On 30 December 2023 the Canadian Department of the Environment issued a notice in the Canada Gazette regarding its intention to implement a “Federal Plastics Registry” that was first proposed in 2022.

The purpose of the proposed Registry is to “create an inventory of data” on the types and quantities of plastic being placed on the Canadian market and how these materials are being managed in end-of-life processes (e.g., disposal, recycling, renewal, etc.).

Interested parties have until 13 February 2024 to submit their comments.

The proposed Registry will be implemented through a “notice” issued under section 46 of the Canadian Environmental Protection Act (CEPA). It will impose extensive reporting and record-keeping requirements on a broad range of Canadian residents who either (i) manufacture, import, distribute, or supply plastics or plastic-containing products, or (ii) provide services related to the end-of-life processing of such items.

Plastics and plastic-containing products that are covered include, for example, resins (which are used to produce plastic products), rigid and flexible plastic packaging, single-use or disposable plastic products, a wide range of electronic or electrical equipment (e.g., toys, power tools, lighting, information technology and telecommunications equipment), motor vehicles, construction materials, agricultural equipment and materials, and textiles and apparel products.

The reporting and record-keeping requirements will apply to all persons who are (i) “producers” of such plastics or plastic products, or (ii) service providers who manage these goods “after collection for diversion” for certain end-of-life processes, including: recycling; composting; processing into chemicals; using for energy recovery; processing for final disposal or incineration without energy recovery; arranging direct reuse; refurbishing; remanufacturing; or repair.

Although the proposed definition of a “producer” is limited to persons who reside in Canada, its scope is broad. It cascades down through different trade levels in the supply chain until one of the following persons meeting this key criterion is identified:

• A brand owner or intellectual property owner who resides in Canada;
• If the brand owner is not a resident of Canada, then the first resident person to manufacture or import a plastic product in Canada is defined as the producer;
• If there is no resident manufacturer or importer, then the first resident person to distribute a plastic product in Canada is defined as the producer;
• If there is no resident importer or distributor, then the first resident person who supplied the plastic product to the consumer in Canada is defined as the producer.

Therefore, major distributors and even retailers who import plastics and plastic-containing products for the Canadian market are likely to fall within this definition with respect to certain goods (i.e., where the brand-owner and the manufacturer of the plastic material or plastic-containing product reside outside of Canada).

The proposed reporting and record keeping requirements are extensive. Persons subject to the notice will be required to submit the following information to the Registry:

• the identity of all the resins used to make plastic products placed on the Canadian market;
• the source of the resin used to make plastic products placed on the Canadian market;
• the category and subcategory of plastic products placed on the Canadian market;
• the total quantity in tonnes of plastic in products placed on the Canadian market;
• the total quantity in tonnes of plastic collected at end of life and sent for diversion;
• the total quantity in tonnes of diverted plastics that are recycled;
• the total quantity in tonnes of diverted plastics that are processed into chemicals, including fuels;
• the total quantity in tonnes of diverted plastics that are sent to final disposal at a landfill;
• the total quantity in tonnes of diverted plastics that are sent to final disposal and incinerated without energy recovery;
• the total quantity in tonnes of diverted plastics that are sent to final disposal and composted;
• the total quantity in tonnes of diverted plastics that are recovered for energy recovery;
• the total quantity in tonnes of diverted plastic in products that is collected with direct reuse arranged;
• the total quantity in tonnes of diverted plastic in products that are refurbished;
• the total quantity in tonnes of diverted plastic in products that is remanufactured;
• the total quantity in tonnes of diverted plastic in products that are repaired; and
• the method used to determine the quantities referred to in paragraphs (d) through (o).

Further, persons subject to the notice are required to keep records of the foregoing information, as well as “any calculations, measurements, and other data on which the information is based”, for a period of three years after the information has been submitted to the Registry.

It is proposed that these requirements will apply to calendar year 2024. If this requirement enters into force, it means that all persons subject to the notice — including manufacturers, importers, distributors, and suppliers (including retailers) — will need to start collecting the required information as of 1st January this year.

Tereposky & DeRose LLP regularly provides advice and acts as counsel in cross-border, customs, and regulatory matters concerning trade in goods and services. If you have any questions about this subject matter or any other trade issue, please do not hesitate to contact us.

Authors: Daniel Hohnstein and Jack Bowness