The Deposit Return System (DRS) in Romania. What is it, what does it involve, and how can companies simplify the process?
- What is DRS – the Deposit Return System?
- When does it apply?
- What is the purpose of the Deposit Return System?
- What is the value of the deposit paid by consumers at the shelf?
- What obligations do retailers have under the DRS?
- What responsibilities do producers and importers have when placing DRS products on the Romanian market?
- Which retailers are required to organize packaging return points?
- Until when can products with non-DRS packaging be sold?
- What should consumers do with non-DRS packaging?
- Managing DRS products and packaging with integrated software systems
The amount of plastic ending up in nature, in oceans, on streets, and in landfills is continuously increasing as a result of the growing use of single-use packaging and inadequate waste management procedures.
In this context, Romania is adopting, starting November 30, 2023, the most important circular economy project. The Deposit Return System (DRS) is an important instrument for preventing pollution and promoting a cleaner and greener environment, and this initiative will provide consumers with a financial incentive for the return of post-consumer packaging for recycling.
What is DRS – the Deposit Return System?
When does the Deposit Return System apply?
The Deposit Return System (DRS) will officially enter into force in Romania starting on November 30, 2023, according to Government Decision no. 1074/2021 published in the Official Gazette no. 955 of October 6, 2021, with the amendments and additions introduced by Government Decision no. 1214 of October 5, 2022.
Also starting on November 30 of the current year, the ban on placing on the national market products packaged in DRS packaging purchased from producers not registered in the Deposit Return System will apply, as well as in cases where the packaging is not properly marked in accordance with GD 1074/2021.
What is the purpose of the Deposit Return System?
Through the DRS, the goal is to introduce packaging into a circular economy, enabling Romania to align with the national collection and recycling requirements established at European level. The EU standard requires that by 2025, 77% of the plastic packaging placed on the market be collected, and by 2029, 90% of PET bottles be collected. Moreover, the Deposit Return System will make an important contribution to the collection and recycling of other types of materials such as glass and aluminum, for which, according to RetuRO SGR, the targets are expected to be reached and even exceeded, namely 75% for glass and 60% for metal.
What is the value of the deposit paid by consumers at the shelf?
In order to motivate consumers to return packaging and, at the same time, so that the deposit value is not perceived as a significant price increase, it was uniformly set at 50 bani, regardless of the type of packaging. To ensure the simplicity of the process, this unit value, established in the initial phase of the program, should remain a fixed value during the first 2–3 years after implementation, according to RetuRO. The DRS administrator states that once consumers become accustomed to the new system, the deposit may be adjusted over time.
What obligations do retailers have under the DRS – Deposit Return System?
- Ensuring the possibility to return post-consumer packaging by implementing an infrastructure for the manual or automatic take-back of PET containers
- Organizing return points within the point of sale or in its immediate vicinity, but no more than 150 meters away
- Charging and refunding the deposit for packaging returned through the DRS system
- Adding the deposit value of each returnable packaging item to the initial product price, both at shelf level and on the receipts and/or invoices issued
- Keeping records of both the products sold that fall under the DRS and the returned packaging and related deposits
- Storing returned packaging in proper conditions until it is handed over to the DRS administrator
- Providing correct information to consumers regarding: the products covered by the DRS, the conditions and method of deposit refund, as well as the schedule and location of the collection point
- Exclusively selling products registered in the DRS
What responsibilities do producers and importers have when placing DRS products on the Romanian market?
- Reducing time and maintaining data accuracy: By automating the payroll calculation process, the HR department has the possibility to allocate more time to strategic activities, such as employee development and performance management.
- Increasing employee efficiency and project profitability: A high-performance payroll software solution can motivate employees to make the effort required to achieve the objectives of the projects they are working on. In addition, a well-structured payroll system can contribute to retaining talented employees, thus reducing the costs associated with continuous recruitment and staff training. At the same time, project rates can be monitored and then correlated with revenues in order to uncover valuable insights and determine which working method is more productive. Therefore, the right payroll software can increase employee efficiency and, consequently, positively influence the profitability of projects and of the entire organization.
- Increasing productivity: Implementing an efficient payroll software solution can have a significant impact on increasing productivity within a business. This software can motivate staff to put in more effort and focus their attention on the tasks they need to complete, knowing that their work will be rewarded appropriately. By setting clear objectives and transparent performance criteria, employees will be more inclined to improve their skills, which can lead to increased productivity across the entire company.
- Simple expense management: Payroll software automates salary calculation processes, tax withholding, and payment issuance to employees. With integrated reporting and analysis functions, the software provides a strategic view of costs and other benefits granted to staff, thus facilitating data-driven decision-making. By eliminating human error and generating major time savings for the HR department, payroll software simplifies the management of employee-related expenses.
Which retailers are required to organize packaging return points?
According to the legal act, all retail merchants are required to establish a return point for recyclable plastic, glass, or aluminum packaging covered by the DRS.
The only exceptions apply to HORECA-type merchants, as well as those selling products exclusively online or exclusively through vending machines. Another exception applies to merchants whose sales area is smaller than 200 square meters, who will not be required to organize individual return points.
They may choose to organize the packaging return point in partnership with other merchants from the same category and/or with a territorial administrative unit, respectively with an intercommunity development association.
Failure to register in the DRS administrator’s database is sanctioned with a fine ranging from RON 20,000 to RON 40,000.
Until when can products with non-DRS packaging be sold?
What should consumers do with non-DRS packaging?
Among the benefits offered by Sincron HR Software are:
Companies that use ERP systems – for company resource management, and WMS systems – for warehouse management, will be able to successfully apply the DRS rules. While the ERP system keeps track of DRS packaging existing within the company, monitors the transactions carried out with it, and allows the registration of the related accounting operations, the WMS system provides visibility over warehouse goods movements and over the locations where both products and packaging are stored. Used together, the two systems offer companies advantages such as:
- Streamlining personnel costs – thanks to the automation of the packaging take-back process, redundant manual activities that require a large number of employees are eliminated
- Optimizing the allocation of space required for managing returned packaging – an integrated warehouse management system provides a clear view of the available storage space, and this allows for the efficient arrangement of products as well as returned packaging, which must be kept in optimal conditions until collected by the DRS administrator
- Preventing fraudulent activities – for example, situations such as returning the same packaging multiple times into the system or accepting returns for products that do not meet DRS requirements are eliminated
- Fast and accurate data collection – for reporting and statistics at local and national level for producers, retailers, and authorities alike
- Time savings – store personnel will no longer have to manually check and process each product
- Efficient product monitoring – the total number of products in DRS packaging is broken down by product in the application and managed according to DRS requirements
- Proper packaging management – the total number of DRS packaging items returned by consumers can be broken down in the system by material type and volume
- Transparency over transactions – the deposits paid, collected at the sale of products and later refunded to consumers upon recycling, as well as those collected from the DRS administrator, can all be fully managed within the software system
Managing DRS products and packaging with Senior Software’s integrated systems
The DRS is a complex program that involves multiple types of activities, from receiving and processing returns to managing deposits and communicating with customers. That is why the use of integrated and flexible software solutions is highly important in managing this process.
Perfectly integrated, the systems in Senior Software’s portfolio feature advanced customization capabilities and can be easily adapted to the various specific needs of businesses in Romania, so as to enable compliance with DRS requirements and simplify operations.
Senior Software’s integrated systems provide a centralized solution for recording, automatically identifying, and managing the products and packaging covered by the DRS, as well as sales and returns, offering real-time visibility into inventory and completed operations. They also help quickly identify items that fall under the DRS, as well as handle them efficiently, thus contributing to the optimal application of DRS rules.
Given that the ways in which the legislation is applied will differ from one company to another, depending on the specific nature of each activity (import, production, distribution, retail), as well as on the software solutions in use, each Senior Software client will need a customized approach and integration of the DRS into the existing workflow.
Note: For complete and up-to-date information regarding the Deposit Return System, please consult the official websites of the Romanian Government, together with the website of the DRS administrator, namely RetuROSGR.ro.