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The Deposit Scheme for Drinks Containers (Wales) Regulations 2026

Type Welsh-Statutory-Instrument

Publication 2026-03-25

State In force

Jurisdiction Wales

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

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(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).

Schedule 3 — Return point exemptions

Interpretation of Schedule 3

1

In this Schedule—

“the application information” (“gwybodaeth y cais”) means— if an exemption application is made on the proximity grounds— information about the size of the floor area of the premises; information about the number of employees or other persons working in the premises; the annual profit or turnover of the applicant’s business; information about any alternative return points which are located in reasonable proximity to the premises; 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; any further information the applicant considers may be relevant; 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— there are one or more alternative return points located within reasonable proximity to the premises specified in the application, and 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

2

(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

Decision on applications for return point exemptions

3

(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

4

(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

5

(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

6

(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

(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

7

(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

8

(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

9

(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

(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).

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— 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 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” (“hysbysiad”) means a notice in writing;

“return point authorisation information” (“gwybodaeth awdurdodi man dychwelyd”) means— the address of the premises at which it is proposed to operate a return point, information about the accessibility of the proposed return point, including— its proposed location, the access routes to it, and the proposed hours of operation, information about 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” (“gwybodaeth awdurdodi gwasanaeth cymryd yn ôl”) 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 each month, and the basis for that estimate, and 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

2

(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

3

(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

4

(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

5

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

6

(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

7

(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

8

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

9

(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

10

(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

11

(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;

(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).

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

2

(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

(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

3

(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

4

(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[^f00017] (“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.

5

(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;

(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— the first DMO is appointed; the new DMO’s appointment takes effect; the Welsh Ministers begin carrying out any DMO functions under regulation 83(4)(a); 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

6

(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

7

(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

8

(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.

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

2

(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

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.

(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

4

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

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 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,

(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

6

(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;

Non-payment after 56 days

7

(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

8

(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

9

(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

10

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

11

(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

12

A final notice must include—

(a) the grounds for imposing the VMP,

(b) the amount of the VMP,

(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

13

(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;

(d) that the decision is unreasonable for any other reason.

PART 5 — Compliance Notices

Issue of a compliance notice

14

(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

15

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,

(d) information as to the consequences of failing to comply with the notice.

Appeal against a compliance notice

16

(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;

(d) that the decision is unreasonable for any other reason.

PART 6 — Enforcement undertaking

Power to accept an enforcement undertaking

17

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

18

(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

(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

19

(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

20

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

21

(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

22

(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;

Inaccurate, incomplete or misleading information

23

(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

24

If a person has partly complied with an enforcement undertaking, the enforcement authority must take that into account when imposing any other civil sanction.

Signed

Huw Irranca-Davies — Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs, one of the Welsh Ministers — 25 March 2026

Explanatory note

(This note is not part of the Regulations)

EXPLANATORY NOTE

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.

Footnotes

[^f00001]: 2021 c. 30.

[^f00002]: S.I. 2000/645, to which there are amendments not relevant to these Regulations.

[^f00003]: 2011 c. 25.

[^f00004]: 2007 c. 15, to which there are amendments not relevant to these Regulations.

[^f00005]: 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.

[^f00006]: 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.

[^f00007]: 2006 c. 42, to which there are amendments not relevant to these Regulations.

[^f00008]: 1985 c. 72. Section 69(2) was amended by the Local Government (Wales) Act 1994 (c. 19), Schedule 16, paragraph 75.

[^f00009]: 2009 asp 12. Section 84 was amended by the Circular Economy (Scotland) Act 2024 (asp 13), section 10(3).

[^f00010]: S.I. 2004/102.

[^f00011]: Available at: https://www.ons.gov.uk/methodology/geography/geographicalproducts/ruralurbanclassifications/2011ruralurbanclassification

[^f00012]: 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.

[^f00013]: 2006 c. 32.

[^f00014]: 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.

[^f00015]: 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.

[^f00016]: 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.

[^f00017]: 2023 c. 54, to which there are amendments not relevant to these Regulations.

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