Recently, on April 18, 2023, Canada has just released a Framework Document on regulations for the labeling and recycling content of plastic products and the responsibility to report to the Federal Agency on plastic products including: 51 pages (excluding footnotes and references). This is a document demonstrating the Government of Canada's legal approach to the management/monitoring of plastic products, labeling regulations and plastic product recycling, which is expected to be officially published in the Canadian Gazette on Last year.

This framework document is Canada's attempt to be the first to fully implement a plan to eliminate plastic waste. However, this framework document will pose many obstacles for imports into Canada in general and pose many legal challenges to the enforcement process in the future, not only for foreign manufacturers and exporters but also for foreign exporters. even for domestic Canadian businesses. The following article summarizes the legitimate contents of the framework document, especially the points that are likely to affect Vietnam's exports and comments on the impact assessment of these regulations.

1. Regulations on labeling and recycling content of plastic products

The introduction of labeling and recycling regulations for plastic products is part of the Government of Canada's effort to move towards a circular economy. These regulations will be enforced within the framework of the Canadian Environmental Protection Act, and both provincial and federal governments have an enforcement role. Accordingly, in a circular economy, every Canadian has a responsibility to participate and be able to participate, meaning that packaging must be designed and clearly communicated for people to choose from at the time of purchase. products, to the ability to sort packaging for recycling. The regulation aims to effectively implement the circular economy through increasing the rate of sorting, recovery and recycling, specifically, by 2030, Canada will have at least 50% recycled content in plastic packaging; recover and reuse at least 55% of plastic packaging by 2030 and reach 100% by 2040; achieve 100% recyclable packaging and zero plastic waste by 2030.

The main contents of these regulations are mainly: 1. fixing the minimum recycled content in disposable plastic products and plastic packaging; 2. Recycling labeling regulations to accurately classify plastic products; 3. Regulations prohibiting the use of the word "biodegradable"; “biodegradable” on single-use plastic products and plastic packaging and limit the use of the term “compostable”. Subjects covered by these regulations are the parties involved in the design, consumption of plastic products and plastic packaging and the owners of the brand (i.e. manufacturers or importers) and wholesaler/distributor where authorized or, if both importer and distributor are not available, the final retailer.

To enforce this, in addition to the Canadian Environmental Protection Act, a provincial and federal Extended Producer Liability Policy (EPR) will be implemented to hold manufacturers/importers accountable for recalls and manage plastic products and plastic packaging at the end of the product's life, through activities such as: return packaging deposit, product exchange, installation of a packaging collection system... Responsibility Expanded production forces manufacturers to incur operating costs to manage their packages and to invest in improving packaging design, reusing/disposing of old packaging. The program is expected to be rolled out in all provinces by 2030 at the latest.

Regulations on the subject of application of the term "plastic packaging":

The Canadian concept of packaging is according to the international standard ISO 18604, which covers all products for holding, preserving, storing, displaying and transporting. Packaging classified as original packaging (directly related to the product); secondary packaging (the packaging used to contain the original packaging). In addition, there is packaging in e-commerce, also known as level 3 packaging. In addition, packaging is also classified by users: household packaging and industrial/commercial packaging. Household packaging is a type of packaging that is required to be subject to recycling labeling regulations; Commercial/industrial packaging is not subject to labeling requirements but must comply with recycled content regulations.

The draft makes some exceptions such as: packaging capable of being reused many times in the system can be exempted from labeling and/or minimum recycling requirements to encourage invention of products. a reusable alternative, e.g. parent company packaging for delivery and to be recovered for further use; or reusable plastic products in households (garbage baskets, tool boxes, DVD cases...); or cross-border shipping packaging (importers are less likely to control the recycled content of packaging in e-commerce); packaging for export to another country and not recycled in the Canadian system; and goods transshipped through Canada to a third country. Plastic packaging is the final product, not "pure packaging", which is also classified as an exception: headphone box, lighter case, ink cartridge case... Products related to health, nutrition or Safe (dairy products, infant food, medicines, medical devices, etc.) Because these products are subject to strict regulation by various laws such as: Food and Drugs Act and Regulations, Animal Health Act, Cannabis Act, Transport of Dangerous Goods Act , 1992, Dangerous Products Act, Assisted Human Reproductive Act and Human Pathogens and Toxins Act…; Accordingly, there is not much recycled plastic that is qualified for food packaging.

Requirements for recycled content

The recycled content is posing a major challenge for products using rigid plastic packaging because the use of recycled content in soft packaging still has technical barriers. All companies that manufacture and import products with hard packaging (including beverage bottles, cosmetic boxes, etc.) are required to report the sanction content for each product. For flexible packaging, even though it is not required to report the content of recycled content, companies are still required to report the total amount of plastic used and recycled plastic if any, and are solely responsible for the truthfulness of the report. Companies are required to comply with recycling data monitoring and ensure the submission of an Annual Report. From 2028, all products using recycled content must be tested and certified by a third party. The role of third-party auditors is very important because it must be an honest, reputable agency to avoid abuses of authority in testing and validation.

Specific regulations on recycling content for each type of product and timeline:

Although compostable plastic packaging is also exempted due to the technical incompatibility of biodegradable bioplastics with the recycled content regulation. However, compostable plastic packaging is still subject to the same labeling requirements as regular plastic products because Canada considers these products to pose the same problems as regular plastic products.

Regulations on recyclable and compostable labeling:

Since July 2022, Canada has published a consultation document on regulations to regulate the labeling of recyclables and the labeling of compostable plastic products. The subject matter of this labeling is end-consumer products, that is, products that will be discarded by individuals after use. In the current draft, labeling is mandatory for all products, including products transacted via e-commerce (except for a very few products that are granted exceptions such as: packaging surface is less than 25cm2; products are self-packaged by individuals, for example in flea markets, farms, etc.). Labeling for plastic products is intended to inform consumers about whether the packaging is recyclable and how to dispose of it after use. By 2030, all single-use plastic products and plastic packaging must be clearly classified as recyclable or non-recyclable.

Canadian law is intended to prohibit arbitrary use of the cyclic recycling symbol (chasing arrow), except where proper labeling guidelines are followed; prohibiting the use of plastic identification codes incorporating the “chasing arrow” symbol; prohibit the use of terms, symbols about recycling or recycling instructions that are contrary to labeling rules…; prohibit the use of the terms “biodegradable”, “biodegradable”, “compostable” misleading that the product will decompose, fragment or biodegrade in the environment; prohibited use