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U.S. Exports Affected by Japan’s New Recycling Law
By Sarah D. Hanson and Tetsuo Hamamoto
Recycling promises to be as hot a topic at the dawn of the 21st century as it proved to be in previous decades. In fact, recycling’s become an issue that now affects the course of business throughout the world.
Thanks to a Japanese law that went into effect on April 1, 1997, U.S. food exporters are now more heavily impacted than before by the waste disposal policy.
Popularly known as the Packaging Recycling Law, the legislation potentially affects products in steel and aluminum cans, paper beverage cartons for milk, glass bottles (colorless, brown and green), and polyethylene telephthalate (PET) bottles.
This month, as the Packaging Recycling Law is fully implemented, more U.S. exporters will feel the full brunt of its requirements in terms of both cost and administrative load.
The intent of the law is to encourage businesses to use packaging and containers which are reusable or, if not possible, materials which are "ready to recycle."
If packaging materials are not readily recyclable, manufacturers are then obliged to pay the associated collecting, sorting, transportation, and recycling costs.
The law covers all materials to contain goods such as trays used in supermarkets and plastic bags, as well as packaging such as stretchable film.
Earlier, a limited number of large corporations–major users of cans, bottles, paper cartons for milk and beverages, and PET bottles–had been affected. But now that the law is fully implemented, industry is required to recycle all paper and plastic packaging.
All business enterprises manufacturing or utilizing paper and plastic packaging will be responsible for recycling costs. Supermarkets and retail shops using paper or plastic packaging will be subject to the law as well.
Businesses must track the amount of recyclable materials they use for 1 year and retain records for 5 years. Based on their recorded usage, businesses must calculate the amount of their recyclables and will be charged accordingly for the cost of recycling.
Containers and packaging materials are divided into eight categories: glass bottles, PET bottles, plastic containers and packaging, paper containers and packaging, steel cans, aluminum cans, paper cartons for beverages, and cardboard boxes.
U.S.
Exporters, Take Note
For imported products, importers will be obliged to pay recycling costs in most cases. If the imported products bear private labels, the corporation using the private labeling will be responsible for recycling costs. Lawmakers attempted to build in cost incentives for importers to acquire containers and packaging that are inexpensive to recycle. Thus Japanese importers may take associated recycling charges into account when choosing goods to import.
For example, the proposed charges for colorless glass bottles are less than those for green ones–approximately 2 yen versus 4 yen per 0.5-kilogram bottle.
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Hanson is an agricultural attaché and Hamamoto is an agricultural specialist at the FAS Office of Agricultural Affairs, Tokyo Japan. Tel.: 81-3-3224-5102; Fax: 81-3-3589-0793; E-mail: hansons@fas.usda.gov
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