ELS, Noventiz and RKD offer reliability to their customers

Inclusion of German Working Group on Waste (LAGA) memorandum M37 creates legal basis for the implementation of the German Packaging Ordinance

In the current dispute about the dual system clearing fundamentals in 2018, ELS, Noventiz and RKD continue to offer their customers reliability. Seven of the ten systems have cancelled the clearing contracts necessary to be able to allocate the system costs internally. In accordance with the agreed continuation clause, the three systems ELS, Noventiz and RKD will continue to fulfil the existing clearing contracts and have now extended them by including the latest LAGA memorandum M37 from February 2017.

February's LAGA memorandum M37 specified the obligation to participate in a system, the requirements with regard to industry solutions, the obligation to furnish a declaration of completeness, the requirements regarding the documentation of material flows and also the audit and certification of the respective evidence by an independent expert. ELS, Noventiz and RKD signed a contract addendum on 23 October 2017 whereby they unanimously agreed to include the contents of LAGA M37 from 1 January 2018 onwards in the current, otherwise unchanged, contracts. LAGA M37 therefore applies with immediate effect without any exceptions and will be implemented accordingly.

"With this step, we are responding to the concerns of the Bundeskartellamt, Germany's antitrust agency, and the German Federal Environment Ministry," the three CEOs Boxhammer, Dühr and Schuh agree. "Including the latest LAGA M37 creates a legal basis for the implementation of the German Packaging Ordinance in 2018 and establishes a reliable waste packaging disposal system for everyone involved." Until now, the contracts referred to a previous version of LAGA M37.

The strategy for 2018 is therefore clear: Either the seven dual systems rejoin the clearing contracts held by ELS, Noventiz and RKD, or new clearing contacts can successfully be agreed with all ten dual systems. Schuh, Dühr and Boxhammer summarise the situation like this: "If the seven other systems do not agree a standard new contract with us or join the existing contract, they are risking the loss of their licenses from 2018 onwards. In any case, we offer our customers reliability; either through new clearing contracts or the existing clearing contracts."



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