, and

(b) publish a notice of the change to the SP register in such manner as the deposit management organisation considers appropriate to bring that change to the attention of scheme suppliers.

Chapter 2 Low volume lines

Registration of a product line as a “low volume line”

1. —(1) A registered scheme producer of a product line may apply to register that line with the deposit management organisation as a low volume line in relation to—

(a) the first scheme year, if the number of containers in the product line for UK retail sale in that scheme year will not exceed 6,250;

(b) any other scheme year, if the number of containers in the product line for UK retail sale in that scheme year will not exceed 5,000.

(2) An application under paragraph (1) (an “ LVL application ”) must—

(a) state the scheme year to which it relates, and

(b) be made in such form and manner, and contain such information, as the deposit management organisation may direct.

(3) Where the registered scheme producer is a partnership, the LVL application must, if made by one partner, be made by that partner on behalf of all of the partners.

(4) Where the deposit management organisation receives an LVL application, it must—

(a) grant the application and register the relevant product line, if it is satisfied that the relevant threshold in paragraph (1) will not be exceeded;

(b) otherwise, refuse the application.

(5) The deposit management organisation must notify the applicant, in writing, of its decision.

(6) A notification under paragraph (5) must—

(a) where the LVL application is granted, state the scheme year in relation to which the product line is registered as a low volume line;

(b) where the LVL application is refused, state the reasons for that decision and inform the applicant of their right under regulation 79 to ask the deposit management organisation to review its decision.

(7) In these Regulations—

“ container line ” (“ llinell gynwysyddion ”) means a group of containers which are filled to order with a particular drink in a scheme year and which—

(a) are made wholly or mainly from the same in-scope material, and

(b) have the same capacity;

“ pre-packed drink line ” (“ llinell diodydd wedi eu pacio ymlaen llaw ”) means a group of containers in which a particular drink is made available in a scheme year and which—

(a) are made wholly or mainly from the same in-scope material, and

(b) have the same capacity;

“ product line ” (“ llinell gynhyrchion ”) means a pre-packed drink line or a container line;

“ UK retail sale ” (“ gwerthu drwy fanwerthu yn y DU ”) means supply by way of sale to consumers in the United Kingdom.

(8) For the purpose of the definitions of “ container line ” and “ pre-packed drink line ” it does not matter—

(a) whether or not the outward appearance of the containers is the same;

(b) whether or not all of the drinks are, or are intended to be, sold to consumers in the United Kingdom in multipacks;

(c) whether the products are produced in more than one phase of production or, where imported, are imported at different times.

Cancellation of registration of a product line as a “low volume line”

1. —(1) The registration of a product line as a low volume line under regulation 19 ceases to have effect—

(a) at the end of the scheme year in relation to which the line is registered as a low volume line, or

(b) if earlier, at the end of the day on which the deposit management organisation cancels the registration.

(2) A registered scheme producer must, as soon as reasonably practicable, in relation to the registration of a product line as a low volume line, notify the deposit management organisation—

(a) that the registered scheme producer intends to exceed the relevant threshold in regulation 19(1) (“ the number threshold ”) in relation to that product line, or

(b) that the registered scheme producer has exceeded the number threshold in relation to that product line.

(3) The deposit management organisation—

(a) must cancel the registration of a product line as a low volume line before the end of the relevant scheme year, if the registered scheme producer notifies the deposit management organisation under paragraph (2)(a) or (b);

(b) may cancel the registration of a product line as a low volume line before the end of the relevant scheme year if it is satisfied that the number threshold has been exceeded in relation to that product line, otherwise than following a notification under paragraph (2)(b).

(4) Where the deposit management organisation proposes to cancel a product line’s registration as a low volume line under paragraph (3)(b), it must, as soon as reasonably practicable, give a notice (a “ proposal notice ”) to the relevant registered scheme producer.

(5) A proposal notice must be in writing and must—

(a) state the reasons why the deposit management organisation is proposing to cancel the registration,

(b) specify the day on which the deposit management organisation proposes to cancel the product line’s registration as a low volume line, and

(c) specify—

(i) the form and manner in which any representations may be made to the deposit management organisation about the proposal, and

(ii) the period within which such representations must be made, which must not be less than 28 days, beginning with the day after the day on which the registered scheme producer receives the proposal notice.

(6) The deposit management organisation—

(a) must consider any representations made in the form and manner, and within the period specified in paragraph (5)(c);

(b) may consider any representations which are not made in the form and manner or within the period specified in paragraph (5)(c).

(7) Where the deposit management organisation decides, following consideration of any representations made by the registered scheme producer, not to cancel the product line’s registration as a low volume line, it must, as soon as reasonably practicable, give the registered scheme producer a notice, in writing, of its decision.

(8) The deposit management organisation must give the registered scheme producer notice of the cancellation of the product line’s registration as a low volume line (an “ LVL cancellation notice ”), where—

(a) it decides, following consideration of any representations made by the registered scheme producer, to cancel the product line’s registration as a low volume line, or

(b) the registered scheme producer does not make any representations to the deposit management organisation.

(9) An LVL cancellation notice must be in writing and must state—

(a) that the product line’s registration as a low volume line is being cancelled and give the reasons why,

(b) the date when cancellation of the registration will take effect, and

(c) that the registered scheme producer has a right under regulation 79 to ask the deposit management organisation to review its decision.

(10) If the registered scheme producer exercises the right referred to in paragraph (9)(c), the LVL cancellation notice must not take effect before the end of the period specified in regulation 81(2).

(11) The date specified under paragraph (9)(b) must not be before the end of the 28-day period specified in regulation 79(1)(b).

Registration of a product line as a “low volume line”: updates to the SP register

1. —(1) The deposit management organisation must—

(a) update the entry relating to a registered scheme producer in the SP register in accordance with paragraph (2) if—

(i) any product line of the registered scheme producer is registered as a low volume line in relation to a scheme year, or

(ii) the registration of any product line as a low volume line is cancelled before the end of the relevant scheme year, and

(b) publish a notice of the change to the SP register in such manner as it considers appropriate to bring the change to the attention of scheme suppliers.

(2) The entry for a registered scheme producer must state—

(a) each scheme year in relation to which a product line of the registered scheme producer is registered as a low volume line, and

(b) if that product line’s registration as a low volume line is cancelled before the end of a scheme year, the date on which that cancellation takes effect.

Chapter 3 Payments to the deposit management organisation

Registered scheme producer registration fee

1. A registered scheme producer must pay any registration fee, or any instalment of such a fee, to the deposit management organisation.

Deposits

1. —(1) A registered scheme producer must pay to the deposit management organisation an amount equivalent to the deposit for each deposit item which the scheme producer supplies to any person.

(2) The registered scheme producer must pay any amount under paragraph (1)—

(a) by such date, or at such intervals, as may be directed by the deposit management organisation;

(b) by such means as may be directed by the deposit management organisation.

Part 5 Scheme suppliers

Prohibition on supply of deposit items from a scheme producer who is not registered with the deposit management organisation

1. A scheme supplier must not supply a deposit item unless the scheme producer of the deposit item—

(a) is a registered scheme producer, or

(b) where the scheme producer’s registration is cancelled under paragraph 5 or 6 of Schedule 1, was a registered scheme producer at the time the deposit item was made available for supply to the scheme supplier.

Labelling of deposit items and scheme multipacks

1. —(1) A scheme supplier must not supply a deposit item, regardless of whether the deposit item is or is intended to be supplied to consumers in a scheme multipack, unless the deposit item carries—

(a) the required item logo, and

(b) a scheme return code.

(2) A scheme supplier must not supply a scheme multipack unless it carries the required packaging logo (if any).

(3) But paragraph (2) does not apply where—

(a) a scheme packaging logo is first issued after 1 October 2027, and

(b) the scheme multipack was first made available for supply before the date specified for the purposes of regulation 56(4) in relation to that logo.

(4) In this regulation—

“ required item logo ” (“ logo eitem sy’n ofynnol ”), in relation to a deposit item means—

(a) the scheme logo, or

(b) if the deposit item was produced or imported before the date specified under regulation 56(4) in relation to the scheme logo, the logo issued under regulation 56 when the deposit item was produced or imported;

“ required packaging logo ” (“ logo pecynwaith sy’n ofynnol ”), in relation to a scheme multipack means—

(a) the scheme packaging logo, or

(b) if the scheme multipack was first made available for supply in Wales before the date specified under regulation 56(4) in relation to the scheme packaging logo, the logo issued under regulation 56 when the scheme multipack was first made available for supply in Wales.

Labelling of registered low volume products

1. —(1) A person must not supply—

(a) a registered low volume product, or

(b) a container drink which was a registered low volume product at the time it was made available for supply in Wales by the registered scheme producer, where the registration of a low volume line has ceased to have effect under regulation 20,

if the container drink carries a scheme logo or scheme return code (or both).

(2) For the purposes of paragraph (1) it does not matter whether a container drink is intended to be supplied as a single item or in a multipack.

(3) Paragraph (1) does not apply if a product line, which the container drink is part of, was registered as a low volume line after the container drink was produced or imported.

(4) A person must not supply a multipack which contains registered low volume products but no deposit items if the multipack carries the scheme packaging logo (if any).

(5) But paragraph (4) does not apply if the multipack contains only SP container drinks which were registered low volume products on or after the day on which the multipack was first made available for supply in Wales.

Duty to display information about the Scheme

1. —(1) A scheme supplier must provide or display, or provide for display, the scheme information, in accordance with this regulation.

(2) A scheme supplier who offers to supply deposit items or connected goods or services orally (for example, by telephone) must—

(a) provide the scheme information to a person who orders deposit items or connected goods or services, before taking payment for those items, goods or services, and

(b) if requested, provide the scheme information in writing to that person.

(3) A scheme supplier who displays, or offers, deposit items for supply at any premises must display the scheme information on those premises—

(a) so it is available to people choosing deposit items, and

(b) to comply with paragraph (7).

(4) But paragraph (3) does not apply—

(a) to any on-sale premises which are opted-out premises, or

(b) in respect of any deposit items which are displayed, or offered, for supply for immediate consumption on that part of mixed retail premises which are opted-out premises.

(5) A scheme supplier who offers deposit items for supply on a website, through a mobile application or in any kind of publication must—

(a) ensure that the scheme information is displayed as part of the description of the deposit items, and complies with paragraph (7), or

(b) where the scheme supplier is not responsible for the website, mobile application or publication, provide the person with such responsibility with the scheme information, for display as part of the description of the deposit items on the website, in the mobile application or in the publication.

(6) A scheme supplier who provides the scheme information under paragraph (5)(b) must ask the person to whom they provide that information to display it so that it complies with paragraph (7).

(7) The scheme information must be displayed clearly and accessibly.

(8) In these Regulations “ scheme information ” means—

(a) a statement that the scheme supplier is required by the Scheme to charge a deposit for each deposit item that the supplier supplies,

(b) subject to paragraph (9), for each deposit item that the scheme supplier displays or offers for supply—

(i) the amount payable for the deposit item excluding the deposit,

(ii) the amount of the deposit, and

(iii) the amount payable for the deposit item including the deposit, and

(c) where the scheme supplier is a scheme retailer, a statement as to how to obtain a refund in relation to a deposit item.

(9) A scheme retailer need not duplicate in the scheme information any amount which the retailer is required to indicate under article 4 or 5 of the Price Marking Order 2004(10) (obligation to indicate selling price and unit price).

Duty to display information about registered low volume products

1. —(1) A person who supplies registered low volume products must provide or display the RLVP information, or provide it for display, in accordance with this regulation.

(2) A person who offers to supply registered low volume products or connected goods or services orally (for example, by telephone) must—

(a) provide the RLVP information to a person who orders the registered low volume product or connected goods or services before taking payment for those products, goods or services, and

(b) if requested, provide the RLVP information in writing to that person.

(3) A person who displays, or offers, registered low volume products for supply at any premises must display the RLVP information at those premises—

(a) so it is available to people choosing registered low volume products, and

(b) to comply with paragraph (6).

(4) A person who offers registered low volume products for supply on a website, through a mobile application or in any kind of publication must—

(a) ensure that the RLVP information is displayed to comply with paragraph (6) as part of the description of the registered low volume products on the website, in the mobile application or in the publication, or

(b) if the person who offers registered low volume products for supply under this regulation is not responsible for the website, mobile application or publication, that person must provide the RLVP information to the person who is responsible for the website, mobile application or publication, for display as part of the description of the registered low volume products on the website, in the mobile application or in the publication.

(5) A person who provides the RLVP information under paragraph (4)(b) must ask the person to whom they provide that information to display it to comply with paragraph (6) as part of the description of the registered low volume product on the website, in the mobile application or in the publication.

(6) The RLVP information must be displayed clearly and accessibly.

(7) In this regulation “ the RLVP information ” means—

(a) a statement that the person supplying the registered low volume product is not required to charge a deposit in connection with the supply of any registered low volume products, and

(b) a statement that no refund is payable for a container from a registered low volume product.

Requirement to charge a deposit

1. —(1) A scheme supplier must charge a customer a deposit for each deposit item which the scheme supplier supplies to the customer.

(2) But a scheme supplier who supplies deposit items for immediate consumption (“ IC items ”) to customers at any mixed retail premises or on-sale premises may decide not to charge a deposit for IC items supplied at those premises (an “ opt-out decision ”).

(3) The scheme supplier may reverse an opt-out decision at any time.

(4) In this regulation “ customer ” means a person to whom a scheme supplier supplies deposit items.

Duty to display information at opted-out premises

1. —(1) A scheme retailer must display the opt-out information at any opted-out premises—

(a) to comply with paragraph (2), and

(b) so that it is available to persons choosing deposit items for immediate consumption at those premises.

(2) The opt-out information must be displayed clearly and accessibly.

(3) In this regulation “ the opt-out information ” means—

(a) a statement that the scheme retailer is not required to charge a deposit for the deposit items which the scheme retailer supplies for immediate consumption at the premises, and

(b) a statement requesting that empty containers are not removed from the premises.

Deposit management organisation: power to obtain information from scheme supplier

1. —(1) The deposit management organisation may direct a scheme supplier to provide such information as is specified in a DMO instruction.

(2) A registered scheme supplier who receives a DMO instruction must comply with it by the date specified in the DMO instruction (the “ compliance date ”).

(3) Where a scheme supplier has provided, in response to a DMO instruction, information which the deposit management organisation reasonably believes to be inaccurate, false or misleading, the deposit management organisation must notify and provide to NRW all relevant information and documents.

(4) Where a scheme supplier has provided incomplete information in response to a DMO instruction, the deposit management organisation must, within 28 days beginning with the day after the compliance date, notify and provide to NRW all relevant information and documents.

(5) Where a scheme supplier has failed to respond to a DMO instruction by the compliance date, the deposit management organisation must, within 28 days beginning with the day after the compliance date, notify and provide to NRW all relevant information and documents.

(6) In this regulation “ specified ” means specified in a DMO instruction.

Part 6 Return of returnable items

Chapter 1 Items subject to overseas schemes

Direction specifying an overseas scheme

1. —(1) The deposit management organisation may give a direction specifying an overseas scheme (“ specified overseas scheme ”) to enable containers which are the subject of that scheme to be returned to scheme collectors.

(2) A direction under paragraph (1) must—

(a) be in writing,

(b) state the date on which it takes effect, and

(c) be published in such manner as the deposit management organisation considers appropriate to bring to the attention of scheme collectors and consumers.

(3) A direction under paragraph (1) has effect until revoked by notice by the deposit management organisation.

(4) A notice under paragraph (3) must—

(a) be in writing,

(b) state the date on which it takes effect, and

(c) be published in such manner as the deposit management organisation considers appropriate to bring to the attention of scheme collectors and consumers.

(5) The date specified under paragraph (2)(b) or (4)(b) must not be before the end of the period of 3 calendar months beginning with the day after the day on which the direction or notice is published.

(6) Before giving a direction under paragraph (1) or revoking a direction under paragraph (3), the deposit management organisation must—

(a) consult—

(i) NRW,

(ii) scheme collectors, and

(iii) such other persons (if any) as it considers appropriate, and

(b) take account of the views expressed by those consulted.

Determination of overseas refund amount

1. —(1) The deposit management organisation must, for each specified overseas scheme, determine the amount to be paid by scheme collectors in respect of overseas scheme items which are the subject of that scheme (“ overseas refund amount ”).

(2) The deposit management organisation may revise the overseas refund amount for a specified overseas scheme, but must not do so more than once per specified overseas scheme in any 12 month period.

(3) Before determining an amount under paragraph (1), or revising an amount under paragraph (2), the deposit management organisation must—

(a) consult—

(i) such persons as appear to it to represent those likely to be affected by the determination or revision, and

(ii) such other persons (if any) as the deposit management organisation considers appropriate, and

(b) take account of the views expressed by those consulted.

(4) The deposit management organisation must publish, in such manner as it considers appropriate, a notice of any determination or revision made under this regulation, to bring it to the attention of scheme collectors and consumers.

(5) A notice under paragraph (4) must specify—

(a) the overseas refund amount or revised overseas refund amount, and

(b) the date on which—

(i) the determination takes effect, or

(ii) the revision takes effect.

(6) The date specified under paragraph (5)(b) must not be before the end of the period of 3 calendar months beginning with the day after the day on which the relevant notice is published.

The overseas refund amount: supplementary provisions

1. —(1) The deposit management organisation may determine that the overseas refund amount—

(a) is the same for all overseas scheme items subject to a particular specified overseas scheme, or

(b) is different for different overseas scheme items subject to that particular scheme.

(2) The deposit management organisation may, when determining or revising an overseas refund amount for an overseas scheme item, have regard to the deposit payable for that item under the specified overseas scheme concerned.

(3) In paragraph (1)(b), the deposit management organisation may, in particular, determine an overseas refund amount by reference to any or all of the following—

(a) the size of the container;

(b) the in-scope material from which the container is wholly or mainly made;

(c) the nature of the specified overseas scheme to which the overseas scheme item relates.

(4) But an overseas refund amount for an overseas scheme item must not exceed the refund for a comparable refund item.

(5) In paragraph (4), a refund item is “ comparable ” to an overseas scheme item if—

(a) it is of the same size,

(b) it is made wholly or mainly from the same in-scope material, and

(c) where the overseas scheme item is from a drink that was supplied in a multipack, the refund item is from a deposit item that was supplied in a multipack.

Chapter 2 Mandatory return points

Requirement for in-scope retailers to operate a return point at, on or from MRP premises

1. —(1) A groceries retailer who supplies deposit items to consumers at, on or from MRP premises must operate a return point in respect of those premises.

(2) But paragraph (1) does not apply if an exemption has effect in respect of the MRP premises (a “ return point exemption ”).

(3) A groceries retailer required to operate a return point under paragraph (1) is referred to in these Regulations as an “ in-scope retailer ”.

(4) The return point must be operated—

(a) at, on or from the MRP premises, or

(b) at or on any premises adjacent to the MRP premises which are provided by, or on behalf of, the in-scope retailer for use as parking by the retailer’s customers.

(5) An in-scope retailer must register with the deposit management organisation and once registered is referred to in these Regulations as a “ mandatory return point operator ”.

(6) Schedule 2 contains further provision about registration as a mandatory return point operator.

(7) Schedule 3 contains further provision about return point exemptions.

Exemption for small in-scope retailers in urban areas

1. —(1) An in-scope retailer who has a relevant retail space which is situated in an urban area is exempt from the requirement under regulation 35 to operate a return point.

(2) The deposit management organisation may provide information to in-scope retailers to assist them in determining whether they are established in an urban area.

(3) An in-scope retailer who, under paragraph (1), is exempt from the requirement to operate a return point must, as soon as reasonably practicable, notify the deposit management organisation in writing.

(4) An in-scope retailer who, under paragraph (1), is exempt from the requirement to operate a return point may apply to operate a voluntary return point under regulation 38.

(5) In this regulation—

“ relevant retail space ” (“ lle manwerthu perthnasol ”) means a retail space of less than 100m 2 whether or not that retail space is situated within, or forms part of, a larger building or premises and regardless of the use, nature or purpose of the larger building or premises;

“ urban ” (“ trefol ”) means an area classified as urban by reference to the document titled “2011 rural urban classification of output areas” published by the Office for National Statistics(11) on 13 September 2013, updated on 27 January 2016.

Requirement for groceries retailers to provide information at premises without a return point

1. —(1) A groceries retailer must display the information specified in paragraph (2) clearly and accessibly at any premises where the retailer supplies deposit items to consumers and which—

(a) are not MRP premises or a voluntary return point, or

(b) are premises in respect of which a return point exemption is in effect.

(2) The information mentioned in paragraph (1) is—

(a) a statement that the retailer is not required to operate a return point in respect of the premises, and the reason why,

(b) if a return point exemption has been granted in respect of the premises, a statement as to how information about that exemption can be obtained, and

(c) if the premises are not a motor vehicle, ship or boat, train, tram, aircraft or hovercraft, the location of the return point nearest to those premises.

Chapter 3 Voluntary operation of return points

Voluntary return points

1. —(1) A scheme supplier may operate a voluntary return point at any in-scope premises in respect of which they are authorised to operate that return point by the deposit management organisation.

(2) An in-scope retailer who is exempt from the requirement to operate a return point under regulation 36(1) may operate a voluntary return point at the premises concerned if they are authorised to do so by the deposit management organisation.

(3) Schedule 4 contains further provision about authorisations to operate voluntary return points.

Operation of return points by the deposit management organisation

1. The deposit management organisation may operate a return point at any premises other than—

(a) any premises in respect of which a person is required or authorised to operate a return point;

(b) any premises in respect of which a return point exemption is in effect.

Chapter 4 Information to be provided at return points

Information to be provided at a return point

1. A return point operator must display the following information, clearly and accessibly, at the return point—

(a) a statement that the return point operator may refuse to accept a returnable item if the return point operator has a reasonable excuse under regulation 11, and in which case a return amount will not be paid,

(b) a summary of the procedure maintained by the deposit management organisation for the making of any complaint about the operation of the return point, and

(c) contact details for the deposit management organisation.

Chapter 5 Take-back services and deposit management organisation collections

Provision of take-back services

1. —(1) A scheme retailer may provide a take-back service if they are registered with the deposit management organisation to provide that service.

(2) Schedule 4 contains further provision about registration to provide a take-back service and related matters.

Information about take-back services

1. —(1) A take-back service provider must provide or display, or provide for display, the take-back service information referred to in paragraph (6), in accordance with this regulation.

(2) Where a take-back service provider offers orally (for example, by telephone) to supply deposit items to a consumer, the take-back service provider must provide at the same time—

(a) the scheme information,

(b) the take-back service information, and

(c) if requested, the take-back service information in writing or direct the person to where that information can be found through any means of distance communication.

(3) A take-back service provider who displays, or offers, deposit items for supply at any premises must—

(a) display the take-back service information on those premises so it is available to a consumer choosing deposit items, and to comply with paragraph (7), and

(b) if requested, provide the take-back service information in writing to a consumer who purchases any deposit items or direct the person to where that information can be found through any means of distance communication.

(4) A take-back service provider who offers deposit items for supply through any means of distance communication must—

(a) ensure that the take-back service information is displayed so as to comply with paragraph (7) as part of the description of the deposit items on or in the relevant means of distance communication, or

(b) where the take-back service provider is not responsible for the means of distance communication, provide the take-back service information to the person who is responsible, for display as part of the description of the deposit items on or in the relevant means of distance communication.

(5) A take-back service provider who provides a person with the take-back service information under paragraph (4)(b) must ask the person to whom they provide that information to display it so that it complies with paragraph (7).

(6) In this regulation the “ take-back service information ” means—

(a) a statement as to how the consumer may accept the offer of the take-back service,

(b) a statement that the take-back service provider may refuse to accept a returnable item if the provider has a reasonable excuse under regulation 11, and in that case a return amount will not be paid,

(c) a statement of any steps that the consumer must take to enable any returnable items to be collected by the take-back service provider (including, for example, if the consumer must book a collection slot, how such a slot may be booked and the means to be used to identify any returnable items provided by that consumer),

(d) if a return amount is to be paid other than when the returnable items are collected from the consumer, a statement as to how and when the return amount will be paid to the consumer,

(e) a summary of the procedure maintained by the deposit management organisation for the making of any complaint about the operation of the take-back service, and

(f) contact details for the deposit management organisation.

(7) A display of information must be displayed clearly and accessibly, including through any means of distance communication.

Collection or acceptance of returnable items by the deposit management organisation

1. —(1) The deposit management organisation may collect or otherwise accept returnable items from any person (irrespective of the requirements imposed on the deposit management organisation under regulation 69).

(2) The deposit management organisation must pay a return amount for each returnable item that it accepts.

(3) The deposit management organisation may make such arrangements as it considers appropriate for the purposes of this regulation, which may include provision about how any return amount is to be paid.

Chapter 6 Register of return point operators and deposit management organisation return points, register of return point exemptions and register of take-back service providers

Register of return point operators and deposit management organisation return points

1. —(1) The deposit management organisation must keep and maintain a register of—

(a) return point operators, and

(b) DMO return points.

(2) An entry on the register for a return point operator must specify—

(a) the name of the return point operator, and

(b) each of the premises in respect of which that return point operator is required or authorised to operate a return point.

(3) An entry on the register for a DMO return point must—

(a) identify the premises at which the return point is operated, and

(b) specify that it is operated by the deposit management organisation.

(4) The deposit management organisation must keep the register up to date and make any amendments to the register as soon as reasonably practicable.

(5) The register must be available for inspection by members of the public at all reasonable times, free of charge.

(6) In this regulation, “ DMO return point ” means a return point operated by the deposit management organisation.

The register of return point exemptions

1. —(1) The deposit management organisation must keep and maintain a register of return point exemptions.

(2) An entry on the register for a return point exemption must specify—

(a) the scheme retailer to whom the exemption has been granted, and

(b) the premises in respect of which the exemption is granted.

(3) The deposit management organisation must update the register as soon as reasonably practicable after a return point exemption is granted to a scheme retailer.

(4) The deposit management organisation must remove the entry for a return point exemption which expires under paragraph 6(1)(a) of Schedule 3 as soon as reasonably practicable after it expires.

(5) Where a return point exemption is revoked under paragraph 8 or 9 of Schedule 3, the deposit management organisation must remove the entry from the register—

(a) at the end of the day on which the revocation takes effect, or

(b) if it is not practicable to amend the register at that time, as soon as reasonably practicable.

(6) The deposit management organisation must make the register available for inspection by members of the public at all reasonable times, free of charge.

The register of take-back service providers

1. —(1) The deposit management organisation must keep and maintain a register of take-back service providers.

(2) The deposit management organisation must update the register as soon as reasonably practicable after a scheme retailer is registered as a take-back service provider.

(3) Where a scheme retailer’s registration as a take-back service provider is revoked under paragraph 10 or 11 of Schedule 4, the deposit management organisation must remove the entry from the register—

(a) at the end of the day on which the revocation takes effect, or

(b) if it is not practicable to amend the register at that time, as soon as reasonably practicable.

(4) The deposit management organisation must—

(a) make the register available for inspection by members of the public at all reasonable times, free of charge, and

(b) permit members of the public to obtain copies of entries on the register on payment of a reasonable charge.

Chapter 7 General obligations of scheme collectors

Form of return amount

1. —(1) A scheme collector must pay the total return amount for the returnable items that it accepts from a person using one or more of the following means, unless the person elects for that amount to be paid to a charity under regulation 48—

(a) cash in sterling;

(b) a payment to a debit or credit card;

(c) a refund voucher.

(2) But if the scheme collector is a scheme retailer (other than a scheme retailer who does not accept cash), the scheme collector must—

(a) offer to pay the total return amount in the form of money or a refund voucher to the person returning the returnable items (the “ returner ”), and

(b) if the returner accepts the offer, pay the total return amount in the form of money or a refund voucher.

(3) A refund voucher—

(a) may be provided in either a physical or electronic format, but

(b) must be provided in a physical format, if requested by the returner.

(4) In this regulation—

“ refund voucher ” (“ taleb ad-daliad ”) means a voucher, token or similar item which is capable of being exchanged immediately either with the scheme collector or another person, for a sum of money, or a payment to a debit or credit card, equal to the relevant total return amount—

(a) for goods or services, or

(b) singly or together with any other refund vouchers or other vouchers or similar items;

“ total return amount ” (“ swm dychwelyd cyfan ”) means the aggregate of the return amount payable for each returnable item presented by the returner and accepted by the scheme collector.

Payment of return amount to charity

1. —(1) A person who is eligible for a payment under regulation 47(1) may notify the scheme collector that they elect for a sum equivalent to the total return amount to be paid by the deposit management organisation to a charity.

(2) A scheme collector who is notified under paragraph (1) must notify the deposit management organisation of that election (including the relevant total return amount and the date the election was made) within 3 months of receiving the notification.

(3) On receiving a notification under paragraph (2), the deposit management organisation must pay to a charity a sum equivalent to the total return amount that the person was eligible for under regulation 47(1) within 12 months of that election being made.

(4) A person who makes an election under paragraph (1) ceases to be eligible for a payment under regulation 47 in relation to that election.

(5) In this regulation “ total return amount ” has the meaning given in regulation 47(4).

Requirement for return point operators to retain returnable items

1. A return point operator (other than the deposit management organisation) must retain the returnable items that it accepts at the return point for collection by, or on behalf of, the deposit management organisation.

Requirement for take-back service providers to retain or return returnable items

1. A take-back service provider must either—

(a) retain the returnable items that it accepts through the take-back service, for collection by, or on behalf of, the deposit management organisation, or

(b) return the returnable items that it accepts through the take-back service to the deposit management organisation or a person acting on behalf of the deposit management organisation.

Part 7 The scheme administrator: the deposit management organisation

Chapter 1 Appointment and governance

The deposit management organisation

1. —(1) The Welsh Ministers may appoint a person as the scheme administrator of the Scheme (referred to in these Regulations as “ the deposit management organisation ”).

(2) Schedule 5 contains provision about the appointment of the deposit management organisation and related matters.

Conditions

1. —(1) A person’s appointment as the deposit management organisation may be subject to such conditions (if any) as the Welsh Ministers consider appropriate (see paragraph 2(3)(a)(iii) of Schedule 5).

(2) The Welsh Ministers may, by notice in writing, vary or revoke any condition to which the deposit management organisation is subject.

(3) The deposit management organisation must comply with any conditions imposed by the Welsh Ministers under this regulation and Schedule 5.

Operational plan

1. —(1) The deposit management organisation must act in accordance with its operational plan.

(2) The deposit management organisation—

(a) must consider how its operational plan would adapt to and manage any expansion of the types of in-scope material;

(b) may review its operational plan at any time, and must do so—

(i) by the end of the period of 12 months beginning with the date of appointment under regulation 51(1), and

(ii) subsequently at intervals not exceeding 12 months.

(3) The deposit management organisation may revise its operational plan following a review under paragraph (2)(b) and must, as soon as reasonably practicable, submit a revised plan to—

(a) the Welsh Ministers, and

(b) NRW.

(4) Any revision of the operational plan must be approved by NRW, with or without modifications.

(5) But, where the Welsh Ministers give NRW a notice in writing (a “ call-in notice ”) that a revision of the operational plan is to be approved by the Welsh Ministers instead of NRW, that revision is to be approved by the Welsh Ministers.

(6) A call-in notice may relate to—

(a) a particular revision, or

(b) such descriptions of revision as may be specified in the notice.

(7) Before NRW approve any revision of the operational plan, NRW must consult—

(a) the Welsh Ministers, and

(b) the deposit management organisation.

(8) Before the Welsh Ministers approve any revision of the plan, the Welsh Ministers must consult—

(a) NRW, and

(b) the deposit management organisation.

(9) An approval under paragraph (4) or (5) must be in writing.

(10) The deposit management organisation must, as soon as reasonably practicable, incorporate any revision approved under paragraph (4) or (5) into its operational plan and must send a copy of that revised operational plan, if requested to do so to—

(a) the Welsh Ministers, and

(b) NRW.

Annual report

1. —(1) The deposit management organisation must submit an annual report to the Welsh Ministers and NRW for each scheme year.

(2) The annual report must set out how, and the extent to which, the deposit management organisation has, in the relevant scheme year, acted in accordance with its operational plan.

(3) The annual report must be submitted to the Welsh Ministers and NRW as soon as reasonably practicable, and in any event within a period of 6 weeks beginning with the day after the final day of the scheme year to which it relates.

Reserve fund

1. —(1) The deposit management organisation which is first appointed under regulation 51(1) must establish a reserve fund within 5 years of the date of its appointment.

(2) The deposit management organisation which establishes a reserve fund, and any deposit management organisation which is subsequently appointed in its place, must—

(a) maintain the reserve fund in such amount as is necessary to fund the payments set out in paragraph (3), or

(b) maintain the reserve fund in such amount as the Welsh Ministers may direct.

(3) In this regulation “ reserve fund ” means a fund out of which, in the event of the deposit management organisation’s appointment being revoked, payments may be made by the interim scheme administrator in respect of—

(a) expenditure incurred by the deposit management organisation in the exercise of its functions under or in connection with the Scheme before its appointment was revoked, and

(b) expenditure incurred by the interim scheme administrator in the exercise of its functions under or in connection with the Scheme before the appointment of another person as the deposit management organisation (see Chapter 11 of this Part).

Chapter 2 Scheme logo, scheme packaging logo and scheme return code

Scheme logo and scheme packaging logo

1. —(1) The deposit management organisation—

(a) must issue to registered scheme producers a single logo designed to be carried on each deposit item to identify it as a deposit item (the “ scheme logo ”);

(b) may issue to registered scheme producers a single logo designed to be carried on each scheme multipack to identify the scheme multipack as packaging which contains one or more deposit items (the “ scheme packaging logo ”).

(2) A scheme logo or scheme packaging logo may be withdrawn and replaced by the deposit management organisation.

(3) Before deciding to issue or withdraw and replace a scheme logo or scheme packaging logo, the deposit management organisation must consider the likely impact of the decision on registered scheme producers.

(4) Where the deposit management organisation issues or replaces a scheme logo or scheme packaging logo, it must specify the date from which that logo is to be used by registered scheme producers and scheme suppliers.

(5) The date specified under paragraph (4) must be a date which the deposit management organisation is satisfied gives registered scheme producers and scheme suppliers sufficient notice of the change before it takes effect.

Publication of scheme logo and scheme packaging logo

1. The deposit management organisation must publish—

(a) the scheme logo, and

(b) the scheme packaging logo (if any),

in such manner as it considers appropriate to bring them to the attention of scheme suppliers and consumers.

Scheme return code and code requirements

1. —(1) In these Regulations—

“ code requirements ” (“ gofynion cod ”), in relation to a code, means any additional requirements specified by the deposit management organisation including—

(a) requirements about the technological or security standards that a code must meet to be used as a scheme return code;

(b) requirements as to the information to be retrieved when the code is scanned electronically;

“ scheme return code ” (“ cod dychwelyd cynllun ”), in relation to a deposit item, means a code which—

(a) when scanned electronically enables the registered scheme producer of the item to be identified, and

(b) meets any code requirements.

(2) The deposit management organisation may—

(a) specify the same code requirements to be used on all deposit items, or

(b) specify different code requirements to be used on different deposit items.

(3) In determining whether to specify code requirements and, if appropriate, what code requirements to specify, the deposit management organisation must consider the likely impact of those requirements on registered scheme producers.

(4) Before making changes to any code requirements specified for a deposit item, the deposit management organisation must consider the likely impact of those changes on registered scheme producers.

(5) Where the deposit management organisation changes any code requirements specified for a deposit item, it must specify the date from which the scheme return code is to be used.

(6) The date specified under paragraph (5) must be a date which the deposit management organisation is satisfied gives registered scheme producers sufficient notice of the change before it takes effect.

(7) The deposit management organisation must take appropriate steps to ensure that registered scheme producers are aware of the code requirements (if any) and any changes to them.

Agreement on a common scheme logo, scheme packaging logo and code requirements for a scheme return code

1. —(1) The deposit management organisation must use its best endeavours to agree, with the England and Northern Ireland scheme administrator and the Scottish deposit administrator, a common single scheme logo, scheme packaging logo and code requirements for a scheme return code.

(2) Before issuing a scheme logo or scheme packaging logo under regulation 56 or specifying any code requirements for a scheme return code under regulation 58, the deposit management organisation must—

(a) consult—

(i) such persons as appear to it to represent those likely to be affected by the issue of a scheme logo, scheme packaging logo or code requirements for a scheme return code,

(ii) the England and Northern Ireland scheme administrator,

(iii) the Scottish deposit administrator, and

(iv) such other persons (if any) as the deposit management organisation considers appropriate, and

(b) have regard to the views expressed in response to the consultation.

Chapter 3 Templates

Templates

1. The deposit management organisation must publish, in such manner as it considers appropriate to bring to the attention of scheme retailers, template documents in respect of—

(a) the scheme information referred to in regulation 27(8);

(b) the RLVP information referred to in regulation 28(7);

(c) the opt-out information referred to in regulation 30(3);

(d) the information referred to in regulation 37(2) for groceries retailers to provide at premises without a return point;

(e) the information to be provided at a return point under regulation 40;

(f) the take-back service information referred to in regulation 42(6).

Chapter 4 The deposit

Requirement to determine the amount of the deposit

1. —(1) The deposit management organisation must determine the amount of the deposit in respect of deposit items.

(2) In determining an amount under paragraph (1), the deposit management organisation must—

(a) use its best endeavours to agree with the England and Northern Ireland scheme administrator and the Scottish deposit administrator in setting the same amount of the deposit for deposit schemes across the United Kingdom, and

(b) have regard to any determinations on the amount of the deposit in respect of deposit items made by the England and Northern Ireland scheme administrator and the Scottish deposit administrator.

(3) The deposit management organisation must publish, in such manner as it considers appropriate, the amount of the deposit in respect of deposit items.

(4) The deposit management organisation must, if requested by the Welsh Ministers, inform them of the methodology, data and evidence relied upon to calculate and determine the amount of the deposit.

Revision of amount of the deposit

1. —(1) The deposit management organisation may revise the amount of the deposit in respect of any deposit items.

(2) The deposit management organisation must publish a notice, in a manner it considers appropriate, which specifies—

(a) the revised amount of the deposit in respect of the relevant deposit items, and

(b) the date on which the revised amount of the deposit takes effect.

(3) The date specified under paragraph (2)(b) must be at least 3 calendar months after the day on which the relevant notice is published.

The amount of the deposit: supplementary provisions

1. —(1) The amount of the deposit may be—

(a) the same in respect of all deposit items, or

(b) different in respect of different deposit items.

(2) For the purposes of paragraph (1)(b), the deposit management organisation may determine the amount of the deposit by reference to, for example—

(a) the size of the containers;

(b) the in-scope material from which the containers are wholly or mainly made;

(c) whether the deposit items are supplied to consumers as single items or in multipacks.

(3) The deposit management organisation, when determining the amount of the deposit for a deposit item, must have regard to—

(a) the purposes of the Scheme,

(b) the collection targets set out under regulation 84,

(c) the likely impact of the amount of the deposit on the ability of consumers to purchase deposit items,

(d) the likely impact of the amount of the deposit on the use of containers by registered scheme producers (including the in-scope material used to make those containers, the size of the containers and the use of multipacks),

(e) the likely impact on the purchase of deposit items by consumers (including the in-scope material used to make those containers, the size of the containers purchased, and purchase of multipacks or single items),

(f) the likely impact on consumers, the purposes of the Scheme and the collection targets, if the amount of the deposit for a deposit item is different to the amount payable for a comparable container under the England and Northern Ireland deposit scheme or the Scottish deposit and return scheme, and

(g) the likely impact of a proposed amount of the deposit on the operation of the England and Northern Ireland deposit scheme and the Scottish deposit and return scheme.

(4) Before making a determination under regulation 61 or revision under regulation 62, the deposit management organisation must—

(a) consult—

(i) the persons that it considers represent those most likely to be affected by the determination or revision,

(ii) the England and Northern Ireland scheme administrator,

(iii) the Scottish deposit administrator, and

(iv) such other persons (if any) as it considers appropriate, and

(b) have regard to the views expressed in response to the consultation.

(5) In this regulation, “ comparable container ”, in relation to a deposit item, means a container which can be returned under the England and Northern Ireland deposit scheme or the Scottish deposit and return scheme and is—

(a) made wholly or mainly from the same in-scope material as the container from the deposit item,

(b) the same size as the container from the deposit item, and

(c) supplied in a multipack, if the deposit item is supplied in a multipack.

Use of amounts received as deposits

1. —(1) The deposit management organisation must—

(a) retain the amounts paid to it by registered scheme producers under regulation 23, and

(b) use those amounts to meet the cost of return amounts for returnable items under regulations 43(2), 68(2) and 68(3)(a).

(2) If any amount remains after the costs mentioned in paragraph (1)(b) have been paid, the deposit management organisation must use that amount to reimburse NRW any of the NRW costs which have not otherwise been met.

(3) If any amount remains after the payment under paragraph (2) has been made, the deposit management organisation may use that amount to meet the costs of exercising any of its functions under or in connection with the Scheme.

Chapter 5 Fees for registration

Registration fees for registered scheme producers

1. —(1) The deposit management organisation may charge registered scheme producers a fee for all or part of a scheme year.

(2) The fee charged under paragraph (1) (the “ registration fee ”) may be used to meet any or all of the following costs—

(a) NRW costs, and

(b) the costs incurred by the deposit management organisation in exercising its functions under or in connection with the Scheme.

(3) The amount of the registration fee payable by a registered scheme producer is the aggregate of the following amounts—

(a) the producer amount for containers made wholly or mainly from polyethylene terephthalate (PET) plastic (if any),

(b) the producer amount for containers made wholly or mainly from steel (if any),

(c) the producer amount for containers made wholly or mainly from aluminium (if any), and

(d) the producer amount for containers made wholly or mainly from glass (if any).

(4) The producer amount for containers made wholly or mainly from each type of in-scope material must be calculated as follows (and may be £0)—

A × B

where—

“ A ” is a fee to be determined by the deposit management organisation for the relevant scheme year for a container made wholly or mainly from the particular in-scope material (the “ per container fee ”), and

“ B ” is the total number of containers made wholly or mainly from that in-scope material which the deposit management organisation expects the registered scheme producer to supply to consumers in the relevant scheme year.

(5) The per container fee for a container made wholly or mainly from a particular in-scope material—

(a) must be the same for all registered scheme producers, and

(b) may be £0.

(6) The deposit management organisation must, when determining the registration fee, have regard to the likely value, or if known the actual value, of each type of in-scope material which it expects to be recycled from all of the refund items which are collected by, or returned to, the deposit management organisation in the relevant scheme year.

(7) The per container fee for one in-scope material must not subsidise the relevant costs of any other in-scope material.

(8) In paragraph (7), “ the relevant costs ” of an in-scope material are the costs which the deposit management organisation expects to incur in the exercise of its functions under, or in connection with, the Scheme in relation to the collection, processing, recycling and reuse of refund items made wholly or mainly from that material.

(9) The deposit management organisation must—

(a) keep the registration fee under review,

(b) carry out a full review of the operation of the registration fee at least every 12 months, and

(c) publish the registration fee in such manner as it considers appropriate to bring the registration fee to the attention of registered scheme producers and state that the producers have a right under regulation 79 to ask the deposit management organisation to review the decision.

(10) Before determining, or re-determining, the registration fee, the deposit management organisation must consult—

(a) registered scheme producers, and

(b) such other persons (if any) it considers appropriate,

and have regard to the views expressed in response to the consultation.

(11) The deposit management organisation may specify the times or intervals at which, and means by which, the registration fee must be paid.

(12) The deposit management organisation may make different payment arrangements for different cases or circumstances and in particular—

(a) must ensure that any registration fee charged to a registered scheme producer under paragraph (1) does not include a fee in respect of a container from a container drink which is a registered low volume product during the relevant scheme year;

(b) may make arrangements for the registration fee to be reduced, waived or refunded (whether in whole or in part).

Use of registration fees

1. —(1) If the deposit management organisation charges the registration fee only to meet any or all of NRW costs, it must pay the registration fee that it receives to NRW.

(2) If the deposit management organisation charges the registration fee to meet any or all of NRW costs and any or all of its own costs, the deposit management organisation—

(a) must pay the amount of the registration fee that it receives as is necessary to meet the relevant NRW costs, and

(b) if any amount remains, may use that amount to meet the costs of carrying out its own functions under or in connection with the Scheme.

(3) If the deposit management organisation charges the registration fee only to meet any or all of its own costs, it must use the registration fees that it receives to meet those costs.

Chapter 6 Review of operation of return points and collection etc. of returnable items

Review of operation of return points

1. —(1) The deposit management organisation must, at intervals it considers appropriate, carry out a review of the operation of all return points in Wales.

(2) In carrying out a review under paragraph (1), the deposit management organisation must, in particular, consider—

(a) the number of return points;

(b) the location of return points, and in particular whether consumers have reasonable access to at least one return point;

(c) the number of returnable items that are returned at the return points;

(d) the costs involved in the operation of the return points;

(e) the likely impact on the number of returnable items returned at return points if the number of return points were to be increased or decreased;

(f) the likely impact on the number of returnable items returned at return points if the location of return points changed without changing the number of return points;

(g) the likely impact on the costs incurred in the operation of, or income derived from, the Scheme if the number of return points were to be increased or decreased;

(h) the likely impact of the costs incurred in the operation of, or income derived from, the Scheme if the location of return points changed without changing the number of return points;

(i) any information as to general litter levels and the level of containers in litter;

(j) any information as to footfall in the area under review;

(k) whether there is sufficient access to return points for persons living in villages and rural areas.

(3) The deposit management organisation may take any of the steps specified in paragraph (4) where it considers that the number of return points could be decreased without—

(a) reducing the number of returnable items that are returned under the Scheme, or

(b) reducing or removing reasonable access to return points in any part of Wales.

(4) The steps mentioned in paragraph (3) are—

(a) proposing to an in-scope retailer registered as a mandatory return point operator that they apply for a return point exemption in respect of premises specified by the deposit management organisation;

(b) proposing to a scheme supplier who is authorised to operate a voluntary return point that they request the revocation of their authorisation to operate that return point;

(c) ceasing to operate one or more return points that the deposit management organisation operates.

(5) The deposit management organisation may take any of the steps specified in paragraph (6) where it considers that an increase in the number of return points is needed to—

(a) increase the number of returnable items that are returned under the Scheme, or

(b) improve access to return points for consumers in any part of Wales.

(6) The steps mentioned in paragraph (5) are—

(a) carrying out a review of the current return point exemptions and decide whether to propose the revocation of any of them;

(b) setting up and operating one or more additional return points itself;

(c) any other step the deposit management organisation considers appropriate.

(7) When taking any steps under paragraph (4) or (6), the deposit management organisation—

(a) must have regard to the likely impact on the costs of operating the Scheme;

(b) may take different steps in relation to different parts of Wales.

Collection etc. of returnable items from scheme collectors and retailers and connected payment

1. —(1) The deposit management organisation must—

(a) collect all the returnable items accepted by return point operators from those operators;

(b) collect all the refund items from on-sale premises and mixed retail premises;

(c) collect, or accept the return of, all the returnable items accepted by take-back service providers.

(2) The deposit management organisation must pay each scheme retailer from whom it collects any refund items an amount equal to the total amount of refunds paid by the scheme retailer in respect of the collected refund items.

(3) The deposit management organisation must pay each scheme collector from whom it collects, or accepts, returnable items—

(a) the return amount for each returnable item that it collects or accepts from the scheme collector, and

(b) if the scheme collector is a return point operator, the handling payment.

(4) The deposit management organisation must make any payment required under paragraph (2) or (3)(a)—

(a) at such intervals as set out in its operational plan, and

(b) in such manner as set out in its operational plan.

The handling payment

1. —(1) The deposit management organisation must provide for a payment (a “ handling payment ”) to be paid by the deposit management organisation to each return point operator (other than the deposit management organisation itself).

(2) The deposit management organisation must determine the amount of the handling payment having regard to all relevant factors including—

(a) the cost of purchasing or leasing any machinery, equipment or materials required for the collection or storage (or both) of returnable items;

(b) the cost of staff time dedicated to the collection or storage (or both) of returnable items;

(c) the rental value of the floor space or any part of any premises used solely for the collection or storage (or both) of returnable items.

(3) The deposit management organisation may determine that the handling payment be different in different cases.

(4) Before determining the amount of the handling payment under paragraph (2), the deposit management organisation must consult—

(a) NRW,

(b) return point operators or persons representing return point operators, and

(c) such other persons (if any) as the deposit management organisation considers appropriate,

and have regard to the views expressed in response to the consultation.

(5) A determination of the amount of the handling payment under paragraph (2) has effect for a period no longer than 3 years, beginning with the date of the determination.

(6) The deposit management organisation—

(a) may make a further determination under paragraph (2) of the amount of the handling payment at any time, and

(b) must make a further determination under paragraph (2) to take effect at the end of the period of 3 years, beginning with the date of the previous determination.

Chapter 7 Recycling of in-scope materials and reuse of refund items

Recycling in-scope material from returned refund items

1. —(1) The deposit management organisation must make arrangements for recycling the in-scope material from which returned items are made.

(2) The arrangements made under paragraph (1) must include provision conferring a right of first refusal, for each specified period, on registered scheme producers.

(3) A right of first refusal under paragraph (2) means a right to purchase the appropriate quantity (if any) of each in-scope material that has been recovered from returned items (a “ recovered material ”) during the relevant specified period for the market value of that in-scope material.

(4) In paragraph (3)—

(a) the “ appropriate quantity ” of a recovered material is an amount which does not exceed the relevant proportion of that recovered material;

(b) “ market value ” means the price at which the in-scope material would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts.

(5) The relevant proportion of a recovered material is calculated as follows—

SPA/TPA

where—

“ SPA ” means the number of deposit items with containers made wholly or mainly from the recovered material and supplied by the registered scheme producer during the specified period;

“ TPA ” means the total number of deposit items with containers made wholly or mainly from the recovered material and supplied by all registered scheme producers during the specified period.

(6) In this regulation—

“ returned items ” (“ eitemau a ddychwelwyd ”) means the refund items collected or accepted by the deposit management organisation under regulation 43 or 68;

“ specified period ” (“ cyfnod penodedig ”) means a period specified in arrangements made by the deposit management organisation under paragraph (1).

Recycling in-scope material from other returned items

1. —(1) The deposit management organisation must make arrangements with the relevant administrator for recycling, or facilitating the recycling of, the in-scope material from which relevant returned items are made.

(2) The arrangements made under paragraph (1) may solely be to return the relevant returned items to the relevant administrator.

(3) In this regulation—

“ relevant administrator ” (“ gweinyddwr perthnasol ”) means—

(a) an overseas scheme administrator,

(b) a Scottish deposit administrator, or

(c) an England and Northern Ireland scheme administrator;

“ relevant returned item ” (“ eitem berthnasol a ddychwelwyd ”)—

(a) in relation to an overseas scheme administrator, means an overseas scheme item that—

(i) is subject to the specified overseas scheme in relation to which the administrator exercises functions, and

(ii) has been collected or accepted by the deposit management organisation under regulation 43 or 68;

(b) in relation to a Scottish deposit administrator, means a Scottish scheme item that—

(i) is subject to the Scottish deposit and return scheme in relation to which the Scottish deposit administrator exercises functions, and

(ii) has been collected or accepted by the deposit management organisation under regulation 43 or 68;

(c) in relation to an England and Northern Ireland scheme administrator, means an England and Northern Ireland scheme item that—

(i) is subject to the England and Northern Ireland deposit scheme in relation to which the England and Northern Ireland scheme administrator exercises functions, and

(ii) has been collected or accepted by the deposit management organisation under regulation 43 or 68.

Amounts received in connection with arrangements made under regulation 70 or 71

1. —(1) The deposit management organisation may retain any amount that it receives in connection with the arrangements made under regulation 70 or 71.

(2) The deposit management organisation—

(a) must use any amount retained under paragraph (1) to meet any NRW costs that have not otherwise been met;

(b) may, if any amount remains, use that amount to meet the costs of carrying out its functions under or in connection with the Scheme.

Reuse of returned refund items

1. —(1) The deposit management organisation must make arrangements for the reuse of returned refund items.

(2) In this regulation “ returned refund items ” means the refund items, which are capable of reuse, collected or accepted by the deposit management organisation under regulation 43 or 68.

Chapter 8 NRW

Payments to NRW

1. The deposit management organisation must make any payment required to be made to NRW under this Part by such means, in such manner and at such intervals as agreed with NRW.

Information about returns data

1. —(1) The deposit management organisation must—

(a) supply returns data to registered scheme producers,

(b) inform each registered scheme producer, in such manner and at such intervals as the deposit management organisation considers appropriate, how many of each of that producer’s deposit items were returned to the deposit management organisation and in respect of which deposits were refunded, and

(c) make available the returns data to NRW.

(2) In this regulation “ returns data ” includes—

(a) information that enables registered scheme producers to determine the number of containers returned or not returned under the Scheme, including the proportion of returns by product,

(b) information about unredeemed deposits,

(c) information relating to the locations of returns, and

(d) information about returns received by the deposit management organisation from other scheme administrators.

Co-operation

1. —(1) The deposit management organisation and NRW must enter into and maintain arrangements for securing co-operation and the exchange of information in connection with the carrying out of any of NRW’s functions other than any relevant enforcement function.

(2) The deposit management organisation and NRW must—

(a) review the arrangements referred to in paragraph (1) from time to time, and

(b) revise them when they consider it appropriate to do so.

Chapter 9 Working with other scheme administrators

Co-operation and joint working

1. —(1) The deposit management organisation may—

(a) where it considers it appropriate for the efficient and effective performance of the Scheme, or any of its functions under the Scheme, co-operate or work jointly with a specified administrator;

(b) provide advice or assistance to a specified administrator in connection with that administrator’s functions under an England and Northern Ireland deposit scheme, a Scottish deposit and return scheme or an overseas scheme.

(2) Such arrangements may include—

(a) arrangements intended to simplify registration procedures for producers and importers who supply container drinks in Wales and in other parts of the United Kingdom;

(b) arrangements intended to simplify the process of returning returnable items for the final user or consumer;

(c) arrangements for recycling, or to facilitate the recycling of, any in-scope material recovered from—

(i) refund items returned through an England and Northern Ireland deposit scheme, or a Scottish deposit and return scheme;

(ii) overseas scheme items.

(3) In this regulation, “ specified administrator ” means—

(a) an England and Northern Ireland scheme administrator,

(b) a Scottish deposit administrator, or

(c) an overseas scheme administrator.

Payments to specified administrators

1. —(1) The deposit management organisation may make payments to a specified administrator in connection with the operation of the Scheme or a specified scheme, including, but not limited to, payments equal to the total of any refunds paid by the specified administrator in respect of refund items returned through the specified scheme.

(2) In this regulation—

“ specified administrator ” (“ gweinyddwr penodedig ”) means—

(a) an England and Northern Ireland scheme administrator, or

(b) a Scottish deposit administrator;

“ specified scheme ” (“ cynllun penodedig ”) means—

(a) an England and Northern Ireland deposit scheme, or

(b) a Scottish deposit and return scheme.

Chapter 10 Review of decisions

Internal review of decisions made by the deposit management organisation

1. —(1) This regulation applies if—

(a) the deposit management organisation makes a relevant decision, and

(b) within a period of 28 days beginning with the date on which the affected person receives notice of the decision, or such longer period as the deposit management organisation may specify under regulation 80(1)(a), the affected person applies to the deposit management organisation to review the decision.

(2) In this regulation—

(a) each decision mentioned in column 1 of the table is a “ relevant decision ”, and

(b) a person is an “ affected person ” in relation to a relevant decision if they are mentioned in the corresponding entry in column 2.

(3) The deposit management organisation must carry out a review of a relevant decision in accordance with regulation 80.

(4) On conclusion of a review of a relevant decision, the deposit management organisation must—

(a) confirm the decision (whether on the same or different grounds),

(b) make such changes to the decision as it considers appropriate, or

(c) revoke the decision.

(5) The deposit management organisation must notify the affected person of the decision following the review as soon as reasonably practicable after the decision is taken.

| Column 1 - Relevant decision | Column 2 - Affected person |
| --- | --- |
| Decision to refuse a person’s application to register a low volume line under regulation 19 | the person making the application |
| Decision to cancel a product’s registration as a low volume line under regulation 20 | the registered scheme producer for that product |
| Decision as to the amount of registration fee payable by a scheme producer under regulation 65 | the registered scheme producer |
| Decision as to the amount of the handling payment payable to a return point operator under regulation 69 | the return point operator |
| Decision to cancel a person’s registration as a registered scheme producer under paragraph 6 of Schedule 1 | the person whose registration is cancelled |
| Decision to cancel a person’s registration as a mandatory return point operator under paragraph 4 of Schedule 2 | the scheme retailer |
| Decision to refuse an application for a return point exemption under paragraph 3 of Schedule 3 | the person making the application |
| Decision to refuse to renew a return point exemption under paragraph 6 of Schedule 3 | the person making the application |
| Decision to revoke a return point exemption under paragraph 9 of Schedule 3 | the person whose exemption is revoked |
| Decision to refuse a person’s application for authorisation to operate a return point under paragraph 4 of Schedule 4 | the person making the application |
| Decision to refuse a person’s application for authorisation as a take-back service provider under paragraph 7 of Schedule 4 | the person making the application |
| Decision to revoke a scheme supplier’s authorisation to operate a return point under paragraph 11 of Schedule 4 | the person whose authorisation is revoked |
| Decision to revoke a scheme retailer’s authorisation as a take-back service provider under paragraph 11 of Schedule 4 | the person whose authorisation is revoked |

Internal review: procedure

1. —(1) The deposit management organisation may specify the procedure for the internal review (“ review ”) of a relevant decision and, in particular, may—

(a) set out the circumstances in which the deposit management organisation may accept an application for review after the end of the period specified in regulation 79(1)(b);

(b) specify the form and manner in which an application for review is to be made;

(c) specify the information which an application for review must contain and any documentation which must accompany the application;

(d) provide for the deposit management organisation to request such further information or documentation as it reasonably requires to complete a review of the relevant decision, and specify—

(i) the form and manner in which such further information or documentation is to be provided;

(ii) the period within which such further information or documentation is to be provided;

(e) provide for the deposit management organisation to disregard any information or documentation not provided in the specified form or manner, or within the specified period.

(2) The deposit management organisation must not require the payment of a fee in connection with an application for a review.

(3) In this regulation, “ relevant decision ” has the meaning given in regulation 79(2).

Status of decisions pending outcome of internal review

1. —(1) This regulation applies where an affected person applies for an internal review (“ review ”) of a relevant decision.

(2) The effect of the relevant decision is suspended during the period—

(a) beginning with the day on which the application for the review is made, and

(b) ending with the end of the day on which the person is notified of the deposit management organisation’s decision under regulation 79(5).

(3) In this regulation, “ affected person ” and “ relevant decision ” have the meanings given in regulation 79(2).

Chapter 11 Revocation of a person’s appointment as the deposit management organisation

Revocation of a person’s appointment as the deposit management organisation

1. Parts 3 and 4 of Schedule 5 contain provision about the revocation of a person’s appointment as the deposit management organisation and related matters.

Interim scheme administrator

1. —(1) This regulation applies where condition 1 or condition 2 is met.

(2) Condition 1 is that the Welsh Ministers have not previously appointed a person as the deposit management organisation and 30 September 2027 has not elapsed.

(3) Condition 2 is that—

(a) the Welsh Ministers revoke a person’s appointment as the deposit management organisation (the “ outgoing DMO ”), and

(b) the revocation takes effect before another person is appointed as the deposit management organisation.

(4) The Welsh Ministers may—

(a) carry out DMO functions not listed in paragraph (11) during the interim period, or

(b) appoint another person to carry out those functions during the interim period.

(5) A person’s appointment under paragraph (4)(b) as interim scheme administrator may be subject to such conditions (if any), by notice in writing, as the Welsh Ministers consider appropriate.

(6) The Welsh Ministers may, by notice in writing, vary or revoke any condition to which an interim scheme administrator appointed under paragraph 4(b) is subject.

(7) An interim scheme administrator appointed under paragraph (4)(b) must comply with any conditions imposed by the Welsh Ministers under this regulation.

(8) A person’s appointment under paragraph (4)(b) as interim scheme administrator—

(a) must be revoked by the Welsh Ministers by notice in writing within 3 months of receipt of a notice from that person stating that the person wishes to cease to be the interim scheme administrator;

(b) may be revoked by the Welsh Ministers, by notice in writing, as they consider appropriate.

(9) The Scheme applies during the interim period with the modifications set out in paragraphs (10) to (12).

(10) References to the deposit management organisation in these Regulations are to be read as a reference to the interim scheme administrator, except for those provisions listed in paragraph (11).

(11) The provisions listed in this paragraph are—

(a) regulation 1 (title and coming into force),

(b) regulation 9 (general interpretation),

(c) regulation 51 (the deposit management organisation),

(d) regulation 52 (conditions),

(e) regulation 55 (reserve fund),

(f) regulation 82 (revocation of a person’s appointment as the deposit management organisation),

(g) regulation 83 (interim scheme administrator),

(h) regulation 99 (right of appeal),

(i) regulation 101 (status pending appeal: decision to refuse a person’s application to be appointed as the deposit management organisation),

(j) regulation 102 (status pending appeal: decision to revoke a person’s appointment as the deposit management organisation), and

(k) Schedule 5 (appointment etc. of the deposit management organisation).

(12) Where the Welsh Ministers carry out any DMO functions during the interim period—

(a) regulation 53 (operational plan) is treated as omitted so far as it relates to the approval of revisions to the operational plan;

(b) regulation 54 (annual report) is to be read as if there were substituted—

“ 54. — (1) The Welsh Ministers must prepare an annual report for the scheme year in question.

(2) The annual report must set out how, and the extent to which, the Welsh Ministers have, in the relevant scheme year, acted in accordance with the operational plan.

(3) The annual report must be prepared as soon as reasonably practicable, and in any event within a period of 6 weeks beginning with the day after the final day of the scheme year to which it relates. ”;

(c) regulation 105 (annual reports from deposit management organisation) is treated as omitted.

(13) In this regulation—

(a) where condition 1 is met, “ interim period ” means the period—

(i) beginning on the day this regulation comes into force, and

(ii) ending at the end of the day preceding the day on which the Welsh Ministers first appoint a person as the deposit management organisation under regulation 51(1);

(b) where condition 2 is met, “ interim period ” means the period—

(i) beginning with the revocation date, and

(ii) ending at the end of the day preceding the day on which the next appointment of a person as the deposit management organisation takes effect;

(c) “ revocation date ” means the date on which the revocation of the outgoing DMO’s appointment takes effect.

Part 8 Targets

Collection targets: the deposit management organisation

1. —(1) The deposit management organisation must ensure that the Scheme, together with any reciprocal recycling arrangements, operates to ensure that at least the minimum total quantity of refund items (“ collection targets ”) is returned to the deposit management organisation.

(2) The minimum total quantity of refund items is—

(a) in the calendar year beginning on 1 January 2028, 70% of all refund items from deposit items other than glass deposit items supplied by registered scheme producers;

(b) in the calendar year beginning on 1 January 2029, 80% of all refund items from deposit items other than glass deposit items supplied by registered scheme producers;

(c) in the calendar year beginning on 1 January 2030, 80% of all refund items from deposit items supplied by registered scheme producers;

(d) in the calendar year beginning on 1 January 2031, 85% of all refund items from deposit items supplied by registered scheme producers;

(e) in the calendar year beginning on 1 January 2032, and in each subsequent calendar year, 95% of all refund items from deposit items supplied by registered scheme producers.

(3) For the purposes of paragraphs (2)(c), (d) and (e), the quantity of containers returned must include—

(a) at least 85% of refund items made wholly or mainly from polyethylene terephthalate (PET) plastic, and

(b) at least 85% of refund items made wholly or mainly from any other in-scope material.

(4) For the purposes of—

(a) paragraph (2)(d), of the 85% of refund items, at least 5% must be capable of reuse;

(b) paragraph (2)(e), of the 95% of refund items, at least 15% must be capable of reuse.

(5) In this regulation, a refund item is to be treated as returned to the deposit management organisation if it is—

(a) subject to reciprocal recycling arrangements, and

(b) returned to a person in England, Northern Ireland or Scotland in accordance with those arrangements.

(6) In this regulation, “ reciprocal recycling arrangements ” means—

(a) arrangements maintained by the deposit management organisation with an England and Northern Ireland scheme administrator for the recycling of refund items which are returned to scheme collectors in England or Northern Ireland, or

(b) arrangements maintained by the deposit management organisation with a Scottish deposit administrator for the recycling of refund items which are returned to scheme collectors in Scotland.

Part 9 Enforcement

Chapter 1 Interpretation

Interpretation of Part 9

1. In this Part—

“ the ALA provisions ” (“ y darpariaethau ALlP ”) means the following provisions of these Regulations—

(a) regulation 24 (requirement to supply deposit items from registered scheme producers);

(b) regulation 25(1)(a) (requirement for deposit items to carry item logo when supplied);

(c) regulation 25(1)(b) (requirement for deposit items to carry scheme return code when supplied);

(d) regulation 25(2) (requirement for scheme multipacks to carry the packaging logo when supplied);

(e) regulation 26(1) (requirement for low volume product not to carry scheme logo or scheme return code);

(f) regulation 27(1) and (6) (requirement to provide or display, or provide for display, scheme information);

(g) regulation 28(1) (requirement to provide or display, or provide for display, low volume product information);

(h) regulation 29(1) (scheme supplier: requirement to charge deposit);

(i) regulation 35(1) (requirement to operate a return point);

(j) regulation 37(1) (requirement to display information on premises where no return point is operated);

(k) regulation 40 (information to be provided at a return point);

(l) regulation 41 (provision of take-back services);

(m) regulation 42(1) and (5) (requirement to provide or display information, or provide that information for display, about take-back service);

(n) regulation 47(1), (2) and (3) (requirements as to payment of total return amount);

(o) regulation 48(2) (requirement to notify deposit management organisation that person elects for the total return amount to go to charity);

(p) regulation 49 (requirement to retain returnable items);

(q) regulation 50 (requirement for take-back service providers to retain or return returnable items);

(r) regulation 87(1) (provision of information);

“ appropriate authority ” (“ awdurdod priodol ”) means—

(a) the local weights and measures authority, in relation to the ALA provisions as they apply in the authority’s area, or

(b) NRW;

“ CS Table ” (“ Tabl SS ”) means the Civil Sanctions Table in Part 2 of Schedule 6;

“ enforcement action ” (“ camau gorfodi ”) means the exercise of enforcement powers and functions by NRW under this Part.

Chapter 2 Enforcement powers

Enforcement powers

1. —(1) An appropriate authority may authorise, in writing, a suitable person to exercise the powers of entry and inspection mentioned in paragraph (2).

(2) The powers of entry and inspection are those set out in section 108(4)(a) to (c), (e), (f) and (h) to (ka) of the EA 1995.

(3) Section 108(4) of the EA 1995 is to be read as if—

(a) any reference to an authorised person (however expressed) were a reference to a person authorised under paragraph (1);

(b) in section 108(4)(a), the words “(or, in an emergency, at any time and, if need be, by force)” were omitted;

(c) in section 108(4)(f)—

(i) for “articles or substances” there were substituted “containers (within the meaning of regulation 9 of the Deposit Scheme for Drinks Containers (Wales) Regulations 2026)”;

(ii) the words “, and of the air, water or land in, on, or in the vicinity of, the premises” were omitted;

(d) in section 108(4)(h)—

(i) in the words before sub-paragraph (i), for “article or substance as is mentioned in paragraph (g)” there were substituted “container as is mentioned in paragraph (f)”;

(ii) in sub-paragraph (iii), for the words “an offence” to the end there were substituted “an offence under regulation 88 or 89, or any other proceedings relating to the imposition of a civil sanction under regulation 92 of the Deposit Scheme for Drinks Containers (Wales) Regulations 2026”;

(e) in section 108(4)(k)—

(i) after “computerised form” there were inserted “, including any information recorded electronically”;

(ii) in sub-paragraph (i) for the words from “the pollution control enactments” to “he acts” there were substituted “the Deposit Scheme for Drinks Containers (Wales) Regulations 2026”;

(f) in section 108(4)(ka)(ii), the words “(other than an article or substance within paragraph (g))” were omitted.

(4) Section 108(6) to (7F) of the EA 1995 applies to the applied enforcement powers as it applies to the powers in section 108(4) and is to be read as if—

(a) any reference to an authorised person (however expressed) were a reference to a person authorised under paragraph (1);

(b) in section 108(6), the words “, or to take heavy equipment on to any premises which are to be entered,” were omitted;

(c) in section 108(6) and (7), the words “Except in an emergency,” were omitted;

(d) in section 108(7B)(a), for “the pollution control enactments or flood risk activity enactments” there were substituted “the Deposit Scheme for Drinks Containers (Wales) Regulations 2026”.

(5) Section 108(12), (12A) and (13) of the EA 1995 applies to the applied enforcement powers as it applies in relation to the powers conferred by section 108(4) of the EA 1995.

(6) Paragraphs 2 to 6 of Schedule 18 to the EA 1995 (issue of warrants, exercise of powers, information admissible in evidence, duty to secure premises and compensation) apply to the applied enforcement powers as they apply to the powers conferred by section 108(4) but as if—

(a) any reference to a designated person (however expressed) were a reference to a person authorised under paragraph (1);

(b) any reference to a relevant power were a reference to an applied enforcement power, including any power exercisable by virtue of a warrant under the provisions of the Schedule as applied by this paragraph;

(c) in paragraph 6(1), the reference to a power conferred by section 108(4)(a) or (b) or (5) were a reference to an applied enforcement power;

(d) any reference to “sheriff” were omitted.

(7) In this regulation—

“ the applied enforcement powers ” (“ y pwerau gorfodi cymhwysol ”) means the powers conferred by paragraphs (1) and (2), as modified by paragraph (3);

“ the EA 1995 ” (“ DA 1995 ”) means the Environment Act 1995(12) as it applies in Wales.

Information

1. —(1) An appropriate authority may, by notice (an “ information notice ”), require a duty-holder to provide information which the appropriate authority needs to carry out its functions under, or in connection with, the Scheme.

(2) An information notice under paragraph (1)—

(a) must be in writing;

(b) may be given to—

(i) a specified duty-holder;

(ii) duty-holders of a specified description;

(iii) all duty-holders;

(c) may require the information to be provided in a specified form or manner;

(d) may require the information to be provided—

(i) by a specified date or at a specified time, and

(ii) in respect of a specified period.

(3) A duty-holder who is given an information notice under paragraph (1) must comply with it.

(4) In this regulation—

“ duty-holder ” (“ deiliad dyletswydd ”) means—

(a) a scheme producer,

(b) a scheme supplier,

(c) a scheme collector, or

(d) the deposit management organisation;

“ specified ” (“ penodedig ”) means specified in an information notice under paragraph (1).

Chapter 3 Offences

Obstructing an authorised person

1. —(1) A person who intentionally obstructs, or fails to assist, an authorised person in the carrying out of their enforcement functions is guilty of an offence.

(2) A person guilty of an offence under paragraph (1) is liable on summary conviction, or on conviction on indictment, to a fine.

(3) In this regulation—

“ authorised person ” (“ person awdurdodedig ”) means a person authorised under regulation 86(1);

“ enforcement functions ” (“ swyddogaethau gorfodi ”), in relation to an authorised person, means the powers that person is authorised to exercise under regulation 86.

Failure to comply with civil sanction

1. —(1) A person who fails to comply with a civil sanction imposed under regulation 92 is guilty of an offence.

(2) A person guilty of an offence under paragraph (1) is liable on summary conviction, or on conviction on indictment, to a fine.

Liability of directors etc.

1. —(1) This regulation applies where a relevant offence is committed by—

(a) a body corporate,

(b) a partnership, or

(c) an unincorporated association other than a partnership.

(2) If the relevant offence is proved to have been committed by, or with the consent or connivance of, or to be attributable to neglect on the part of—

(a) a relevant individual of a body corporate or partnership or unincorporated association, or

(b) an individual purporting to act in a capacity mentioned in sub-paragraph (a),

that senior officer or person (as well as the body corporate, partnership or unincorporated association) is guilty of the offence and liable to be proceeded against and punished accordingly.

(3) Where a person (“ A ”) commits a relevant offence due to the act or default of some other person (“ B ”), B is also guilty of the offence and liable to be proceeded against and punished accordingly, whether or not proceedings for the offence are taken against A.

(4) In this regulation—

“ partnership ” (“ partneriaeth ”) means a partnership, other than a limited liability partnership, and includes a Scottish partnership;

“ relevant individual ” (“ unigolyn perthnasol ”)—

(a) in relation to a body corporate, means—

(i) a director, member of the committee of management, chief executive, manager, secretary or other similar officer of the body, or

(ii) where the affairs of the body corporate are managed by its members, a member;

(b) in relation to a limited liability partnership, means a member;

(c) in relation to a partnership, means a partner;

(d) in relation to an unincorporated association (other than a partnership), means a person who is concerned in the management and control of the association;

“ relevant offence ” (“ trosedd berthnasol ”) means an offence under regulation 88 or 89.

Chapter 4 Civil sanctions

Interpretation of Chapter 4

1. In this Chapter, “ enforcement authority ” means—

(a) the local weights and measures authority in relation to—

(i) an offence under regulation 88, where the person obstructed or not assisted was authorised by the authority under regulation 86(1);

(ii) a civil sanction specified in the CS Table for—

(aa) any contravention of an ALA provision in the area of the local weights and measures authority, or

(bb) any contravention of regulation 87(3) in relation to a notice given by the authority, or the provision of false or misleading information in response to such a notice;

(b) NRW in relation to—

(i) an offence under regulation 88, where the person obstructed or not assisted was authorised by NRW under regulation 86(1);

(ii) a civil sanction specified in the CS Table for—

(aa) any contravention of a provision other than an ALA provision,

(bb) any contravention of regulation 87(3) in relation to a notice given by NRW, or the provision of false or misleading information in response to such a notice, or

(cc) the provision of false or misleading information in response to a notice given by the deposit management organisation under any provision of Schedule 2, 3 or 4.

Civil sanctions: introductory

1. —(1) Where an enforcement authority is satisfied on the balance of probabilities that there has been an act, or a contravention of any requirement specified in column 1 of the CS Table and the corresponding entry in column 2, 3, 4 or 5 is “ yes ”, the enforcement authority may, as appropriate, in relation to that act or contravention—

(a) impose a fixed monetary penalty under Part 3 of Schedule 6;

(b) impose a variable monetary penalty under Part 4 of Schedule 6;

(c) impose a compliance notice under Part 5 of Schedule 6;

(d) accept an enforcement undertaking under Part 6 of Schedule 6.

(2) An enforcement authority may recover a fixed monetary penalty or a variable monetary penalty as a civil debt on the order of a court, as if payable under a court order.

Enforcement costs recovery notices

1. —(1) An enforcement authority may serve an enforcement cost recovery notice on a person on whom a variable monetary penalty notice under Part 4 of Schedule 6, or a compliance notice under Part 5 of Schedule 6, has been served, requiring that person to pay the enforcement authority’s costs in relation to that notice up to the time of its imposition.

(2) The costs mentioned in paragraph (1) include, in particular—

(a) investigation costs;

(b) administration costs;

(c) the costs of obtaining expert advice (including legal advice).

(3) An enforcement costs recovery notice must be in writing and must specify—

(a) the amount to be paid,

(b) how payment must be made,

(c) the period within which payment must be made, which must be not less than 28 days beginning with the day after the day on which the notice is served,

(d) the grounds for serving the notice,

(e) the right of appeal, and

(f) the consequences of failure to comply with the notice in the specified period.

(4) A person on whom an enforcement costs recovery notice is served may require the enforcement authority to provide a detailed breakdown of the amount specified under paragraph (3)(a).

(5) A person required to pay costs is not liable to pay any costs which are shown by the person to be unnecessarily incurred.

(6) A person may appeal against—

(a) the requirement to pay costs;

(b) the amount of those costs.

(7) An enforcement authority may recover any costs required to be paid under an enforcement cost recovery notice—

(a) as a civil debt, or

(b) on the order of a court, as if payable under a court order.

Penalties and costs received under this Part

1. —(1) NRW must pay any penalty it receives under this Part into the Welsh Consolidated Fund established under section 117 of the Government of Wales Act 2006(13).

(2) A local weights and measures authority may retain any penalty and any costs that it receives under this Part.

Withdrawing or amending a notice

1. An enforcement authority may at any time, in writing—

(a) withdraw a fixed penalty notice;

(b) withdraw a variable monetary penalty notice or an enforcement costs recovery notice;

(c) reduce the amount specified in a variable monetary penalty notice or an enforcement costs recovery notice;

(d) withdraw a compliance notice;

(e) amend the steps specified in a compliance notice to reduce the amount of work necessary to comply with the notice;

(f) vary a notice to extend the time in which any penalty must be paid.

Chapter 5 Public register

Publication of enforcement action in public register

1. —(1) NRW must maintain a register (the “ public register ”) containing information relating to any enforcement action taken.

(2) The public register must contain details of—

(a) any conviction for an offence under regulation 88, 89 or 90,

(b) any civil sanction imposed under regulation 92 provided that—

(i) the time for lodging an appeal in respect of the civil sanction has expired, or

(ii) any appeal in relation to the civil sanction has been finally disposed of,

(c) any enforcement undertaking accepted under Part 6 of Schedule 6, and

(d) any enforcement cost recovery notice served under regulation 93.

(3) Information relating to civil sanctions must be removed from the public register no later than 4 years after the day on which it was entered on the register.

(4) A public register must not contain information relating to criminal proceedings, or anything which is the subject matter of criminal proceedings, before those proceedings are finally disposed of.

(5) In paragraph (4), “ criminal proceedings ” includes prospective criminal proceedings.

(6) NRW must enter information under paragraph (2) onto the public register as soon as reasonably practicable after it comes into NRW’s possession.

(7) NRW must—

(a) make the public register available for inspection by members of the public at all reasonable times, free of charge, and

(b) permit members of the public to obtain copies of entries on the public register on payment of a reasonable charge.

(8) The public register may be kept in any form but must be indexed or arranged so that members of the public can readily trace information contained in it.

Spent convictions of individuals

1. NRW must remove details of any conviction from the public register once the rehabilitation period for a sentence has ended under section 5 of the Rehabilitation of Offenders Act 1974(14).

Part 10 Appeals

Interpretation of Part 10

1. In this Part, “ enforcement authority ” has the meaning given in regulation 91.

Right of appeal

1. —(1) A person may appeal to the First-tier Tribunal against—

(a) a decision to refuse their application to be appointed as the deposit management organisation under paragraph 2 of Schedule 5,

(b) a decision to revoke their appointment as the deposit management organisation under paragraph 4 of Schedule 5, or

(c) a civil sanction imposed under a notice, or enforcement cost recovery notice, issued under Part 9.

(2) An appeal under paragraph (1) may only be brought on the grounds that the person making the decision made a material mistake of law.

Procedure on appeal

1. —(1) A person may appeal under regulation 99 to the First-tier Tribunal in accordance with the GRC Rules 2009.

(2) The GRC Rules 2009 apply to an appeal.

(3) But rule 22 of the GRC Rules 2009 applies to an appeal as if paragraph (1)(b) of that rule requires a notice of appeal to be received within 2 calendar months of the date on which notice of the act or decision to which the appeal relates was sent to the person bringing the appeal.

(4) In this regulation “ the GRC Rules 2009 ” means the Tribunal Procedure (First-tier Tribunal) (General Regulatory Chamber) Rules 2009(15).

Status pending appeal: decision to refuse a person’s application to be appointed as the deposit management organisation

1. In the case of an appeal under regulation 99(1)(a) against a decision to refuse a person’s application to be appointed as the deposit management organisation, the decision is effective until the appeal is finally determined or withdrawn, unless the First-tier Tribunal determines otherwise.

Status pending appeal: decision to revoke a person’s appointment as the deposit management organisation

1. —(1) In the case of an appeal under regulation 99(1)(b) against a decision to revoke a person’s appointment as the deposit management organisation, the decision is ineffective until the appeal is granted, dismissed or withdrawn.

(2) If the appeal is dismissed or withdrawn, the decision becomes effective from the end of the day on which the appeal is dismissed or withdrawn.

Status pending appeal: civil sanctions

1. Any civil sanction imposed under a notice (other than a compliance notice), or an enforcement cost recovery notice issued under Part 9, which is subject to an appeal under regulation 99(1)(c) is suspended until the appeal is finally determined or withdrawn.

Determination of appeals

1. —(1) The First-tier Tribunal may, in relation to the decision or notice appealed against—

(a) quash the decision or withdraw the notice (in whole or in part);

(b) confirm the decision or notice (in whole or in part);

(c) vary the decision or notice (in whole or in part);

(d) take any steps that the decision maker could take in relation to the matters giving rise to the decision or the act or omission giving rise to the notice;

(e) remit the decision, including any decision whether to confirm any matter relating to the decision or to confirm the notice, to the decision maker.

(2) Where, following an appeal under regulation 99, the First-tier Tribunal determines that a decision of a decision maker is to be varied or remitted to the decision maker, the decision maker must—

(a) comply with any directions given to it by the First-tier Tribunal, and

(b) take any steps necessary to give effect to the First-tier Tribunal’s determination.

(3) In this regulation “ decision maker ” means—

(a) the Welsh Ministers, or

(b) the enforcement authority.

Part 11 Functions of NRW

Annual reports from deposit management organisation

1. —(1) NRW must consider the annual report submitted by a deposit management organisation under regulation 54 for each scheme year.

(2) NRW may, as part of its consideration under paragraph (1), request such additional information from the deposit management organisation as NRW considers necessary.

Appeals

1. Where the First-tier Tribunal determines under regulation 104 that a decision of NRW is to be varied or remitted to NRW, NRW must comply with any directions given to it by the First-tier Tribunal, and take any steps necessary to give effect to the First-tier Tribunal’s determination.

Huw Irranca-Davies

Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs, one of the Welsh Ministers

25 March 2026

SCHEDULES

Regulations 12 and 16

Schedule 1 Scheme producers: registration with the deposit management organisation

PART 1 Registration

Interpretation of Part 1

1. —(1) In this Part—

“ applicant ” (“ ceisydd ”) means a scheme producer who applies for registration with the deposit management organisation as a registered scheme producer;

“ registration application ” (“ cais cofrestru ”) means an application for registration with the deposit management organisation as a registered scheme producer;

“ registration information ” (“ gwybodaeth gofrestru ”) means—

(a) the applicant’s name and business name (if different);

(b) the address and telephone number of the applicant’s registered or principal office;

(c) an address for service, if different from the address mentioned in paragraph (b);

(d) if the applicant is a company, the company registration number;

(e) if the applicant is a partnership, the names of the partners;

(f) the name and contact details (including an email address where available) of the person appointed as the point of contact for the applicant in relation to the Scheme;

(g) the applicant’s SIC code;

(h) a statement as to whether the applicant is a brand owner;

(i) a statement as to whether the applicant is an importer;

(j) a statement as to whether the applicant fills to order;

(k) if the applicant is a brand owner or importer, the brand name of each drink for which the applicant is the brand owner or importer;

(l) the total number of deposit items which the applicant expects to supply in the 12 months following their registration as a registered scheme producer, and in each subsequent 12 month period or as the deposit management organisation directs, together with—

(i) information about the in-scope materials from which the applicant expects any container drinks to be wholly or mainly made,

(ii) the expected capacity of each type of container, and

(iii) if the applicant expects any of the deposit items to be made available for supply in scheme multipacks, the expected size of those scheme multipacks.

(2) In the definition of “registration information” in sub-paragraph (1), “ SIC code ” means a code included in the UK Standard Industrial Classification of Economic Activities 2007 (SIC 2007)(16).

Registration application

1. —(1) An applicant must make a registration application to the deposit management organisation before 1 October 2027.

(2) Where a person becomes a scheme producer after the coming into force of regulation 12, the scheme producer must make a registration application to the deposit management organisation within such period as the deposit management organisation may direct.

(3) A registration application must—

(a) be made in such form and manner as the deposit management organisation directs,

(b) contain the registration information, and

(c) contain any other information as the deposit management organisation may direct.

(4) Where the applicant is a partnership, the registration application must, if made by one partner, be made by that partner on behalf of all the partners.

(5) The deposit management organisation may only direct an applicant to provide information in their registration application which the deposit management organisation reasonably requires for the purposes of its functions under, or in connection with, the Scheme.

Decision on registration application

1. —(1) The deposit management organisation must, as soon as reasonably practicable—

(a) grant the registration application and register the applicant as a registered scheme producer, if it is satisfied that the registration application meets the requirements of paragraph 2(3), or

(b) otherwise, refuse the registration application.

(2) The deposit management organisation must, as soon as reasonably practicable, notify the applicant—

(a) of its decision;

(b) if the application is granted, of the date on which the applicant’s registration as a registered scheme producer takes effect;

(c) if the application is refused, of the reasons for that decision.

(3) A notification under sub-paragraph (2) must be in writing.

Requirement to notify the deposit management organisation of changes in registration information

1. —(1) A registered scheme producer must notify the deposit management organisation of any change to the relevant information.

(2) In this paragraph “ relevant information ” means—

(a) the registration information, and

(b) any other information that the applicant was directed to include in their registration application by the deposit management organisation under paragraph 2(3)(c).

PART 2 Cancellation of registration

Cancellation of registration on the request of the registered scheme producer

1. —(1) The deposit management organisation must cancel a person’s registration as a registered scheme producer if—

(a) the registered scheme producer notifies the deposit management organisation that they have ceased to be a scheme producer, and

(b) the deposit management organisation is satisfied that is the case.

(2) Where the deposit management organisation cancels a person’s registration as a registered scheme producer following a notification under sub-paragraph (1), it must give that person a notice, which—

(a) states that the person’s registration as a registered scheme producer has been cancelled, and

(b) specifies the date on which that cancellation takes effect.

Deposit management organisation’s power to cancel registration

1. —(1) The deposit management organisation may cancel a person’s registration as a registered scheme producer, without a notification having been given under paragraph 5, if it is satisfied that the person has ceased to be a scheme producer.

(2) Before cancelling a person’s registration as a registered scheme producer under sub-paragraph (1), the deposit management organisation must give that person a proposal notice.

(3) A proposal notice must be in writing and must—

(a) state why the deposit management organisation is proposing to cancel a person’s registration as a registered scheme producer,

(b) specify the date on which the proposed cancellation of the person’s registration as a registered scheme producer is to take effect,

(c) state that the registered scheme producer may make representations to the deposit management organisation about the proposal, and

(d) specify the form and manner in which any representations must be made and the period within which they must be made, which must not be less than 28 days, beginning with the day after the day on which the person receives the proposal notice.

(4) The deposit management organisation must consider any representations made by the registered scheme producer before the date of proposed cancellation specified in the proposal notice under sub-paragraph (3)(d).

(5) The deposit management organisation must notify the registered scheme producer in writing of its decision.

(6) Where the deposit management organisation decides to proceed with the cancellation of the person’s registration as a registered scheme producer, the deposit management organisation must give that person a cancellation notice.

(7) A cancellation notice must be in writing and must—

(a) state that the person’s registration as a registered scheme producer is being cancelled and the reasons why,

(b) specify the date on which the cancellation of the registration takes effect, and

(c) state that the person has a right under regulation 79 to ask the deposit management organisation to review the decision.

(8) If a registered scheme producer exercises the right under sub-paragraph (7)(c), the cancellation notice must not take effect before the end of the period specified in regulation 81(2).

(9) The date specified under sub-paragraph (7)(b) must not be before the end of the period of 28 days beginning with the day on which the person receives the cancellation notice.

Regulation 35(6)

Schedule 2 Registration of mandatory return point operators

Interpretation

1. In this Schedule—

“ application information ” (“ gwybodaeth y cais ”), in relation to an in-scope retailer, means—

(a) the retailer’s name, and if different, business name,

(b) the address and telephone number of the retailer’s registered or principal office,

(c) an address for service, if different from the address mentioned in paragraph (b),

(d) if the retailer is a company, the company registration number,

(e) if the retailer is a partnership, the names of the partners,

(f) the name and contact details (including an email address where available) of the person appointed as the point of contact for the retailer in relation to the Scheme, and

(g) the address of the MRP premises in respect of which the retailer is required to operate a return point under regulation 35(1);

“ registration application ” (“ cais cofrestru ”) means an application for registration with the deposit management organisation as a mandatory return point operator.

Application for registration

1. —(1) An in-scope retailer must make a registration application to the deposit management organisation before 1 October 2027.

(2) Where a person becomes an in-scope retailer after the coming into force of regulation 35, the retailer must make a registration application to the deposit management organisation within such period as the deposit management organisation may direct.

(3) A registration application must—

(a) be made in such form and manner as the deposit management organisation directs,

(b) contain the application information, and

(c) contain any other information as the deposit management organisation may direct.

(4) Where the in-scope retailer is a partnership, the registration application must, if made by one partner, be made by that partner on behalf of all the partners.

(5) The deposit management organisation may only direct an in-scope retailer to provide information in their registration application which the deposit management organisation reasonably requires for the purposes of its functions under, or in connection with, the Scheme.

Application for registration: decision

1. —(1) Where the deposit management organisation receives a registration application which meets the requirements of paragraph 2(3), the deposit management organisation must, as soon as reasonably practicable—

(a) register the in-scope retailer in relation to the MRP premises in respect of which the retailer is required to operate a return point, and

(b) notify the in-scope retailer in writing that the retailer has been registered as a mandatory return point operator.

(2) The deposit management organisation may register the in-scope retailer under sub-paragraph (1) before 1 October 2027.

Cancellation of registration

1. —(1) The deposit management organisation must—

(a) cancel an in-scope retailer’s registration as a mandatory return point operator in respect of any particular MRP premises, if—

(i) the in-scope retailer notifies the deposit management organisation that they no longer supply deposit items at those premises and the deposit management organisation is satisfied that is the case, or

(ii) the deposit management organisation grants a return point exemption in respect of those premises;

(b) cancel a person’s registration as a mandatory return point operator, if—

(i) the person notifies the deposit management organisation that they are no longer an in-scope retailer and the deposit management organisation is satisfied that is the case, or

(ii) the deposit management organisation grants a return point exemption in respect of all the in-scope retailer’s premises which are MRP premises.

(2) Where the deposit management organisation cancels a person’s registration as a mandatory return point operator following a notification under sub-paragraph (1), it must, as soon as reasonably practicable, give the person a deregistration notice.

(3) A deregistration notice must be in writing and must—

(a) state that the person’s registration as a mandatory return point operator has been cancelled, and

(b) specify the date on which that cancellation takes effect.

(4) The deposit management organisation may—

(a) cancel an in-scope retailer’s registration as a mandatory return point operator in respect of any premises, without a notification having been given under sub-paragraph (1)(a)(i), if it is satisfied that the retailer no longer supplies deposit items at those premises;

(b) cancel a person’s registration as a mandatory return point operator, without a notification having been given under sub-paragraph (1)(b)(i), if it is satisfied that the person is no longer an in-scope retailer.

(5) Before cancelling a person’s registration as a mandatory return point operator under sub-paragraph (4), the deposit management organisation must, as soon as reasonably practicable, give that person a proposal notice.

(6) A proposal notice must be in writing and must—

(a) state why the deposit management organisation is proposing to cancel a person’s registration as a mandatory return point operator,

(b) specify the date on which the proposed cancellation of the person’s registration as a mandatory return point operator will take effect,

(c) state that the mandatory return point operator may make representations to the deposit management organisation about the proposal, and

(d) specify the form and manner in which any representations must be made and the period within which they must be made, which must not be less than 28 days beginning with the day after the day on which the person receives the proposal notice.

(7) The deposit management organisation—

(a) must consider any representations made by the mandatory return point operator before the date of proposed cancellation specified in the proposal notice under sub-paragraph (6)(b);

(b) may reject any representations made by that person after that date.

(8) Where the deposit management organisation decides not to proceed with the cancellation of the person’s registration as a mandatory return point operator under sub-paragraph (4), it must, as soon as reasonably practicable, notify that person in writing of its decision.

(9) Where the deposit management organisation decides to proceed with the cancellation of the person’s registration as a mandatory return point operator under sub-paragraph (4), it must, as soon as reasonably practicable, give that person a cancellation notice.

(10) A cancellation notice must be in writing and must—

(a) state that the persons’ registration as a mandatory return point operator is being cancelled and the reasons why,

(b) specify the date on which the cancellation of the registration takes effect, and

(c) state that the person has a right under regulation 79 to ask the deposit management organisation to review the decision.

(11) The date specified under sub-paragraph (10)(b) must not be before the end of the period of 28 days beginning with the day on which the person receives the cancellation notice.

(12) If a mandatory return point operator exercises the right under sub-paragraph (10)(c), the cancellation notice must not take effect before the end of the period specified in regulation 81(2).

Regulation 35(7)

Schedule 3 Return point exemptions

Interpretation of Schedule 3

1. In this Schedule—

“ the application information ” (“ gwybodaeth y cais ”) means—

(a) if an exemption application is made on the proximity grounds—

(i) information about the size of the floor area of the premises;

(ii) information about the number of employees or other persons working in the premises;

(iii) the annual profit or turnover of the applicant’s business;

(iv) information about any alternative return points which are located in reasonable proximity to the premises;

(v) confirmation that the operator of each of those return points has been consulted about the in-scope retailer’s exemption application, and that no-one has objected to the potential increase in the number of returnable items likely to be returned to a particular return point if the return point exemption is granted;

(vi) any further information the applicant considers may be relevant;

(b) if an exemption application is made on the premises grounds, sufficient information to demonstrate that the location, layout, size, design or construction of the premises specified in the application does not permit, does not easily permit, or cannot easily be altered to permit the operation of a return point at those premises;

“ exemption application ” (“ cais am esemptiad ”) means an application made under paragraph 2(1);

“ exemption holder ” (“ deiliad esemptiad ”), in relation to a return point exemption, means an in-scope retailer to whom the return point exemption has been granted;

“ premises grounds ” (“ sail y fangre ”) means, in relation to an exemption application, where an application is made on the grounds that the location, layout, size, design or construction of the premises specified in the application do not permit, do not easily permit or cannot reasonably be altered to permit, the operation of a return point at those premises;

“ proximity grounds ” (“ sail agosrwydd ”) means, in relation to an exemption application, where the application is made on the grounds that—

(a) there are one or more alternative return points located within reasonable proximity to the premises specified in the application, and

(b) if the exemption were granted, it would not affect the deposit management organisation’s ability to meet the collection targets under regulation 84;

“ renewal application ” (“ cais am adnewyddiad ”) means an application under paragraph 6(3).

Application for return point exemption

1. —(1) An in-scope retailer may apply before or after 1 October 2027 to the deposit management organisation for a return point exemption in respect of the premises specified in the exemption application.

(2) An exemption application must be made on the proximity grounds or the premises grounds.

(3) An exemption application must—

(a) be made in such form and manner as the deposit management organisation directs,

(b) contain the application information, and

(c) contain any other information as the deposit management organisation may direct.

Decision on applications for return point exemptions

1. —(1) Where the deposit management organisation receives an exemption application from an in-scope retailer (“ the applicant ”), it must, as soon as reasonably practicable—

(a) consider the application information supplied by the applicant under paragraph 2(3), and

(b) have regard to all relevant factors including—

(i) the number of exemption applications made in respect of premises located in close proximity to the premises specified in the application;

(ii) the decisions taken in connection with those applications;

(iii) any representations made by members of the public, or by groups representing sections of the public, regarding exemptions from the requirement to operate a return point.

(2) The deposit management organisation must—

(a) decide whether to grant the return point exemption, and

(b) give notice of its decision to the applicant as soon as reasonably practicable.

(3) A notice under sub-paragraph (2) must be in writing, and must—

(a) if the deposit management organisation grants the exemption—

(i) specify the premises in respect of which the exemption is granted,

(ii) specify the date on which the exemption takes effect, and

(iii) include a statement that, unless the exemption is revoked or renewed, it will expire at the end of the period of 3 years, beginning with the day after the day on which the exemption takes effect;

(b) if the deposit management organisation refuses the exemption—

(i) state the reasons for that decision,

(ii) specify the date from which the applicant is required to operate a return point at the premises, and

(iii) state that the applicant has a right under regulation 79 to ask the deposit management organisation to review its decision.

(4) The date specified under sub-paragraph (3)(b)(ii) must not be before the end of the period of 28 days beginning with the day on which the in-scope retailer receives the notice.

(5) If the applicant exercises the right under sub-paragraph (3)(b)(iii), the deposit management organisation’s decision must not take effect before the end of the period specified in regulation 81(2).

Effect of making an application for a return point exemption: applications ongoing on 1 October 2027

1. —(1) This paragraph applies where—

(a) an in-scope retailer makes an exemption application before 1 October 2027, and

(b) the deposit management organisation has not determined that application by the end of 30 September 2027.

(2) Irrespective of the final outcome of the exemption application, the in-scope retailer is not required to operate a return point in respect of the premises specified in an exemption application during the period—

(a) beginning with 1 October 2027, and

(b) ending—

(i) if the return point exemption is granted, immediately before the exemption takes effect;

(ii) if the return point exemption is refused and the in-scope retailer exercises the right under paragraph 3(3)(b)(iii), at the end of the period set out in paragraph 3(5);

(iii) if the return point exemption is refused and the in-scope retailer does not exercise the right under paragraph 3(3)(b)(iii) then the in-scope retailer must operate a return point, from the date specified by the deposit management organisation under paragraph 3(3)(b)(ii).

Effect of making an application for a return point exemption: person becoming a groceries retailer on or after 1 October 2027

1. —(1) This paragraph applies where a person who becomes an in-scope retailer on or after 1 October 2027 (a “ new retailer ”) makes their first exemption application.

(2) A new retailer is not required to operate a return point in respect of the premises specified in the exemption application during the period—

(a) beginning with the day on which the exemption application is made, and

(b) ending—

(i) if the return point exemption is granted, immediately before the exemption takes effect;

(ii) if the return point exemption is refused and the new retailer exercises the right under paragraph 3(3)(b)(iii), at the end of the period set out in paragraph 3(5);

(iii) if the return point exemption is refused and the new retailer does not exercise the right under paragraph 3(3)(b)(iii), the new retailer must operate a return point from the date specified by the deposit management organisation under paragraph 3(3)(b)(ii).

Duration, and renewal, of a return point exemption

1. —(1) A return point exemption—

(a) continues in force for a period of 3 years beginning with the day specified under paragraph 3(3)(a)(ii);

(b) may be renewed by the deposit management organisation on one or more occasions.

(2) A return point exemption must not be renewed for a period of more than 3 years.

(3) An exemption holder may apply for a return point exemption to be renewed at any time before the exemption expires.

(4) The deposit management organisation may renew a return point exemption if—

(a) a renewal application is made by the exemption holder, and

(b) the grounds on which the exemption was originally granted continue to apply.

(5) A renewal application must—

(a) be made in such form and manner as the deposit management organisation directs,

(b) contain the exemption grounds information, and

(c) contain any other information as the deposit management organisation may direct.

(6) In sub-paragraph (5), “ the exemption grounds information ” means—

(a) if the return point exemption was granted on the proximity grounds—

(i) information about any alternative return points which are located in reasonable proximity to the premises, and

(ii) confirmation that the operator of each of those return points has been consulted about the in-scope retailer’s renewal application, and that each of those operators has agreed to continue to accept returnable items which could otherwise have been returned to the retailer making the renewal application;

(b) if the return point exemption was granted on the premises grounds, sufficient information to demonstrate that the location, layout, size, design or construction of the premises still does not permit, does not easily permit, or cannot easily be altered to permit the operation of a return point in respect of those premises.

(7) Where the deposit management organisation receives a renewal application, it must, as soon as reasonably practicable—

(a) decide whether to renew the relevant return point exemption, and

(b) notify the exemption holder by way of notice of its decision.

(8) A notice under sub-paragraph (7)(b) must be in writing and—

(a) if the deposit management organisation renews the return point exemption—

(i) specify the further period for which the exemption continues in force, and

(ii) specify the date at the end of which the return point exemption will expire, unless it is renewed or revoked;

(b) if the deposit management organisation decides not to renew the return point exemption—

(i) state the reasons for that decision,

(ii) specify the date on which the exemption holder is required to operate a return point at the premises, and

(iii) state that the exemption holder has a right under regulation 79 to ask the deposit management organisation to review the decision.

(9) The date specified under sub-paragraph (8)(b)(ii) must not be before the end of the period of 28 days beginning with the day on which the exemption holder received the notice.

(10) If an exemption holder exercises the right under sub-paragraph (8)(b)(iii), the deposit management organisation’s decision must not take effect before the end of the period specified in regulation 81(2).

(11) But this paragraph is subject to paragraphs 8 and 9.

Duty to notify the deposit management organisation of a relevant change of circumstances

1. —(1) An exemption holder must notify the deposit management organisation of any change of circumstances relevant to the grounds on which a return point exemption was granted or renewed.

(2) A notice under sub-paragraph (1) must be given to the deposit management organisation within the period of 28 days beginning with the day after the day on which the change occurs.

Revocation of a return point exemption at the request of the exemption holder

1. —(1) An exemption holder may request that a return point exemption in respect of a specified premises be revoked.

(2) A request under sub-paragraph (1) must be made in such form and manner as the deposit management organisation may direct.

(3) Where the deposit management organisation receives a request under this paragraph, it must as soon as reasonably practicable—

(a) revoke the relevant return point exemption, and

(b) notify the exemption holder, in writing, of the date on which—

(i) the revocation of the return point exemption takes effect, and

(ii) the exemption holder is required to operate a return point.

Revocation of a return point exemption on initiative of the deposit management organisation

1. —(1) The deposit management organisation may revoke a return point exemption if it is satisfied that—

(a) there has been a change of circumstances relevant to the grounds on which the exemption was granted, or

(b) if the exemption was granted on the proximity grounds, the continuing operation of the exemption will mean that there are consumers who no longer have reasonable access to a return point.

(2) Where the deposit management organisation proposes to revoke a return point exemption under sub-paragraph (1), it must, as soon as reasonably practicable, give the exemption holder a proposal notice.

(3) A proposal notice must be in writing and must—

(a) state the reasons for which the deposit management organisation is proposing to revoke the return point exemption,

(b) specify the date on which—

(i) the return point exemption ceases to have effect, if the proposal is made final, and

(ii) the exemption holder is required to operate a return point, and

(c) specify—

(i) the form and manner in which any representations must be made to the deposit management organisation about the proposal, and

(ii) the period within which any representations must be made, which must not be less than 28 days beginning with the day after the day on which the person receives the proposal notice.

(4) The deposit management organisation—

(a) must consider any representations made to it in the specified form and manner by the specified date;

(b) may reject any representations that are made otherwise than in the specified form and manner or after the specified date (or both).

(5) Where the deposit management organisation decides not to proceed with the proposed revocation of the return point exemption it must, as soon as reasonably practicable, notify the exemption holder in writing of its decision.

(6) Where the deposit management organisation decides to proceed with the revocation of the return point exemption, it must, as soon as reasonably practicable, give the exemption holder a revocation notice.

(7) A revocation notice must be in writing and must—

(a) state that the return point exemption is being revoked, and the reasons why;

(b) specify the date on which—

(i) the return point exemption will cease to have effect, and

(ii) the exemption holder is required to operate a return point;

(c) state that the exemption holder has the right under regulation 79 to ask the deposit management organisation to review its decision.

(8) A notification under sub-paragraph (5) and a revocation notice under sub-paragraph (6), must be given before the end of the period of 7 days beginning with the day after the day on which the deposit management organisation makes its decision.

(9) The dates under sub-paragraph (7)(b) must not be before the end of the period of 28 days beginning with the day on which the exemption holder receives the revocation notice.

(10) If an exemption holder exercises the right under sub-paragraph (7)(c), the revocation notice must not take effect before the end of the period specified in regulation 81(2).

Regulations 38 and 41

Schedule 4 Voluntary operation of return points and provision of take-back services

PART 1 Introductory

Interpretation of Schedule 4

1. In this Schedule—

“ applicant information ” (“ gwybodaeth y ceisydd ”) means—

(a) the name of the person making the application and, if different, their business name,

(b) the address and telephone number for the person’s registered or principal office,

(c) an address for service, if different from the address mentioned in paragraph (b),

(d) where the person making the application is a company, the company registration number,

(e) where the person making the application is a partnership, the names of all the partners, and

(f) the name and contact details (including an email address where available) of the person appointed as the point of contact in connection with the application;

“ notice ” (“ hysbysiad ”) means a notice in writing;

“ return point authorisation information ” (“ gwybodaeth awdurdodi man dychwelyd ”) means—

(a) the address of the premises at which it is proposed to operate a return point,

(b) information about the accessibility of the proposed return point, including—

(i) its proposed location,

(ii) the access routes to it, and

(iii) the proposed hours of operation,

(c) information about the type of return point that the person making the application proposes to operate, and

(d) information which demonstrates—

(i) that the person making the application has sufficient resources to set up and operate the return point for a period of at least 12 months,

(ii) the number of returnable items that the person making the application estimates will be returned to the return point each month, and the basis for that estimate, and

(iii) how the person making the application intends to manage the expected volume of returns of returnable items;

“ take-back service authorisation information ” (“ gwybodaeth awdurdodi gwasanaeth cymryd yn ôl ”) means information which demonstrates—

(a) that the scheme retailer applying for authorisation has sufficient resources to set up and operate the proposed take-back service for at least 12 months,

(b) the number of returnable items that the scheme retailer estimates will be collected each month, and the basis for that estimate, and

(c) how the scheme retailer intends to manage the expected volume of collected returnable items.

PART 2 Applications for authorisation to operate a return point

Application for authorisation to operate a return point at any in-scope premises

1. —(1) A scheme supplier may apply to the deposit management organisation to operate a return point at an in-scope premises.

(2) An application under this paragraph must—

(a) be made in such form and manner as the deposit management organisation may direct, and

(b) contain—

(i) the applicant information,

(ii) the return point authorisation information, and

(iii) any other information as the deposit management organisation may direct.

(3) Where the scheme supplier is a partnership, the application must, if made by only one partner, be made by that partner on behalf of all the partners.

Application for authorisation: small in-scope retailers

1. —(1) An in-scope retailer who is exempt from the requirement to operate a return point under regulation 36(1) may apply to the deposit management organisation to operate a return point at the premises concerned.

(2) An application under this paragraph must—

(a) be made in such form and manner as the deposit management organisation may direct, and

(b) contain—

(i) the applicant information,

(ii) the return point authorisation information, and

(iii) any other information as the deposit management organisation may direct.

(3) Where the in-scope retailer is a partnership, the application must, if made by only one partner, be made by that partner on behalf of all the partners.

Decision on application

1. —(1) Where the deposit management organisation receives an application under paragraph 2 or 3, it must, as soon as reasonably practicable—

(a) decide whether to grant or refuse the application, and

(b) notify the applicant of its decision by way of notice.

(2) The deposit management organisation may grant or refuse the application under sub-paragraph (1)(a) before 1 October 2027.

(3) A notice under sub-paragraph (1)(b) must—

(a) where the deposit management organisation grants the application, specify the date on which the authorisation takes effect;

(b) where the deposit management organisation refuses the application—

(i) state the reasons for that decision, and

(ii) state that the applicant has a right under regulation 79 to apply to the deposit management organisation to review its decision.

(4) If the person exercises the right under sub-paragraph (3)(b)(ii), the decision must not take effect before the end of the period specified in regulation 81(2).

Duration of a person’s authorisation to operate a return point

1. A person’s authorisation to operate a return point has effect until it is revoked by the deposit management organisation.

PART 3 Authorisation of scheme retailer as provider of a take-back service

Authorisation of a scheme retailer as a take-back service provider

1. —(1) A scheme retailer may apply to the deposit management organisation for authorisation as a take-back service provider.

(2) Where the scheme retailer is a partnership, the application must, if made by only one partner, be made by that partner on behalf of all the partners.

(3) An application under this paragraph must—

(a) be made in such form and manner as the deposit management organisation may direct, and

(b) contain—

(i) the applicant information,

(ii) the take-back service authorisation information, and

(iii) such other information (if any) as the deposit management organisation may direct.

Decision on application

1. —(1) Where the deposit management organisation receives an application under paragraph 6, it must, as soon as reasonably practicable—

(a) decide whether to grant or refuse the application, and

(b) give the scheme retailer notice of its decision.

(2) A notice under sub-paragraph (1)(b) must—

(a) where the deposit management organisation grants the application, specify the date on which the authorisation takes effect;

(b) where the deposit management organisation refuses the application—

(i) state the reasons for that decision, and

(ii) state that the scheme retailer has a right under regulation 79 to apply to the deposit management organisation to review its decision.

(3) If the scheme retailer exercises the right under sub-paragraph (2)(b)(ii), the decision must not take effect before the end of the period specified in regulation 81(2).

Duration of a scheme retailer’s authorisation as a take-back service provider

1. A scheme retailer’s authorisation as a take-back service provider has effect until it is revoked by the deposit management organisation.

PART 4 Information

Duty to notify the deposit management organisation of a change in the applicant information, return point authorisation information or take-back service authorisation information

1. —(1) A scheme supplier who is authorised to operate a return point at a particular premises must notify the deposit management organisation if there is any change in the applicant information or the return point authorisation information submitted in connection with that scheme supplier’s authorisation.

(2) A scheme retailer who is authorised to provide take-back services must notify the deposit management organisation if there is any change in the applicant information or the take-back service authorisation information submitted in connection with that scheme retailer’s authorisation.

(3) A notice under this paragraph must be given within the period of 28 days, beginning with the day after the day on which the change occurs.

PART 5 Revocation of authorisation

Revocation of authorisation on request

1. —(1) The deposit management organisation must, if requested to do so by a scheme supplier authorised to operate a return point at particular premises, revoke the scheme supplier’s authorisation to operate that return point.

(2) The deposit management organisation must, if requested to do so by a scheme retailer, revoke the scheme retailer’s authorisation as a take-back service provider.

(3) Where the deposit management organisation revokes a person’s authorisation under this paragraph, it must give the person a notice specifying the day at the end of which the authorisation ceases to have effect.

Revocation of authorisation on initiative of the deposit management organisation

1. —(1) The deposit management organisation may, on its own initiative, revoke—

(a) a scheme supplier’s authorisation to operate a return point at particular premises, or

(b) a scheme retailer’s authorisation to provide take-back services.

(2) But the deposit management organisation may only revoke a scheme supplier’s authorisation under sub-paragraph (1)(a) on one or more of the following grounds—

(a) the scheme supplier has failed to comply with one or more of their obligations as a return point operator under or in connection with the Scheme;

(b) there has been a change of circumstances since the authorisation was granted, including any change such that—

(i) the location, layout, size, design or construction of the premises can no longer, or can no longer easily, permit the operation of a return point and cannot reasonably be altered to allow the continued operation of a return point;

(ii) the operation of the return point is no longer viable.

(3) The deposit management organisation may only revoke a scheme retailer’s authorisation to provide take-back services under sub-paragraph (1)(b) on one or more of the following grounds—

(a) the scheme retailer has failed to comply with one or more of their obligations as a take-back service provider under or in connection with the Scheme;

(b) there has been a change of circumstances since the authorisation was granted;

(c) the operation of the take-back service is no longer viable.

(4) Where the deposit management organisation proposes to revoke an authorisation under sub-paragraph (1), it must, as soon as reasonably practicable, give that person a proposal notice.

(5) A proposal notice must—

(a) state the reasons for which the deposit management organisation is proposing to revoke the authorisation,

(b) specify the day at the end of which the revocation will take effect, if the proposal is made final, and

(c) specify the form and manner in which, and the period within which, the relevant person may make representations to the deposit management organisation about the proposed revocation, which must not be less than 28 days beginning with the date on which the person receives the proposal notice.

(6) The deposit management organisation—

(a) must consider any representations made to it in the specified form and manner and by the specified date;

(b) may consider any representations made otherwise than in the specified form or manner or after the specified date.

(7) Where the deposit management organisation decides not to proceed with the proposed revocation of a person’s authorisation, it must notify the person in writing as soon as reasonably practicable.

(8) Where the deposit management organisation decides to proceed with the revocation of a person’s authorisation, it must, as soon as reasonably practicable, give the person a revocation notice.

(9) A revocation notice must—

(a) state that the person’s authorisation is being revoked, and the reasons why,

(b) specify the day at the end of which the revocation will take effect, and

(c) state that the person has a right under regulation 79 to apply to the deposit management organisation to review its decision.

(10) The date specified under sub-paragraph (9)(b) must not be before the end of the period of 28 days beginning with the date on which the person receives the revocation notice.

(11) If the person exercises the right referred to in sub-paragraph (9)(c), the revocation notice must not take effect before the end of the period specified in regulation 81(2).

Regulations 51, 52 and 82

Schedule 5 Appointment etc. of the deposit management organisation

PART 1 Introductory

Interpretation of Schedule 5

1. In this Schedule—

“ DMO ” (“ SRhE ”) means deposit management organisation;

“ DMO applicant ” (“ ceisydd SRhE ”) means a person who makes a DMO appointment application;

“ DMO appointment application ” (“ cais penodiad SRhE ”) means an application to be appointed as the DMO;

“ not-for-profit body corporate ” (“ corff corfforedig nid-er-elw ”) means a body corporate which uses money earned by, or donated to, that body corporate solely to pursue its objectives and which does not distribute income to its members, directors or officers except for reasonable remuneration for goods or services supplied to that body;

“ notice ” (“ hysbysiad ”) means a notice in writing;

“ specified ” (“ penodedig ”) means specified in a notice given by the Welsh Ministers.

PART 2 Appointment of the deposit management organisation

Decision on DMO appointment applications

1. —(1) The Welsh Ministers must—

(a) assess each DMO appointment application and determine—

(i) which DMO applicant to appoint as the DMO, and

(ii) whether to attach any conditions to the appointment;

(b) notify each DMO applicant of any decision made in respect of their DMO appointment application as soon as reasonably practicable.

(2) The Welsh Ministers may only appoint a DMO applicant as the DMO if they are satisfied that the DMO applicant—

(a) is a not-for-profit body corporate,

(b) is not a charity, and

(c) is suitable for appointment as the DMO, having regard in particular to—

(i) the level of support for the DMO applicant’s appointment as the DMO amongst scheme producers and scheme suppliers;

(ii) the DMO applicant’s proposed finance strategy, including in particular how it intends to ensure that the Scheme becomes and remains self-financing;

(iii) the DMO applicant’s proposed strategy for ensuring that the views of all scheme producers and scheme suppliers (irrespective of their size), and of consumers, are obtained and taken into account in the carrying out of the DMO functions;

(iv) the DMO applicant’s proposed strategy for minimising the environmental impact of the Scheme and facilitating the reuse of refund items and the recycling of in-scope material;

(v) the arrangements which the DMO applicant intends to put in place to ensure co-operation with other scheme administrators, in particular in connection with—

(aa) the operation of the Scheme;

(bb) the operation of the England and Northern Ireland deposit scheme;

(cc) the operation of an overseas scheme;

(dd) the operation of the Scottish deposit and return scheme;

(ee) facilitating and improving the ease of return by consumers of drinks containers purchased in one part of the United Kingdom and returned in another part of the United Kingdom;

(ff) facilitating and improving the registration process for those who produce, or import, drinks for the United Kingdom market;

(vi) the DMO applicant’s proposed strategy for reducing and eliminating any fraud in the Scheme;

(vii) the purposes for which the DMO proposes to use any amounts which the DMO is permitted to retain under the Scheme, but which are not needed to finance the Scheme itself.

(3) A notice under sub-paragraph (1)(b) must—

(a) if the Welsh Ministers decide to appoint the DMO applicant as the DMO—

(i) state that the application has been successful,

(ii) specify the date on which the DMO applicant’s appointment as the DMO takes effect, and

(iii) state any conditions attaching to the appointment;

(b) if the Welsh Ministers refuse the DMO applicant’s DMO appointment application—

(i) state the reasons for the decision, and

(ii) state that the DMO applicant may appeal against the decision, and include a statement as to how such an appeal may be brought.

(4) Where there are two or more DMO applicants, the date specified under sub-paragraph (3)(a)(ii) must not be before the end of the period within which a DMO applicant may bring an appeal against a decision to refuse their DMO appointment application (disregarding any extension of that period).

PART 3 Revocation of a person’s appointment as the DMO

Revocation of a person’s appointment as the DMO: on notice

1. —(1) The person appointed as the DMO (“ the resigning DMO ”) may give notice (a “ revocation notice ”) to the Welsh Ministers stating that they wish to cease to be the DMO.

(2) If the Welsh Ministers receive a revocation notice, the Welsh Ministers must—

(a) revoke the resigning DMO’s appointment as the DMO, and

(b) give the resigning DMO a notice which specifies the date on which the revocation takes effect.

(3) The date specified under sub-paragraph (2)(b) must not be before the end of the period of 18 months beginning with the day after the day on which the Welsh Ministers receive the revocation notice.

Revocation of a person’s appointment as the DMO: discretion of the Welsh Ministers

1. —(1) The Welsh Ministers may revoke a person’s appointment as the DMO if—

(a) the person—

(i) has been convicted of an offence involving financial impropriety or fraud;

(ii) has become bankrupt;

(iii) has become subject to insolvency or winding-up proceedings;

(iv) has had assets made subject to administration or receivership, including by a liquidator or court;

(v) has entered into an arrangement with the person’s creditors;

(vi) has become subject to a petition or application for any procedures or arrangements referred to in sub-paragraphs (ii) to (v);

(vii) has, in any jurisdiction, been subject to a procedure or an application which corresponds to any procedure or application mentioned in sub-paragraphs (ii) to (v);

(viii) has failed for at least 3 years to ensure that the Scheme, together with any reciprocal recycling arrangements, meets the collection targets under regulation 84;

(ix) has knowingly or recklessly supplied false information in connection with its DMO appointment application or in connection with any of its obligations as the DMO under or in connection with the Scheme;

(x) has failed to comply with a notice or fine issued by NRW;

(xi) has repeatedly refused or failed to pay NRW costs after being invoiced for those costs;

(xii) has failed to meet one or more of that person’s conditions of appointment, or

(b) the person has notified the Welsh Ministers of a change of circumstances which the Welsh Ministers consider is likely to prevent the person from complying with that person’s conditions of appointment.

(2) The Welsh Ministers—

(a) must revoke a person’s appointment as the DMO if the Welsh Ministers consider that a mandatory exclusion ground set out in Schedule 6 (“mandatory exclusion ground”) to the Procurement Act 2023(17) (“ the 2023 Act ”), applies to that person or to a connected person and—

(i) the circumstances giving rise to the application of the mandatory exclusion ground are continuing or likely to occur again, or

(ii) the person, or a connected person, is on the debarment list under section 62 of the 2023 Act by virtue of a mandatory exclusion ground;

(b) may revoke a person’s appointment as the DMO if the Welsh Ministers consider that a discretionary exclusion ground set out in Schedule 7 to the 2023 Act (“ discretionary exclusion ground ”) applies to that person or to a connected person and—

(i) the circumstances giving rise to the application of the discretionary exclusion ground are continuing or likely to occur again, or

(ii) the person, or a connected person, is on the debarment list under section 62 of the 2023 Act by virtue of a discretionary exclusion ground.

(3) In this paragraph, “ connected person ” has the same meaning as “ connected person ” in paragraph 45 of Schedule 6 to the 2023 Act.

(4) If the Welsh Ministers propose to revoke a person’s appointment as the DMO they must, as soon as reasonably practicable, give the person a proposal notice.

(5) A proposal notice must—

(a) state that the Welsh Ministers propose to revoke the person’s appointment as the DMO, and the reasons why,

(b) specify the proposed date on which the revocation is to take effect,

(c) state that the person may make representations in connection with the proposed revocation of their appointment as the DMO, and

(d) specify the form and manner in, and date by, which any such representations must be made to the Welsh Ministers.

(6) The date specified under sub-paragraph (5)(b) must not be before the end of the period within which the person may make representations in connection with the proposed revocation of their appointment as the DMO (disregarding any extension of that period).

(7) The Welsh Ministers—

(a) must consider any representations that are made in the specified form and manner, and by the specified date;

(b) may disregard any representations that are not made in the specified form and manner or are made after the specified date.

(8) Where the Welsh Ministers decide not to proceed with the proposed revocation, they must notify the DMO in writing as soon as reasonably practicable.

(9) Where the Welsh Ministers decide to proceed with the proposed revocation, the Welsh Ministers must give that person a revocation notice as soon as reasonably practicable.

(10) The revocation notice must—

(a) state that the person’s appointment as the DMO has been revoked and the reasons why,

(b) specify the date on which the revocation takes effect, and

(c) state that the person may appeal against the decision, and include a statement as to how such an appeal may be brought.

(11) The date specified under sub-paragraph (10)(b) must not be before the end of the period within which a person may bring an appeal against the decision to revoke their appointment as the DMO (disregarding any extension of that period).

Transfer of assets etc.

1. —(1) The Welsh Ministers may transfer relevant property, rights and liabilities of—

(a) the interim scheme administrator to the first DMO appointed by the Welsh Ministers;

(b) the outgoing DMO to the new DMO, or to the interim scheme administrator, as a consequence of the outgoing DMO ceasing to be the DMO;

(c) the interim scheme administrator to the new DMO, where the new DMO is appointed during a period in which the interim scheme administrator exercises the DMO’s functions.

(2) The relevant property, rights and liabilities that may be transferred under sub-paragraph (1) are—

(a) data created and compiled specifically for the Scheme;

(b) land assets;

(c) intellectual property, including Scheme branding;

(d) deposits;

(e) IT systems;

(f) contracts entered into by the outgoing DMO or interim scheme administrator for the purpose of the Scheme;

(g) collection and processing infrastructure;

(h) staff and human resources systems.

(3) The Welsh Ministers may only transfer such of the relevant property, rights and liabilities set out in sub-paragraph (2) as constitute the minimum assets required to keep the Scheme operational and to protect consumer interests.

(4) The transfer of any property, rights and liabilities is effective on the new appointment date.

(5) The property, rights and liabilities that may be transferred under this paragraph include property, rights and liabilities that would not otherwise be capable of being transferred or assigned by the outgoing DMO or interim scheme administrator.

(6) A transfer of property, rights and liabilities under this paragraph takes effect despite the absence of any required consent or concurrence to or with the transfer and as if—

(a) no liability existed in respect of a contravention of a requirement for consent or concurrence that would otherwise exist by reason of any provision (whether under any enactment or agreement or otherwise) having effect in relation to the terms on which the outgoing DMO or interim scheme administrator is entitled to the property or right, or subject to the liability in question, and

(b) there was no interference with any property or right that would otherwise exist by reason of any provision (whether under any enactment or agreement or otherwise) having effect in relation to the terms on which the outgoing DMO or interim scheme administrator is entitled to the property or right, or subject to the liability in question.

(7) For the purposes of this paragraph, any property, right or liability of the outgoing DMO or interim scheme administrator is relevant property, or a relevant right or liability, only if it was acquired by the outgoing DMO or interim scheme administrator, or they became subject to it, in the course of the exercise of their functions as the DMO under the Scheme.

(8) In this paragraph and paragraph 6—

“ the new appointment date ” (“ dyddiad y penodiad newydd ”) means the date on which, as the case may be—

(a) the first DMO is appointed;

(b) the new DMO’s appointment takes effect;

(c) the Welsh Ministers begin carrying out any DMO functions under regulation 83(4)(a);

(d) a person is appointed to carry out DMO functions under regulation 83(4)(b);

“ the new DMO ” (“ yr SRhE Newydd ”) means the person next appointed as the DMO following the revocation of the outgoing DMO's appointment;

“ the outgoing DMO ” (“ yr SRhE ymadawol ”) means the person whose appointment as the DMO is revoked under paragraph 3 or 4.

Transitional provision in connection with paragraph 5

1. —(1) Anything that—

(a) is done (or has effect as if done) by or in relation to the interim scheme administrator or the outgoing DMO in respect of any property, right or liability transferred to the new DMO or the interim scheme administrator (as the case may be) under paragraph 5, and

(b) has effect immediately before the new appointment date,

is to be treated as done by or in relation to the new DMO.

(2) There may be continued by or in relation to the interim scheme administrator or the new DMO (as the case may be) anything (including legal proceedings) that—

(a) relates to any property, right or liability transferred under paragraph 5, and

(b) is in the process of being done by, on behalf of, or in relation to the interim scheme administrator or the outgoing DMO (as the case may be) immediately before the new appointment date.

Continuity in exercise of DMO functions

1. —(1) Anything done by the interim scheme administrator or the outgoing DMO (as the case may be) in connection with the exercise of the DMO’s functions has effect as if done by the new DMO or the interim scheme administrator (as the case may be).

(2) In this paragraph, “ the new DMO ” has the same meaning as in paragraph 5(8).

PART 4 Appeals under Parts 2 and 3

Right of appeal

1. —(1) A DMO applicant may appeal against a decision of the Welsh Ministers under paragraph 2 to refuse their DMO appointment application.

(2) A person may appeal against a decision of the Welsh Ministers under paragraph 4 to revoke their appointment as the DMO.

(3) An appeal under sub-paragraph (1) or (2) is to the First-tier Tribunal.

Regulation 92

Schedule 6 Civil Sanctions

PART 1 Introductory

Interpretation of Schedule 6

1. In this Schedule—

“ compliance notice ” (“ hysbysiad cydymffurfio ”) has the meaning given in paragraph 14(1);

“ CS Table ” (“ Tabl SS ”) means the Table of Civil Sanctions in Part 2 of this Schedule;

“ enforcement authority ” (“ awdurdod gorfodi ”) has the meaning given in regulation 91;

“ enforcement undertaking ” (“ ymgymeriad gorfodi ”) means an undertaking, in writing, to take the action specified in that undertaking within the period specified in that undertaking;

“ FMP ” (“ CAB ”) means a fixed monetary penalty, which is a requirement to pay the enforcement authority a penalty in relation to an act or contravention of a requirement mentioned in column 1 of the CS Table, being the amount indicated in the CS Table for that act or contravention;

“ VMP ” (“ CAA ”) means a variable monetary penalty, which is a penalty of such amount as the enforcement authority may determine.

PART 2 The Table of Civil Sanctions

| Column 1 | Column 2 | Column 3 | Column 4 | Column 5 |
| Requirement or act | FMP

(amount) | VMP | compliance notice | enforcement undertaking |
| Scheme producers | | | | |
| Regulation 12 and Part 1 of Schedule 1 (registration) | No | Yes | Yes | Yes |
| Regulation 14(1)(a) or (b) (requirement to make or keep records) | No | Yes | Yes | Yes |
| Providing information in response to a DMO information request under regulation 15, or in an application for registration under paragraph 2 of Schedule 1, or under paragraph 4 or 5 of Schedule 1, where— (a) the person providing the information knows it to be inaccurate, false or misleading in a material particular, (b) the person providing it does so recklessly and the information is inaccurate, false or misleading in a material way, (c) the person providing the information knows it to be incomplete in a material particular, or (d) the producer has not notified the deposit management organisation of a change to the relevant information. | No | Yes | Yes | Yes |
| Providing information in an application under regulation 19 for registration of a product line as a low volume line, where— (a) the person providing the information knows it to be false or misleading in a material particular, or (b) the person providing it does so recklessly and the information is false or misleading in a material particular. | No | Yes | Yes | Yes |
| Regulation 22 (requirement to pay a registered scheme producer registration fee) | No | Yes | Yes | Yes |
| Regulation 23 (requirement to pay deposits to the deposit management organisation) | No | Yes | Yes | Yes |
| Scheme suppliers | | | | |
| Regulation 24 (requirement to supply items from registered scheme producers) | Yes

(£1,000) | No | Yes | No |
| Regulation 25(1)(a) (requirement for deposit item to carry the required item logo) | Yes

(£1,000) | No | Yes | No |
| Regulation 25(1)(b) (requirement for deposit item to carry scheme return code) | Yes

(£1,000) | No | Yes | No |
| Regulation 25(2) (requirement for scheme multipack to carry scheme packaging logo) | Yes

(£1,000) | No | Yes | No |
| Regulation 26(1) (requirement not to supply a registered low volume product carrying a scheme logo or scheme return code) | Yes

(£1,000) | No | Yes | No |
| Regulation 27(1) or (6) (requirement to provide or display, or provide for display, the Scheme information) | Yes

(£1,000) | No | Yes | No |
| Regulation 28(1) (requirement to provide or display, or provide for display, the RLVP information) | Yes

(£500) | No | Yes | No |
| Regulation 29(1) (requirement for scheme supplier to charge a deposit), where the scheme supplier is a scheme retailer | Yes

(£1,000) | No | Yes | No |
| Regulation 29(1) (requirement to charge a deposit), where the scheme supplier is not a scheme retailer | No | Yes | Yes | Yes |
| Regulation 30(1) (requirement to display opt-out information) | Yes

(£500) | No | Yes | No |
| Providing information in response to a DMO information request under regulation 31 where— a) the person providing the information knows it to be inaccurate, false or misleading in a material particular, (b) the person providing it does so recklessly and the information is inaccurate, false or misleading in a material particular, or (c) the person providing the information knows it to be incomplete in a material particular. | No | Yes | Yes | Yes |
| Return of returnable items | | | | |
| Regulation 35(1)

(requirement to operate a return point) | Yes

(£1,000) | No | Yes | No |
| Regulation 35(5) and Schedule 2 (requirement to register, or renew registration, with the deposit management organisation as a mandatory return point operator) | No | Yes | Yes | Yes |
| Providing information under paragraph 2 or 4 of Schedule 2 where— (a) the person providing the information knows it to be false or misleading in a material particular, or (b) the person providing it does so recklessly and the information is false or misleading in a material particular. | No | Yes | Yes | Yes |
| Failure to provide information under paragraph 7 of Schedule 3 (return point exemption: duty to notify deposit management organisation of change of circumstances) | No | Yes | Yes | Yes |
| Providing information under paragraph 2, 7 or 9 of Schedule 3 where— (a) the person providing the information knows it to be false or misleading in a material particular, or (b) the person providing it does so recklessly and the information is false or misleading in a material particular. | No | Yes | Yes | Yes |
| Regulation 37(1) (requirement to display information where no return point is operated) | Yes

(£500) | No | Yes | No |
| Regulation 40 (requirement to display information at a return point) | Yes

(£500) | No | Yes | No |
| Regulation 41 (requirement to be a scheme retailer and registered with the deposit management organisation in order to provide a take-back service) | Yes

(£1,000) | No | Yes | No |
| Regulation 42(1) or (5) (requirement to provide, display or provide for display, information about a take-back service) | Yes

(£500) | No | Yes | No |
| Providing information in an application under paragraph 2, 3 or 6 of Schedule 4, where— (a) the person providing the information knows it to be false or misleading in a material particular, or (b) the person providing it does so recklessly and the information is false or misleading in a material particular. | No | Yes | Yes | Yes |
| Paragraph 9 of Schedule 4 (duty to notify the deposit management organisation of a change in information) | No | Yes | Yes | Yes |
| Regulation 47(1), (2) or (3)(b) (requirements as to the payment of the total return amount) | Yes

(£500) | No | Yes | No |
| Regulation 48(2) (requirement to notify DMO that total return amount to be paid by the DMO to a charity) | Yes

(£500) | No | Yes | No |
| Regulation 49 (requirement to retain returnable items) | Yes

(£1,000) | No | Yes | No |
| Regulation 50 (requirement to retain or return returnable items) | Yes

(£1,000) | Yes | Yes | Yes |
| The deposit management organisation | | | | |
| Regulation 48(3) (requirement to pay to a charity a sum equivalent to the total return amount) | No | Yes | Yes | Yes |
| Regulation 52(3) (requirement to comply with conditions of appointment) | No | Yes | Yes | Yes |
| Regulation 53(1) (requirement to act in accordance with operational plan) | No | Yes | Yes | Yes |
| Regulation 54(1) (requirement to submit annual report) | No | Yes | Yes | Yes |
| Regulation 55(1) and (2) (requirement to establish and maintain a reserve fund) | No | Yes | Yes | Yes |
| Regulation 56(1)(a) (scheme logo: requirement to issue) | No | Yes | Yes | Yes |
| Regulation 57 (requirement to publish scheme logo and scheme packaging logo) | No | Yes | Yes | Yes |
| Regulation 58 (scheme return code: code requirements) | No | Yes | Yes | Yes |
| Regulation 68(1) (requirement to collect

returnable items from return point operators etc.) | No | Yes | Yes | Yes |
| Regulation 68(2) and (3) (requirements to pay sums for returnable items) | No | Yes | Yes | Yes |
| Regulation 70 (requirement to make arrangements for recycling of in-scope material from refund items) | No | Yes | Yes | Yes |
| Regulation 71 (requirement to make arrangements for the recycling of in-scope material from items other than refund items) | No | Yes | Yes | Yes |
| Regulation 73 (requirement to make arrangements for the reuse of returned refund items) | No | Yes | Yes | Yes |
| Regulation 74 (requirement in relation to payments to NRW) | No | Yes | Yes | Yes |
| Regulation 75 (information about returns data) | No | Yes | Yes | Yes |
| Failure, without reasonable excuse, to comply with the obligation in regulation 84 (collection targets) | No | Yes | Yes | Yes |
| Matters connected with enforcement | | | | |
| Regulation 87(3) (requirement to comply with an information notice), where the notice is given by a local weights and measures authority | Yes

(£500) | No | Yes | No |
| Providing information to a local weights and measures authority in response to an information notice under regulation 87 where— (a) the person providing the information knows it to be false or misleading in a material particular, or (b) the person providing it does so recklessly and the information is false or misleading in a material particular | Yes

(£500) | No | Yes | No |
| Regulation 87(3) (requirement to comply with an information notice), where the notice is given by NRW | No | Yes | Yes | Yes |
| Providing information to NRW under regulation 87 where— (a) the person providing the information knows it to be false or misleading in a material particular, or (b) the person providing it does so recklessly and the information is false or misleading in a material particular | No | Yes | Yes | Yes |
| Regulation 88(1) (obstructing or failing to assist an authorised person), where the authorised person was appointed by a local weights and measures authority | Yes

(£1,000) | No | Yes | No |
| Regulation 88(1) (obstructing or failing to assist an authorised person), where the authorised person was appointed by NRW | No | Yes | Yes | Yes |

PART 3 Fixed monetary penalties

Power to impose an FMP

1. —(1) Where the CS Table indicates that an FMP is available for an act or contravention of a requirement listed in column 1 of the table, an enforcement authority may, by notice, impose an FMP on a person in relation to that act or contravention.

(2) Before doing so, the enforcement authority must be satisfied on the balance of probabilities that the person has acted or contravened the relevant requirement as set out in the CS Table.

Notice of intention to impose an FMP

1. —(1) Where an enforcement authority proposes to impose an FMP on a person, the authority must give that person a notice of what is proposed.

(2) A notice under sub-paragraph (1) is referred to in this Part as a “ notice of intent ”.

(3) A notice of intent must be in writing and must—

(a) state the grounds for imposing an FMP,

(b) state the amount of the proposed FMP, and

(c) include information about the right to make representations and objections within the period of 28 days beginning with the day after the day on which the person receives the notice (referred to in this Part as “ the 28-day period ”).

Making representations and objections

1. A person who receives a notice of intent may, within the 28-day period, make written representations or objections to the enforcement authority in relation to the proposed FMP.

Final notice of decision to impose an FMP

1. —(1) The enforcement authority must, after considering any representations or objections made within the 28-day period, notify the person concerned in writing of its decision.

(2) Where the enforcement authority decides to impose the FMP (with or without modifications to the original terms of the notice of intent) the enforcement authority must serve on the person concerned a final notice in writing and include the following information—

(a) the amount of the FMP,

(b) the grounds for imposing the FMP,

(c) how payment of the FMP must be made,

(d) the date by which payment must be made, which is the last day of a period of 56 days beginning with the date of receipt of the final notice,

(e) details of any late payment penalties,

(f) information as to the right of appeal, and

(g) the consequences of non-payment.

Appeal

1. —(1) The person receiving a final notice may appeal against it.

(2) The grounds for appeal are—

(a) that the decision was based on an error of fact;

(b) that the decision was wrong in law;

(c) that the decision is unreasonable.

Non-payment after 56 days

1. —(1) An FMP must be paid within the period of 56 days beginning with the day of receipt of the final notice, unless the final notice is appealed in which case regulation 103 applies.

(2) If the FMP is not paid within that period, the amount payable is the original amount of the FMP plus 50% of that figure.

(3) Where a final notice is appealed and the appeal is unsuccessful or withdrawn—

(a) the FMP is payable within the period of 28 days beginning with the day on which the appeal is determined or withdrawn (as the case may be), and

(b) if the FMP is not paid within that period, the amount payable is the original amount of the FMP plus 50% of that figure.

PART 4 Variable monetary penalty

Power to impose a VMP

1. —(1) Where the CS Table indicates that a VMP is available for an act or contravention of a requirement listed in column 1 of the table, an enforcement authority may, by notice, impose a VMP on a person. in relation to that act or contravention.

(2) Before doing so, the enforcement authority must be satisfied on the balance of probabilities that the person has acted or contravened the relevant requirement as set out in the CS Table

(3) Before serving a notice relating to a VMP for failure to comply with a compliance notice or enforcement undertaking, the enforcement authority may require a person to provide such information as is reasonable to establish the amount of any benefit arising from the failure to comply with the compliance notice or enforcement undertaking.

Notice of intention to issue a VMP

1. —(1) Where an enforcement authority proposes to impose a VMP on a person under this Part, the authority must give the person a notice of what is proposed.

(2) A notice under sub-paragraph (1) is referred to in this Part as a “ notice of intent ”.

(3) A notice of intent must be in writing and must include—

(a) the grounds for imposing a VMP,

(b) the amount of the VMP, and

(c) information about the right to make representations within the period of 28 days beginning with the day after the day on which the person receives the notice (referred to in this Part as “ the 28-day period ”).

Representations and objections

1. A person who receives a notice of intent may, within the 28-day period, make written representations and objections to the enforcement authority about the proposed VMP.

Final notice of decision to impose a VMP

1. —(1) The enforcement authority must, after considering any representations or objections made within the 28-day period, notify the person concerned of its decision.

(2) Where the enforcement authority decides to impose a VMP (with or without modifications), the enforcement authority must give a notice (referred to in this Part as a “ final notice ”) to the relevant person.

(3) The final notice must be in writing.

Contents of final notice

1. A final notice must include—

(a) the grounds for imposing the VMP,

(b) the amount of the VMP,

(c) how the payment may be made,

(d) the period within which the payment must be made, which must not be less than 28 days, beginning with the day after the day the final notice is given,

(e) information as to the right of appeal, and

(f) information as to the consequences of failing to comply with the notice.

Appeal against a final notice

1. —(1) The person receiving a final notice may appeal against it.

(2) The grounds of appeal are—

(a) that the decision was based on an error of fact;

(b) that the decision was wrong in law;

(c) that the amount of the VMP is unreasonable;

(d) that the decision is unreasonable for any other reason.

PART 5 Compliance Notices

Issue of a compliance notice

1. —(1) An enforcement authority may, by notice (a “ compliance notice ”), require a person to take such steps as the authority may specify—

(a) within such period as the authority may specify, and

(b) to ensure that an act or contravention of a requirement listed in column 1 of the CS Table does not continue or recur, if column 4 of the CS Table indicates that a compliance notice is available in respect of the act or contravention.

(2) Before giving a compliance notice, the enforcement authority must be satisfied that there are reasonable grounds for considering that the person has contravened or will contravene the relevant requirement in column 1 of the CS Table.

(3) A requirement in a compliance notice must not be imposed on a person on more than one occasion in relation to the same act or contravention unless the act or contravention is a continuing act or contravention.

(4) But sub-paragraph (3) does not prevent a compliance notice imposing an equivalent requirement on a person if any earlier requirement imposed on that person in a compliance notice relating to the same act or contravention has been withdrawn.

Contents of a compliance notice

1. A compliance notice must be in writing and include—

(a) the grounds for imposing the steps specified in the notice,

(b) information as to the compliance or restoration which is required and the period within which it must be completed,

(c) information about the right of appeal, and

(d) information as to the consequences of failing to comply with the notice.

Appeal against a compliance notice

1. —(1) A person who receives a compliance notice may appeal against it.

(2) The grounds for appeal are—

(a) that the decision was based on an error of fact;

(b) that the decision was wrong in law;

(c) that the nature of the requirement is unreasonable;

(d) that the decision is unreasonable for any other reason.

PART 6 Enforcement undertaking

Power to accept an enforcement undertaking

1. An enforcement authority may accept an enforcement undertaking where column 5 of the CS Table indicates that an enforcement undertaking is available in respect of an act or contravention of a requirement listed in column 1 of the table.

Form and contents of an enforcement undertaking

1. —(1) An enforcement undertaking must be in writing and must—

(a) specify a relevant action,

(b) specify the period within which that action must be completed, and

(c) include—

(i) a statement that the undertaking is made in accordance with this Part,

(ii) the terms of the undertaking, and

(iii) a statement as to how and when a person who gives the undertaking is considered to have discharged the undertaking.

(2) An enforcement undertaking may be varied, or the period within which a relevant action must be completed extended, if agreed in writing by the enforcement authority and the person who gave the enforcement undertaking.

(3) In this paragraph, “ relevant action ” means—

(a) action to ensure that the act or contravention of the requirement mentioned in column 1 of the CS Table does not continue or recur,

(b) action to ensure that the position is, so far as possible, restored to what it would have been had the act or contravention not occurred, or

(c) action (including the payment of a sum of money) to benefit or improve the environment, such as action to prevent littering, increase the recycling of in-scope material from which containers are made, or increase the reuse of containers.

Effect of acceptance of an enforcement undertaking

1. —(1) If an enforcement authority accepts an enforcement undertaking under paragraph 17(1), it may not impose any other civil sanction in respect of the act or the contravention to which the enforcement undertaking relates.

(2) But sub-paragraph (1) ceases to apply if the person fails to comply with the enforcement undertaking or any part of it.

Publication of enforcement undertakings

1. An enforcement authority must publish each enforcement undertaking it accepts in such manner it considers appropriate, for the purposes of bringing it to the attention of persons who may be affected.

Discharge of an enforcement undertaking

1. —(1) If an enforcement authority is satisfied that an enforcement undertaking has been complied with, the enforcement authority must issue a certificate (a “ discharge certificate ”).

(2) An enforcement authority may require a person who has given an enforcement undertaking to provide sufficient information for the purposes of determining whether the person has complied with that undertaking.

(3) A person who has given an enforcement undertaking may apply, at any time, for a discharge certificate.

(4) Where an enforcement authority receives an application under sub-paragraph (3), the authority must, within the relevant period—

(a) decide whether to issue a discharge certificate, and

(b) notify the person making the application of that decision.

(5) The “ relevant period ” means the period of 14 days beginning with the day on which the enforcement authority receives the application in question.

Right of appeal

1. —(1) A person may appeal against a decision of an enforcement authority not to issue a discharge certificate.

(2) The grounds of appeal are—

(a) that the decision was based on an error of fact;

(b) that the decision was wrong in law;

(c) that the decision is unfair or unreasonable.

Inaccurate, incomplete or misleading information

1. —(1) A person who gives inaccurate, incomplete or misleading information in relation to an enforcement undertaking is to be regarded as not having complied with it.

(2) An enforcement authority may revoke a discharge certificate if it was issued on the basis of inaccurate, incomplete or misleading information.

Partial compliance with an enforcement undertaking

1. If a person has partly complied with an enforcement undertaking, the enforcement authority must take that into account when imposing any other civil sanction.

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations are the first to be made by the Welsh Ministers under section 54 of, and Schedule 8 to, the Environment Act 2021 (c. 30). They establish a deposit scheme in Wales for drinks containers, supporting an increase in reuse and recycling and a reduction in littering and fly-tipping. Closed bottles and cans made from polyethylene terephthalate (‘PET’) plastic, steel, glass or aluminium, which contain between 150ml and 3 litres of liquid, fall within the scope of the deposit scheme.

From 1 October 2027, anyone in Wales who is supplied with a drink in the types of container to which these Regulations apply must pay a deposit to the person who supplies the drink container. A person who returns an empty drink container to a collector will be entitled to a refund. Under the scheme it will also be possible to return and claim a refund for certain empty drink containers which were purchased outside Wales.

Part 1 of the Regulations contains introductory provisions and a transitional provision.

Part 2 contains provisions on interpretation.

Part 3 contains provisions for the establishment of a deposit scheme for drinks containers in Wales. Under the scheme, a person who is supplied with a deposit item pays a deposit, which will be refunded when the item is returned to a scheme collector. This Part also sets out the circumstances in which a person is not entitled to a refund for a returnable item.

Part 4, Chapter 1 contains provisions imposing registration requirements on scheme producers and an obligation on the deposit management organisation to keep a register of registered scheme producers. Registered scheme producers are required to keep records relating to the supply of drinks containers. The deposit management organisation is also given powers to obtain information from registered scheme producers, and powers relating to the cancellation of a scheme producer’s registration. Chapter 2 contains provisions relating to low volume lines. Chapter 3 contains provisions relating to payments by scheme producers to the deposit management organisation. Schedule 1 contains further provision about the registration of scheme producers.

Part 5 contains provisions relating to scheme suppliers, including a prohibition on the supply of relevant drinks containers manufactured, imported or filled by a scheme producer who is not registered, and provisions relating to the labelling of deposit items, scheme multipacks and registered low volume products. Part 5 also contains provisions requiring scheme suppliers to charge a deposit for each deposit item which the scheme supplier supplies to the customer, and to display information about the deposit scheme and registered low volume products. Part 5 also includes powers for the deposit management organisation to obtain information from scheme suppliers.

Part 6 contains provisions relating to the return of returnable items. Chapter 1 of Part 6 contains provisions on items subject to overseas schemes. Chapter 2 contains provisions relating to mandatory return points for drink containers, and Chapter 3 contains provisions relating to voluntary return points. Chapter 4 contains provisions on information to be provided at return points, and Chapter 5 contains provisions on take-back services and on the collection or acceptance of returnable items by the deposit management organisation. Chapter 6 contains provisions on the register of return points, the register of return point exemptions and the register of take-back service providers, and Chapter 7 contains provisions about the general obligations of scheme collectors to offer payment for returnable items and to retain those returnable items for collection. Schedule 2 contains further provision about registration as a mandatory return point operator and Schedule 3 contains further provision about return point exemptions. Schedule 4 contains further provision about authorisations to operate voluntary return points

Part 7 contains provisions relating to the role of the deposit management organisation as scheme administrator. Chapter 1 of Part 7 contains provisions for the appointment and governance of the deposit management organisation, and Chapter 2 contains provisions about the issue and administration arrangements for a scheme logo, scheme packaging logo and scheme return code. Chapter 3 sets out a requirement on the deposit management organisation to publish template documents for the provision of certain types of scheme information. Chapter 4 contains provisions relating to the deposit on deposit items, including determining the amount of the deposit and the use that may be made by the deposit management organisation of amounts received as deposits. Chapter 5 sets out provisions about fees for registration that are payable by scheme producers, and Chapter 6 contains provisions relating to the collection of returnable items, including reviews of the operation of return points. Chapter 7 contains provisions about the recycling of in-scope materials from drink containers and the reuse of deposit items which have been returned. Chapter 8 contains provisions relating to Natural Resources Wales, and Chapter 9 confers powers on the deposit management organisation to work with the other scheme administrators in England and Northern Ireland, Scotland or overseas. Chapter 10 contains provisions relating to the internal review of decisions made by the deposit management organisation. Chapter 11 contains provisions for the revocation of a person’s appointment as the deposit management organisation. Chapter 11 also includes provisions relating to the Welsh Ministers (or another person) acting as interim scheme administrator until a person is appointed as the deposit management organisation. Schedule 5 contains provisions about the appointment of the deposit management organisation and related matters.

Part 8 contains provision relating to collection targets for the deposit management organisation.

Part 9 contains provisions relating to enforcement. Chapter 2 of Part 9 sets out enforcement powers and contains provisions requiring the provision of information. Chapter 3 contains provisions relating to offences and Chapter 4 contains provisions relating to civil sanctions. Chapter 5 contains provisions relating to the publication of enforcement action in a public register. Schedule 6 contains further provision about civil sanctions.

Part 10 sets out provisions relating to the right of appeal and the procedure on appeal.

Part 11 sets out the functions of Natural Resources Wales.

The Welsh Ministers' Code of Practice on the carrying out of Regulatory Impact Assessments was considered in relation to these Regulations. As a result, a regulatory impact assessment has been prepared as to the likely costs and benefits of complying with these Regulations. A copy can be obtained from the Welsh Government, Cathays Park, Cardiff, CF10 3NQ and is published on www.gov.wales.

(1) 2021 c. 30.

(2) S.I. 2000/645, to which there are amendments not relevant to these Regulations.

(3) 2011 c. 25.

(4) 2007 c. 15, to which there are amendments not relevant to these Regulations.

(5) 1996 c. 56. Section 4 was amended by the Education Act 1997 (c. 44), the Education Act 2002 (c. 32), the Childcare Act 2006 (c. 21), the Education Act 2011 (c. 21), the Curriculum and Assessment (Wales) Act 2021 (asc 4) and S.I. 2010/1080 and 2019/1027.

(6) 1992 c. 13. Section 91 was amended by the Learning and Skills Act 2000 (c. 21), the Apprenticeships, Skills, Children and Learning Act 2009 (c. 22), the Higher Education (Wales) Act 2015 (anaw 1), the Higher Education and Research Act 2017 (c. 29), the Tertiary Education and Research (Wales) Act 2022 (asc 1) and S.I. 2019/1027.

(7) 2006 c. 42, to which there are amendments not relevant to these Regulations.

(8) 1985 c. 72. Section 69(2) was amended by the Local Government (Wales) Act 1994 (c. 19), Schedule 16, paragraph 75.

(9) 2009 asp 12. Section 84 was amended by the Circular Economy (Scotland) Act 2024 (asp 13), section 10(3).

(10) S.I. 2004/102.

(11) Available at: https://www.ons.gov.uk/methodology/geography/geographicalproducts/ruralurbanclassifications/2011ruralurbanclassification

(12) 1995 c. 25. Section 108 and Schedule 18 were amended by the Environment Act 2021 (c. 30), section 147 and Schedule 10; S.I. 2013/755 (W. 90); S.I. 2016/475 and S.I. 2023/1386. There are other amending instruments but none is relevant to these Regulations.

(13) 2006 c. 32.

(14) 1974 c. 53. Section 5 of the Rehabilitation of Offenders Act 1974 was amended by section 139(4) of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (c. 10). There are other amendments to section 5 but they are not relevant for the purposes of these Regulations.

(15) S.I. 2009/1976 (L. 20), amended by S.I. 2010/43, 2010/2653, 2011/651, 2012/500, 2013/477, 2014/2128, 2015/2059, 2017/1168, 2018/1053, 2019/758, 2019/828, 2019/925, 2020/416, 2020/651, 2020/1637, 2021/322, 2021/1183, 2022/1030, 2024/364 and 2025/561.

(16) The UK Standard Industrial Classification of Economic Activities 2007 (SIC 2007) was published by the Office for National Statistics in December 2009, ISBN 978-0-230-21012-7. It is available at: https://www.ons.gov.uk/methodology/classificationsandstandards/ukstandardindustrialclassificationofeconomicactivities/uksic2007.

(17) 2023 c. 54, to which there are amendments not relevant to these Regulations.

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