My Company Manufactures Private Brand Products and Sells Them to a Distribution Centre or Directly to a Retailer. It Therefore Sells B2B. Is my Company Subject to the EQA?
It is important to define who is the end-user of your product or service. If the end-user is a consumer, the retailer or the distribution centre that distributes to a retailer acts as an intermediary between your product and the consumer. The Act targets companies that generate containers, packaging and printed matter relating to its product or services.
Are Containers, Packaging and Printed Matter Sold to Industrial, Commercial and Institutional Establishments for their Internal use Designated for Compensation?
Until now, Éco Entreprises Québec (ÉEQ) has excluded containers, packaging and printed matter whose end-users are industries, commerce or institutions (ICI). This decision is reviewed every obligation year. Such materials may eventually be included, as municipalities are increasingly adding these establishments to municipal curbside recycling programs.
In this regard, Quebec’s compensation plan differs from that in Ontario, which expressly excludes materials generally found in industrial, commerce and institutional waste flows.
What is a Brand, a Name or a Distinguishing Guise?
Generally speaking, a “brand” is that used by a business to set its products and services apart from other products. A trademark is one example. However, a certification mark is not included in this definition.
A “distinguishing guise” is a unique way a company or organization has devised to wrap or package a product to set it apart or distinguish its products from others.
A name is that under which the business operates, whether as a corporation, a partnership or an individual.
To What Extent are Independent Franchise Companies Targeted?
If the owner of the franchise or banner has an address in Quebec, that entity is obligated for all the containers, packaging and printed matter generated by all franchisees, including packaging added at the point of retail sale.
If the owner of the franchise or banner does not have an address in Quebec, the independent franchisee is obligated for the containers, packaging and printed matter generated by his or her activities, including packaging added at the point of retail sale.
What is a Point of Retail Sale?
For purposes of applying the Schedule of ContributionsÉEQ’s Schedule of Contributions enables companies to determine whether they are subject to the Act, understand the breadth of their obligations and determine the amount of their contribution. Developed using a formula based on studies and verifiable data, the Schedule is established according to type of material and quantities generated during a given year and in consideration of environmental criteria. Framed by thoroughly developed rules, each Schedule is presented to companies for consultation before being sent to the government for approval as required by the Act.
Schedule of Contributions, a point of retail sale is the place or precise location where the retailer conducts business activities consisting mainly of retail sales. “Retail sales” means any sale other than exclusively for resale. Generally speaking, these are sales to the public, including some corporations when such purchases are not made to complete a production process or for resale. The retail sale must be made at a point of sale in the physical presence of the buyer and the person operating the point of sale or a representative.
I Operate a Small Manufacturing Business and I Have a Point of Sale. May I be Exempted from Paying a Contribution Given that I Have a Single Point of Retail Sale in Quebec?
No, because a manufacturer’s main activity is manufacturing products (food, clothing, furniture, tools, etc.), not selling products. A manufacturing company may not take advantage of the exemption for a single point of retail sale.