Legalize / United Kingdom / Statutory-Instrument

The Deposit Scheme for Drinks Containers (England and Northern Ireland) Regulations 2025

Type Statutory-Instrument

Publication 2025-01-23

State In force

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

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(11) The date specified for the purposes of sub-paragraph (9)(b) must not be before the end of the period of 28 days beginning with the date on which the person received the cancellation notice.

Schedule 3 — Return point exemptions

Interpretation of Schedule 3

1

(1) In this Schedule—

“exemption application” means an application made under paragraph 2 (1);

“exemption holder”, in relation to a return point exemption, means an MRP retailer to whom the return point exemption has, for the time being, been granted;

“MRP retailer” means a scheme retailer whose business consists wholly or mainly of the sale or supply of groceries to scheme consumers;

“renewal application” means an application under paragraph 6 (3).

(2) For the purposes of this Schedule—

(a) an exemption application is made on the proximity grounds if it is made on the grounds that—

(i) there is one or more alternative return points located within reasonable proximity to the premises specified in the application, and

(ii) if the exemption were granted, it would not affect the deposit management organisation’s ability to meet the collection targets (see regulation 81);

(b) an exemption application is made on the premises grounds if it is made on the grounds that the location, layout, size, design, or construction of the specified premises does not permit, or does not easily permit, or cannot reasonably be altered to permit, the operation of a return point in respect of those premises.

Applications for return point exemptions

2

(1) An in-scope retailer may apply before or after 1st October 2027 to the deposit management organisation for a return point exemption in respect of the premises in the exemption application.

(2) An exemption application must be made on either the proximity grounds or the premises grounds.

(3) An exemption application must—

(a) be made in such form and manner as may be directed by the deposit management organisation,

(b) contain the application information, and

(4) In this paragraph—

“the application information” means— if an exemption application is made on the proximity grounds— information about the size of the applicant, which may include information about the— floor area of the specified premises; number of employees or other persons working in the specified premises; annual profit or turnover of the applicant’s business; information about the alternative return point or points which are located in reasonable proximity to the specified premises, and confirmation that the operator of each of those return points has been consulted about the retailer’s application for a return point exemption, and none of them has objected to the potential increase in the number of returnable items likely to be returned to their return point if the return point exemption is granted; any further information the applicant considers may be relevant; if an exemption application is made on the premises grounds, information which is sufficient to demonstrate that the location, layout, size, design or construction of the specified premises does not permit, does not easily permit, or, as the case may be, cannot easily be altered to permit the operation of a return point in respect of those premises.

Decision on applications for return point exemptions

3

(1) Where the deposit management organisation receives, whether before or after 1st October 2027, an exemption application from an in-scope retailer (“the applicant”), it must, within a reasonable time—

(a) consider the application information supplied by the applicant under paragraph 2 of this Schedule, and

(b) in making a decision on the exemption application, have regard to all relevant factors including—

(i) the number of applications for exemption made in the proximity of the applicant;

(ii) the decisions taken with regard to such other 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) subject to sub-paragraph (3), decide whether or not to grant the return point exemption, and

(b) give a notice regarding its decision to the applicant.

(3) A notice under sub-paragraph (2) must be in writing, and—

(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 will take effect, and

(iii) include a statement that, unless the exemption is revoked or renewed, it will expire at the end of the period of three years beginning with that date;

(b) if the deposit management organisation refuses the exemption—

(i) state the reasons for that decision, and

(ii) state that the in-scope retailer has a right under regulation 76 to ask the deposit management organisation to review its decision.

Effect of making an application for a return point exemption: applications ongoing on 1st October 2027

4

(1) This paragraph applies where—

(a) an in-scope retailer makes an exemption application before 1st October 2027, and

(b) the deposit management organisation has not made a decision on that application by the end of 30th 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 the exemption application during the period—

(a) beginning with 1st 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 retailer has asked the deposit management organisation to review its decision under regulation 76, at the end of the period during which the review is carried out;

(iii) if the return point exemption is refused and the retailer has not asked the deposit management organisation to review its decision under regulation 76, at the end of the period within which the retailer could have asked the deposit management organisation to review its decision under regulation 76.

Effect of making an application for a return point exemption: person becoming an in-scope retailer on or after 1st October 2027

5

(1) This paragraph applies where a person who becomes an in-scope retailer on or after 1st October 2027 (a “new retailer”) makes their first exemption application.

(2) The 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 received, 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 has asked the deposit management organisation to review its decision under regulation 76, at the end of the period during which the review is carried out;

(iii) if the return point exemption is refused and the new retailer has not asked the deposit management organisation to review its decision under regulation 76, at the end of the period within which the new retailer could have asked the deposit management organisation to review its decision under regulation 76.

Duration, and renewal, of a return point exemption

6

(1) A return point exemption—

(a) continues in force for a period of three years beginning with the date specified for the purposes of 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 on any occasion be renewed for a period of more than three years.

(3) An exemption holder may apply for the return point exemption to be renewed at any time before the exemption expires.

(4) The deposit management organisation may only 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 may direct,

(b) contain the exemption grounds information, and

(6) In sub-paragraph (5) “the exemption grounds information” means—

(a) if the exemption was granted on the proximity grounds—

(i) information about the alternative return point or points which are located in reasonable proximity to the specified premises, and

(ii) confirmation that the operator of each of those return points has been consulted about the retailer’s application for a return point exemption, and 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 exemption was granted on the premises grounds, information which is sufficient to demonstrate that the location, layout, size, design or construction of the specified premises still does not permit, does not easily permit, or, as the case may be, 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, within a reasonable period of receiving the application—

(a) decide whether or not to renew the relevant return point exemption, and

(b) notify the exemption holder 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 is to continue 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, and

(ii) state that the in-scope retailer has a right under regulation 76 to ask the deposit management organisation to review its decision.

(9) But this paragraph is subject to paragraphs 8 and 9.

Duty to notify the deposit management organisation of a relevant change of circumstances

7

(1) An exemption holder must notify the deposit management organisation of any change of circumstances relevant to the grounds on which the relevant return point exemption was granted or, as the case may be, 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 on which the change occurs.

Revocation of a return point exemption at the request of the exemption holder

8

(1) An exemption holder may request that any return point exemption granted to them 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, the deposit management organisation must—

(a) revoke the relevant return point exemption, and

(b) notify the exemption holder, in writing, of the date on which the revocation of the return point exemption takes effect.

Revocation of a return point exemption on initiative of the deposit management organisation

9

(1) The deposit management organisation may revoke a return point exemption if the deposit management organisation 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 scheme 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), the deposit management organisation must give the exemption holder a notice (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 day at the end of which the return point exemption will cease to have effect, if the proposal is upheld, and

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

(ii) the period within which any such representations must be made, which must not be less than 28 days beginning with the date 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 and 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) The deposit management organisation must notify the exemption holder in writing of its decision.

(6) Where the deposit management organisation decides to proceed with the revocation of the relevant return point exemption, the deposit management organisation must give the exemption holder a notice (a “revocation notice”).

(7) A revocation notice must be in writing and must—

(a) state that the relevant return point exemption is being revoked, and the reasons why, and

(b) specify the day at the end of which the return point exemption will cease to have effect, and

(c) state that the exemption holder has the right under regulation 76 to ask the deposit management organisation to review its decision.

(8) A notice under sub-paragraph (5), together with any revocation notice, must be given before the end of the period of seven days beginning with the day on which the deposit management organisation makes its decision.

(9) If the person exercises the right referred to in sub-paragraph (7)(c), the revocation notice will not take effect pending the review of the decision.

(10) The day specified for the purposes of sub-paragraph (7)(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.

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” means— the name of the person making the application and, if different, their business name, the address and telephone number for the person’s registered or principal office, an address for service if different from the address mentioned in paragraph (b), where the person making the application is a company, the company registration number, where the person making the application is a partnership, the names of all of the partners, and 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” means a notice in writing;

“return point authorisation information” means— the address of the premises at or on which it is proposed to operate a return point, information about the accessibility of the return point, including— its proposed location, the access routes to it, and its proposed hours of operation, the type of return point that the person making the application proposes to operate, and information which demonstrates— 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, 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 how the person making the application intends to manage the expected volume of returns of returnable items;

“take-back service authorisation information” means information which demonstrates— 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, the number of returnable items that the scheme retailer estimates will be collected during each month and the basis for that estimate, and how the scheme retailer intends to manage the expected volume of returns of returnable items.

Part 2 — Application for authorisation to operate a return point

Application for authorisation to operate a return point at or on any in-scope premises

2

(1) A scheme supplier may apply to the deposit management organisation to operate a return point at or on an in-scope premises.

(2) A groceries retailer which is exempt from the requirement to operate a return point under regulation 35 (“exempt groceries retailer”) may apply to the deposit management organisation to operate a return point at or on an in-scope premises.

(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 return point authorisation information, and

(iii) such other information (if any) as the deposit management organisation may direct.

(4) Where the scheme supplier or the exempt groceries retailer is a partnership, the application must be made by one of the partners on behalf of all of the partners.

Decision on application

3

(1) Where the deposit management organisation receives an application under paragraph 2, it must, within a reasonable period of receiving the application—

(a) decide whether to grant or refuse the application, and

(b) notify the applicant of its decision.

(2) The deposit management organisation may grant or refuse the application under sub-paragraph (1)(a) before 1st 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, state the reasons for that decision and—

(i) notify the applicant that the authorisation to operate a return point has been refused;

(ii) state that the applicant has a right under regulation 76 to apply to the deposit management organisation to review its decision.

Duration of a person’s authorisation to operate a return point

4

A person’s authorisation to operate a return point has effect until it is revoked by the deposit management organisation.

Part 3 — Authorisation of a scheme retailer as a take-back service provider

Authorisation of a scheme retailer as a take-back service provider

5

(1) A scheme retailer may make an application 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 of the partners.

(3) An application under this paragraph must—

(a) be made in such form and manner as the deposit management organisation may direct,

(b) contain the applicant information, and

Decision on application

6

(1) Where the deposit management organisation receives an application under paragraph 5, it must, within a reasonable period of receiving the application—

(a) decide whether to grant or refuse the application, and

(b) give the applicant a 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 applicant has a right under regulation 76 to apply to the deposit management organisation to review its decision.

Duration of a scheme retailer’s authorisation as a take-back service provider

7

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

8

(1) A scheme supplier or an exempt groceries retailer who is authorised to operate a return point at or on 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 or exempt groceries retailer’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 date on which the change occurs.

Part 5 — Revocation of authorisation

Revocation of authorisation on request

9

(1) The deposit management organisation must, if requested to do so by the scheme supplier or the exempt groceries retailer authorised to operate a return point at or on particular premises, revoke the authorisation to operate that return point.

(2) The deposit management organisation must, if requested to do so by the 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, the deposit management organisation 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

10

(1) The deposit management organisation may revoke—

(a) the authorisation of a scheme supplier or exempt groceries retailer to operate a return point at or on particular premises, or

(b) a scheme retailer’s authorisation to provide take-back services,

otherwise than following a request under paragraph 9.

(2) The deposit management organisation may only revoke the authorisation of a scheme supplier or exempt groceries retailer under sub-paragraph (1)(a) on the following grounds—

(a) the person 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, design, or construction of the premises to which the authorisation relates can no longer, or can no longer easily, permit the operation of a return point and cannot be reasonably altered to allow the continued operation of a return point;

(ii) the operation of the return point to which the authorisation relates 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 the following grounds—

(a) the scheme retailer has failed to comply with any 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;

(4) Where the deposit management organisation proposes to revoke an authorisation, it must give that person a notice (a “proposal notice”).

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

(a) state the reasons for which the deposit management organisation is proposing to revoke the authorisation, and

(b) specify the day at the end of which the revocation is expected to take effect, if the proposal is upheld, 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 (or both).

(7) Where the deposit management organisation decides to proceed with the revocation of a person’s authorisation, it must give the person a notice (a “revocation notice”).

(8) A revocation notice must be in writing and must—

(a) state that the person’s authorisation is being revoked, and the reasons why, and

(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 76 to apply to the deposit management organisation to review its decision.

(9) If the person exercises the right referred to in sub-paragraph (8)(c), the revocation notice will not take effect pending the review of the decision.

(10) The date specified for the purposes of sub-paragraph (8)(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) The deposit management organisation must notify the person in writing of its decision within a reasonable time.

Schedule 5 — Appointment etc. of the deposit management organisation

Part 1 — Introductory

Interpretation of Schedule 5

1

In this Schedule—

“DMO applicant” means a person who makes a DMO appointment application;

“DMO appointment application” means an application to be appointed as the deposit management organisation;

“not-for-profit body corporate” 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” means a notice in writing;

“specified” means specified in a notice given by the Secretary of State.

Part 2 — Appointment of the deposit management organisation

Decision on DMO appointment applications

2

(1) The Secretary of State must—

(a) having assessed each DMO appointment application, determine—

(i) which DMO applicant is proposed to be appointed as the successful DMO applicant, and

(ii) whether any conditions apply to the appointment,

(b) obtain the consent of DAERA to the proposed appointment of the successful DMO applicant, and

(2) The Secretary of State may only propose that a DMO applicant is appointed as the deposit management organisation if the Secretary of State is satisfied that the DMO applicant—

(a) is a not-for-profit body corporate but is not a charity, and

(b) is suitable for appointment as the deposit management organisation, having regard in particular to—

(i) the level of support for the DMO applicant’s DMO application amongst scheme producers and scheme suppliers;

(ii) the DMO applicant’s proposed finance strategy, including in particular how the DMO applicant 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 recycling of in-scope material;

(v) the arrangements which the DMO applicant intends to put in place to ensure cooperation with any scheme administrator of another deposit scheme or any Scottish deposit administrator of a Scottish deposit and return scheme, in particular in connection with—

(aa) the operation of the Scheme;

(bb) the operation of the other deposit schemes;

(cc) the operation of the Scottish deposit and return schemes;

(dd) 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;

(ee) 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, and

(vii) the purposes for which the DMO proposes to use any amounts which they are permitted to retain under the Scheme but which are not needed to finance the Scheme itself.

(3) A notice under sub-paragraph (1)(c) must—

(a) if the Secretary of State grants the DMO applicant’s DMO appointment application—

(i) state that the application has been granted,

(ii) specify the date on which the person’s appointment as the deposit management organisation will take effect, and

(iii) state any conditions applying to the person’s appointment;

(b) if the Secretary of State refuses 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 for the purposes of sub-paragraph (3)(a)(ii) must not be before the end of the period within which a person may bring an appeal against the decision to refuse their DMO appointment application (disregarding any extension of that period).

(5) In this paragraph “charity” means a body established for charitable purposes only (whether or not it is registered as a charity in any part of the United Kingdom).

Part 3 — Revocation of a person’s appointment as the deposit management organisation

Revocation of a person’s appointment as the deposit management organisation: on notice

3

(1) The person appointed as the deposit management organisation (“the resigning DMO”) may give notice (a “revocation notice”) to the Secretary of State stating that they wish to cease to be the deposit management organisation.

(2) If the Secretary of State receives a revocation notice, the Secretary of State must—

(a) revoke the resigning DMO’s appointment as the deposit management organisation, and

(b) give the resigning DMO a notice which specifies the date on which the revocation takes effect.

(3) The date specified for the purposes of sub-paragraph (2)(b) must not be before the end of the period of 18 months beginning with the date on which the Secretary of State receives the revocation notice.

Revocation of a person’s appointment as the deposit management organisation: discretion of the Secretary of State

4

(1) The Secretary of State may, with the consent of DAERA, revoke a person’s appointment as the deposit management organisation if—

(a) it appears to the Secretary of State that 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 such 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 three years to meet the collection targets for a deposit management organisation;

(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 deposit management organisation under or in connection with the Scheme;

(x) has failed to comply with a notice or fine issued by a national enforcement authority;

(xi) has repeatedly refused or failed to pay NEA costs after being invoiced for those costs, or

(xii) has failed to meet one or more of that person’s conditions of appointment; or

(b) the person has notified the Secretary of State of a change of circumstances which the Secretary of State considers is likely to prevent the person from complying with that person’s conditions of appointment.

(2) The Secretary of State—

(a) must revoke a person’s appointment as the deposit management organisation if the Secretary of State considers—

(i) that a mandatory exclusion ground set out in Schedule 6 to the Procurement Act 2023²³ (mandatory exclusion grounds) (“the 2023 Act”), applies to that person or to a connected person, and

(ii) the circumstances giving rise to the application of the exclusion ground are continuing or likely to occur again, or

(iii) the person, or a connected person, is on the debarment list under section 62 of the 2023 Act (debarment list) by virtue of a mandatory exclusion ground set out in Schedule 6 to that Act.

(b) may, with the consent of DAERA, revoke a person’s appointment as the deposit management organisation if the Secretary of State considers—

(i) that a discretionary exclusion ground set out in Schedule 7 to the 2023 Act (discretionary exclusion grounds) applies to that person or to a connected person, and

(ii) the circumstances giving rise to the application of the exclusion ground are continuing or likely to occur again, or

(iii) 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 set out in Schedule 7 to that Act.

(3) In this regulation “connected person” has the same meaning as that given to “connected person” in paragraph 45 of Schedule 6 to the 2023 Act in relation to a supplier.

(4) If the Secretary of State proposes to revoke a person’s appointment as the deposit management organisation it must give the person a notice (a “proposal notice”).

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

(a) state that the Secretary of State, with the consent of DAERA, proposes to revoke the person’s appointment as the deposit management organisation, and the reasons why,

(b) specify the date on which the revocation will take effect,

(d) specify the form and manner in, and date by, which any such representations must be made to the Secretary of State.

(6) The date specified for the purposes of sub-paragraph (5)(b) must not be before the end of the period within which the person may make an application for a review of the decision to revoke their appointment as the deposit management organisation (disregarding any extension of that period).

(7) The Secretary of State—

(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) The Secretary of State must notify the deposit management organisation in writing of the decision.

(9) The Secretary of State must give a copy of any notice under sub-paragraph (8) to DAERA.

(10) Where the Secretary of State decides to proceed with the proposed revocation, the Secretary of State must give that person a notice (a “revocation notice”).

(11) The revocation notice must—

(a) state that the person’s appointment as the deposit management organisation has been revoked, and

(b) specify the date on which the revocation will take effect.

(12) The Secretary of State must give a copy of any revocation notice to DAERA.

Transfer of assets etc.

5

(1) The Secretary of State may transfer relevant property, rights and liabilities of the outgoing DMO to the new DMO, or to the interim scheme administrator, as a consequence of the outgoing DMO ceasing to be the deposit management organisation.

(2) The relevant property, rights and liabilities of the outgoing DMO that may be transferred under paragraph (1) are as follows—

(a) data created and compiled specifically for the Scheme;

(b) land assets;

(d) deposits;

(e) IT systems;

(f) contracts entered into by the outgoing DMO for the purpose of the Scheme;

(g) collection and processing infrastructure;

(h) staff and human resources systems.

(3) The Secretary of State may only transfer such of the relevant property, rights and liabilities set out in 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.

(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, and

(b) there were 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 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 is relevant property, or a relevant right or liability, only if it was acquired by, or the outgoing DMO became subject to it, in the course of the exercise of its functions as the deposit management organisation under or in connection with the Scheme.

(8) In this paragraph and paragraph 6—

“the new appointment date” means the date on which the new DMO’s appointment takes effect;

“the new DMO” means the person next appointed as the deposit management organisation following the revocation of the outgoing DMO's appointment;

“the outgoing DMO” means the person whose appointment as the deposit management organisation is revoked under paragraph 3 or 4.

Transitional provision in connection with paragraph 5

6

(1) Anything that—

(a) is done (or has effect as if done) by or in relation to the outgoing DMO in respect of any property, right or liability transferred to the new DMO 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 new DMO 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 outgoing DMO immediately before the new appointment date.

Continuity in exercise of deposit management organisation functions

7

(1) Anything done by the outgoing DMO in connection with the exercise of the DMO functions has effect as if done by the new DMO.

(2) In this paragraph, “the new DMO” and “the outgoing DMO” have the same meanings as in paragraph 5 (8).

Part 4 — Appeals in connection with Parts 2 and 3

Right of appeal

8

(1) A DMO applicant may appeal against a decision of the Secretary of State under paragraph 2 to refuse their DMO appointment application.

(2) A person may appeal against a decision of the Secretary of State under paragraph 4 to revoke their appointment as the deposit management organisation.

(3) An appeal under sub-paragraph (1) or (2) is to the First-tier Tribunal.

Schedule 6 — Civil Sanctions

Part 1 — Introductory

Interpretation of Schedule 6

1

In this Schedule—

“compliance notice” has the meaning given in paragraph 14 (1);

“enforcement undertaking” means an undertaking, in writing, to take the action specified in that undertaking within the period specified in that undertaking;

“FMP” means a fixed monetary penalty;

“variable monetary penalty” means a penalty of such amount as the enforcement authority may determine;

“VMP” means a variable monetary penalty.

Part 2 — The Table of Civil Sanctions

Requirement or act	FMP (amount)	VMP	compliance notice	enforcement undertaking
Scheme producers
Regulation 11 and Part 1 of Schedule 1 (registration)	No	Yes	Yes	Yes
Regulation 13(1)(a) or (b) (requirement to make or keep records)	No	Yes	Yes	Yes
Providing information in response to a DMO instruction under regulation 14, 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, or (b) the person providing it does so recklessly and the information is false or misleading in a material particular, or (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 18 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 21 (requirement to pay a producer registration fee)	No	Yes	Yes	Yes
Regulation 22 (requirement to pay deposits to the deposit management organisation)	No	Yes	Yes	Yes
Scheme suppliers
Regulation 23 (prohibition on supply of items from a scheme producer not registered with the deposit management organisation)	Yes (£1,000)	No	Yes	No
Regulation 24 (1)(a) (requirement for deposit item to carry scheme logo)	Yes (£1,000)	No	Yes	No
Regulation 24 (1)(b) (requirement for deposit item to carry scheme return code)	Yes (£1,000)	No	Yes	No
Regulation 24 (2) (requirement for scheme multipack to carry scheme packaging logo)	Yes (£1,000)	No	Yes	No
Regulation 25 (1) (prohibition on supply of a registered low volume product carrying a scheme logo or scheme return code)	Yes (£1,000)	No	Yes	No
Regulation 26 (1) or (6) (requirement to provide or display, or provide for display, the Scheme information)	Yes (£1,000)	No	Yes	No
Regulation 27 (1) (requirement to provide or display, or provide for display, the LVP information)	Yes (£500)	No	Yes	No
Regulation 28 (1) (requirement to charge a deposit), where the scheme supplier is a scheme retailer	Yes (£1,000)	No	Yes	No
Regulation 28 (1), where the scheme supplier is not a scheme retailer	No	Yes	Yes	Yes
Regulation 29 (1) (requirement to display opt-out information)	Yes (£500)	No	Yes	No
Providing information in response to a DMO instruction under regulation 30 where— (a) the person providing the information knows it to be inaccurate, 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, 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 34 (1) (requirement to operate a return point)	Yes (£1,000)	No	Yes	No
Regulation 34 (4) and (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 36 (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 in order to provide a take-back service)	Yes (£1,000)	No	Yes	No
Regulation 42 (1) or (5) (requirement to provide or display information about a take-back service)	Yes (£500)	No	Yes	No
Providing information in an application under paragraph 2 or 5 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 8 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 (requirement to retain returnable items)	Yes (£1,000)	No	Yes	No
Regulation 49 (requirement to retain or return returnable items)	Yes (£1,000)	No	Yes	Yes
The deposit management organisation
Regulation 51 (3) (requirement to comply with conditions of appointment)	No	Yes	Yes	Yes
Regulation 52 (1) (requirement to act in accordance with operational plan)	No	Yes	Yes	Yes
Regulation 53 (1) (requirement to submit annual report)	No	Yes	Yes	Yes
Regulation 54 (1) (requirement to establish and maintain a reserve fund)	No	Yes	Yes	Yes
Regulation 55 (scheme logo and scheme packaging logo: requirement to issue)	No	Yes	Yes	Yes
Regulation 56 (publication of scheme logo and scheme packaging logo)	No	Yes	Yes	Yes
Regulation 57 (scheme return code)	No	Yes	Yes	Yes
Regulation 66 (1) (requirement to collect returnable items etc. from return point operators etc.)	No	Yes	Yes	Yes
Regulation 66 (2) (requirement to pay sums for returnable items)	No	Yes	Yes	Yes
Regulation 68 (requirement to recycle or make arrangements for recycling of in-scope material from refund items)	No	Yes	Yes	Yes
Regulation 69 (requirement to make arrangements for the recycling of in-scope material from items other than refund items)	No	Yes	Yes	Yes
Regulation 71 (requirement to pay NEA costs)	No	Yes	Yes	Yes
Regulation 72 (information about returns data)	No	Yes	Yes	Yes
Failure, without reasonable excuse, to comply with the obligation in regulation 81 (collection targets).	No	Yes	Yes	Yes
Matters connected with enforcement
Regulation 85 (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 85 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 85 (3) (requirement to comply with an information notice), where the notice is given by a national enforcement authority	No	Yes	Yes	Yes
Providing information to a national enforcement authority under regulation 85 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 86 (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 86 (1) (obstructing or failing to assist an authorised person), where the authorised person was appointed by DAERA or the Environment Agency	No	Yes	Yes	Yes

Part 3 — Fixed monetary penalties

Power to impose an FMP

2

(1) An enforcement authority may, by notice, impose an FMP on a person in relation to an act or contravention of a requirement mentioned in the CS Table, if the CS Table indicates that an FMP is available for that act or contravention of that requirement.

(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) “Fixed monetary penalty” means a requirement to pay to the enforcement authority a penalty in relation to an act or contravention of a requirement mentioned in the CS Table, of the amount indicated in the CS Table for that act or contravention of that requirement.

Notice of intention to impose an FMP

3

(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 (referred to in this Part of this Schedule as a “notice of intent”).

(2) A notice of intent must be in writing and must—

(a) state the grounds for imposing the FMP,

(b) state the amount of the FMP, and

(c) include information as to the right to make representations and objections within the period of 28 days beginning with the date on which the person receives the notice (referred to in this Part of this Schedule as “the 28-day period”).

Making representations and objections

4

(1) A person who is given a notice of intent may, within the 28-day period, make representations or objections to the enforcement authority in relation to the proposed imposition of the FMP.

(2) Any representations or objections under paragraph (1) must be in writing.

Final notice of decision to impose an FMP

5

(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 decision is made to impose the FMP (with or without modifications to the original terms of the notice of intent) the enforcement authority must serve a final notice in writing and must include the following information—

(a) the amount of the FMP,

(b) the grounds for imposing the FMP,

(d) that the date by which payment must be made is the last day of a period of 56 days beginning with the date of receipt of the final notice,

(e) details of the late payment penalties,

(f) information as to the right of appeal, and

(g) the consequences of non-payment.

Appeal

6

(1) A person who receives 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;

Non-payment after 56 days

7

(1) An FMP must be paid within the period of 56 days beginning with the date of receipt of the final notice, unless the final notice is appealed in which case regulation 98 (1)(b) 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 penalties

Power to impose a VMP

8

(1) An enforcement authority may, by notice, impose a VMP on a person in relation to an act or contravention of a requirement mentioned in the CS Table, if the CS Table indicates that a VMP is available for the act or contravention.

(2) A requirement under this paragraph must not be imposed on a person on more than one occasion in relation to the same act or omission, unless the act or omission is a continuing act or omission.

(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

9

(1) Where an enforcement authority proposes to impose a VMP on a person under this Part of this Schedule, the authority must give the person a notice of what is proposed (a “notice of intent”).

(2) A notice of intent must be in writing and must include—

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