What is the LUCID Act?
Starting July 1st 2022, the new and updated LUCID act will come into force in Germany. Up until now, this was only for brands selling B2C but from July 1st 2022 this will also affect brands selling B2B. What implications does this have for you as a brand selling to/in Germany?
Throughout Europe, there are general rules concerning the responsibilities of packaging goods that deal with avoidance, reuse and recycling. Germany specifically follows these rules through their own Verpackungsgesetz.
The Central Packaging Register Agency in Germany recently implemented a strategy to follow up on the European regulations by making it mandatory for brands that ship and sell to Germans to register in the LUCID register. This is meant to ensure transparency and legal clarity about the packaging used. Other ecological goals, such as the fulfilment of recycling quotas and the financial promotion of more sustainable packaging, are hereby monitored.
So what this means is that every brand that wants to sell even just a single order to a retailer in Germany (also through Orderchamp), has to register to this list. The registration is free and needs to happen before July 1st. If you as a brand are not yet registered in the LUCID register, you can start the registration here.
For some brands it also applies that they have a ‘system registration requirement’. This means that for them to be compliant with the German packaging law they will need to join a System Operator.
To conclude, this law applies to all suppliers that want to sell to German retailers regardless of the type of products sold or type of packaging used for shipping. What does differ per brand is if you are required to join a System Operator and thus have to pay for the packaging you send into/in Germany. This is often dependent on what kind of products you sell. Please check the official website for more information.
So what do you need to do now if you want to sell to German retailers on Orderchamp?
- You need to register yourself in the LUCID register. As a brand selling to German retailers, you are required to be listed in the LUCID register. This needs to happen before another order is shipped to Germany and before July 1st 2022.
- If this applies to you, register to one of the System Operators provided by the German authorities that will help you with the necessary system registration requirements. This needs to be done before July 1st 2022. For more information if this applies to your business, please visit the official website of the Verpackungsregister here.
- Make sure your buyers are aware of the new regulations and what it can mean for them in terms of returning packages and recycling options. This can for example happen through the Terms & Conditions on your website or a newsletter dedicated to this specific topic.
- Share your LUCID identification number with Orderchamp, to ensure a smooth transition on our marketplace.
- If this applies to you, share your System Operator contract (pdf) with Orderchamp when this is asked for, to ensure smooth transition on our marketplace.
What happens if you don’t register?
You will not be able to sell to German retailers through Orderchamp anymore. Additionally, each brand that sells to German retailers or customers online is required to register. If it is missed to do so, you may receive reminder letters or even heavy fines that can cost up to €200,000. Lastly, it can be prohibited for you to continue to sell to Germany.
Tips & tricks
- Read more about the LUCID Act on the website of the LUCID Packaging Register to gather more details. If you happen to have more specific questions, you can contact firstname.lastname@example.org.
- Register as soon as possible to rule out negative consequences. The registration is free.
- Inform your retailers thoroughly about changes for them.
- Let Orderchamp know your LUCID number to smoothen the transition and exclude negative effects on your sales.