New NEA grant of up to S$2,500 to help beverage producers with costs of container return scheme

SINGAPORE: To help beverage makers with the costs of implementing the container return scheme, the National Environment Agency (NEA) is introducing a grant of up to S$2,500 (US$1,900) for each registered producer. 

Under the Beverage Container Return Scheme, which is set to begin in April, consumers will pay an additional 10 cents for most bottled and canned beverages ranging from 150ml to 3 litres.

The 10-cent deposit can be refunded when the empty container is returned at designated reverse-vending machines. 

However, some businesses have expressed concerns over the additional costs associated with implementing the scheme, such as charges for registering products, replacing barcodes and ensuring that every can and bottle is traceable.

Announcing the "transition grant" on Tuesday (Jan 20), NEA said it recognises that the impact of the scheme would vary across producers, depending on how their products are processed and brought to market, as well as their total volume of production or imports.

"Some producers are better placed to make the transition while minimising the cost impact," said the agency in a circular sent to beverage producers on Tuesday.

"At the same time, we are mindful of the logistical challenges faced by some importers and smaller producers."

The grant, worth up to S$2,500 for each registered producer, will automatically be given through Beverage Container Return Scheme Limited (BCRS Ltd), the consortium appointed to design and operate the scheme.

The grant can be used for product registration fees, producer fees and the cost of stickers for the scheme. It will be valid until Sep 30, 2027.

"BCRS Ltd will automatically offset the product registration fees and producer fees from the grant at the point of billing. Only the balance fees after offsetting the grant will be billed to the producers," NEA said in the circular.

For the cost of scheme stickers, producers can email BCRS Ltd to seek reimbursement. The consortium will process the claims and make the first payment by March.

Companies which do not wish to receive the grant can opt out by writing to transition_grant [at] bcrs.sg, said NEA. 

COSTS FOR PRODUCERS 

Under the scheme, producers must ensure that their beverage containers have a deposit mark to help consumers identify their eligibility for the 10-cent deposit refund. 

Producers are also encouraged to have a Singapore-specific barcode on their containers to avoid a situation of overclaiming deposits. 

"When international barcodes are used, the same barcode may appear on containers sold outside Singapore, where the 10-cent deposit has not been paid into the scheme," NEA explained.

"This creates a risk that such containers could be returned to reverse vending machines in Singapore, triggering a deposit refund even though no deposit was paid.

"International experience has shown that shared barcodes can lead to overclaiming of the deposits."

Importers who are not able to influence their packaging design to include the deposit mark and Singapore-specific barcode will need to affix a sticker that comprises both the deposit mark and a new barcode.

As an alternative to a Singapore-specific barcode, producers may also choose to use a new international barcode and only affix the deposit mark.

In such cases, BCRS Ltd will impose a security fee as a safeguard. According to the scheme’s website, the fee will be calculated based on several factors and risk assessments made by the consortium to mitigate fraud and to protect the scheme’s integrity.

If the containers bearing international barcodes returned are more than the number that can be refunded based on the 10-cent deposits paid by the producer, the security fee will be drawn down, NEA said on Tuesday.

"The security fee is fully refundable and can also be provided in the form of a banker’s guarantee," it added.

"It is calibrated based on the volume of containers, serving as a safeguard rather than a penalty, while allowing producers the flexibility to use international barcodes if necessary."

Other costs for beverage producers include a mandatory one-time registration fee of S$500.

Each product they register will also carry another S$5 fee in the second phase of the scheme. 

These fees go towards funding the collection, sorting and recycling of returned beverage containers.

When the scheme begins, there will be a six-month transition period for producers to clear existing stocks not labelled with the deposit mark.