Identify assembly line issues to improve final products

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Identify assembly line issues to improve final products

Conducting final quality checks at the end of production remains very popular; however, it loses its effectiveness and efficiency when used as the only criteria for identifying risk. Because the ultimate goal is not to find a faulty part but to avoid it occurring in the first place, waiting until the end of the manufacturing process to check for quality issues can cost you more.

Defects can vary in severity from minor appearance flaws to those critical to safety. Regardless, identifying these issues when the products are already complete will, on many occasions, require the production to be reworked, wasting time and materials. This can also lead to shipment delays and additional freight costs while impacting product reliability.

Instead of relying solely on Final Random Inspections, assessing the entire manufacturing process can significantly improve finished products. Common scenarios that impact final product outcomes include:

    1.  Incoming materials are not properly stored or inspected.
    2.  Workstations are not arranged well or correctly set up.
    3.  Operators perform processes against instructions.
    4.  Station workloads are unbalanced.
    5.  Parameters of test equipment and tools are incorrect.
    6.  The operator does not understand the product quality requirements. 
    7.  The inspection plans for outgoing goods or sample sizes are insufficient. 
    8.  Not enough quality controls during the inspection process.

Three examples of common assembly line issues

It is important to understand that the complexity of the manufacturing process will vary based on the type of product – and so will the risk. A more complicated product such as an automatic coffee machine or a steam oven, or a more complex assembly process, will most likely present a higher risk level. Other contributing elements include the maturity and knowledge of the factory, the actual capabilities of the production line, familiarity of the workers with the product requirements, and more.

Issues in the assembly line can lead to faulty products, which, in some instances, can be anticipated depending on the product’s nature. Examples include: 

Examples_AL_M

Identifying the root cause of an issue can be challenging, but it is critical to detect and prevent mistakes as soon as possible in the manufacturing process. Consider implementing this five-step practice internally:

  • Build a team to address the issue.
  • Identify the risks of the mistake.
  • Find the root cause.
  • Redesign the process based on the root cause.
  • Track the solution’s performance.

 At API, we can provide support to identify, assess, and improve manufacturing processes. Our dedicated In Production Process Assessment program takes an in-depth look at in-house procedures, from outsourced materials to final assembly. Some of the program’s benefits include:

  • Identification of good practices and opportunities for improvement
  • Improved critical processes
  • Improved customer satisfaction and reduced returns. 

Interested in learning more about how we can help your brand with a tailored assessment?

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Tips to alleviate disruption when shifting sourcing location

Reshoring, offshoring, and nearshoring: these were some of the most used terms in 2020 in numerous industries, including furniture. China continues to reign as the world’s manufacturing superpower and primary supplier of all varieties of goods, but companies have begun diversifying their supply chains in recent years and pursuing alternative manufacturing hubs. COVID-19 disruptions and the US–China trade war have acted as an accelerator in many cases, urging brands to look for manufacturing sources outside China.

China is the world’s manufacturing superpower

 Source: Statista ‘Top 10 Countries by share of global manufacturing output 2018’

The global furniture industry has been seeking sourcing alternatives to China for several years already, with some manufacturing countries outside China reinforcing their position and becoming a bigger part of manufacturing production volume for some brands. Some of the countries preferred by brands and retailers include Vietnam, Cambodia, Malaysia, India, and Indonesia in Asia, Poland in Central Europe, and Mexico in Latin America. New countries mean new opportunities, but they also come with new risks. When relocating parts of production out of China, the risks include:
  • Inadequate production planning and status: When working with new suppliers, some factories may not operate at their full capacity or might have inadequate planning, making it difficult to meet production targets. It is important to check your factory records to see how many actual people are in the production line, as well as daily output and quality control reports.
  • Rushing production: With relation to the above and to ensure correct timing, some suppliers may rush to make up for lost time, tempting them to cut corners and speed up processes. This can lead to mistakes and skipping quality control measures that put the entire production at risk.
  • Raw materials shortage: New manufacturing countries do not always benefit from the same access to raw materials as China. This may result in a shortage of some materials such as specific types of wood, stone, or components, or longer delivery times.
  • Lack of quality control to ensure safety and quality: A lack of local teams onsite or experienced factory employees may decrease the level of quality control, putting product safety and production quality at risk.

How can these risks be mitigated?

The concept of shifting production to areas outside China was already on the table before the US–China trade war and COVID-19-related pressures. However, these recent issues have broadened and escalated the topic’s relevance, with many companies now considering moving ‘out of China.’ Diversifying production areas and pursuing alternative locations can help secure additional inventory and capacity. However, launching production in a new area can be challenging without the right experience or teams in that specific area. A third-party company can support brands and retailers with adapted solutions that facilitate a smooth transition that protects production quality. The crises and disruptions experienced by supply chains in recent months may be the catalyst for revisiting a more global supply chain strategy and accelerating the adoption of new models and capabilities. However, in the meantime, short-term actions are needed to respond to these challenges.

3 tips to alleviate disruption when shifting sourcing locations

Tips from a manufacturing perspective include:
  1. Increasing workforce visibility and labor planning: Having stronger visibility over actual factories and suppliers is vital to ensure production is completed on time and with the expected quality of goods.
  2. Understanding the key suppliers: Whether the orders only represent a small portion of one factory’s production lines or are flooding the lines with goods makes a significant difference in how to best interact with that factory.
  3. Increasing supply chain transparency and carefully selecting the right suppliers: It is essential that you work only with the most suitable suppliers for your production needs.

Supporting our customers with our manufacturing expertise

At API, we are putting our manufacturing experience and product expertise at the disposal of our clients to help them adjust during this challenging time. Thanks to the agility and flexibility of our teams and our local infrastructure, we speedily implement onsite solutions that respond to each clients’ particular needs. Our dedicated technician program will act as an extension of your teams onsite to ensure your products meet your safety and quality requirements. We provide support through all stages of the supply chain, from initial development and supplier selection, through the manufacturing phases, and across production safety and quality control. For example: Interested in learning more about how we can support you in new sourcing locations?
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Toy compliance: best practices to save time and stress

In the current landscape, uncertainty is still impacting many companies worldwide and the toy industry is no different. While some brands are thriving, many are facing unprecedented disruption levels, suffering from the effects of a reduced qualified workforce, delayed shipments, unsteady demand, and increased pressure to accelerate their time to market. One of the primary concerns these companies share is ensuring their products’ compliance, with chemical risks remaining one of the most problematic areas.

Chemical risk alerts on toys continue to be prominent each year, with the identification of many banned chemicals that pose serious risks to children’s health. Similar to previous years, in 2019, 47% of alerts about toys in Europe (RAPEX) indicated a chemical risk. One of the more common risks observed for the past few years has been the presence of phthalates in the plastics used to make dolls.

image-png-Mar-30-2021-04-11-17-08-AM

Source: RAPEX 2019

In this challenging context, where compliance challenges meet time to market pressures, anticipating and preventing these risks is crucial.

How can we ensure compliance while improving time to market?
Travel restrictions and numerous logistical and production uncertainties are adding additional pressure to supply chains and slowing down some of their processes. Validating samples has become a lengthier process in many cases. With many brands’ in-house teams unable to be onsite due to travel restrictions, a great deal of time is being spent in back-and-forth exchanges between factories and brands.

One of the most feared – and too-common – moments is being surprised with a ‘FAIL’ result in a pre-shipment test at the last minute, when timelines are tight.

Continuing the plastic dolls example, how can a brand anticipate risks and avoid this significant issue right before the shipment? The answer is simple: to anticipate risks as early as possible.

Instead of testing the PVC doll, brands and retailers can move upstream to, for example, track and test the PVC input and ensure it’s coming from an approved source. Where do the pellets originate? Who is the plastic supplier? This means taking a step back to evaluate the supplier’s performance based on the finished product and their processes and materials.

At API, we can help brands and retailers shorten their time to market with our onsite support and remote solutions, acting on behalf of brands onsite and guiding in-house teams remotely with our technical expertise. Our experts in Asia and Europe act as bridges between brand teams and factories, connecting your unique requirements with technical teams in the local language.

Some of our expert solutions for toys along the entire supply chain include:

Interested in learning more about our toy solutions?

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Safer toys: Managing risks from the early stages

2020 was a challenging year for most industries, driving companies to adapt and disrupt their habits and ways of doing business. Despite this, the global toy industry maintained stronger-than-expected performance, with parents and grandparents looking for new ways to keep children entertained at home.

This extraordinary context, however, brought unexpected pressures to supply chains – including shortages of qualified workers, limited access to materials, difficulties in performing quality checks, and more – adding to the existing challenge of meeting stringent regulations while ensuring the timely delivery of finished goods that meet consumer expectations. Regardless of changing circumstances, the responsibilities of toy- and children-related industries remain the same: guaranteeing the safety of products to ensure that little ones always ‘play safe’.

Despite global authorities and consumer associations putting vulnerable young consumers’ safety first, many risks and non-compliances are being uncovered. In Europe alone, toys were again the most notified product in 2019, representing 29% of RAPEX alerts.

Source: RAPEX 2019 Annual Report

Today, the importance of adopting measures at the earliest stages of production is more crucial than ever, enabling brands to anticipate risks before production even begins to avoid ‘fail’ results in pre-production tests – or even worse – in pre-shipment tests. This can not only help brands save time and money but also prevent the feared product recall and consequent negative impacts.

Many precautions can be taken to secure the supply chain and reduce risks throughout the production process, such as factory audits, in-line inspections, and in-production assessments. However, some measures that can be adopted before production even starts, allowing brands to anticipate risks at the earliest stages.

Leveraging product and manufacturing expertise

At API, our product and manufacturing expertise – acquired daily, on the ground – allows us to identify and anticipate risks before they reach the production line. Our toy experts can guide and assess your teams from the design and prototype stages, helping you manage risks and make your products safer. We work closely with toy committees, keeping up to date with changes in standards and regulations and receiving the latest news on current areas of concern and hot industry topics.

Example


Some of our preventive solutions for toys in our laboratories in Asia and Europe include:

  • Product Validation Report: An exhaustive report highlighting golden sample specifications and flagging critical points that could represent a safety or quality risk. Also assesses the functionality and performance from an end-user’s perspective and provides in-depth evaluation of the toy marking.
  • Collection Review: A product review in the showroom that includes identifying risks and non-conformity of mechanical issues and advice from our experts and recommendations on product amelioration.
  • Risk Assessment on design or prototype: A risk evaluation at the initial stages of development, which identifies any critical areas for improvement and provides expert recommendations for increased product safety.
  • Marking verification: A review of regulatory markings and instruction manuals adapted to the appropriate age grade.
  • Recommendations on performance and fit-for-play: Adapted, tailor-made protocols that simulate the child’s use of and interest in the toy.
  • Pre-production test

Our experts can help you find the right solution for your needs in anticipating toy production risks.

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Collect the right data for product compliance with our I-TCF

Data has undoubtedly been one of this year’s most repeated words when discussing how to make supply chains more resilient. Collecting, sharing and analyzing the right data can enable the entire supply chain to run more efficiently thanks to more informed decisions. In the context of quality control, data remains one of the basics.

COVID-19 has brought unprecedented challenges to supply chains and highlighted the importance of increased visibility and agility to maintain product safety and quality. Ensuring product compliance with each market’s standards and regulations remains a key obligation of brands and retailers, but guaranteeing every document’s validity and accuracy is a tedious task.

Collecting the right information about a product to prove compliance with the latest applicable standards and regulations is time-consuming at best. On top of this already arduous task, brands and retailers must remain aware of changes in standards and regulations for numerous product references in their portfolio, which can be labor-intensive and prone to errors.

The I-TCF teams at API experienced that nearly one in three documents collected are not compliant and need additional follow-up steps to complete the TCF file according to requirements and establish the product’s conformity.

Documents_TCF_W

API’s team of experts can support companies in preparing a ‘digital ID’ of each product with our I-TCF solutions (Product Integrity and Technical Compliance File). This digital ID helps verify product compliance and includes key information such as applicable protocols, document validation or rejection, and validity over time. In addition to our experts’ regulatory guidance, brands appreciate the minimal investment required, enjoy a higher degree of control with our clear digital platform, and are ultimately ready to provide the valid required documentation in cases of custom verification. 

With more than 15 years’ experience developing I-TCF solutions, we can help brands and retailers save time and money on this task. We offer support with:

  • Defining the relevant scope of compliance
  • Collecting and quickly validating a high volume of documents

Interested in finding out more about how our I-TCF solutions can help your brand?

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0% risk of unexpected chemicals with Chem Scan Check™

Did you know that around 80% of chemicals in Asia are either produced locally or come from unknown sources? There are no guarantees that some of these chemicals don’t contain traces of hazardous substances, making your products and supply chains vulnerable. In 2020, one in four imported products were found to be non-compliant with REACH and CLP*, with most cases focused on the presence of the restricted substances cadmium, lead, and nickel.

While uncertainty around chemical composition can be toxic for consumer confidence in general, brands and retailers have different setups, needs, and levels of awareness regarding compliance, risk, and sustainability:

  • Some have mature testing programs in place and are responsive to existing pressures in their market. These companies would still benefit from a single test that can detect hundreds of substances with fast results, attractive pricing, strong service support, and the advantage of monitoring low-performing vendors and empowering high-performing vendors.
  • Other companies focus on finished products only, meaning that when they detect a risky substance, it’s often too late to cancel the order. Testing articles when they’re finished or late in the process may lead to reproducing the entire line of articles and retesting, which can blow out budgets.
  • Some companies have no system in place and no chemical or regulatory expertise but still want to offer the end-user a secure product. Generally speaking, all companies want to be more compliant and transparent.

As the use of recycled materials in products increases, the possibility of these materials containing unknown substances follows suit. Overall, better fashion begins with a bigger commitment to detect and address issues from the beginning, leading to less impact on the environment and society, empowering the best-performing suppliers, and focusing time and money on where the risks are high.

Our new solution: Chem Scan Check™

To support our partners in optimizing their testing strategies, we developed Chem Scan Check™ (CSC), which scans for more than 332+ hazardous chemical substances in one go. Instead of waiting for a pass/fail outcome for expected chemicals with a traditional testing approach, we offer our partners insight into the potentiality of 332+ chemicals that may be present—including those you wouldn’t usually look for in a regular test.

What does Chem Scan Check™ offer that’s different?

While our Worms Safety network proudly offers 15 laboratories globally for traditional testing methods, our broader goal is to enable our customers to anticipate risks, identify root causes, and instill a more innovative, proactive approach.

  • One test, 332+ substances: Chem Scan Check™ brings to the market one test run instead of the full substance list test. With only 5g of material, you can receive a screening result in accordance with the AFIRM restricted substance list for your textiles or plastics within 72 hours—and at a cost level that makes sense. The innovative technology is applicable to all products containing plastics and textiles; however, our current scope focuses on textiles, apparel, footwear, and home textiles, including sensitive products such as baby wear.
  • Increased visibility for better business: As Chem Scan Check™ offers greater visibility over product lines, it is an excellent opportunity to achieve company strategies that are not restricted by common test parameters.
  • End-to-end solution: A key advantage of Chem Scan Check™ is that it’s applicable across the entire life cycle—from raw materials to semi-finished products to finished products—monitoring recycled materials and certified materials.
  • Customizable and adaptable: While it’s highly beneficial across the entire supply chain, CSC is a customizable concept that can address specific focus points, such as monitoring within a vendor empowerment program or complementing sustainability strategies with a scientific method.
Chem Scan Check™ in action

We have already experienced cases in which sensitive products such as baby wear passed a risk-based RSL test, but our Chem Scan Check (CSC) detected a non-compliance. In another case, CSC found prohibited chemicals—including phthalates and PAH—in rubber pet toys, which were possibly used to give the toys a flexible, plastic feel. In another instance, CSC detected exotic fertilizer (diammonium phosphate) within a teddy bear. The brand then uncovered that the new supplier they were working with was using local chemicals that contained the fertilizer.

Why 332+ chemicals?

Chem Scan Check™ can actually check for more than 332+ substances. Currently, over 500 substances are calibrated with external standards. However, while Chem Scan Check uses powerful solvents and equipment, there is a limitation to organic substances. Each substance in the screening process also needs to be validated with extensive research to ensure repeatability and accuracy, so we have initially focused on supporting the textile industry in relation to the AFIRM RSL. At the moment, Chem Scan Check™ in combination with additional tests for heavy metals and formaldehyde can cover 100% of substances listed under AFIRM.


Which chemicals are covered by Chem Scan Check™?
  • Phthalates
  • PAHs
  • Azo dyes
  • Disperse dyes
  • Short/middle-chained chlorinated paraffins
  • PCP
  • VOCs
  • Alkylphenol ethoxylates (APEOs, NPEOs, OPEO)
  • Dimethylfumarate (DMFu)
  • PFOA
  • And more

To cover completed RSL lists, other tests like heavy metals and formaldehyde will be tested separately.


How can Chem Scan Check™ (CSC) integrate with your chemical strategy?
  • Superior sustainability: CSC will complement your existing recycled materials testing, facilitating broader claims with the assurance that your products contain 0% of unexpected non-compliant substances.
  • Tighter risk control: CSC allows you to test more substances that you wouldn’t usually look for, generating greater visibility and reducing risk.
  • Test new areas: CSC can cover the entire life cycle of your products and will invite you to consider new testing areas of focus, such as raw materials.
  • Customizable for vendor empowerment: CSC enables you to award greater autonomy to your best-performing suppliers by allowing for random, limited checks instead of one-size-fits-all testing.
  • Preparedness for new regulations: CSC will ensure you are ready for new regulations that require increased visibility and control over substances that may be present in your products.
What are the product applications?
  • Unknown source chemicals
  • Chemical cocktails
  • Recycled materials
  • Sensitive products

*According to an ECHA report: https://echa.europa.eu/-/1-in-4-imported-products-found-to-be-non-compliant-with-reach-and-clp

Click here for more information about Chem Scan Check™.

Interested in finding out how Chem Scan Check™ can improve your chemical management performance?

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New European standards for outdoor candles

In December 2021, two new European standards for outdoor candles were published to help ensure a reasonable degree of safety during their use: “EN 17616:2021 Outdoor candles – Specification for fire safety” and “EN 17617:2021 Outdoor candles – Product safety labels.”

These documents specify requirements, testing methods, and labeling requirements for the fire safety of candles intended to be burned outdoors. The European standards will be given the status of a national standard, either by the publication of an identical text or by endorsement, by latest June 2022, and conflicting national standards will be withdrawn by latest June 2022.

The major new requirements for outdoor candles include:

Container candles

  • The candle shall not tip over when tested on a slope of 10°
  • The wind resistance shall have a value > 1
  • The temperature at the surface below the container shall not exceed 350°C
  • No secondary ignition shall occur for more than 10 seconds
  • The container shall not ignite or break during testing
  • The container shall not burn for longer than 15 seconds on average and 30 seconds in any individual test during the testing
  • The container shall not be completely burned away during testing
  • The candle shall not spontaneously relight after extinguishing 

Freestanding candles

  • The candle shall not tip over when tested on a slope of 10°
  • No secondary ignition shall occur for more than 10 seconds
  • The candle shall not spontaneously relight after extinguishing

 

Garden torches

  • Shall be designed to be set up and stay in a stable manner
  • No secondary ignition shall occur for more than 10 seconds
  • No burning or smoldering material shall fall off during testing
  • Candles placed on a stick shall also meet the requirements relevant for the respective candle type, except stability

 

Floating candles

  • No secondary ignition shall occur for more than 10 seconds
  • The candle shall not spontaneously relight after extinguishing


Mandatory supplementary safety information (symbols or text)

  • For outdoor use only.
  • Never leave a burning candle unattended.
  • Keep a distance of min. x m beside and y m above to things that can catch fire.
  • Keep away from children and pets.
  • Use a heat-resistant base. (Not mandatory if the container itself has a heat-resistant base)
  • Candle gets lighter during burning, protect from strong wind by using a suitable holder.” (For container candles that didn’t comply with the wind resistance requirement as specified in EN 17616)
  • Only use at cemeteries outdoors. (For grave lights only)
  • Use in a suitable bowl filled with water. (For Floating candles only)

Layout of the product safety label:


At API, we can support our customers to comply with these or other requirements for candles to further secure the safety and quality of your products.

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5 steps for importing furniture with smoother sourcing

With unprecedented quality issues facing the importing of furniture, how can we avoid lengthy delays, product recalls, and brand reputation damage before it’s too late?

Southeast Asia remains a hub for furniture imports, despite logistics, compliance, and communication barriers posing continuous challenges. Pressures stemming from COVID-19 haven’t helped, leading to brands being unable to visit their factories, shipment delays requiring more flexible and agile manufacturing, and last-minute surprises like raw materials and component shortages.

All these can put product safety and quality at risk, but following a few key steps can ensure your furniture reaches you at its optimum quality to protect your competitive advantage and meet the standards of your market destination:

1. Determine your defect classification list

This step is often an afterthought, but classifying your defects at the outset will help clarify the meaning of your furniture inspection reports.

This is the most widely used defect classification list (DCL):

Critical defect – A defect that judgment and experience indicate is likely to:

  • Result in unsafe conditions for individuals using, maintaining, or depending upon the products; or
  • Prevent performance of the tactical function of a major end item. A critical defective is a unit of product that contains one or more critical defects.

Major defect – A defect that is likely to result in failure or reduce the usability of the product for its intended purpose.

Minor defect – A defect that is not likely to reduce the usability of the product for its intended purpose or is a departure from established standards having little bearing on the effectiveness or operation of the product.

If there is no established DCL, API offers a detailed inspection checklist to proceed with the inspection.

2. Conduct an inspection during production or place a dedicated technician onsite

This is a critical stage in ensuring that your final piece of furniture reaches its expected level of quality. It allows you to identify problems before the end of production and to adopt the required corrective measures to improve results along the production line.

3. Update your furniture specifications based on in-production feedback

Consider critical areas for improvement and the points that need to be addressed, and put a strategy in place to correct them. At this stage, you will need to re-communicate your product specifications to the factory, which may bring language challenges when sourcing in Asia. You can overcome these barriers by using a neutral third-party quality provider with expertise in your sourcing area. This ‘boots on the ground’ approach will ensure that your product specifications are communicated correctly and clearly.

4. Do a root cause analysis as a preventative measure

It is important to have a root cause analysis (RCA) strategy that determines how you will handle any defective products with your supplier. This need not be a time-consuming strategy; it should simply highlight potential problem areas and make room for process optimizations.

Don’t have an RCA strategy? Follow these steps:

  • Recognize and define the problem – Acknowledge and define your furniture’s production issue.
  • Identify the causes – Go through the process of cause identification. The trick here is not to spend too much time brainstorming or mind mapping. This needn’t be a time-consuming part of the root cause analysis.
  • Identify the solutions – Based on your cause identification, you will need to determine the best possible solutions for addressing the problem to avoid it happening again.
  • Implement the solutions – If your furniture quality was compromised during the production line, you would need to begin implementing the solutions you identified to prevent future occurrences. The solution should optimize and improve your operational processes. If it doesn’t, you may need to repeat the above steps.

5. Conduct a final check with a random inspection

A final random inspection is an inspection of a small sample of your furniture prior to shipment. This is used to determine any quality defects that may have come from the production process. Questions to consider include:

  • Does the furniture sample meet all of your product specifications?
  • How many visual defects are there?
  • What onsite tests need to be done?

Key Takeaways

A clear strategy to identify risks upstream is key in producing high-quality furniture that meets customer expectations. Some of the benefits of a well-planned sourcing strategy include:

  • Improved products
  • Faster time-to-market
  • Quality budget optimization
  • Increased customer satisfaction.

The above steps should be planned and strategized for each product category that you source. At API, we support our customers with solutions all along their supply chains. Contact us now to learn more about how our furniture expertise can give your brand the competitive edge it deserves.

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API at ICPHSO Annual Meeting and Training Symposium 2022

API is glad to be participating as a sponsor at the 2022 ICPHSO Annual Meeting and Training Symposium. The event will take place on February 14–17, 2022 in Washington, D.C. The four-day Annual Meeting and Training Symposium provides an opportunity for global health and safety professionals to participate in discussions that further enhance the safety of consumer products throughout the world.

Will you also attend the event? Book an appointment to talk to our team!

Visit ICPHSO’s website for more details about the event: https://icphso.org/ 

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The UK’s plastic packaging tax: What you need to know

The UK has introduced a new tax on plastic packaging that will come into effect on April 1, 2022. Known as the UK Plastic Packaging Tax (PPT), this will affect businesses that manufacture or import plastic packaging, including packaging that already contains goods (such as plastic bottles containing beverages). The tax aims to encourage the use of recycled rather than virgin plastic in packaging (when permitted) and stimulate the increase of recycling and collection of plastic waste.

How will the tax work?

  • The PPT tax applies to plastic packaging that is manufactured in or imported into the UK, in which the plastic used in the manufacture is less than 30% recycled.
  • All plastic packaging will be assumed not to meet the recycled content requirement unless companies can prove otherwise.
  • The tax rate will be £200 per metric tonne of plastic packaging for applicable companies. For example, if a company manufactures 10 tonnes of plastic packaging, and 1 tonne contains less than 30% recycled plastic, the company will need to pay £200.

 

Who needs to register for the tax?

  • Any business that manufactures or imports 10 or more tonnes of plastic packaging over a 12-month period needs to register for the PPT tax, even if their packaging contains more than 30% recycled plastic. In such a case, however, the tax won’t need to be paid.
  • This includes importers of packaging that already contains goods, such as plastic bottles containing beverages. If the packaging you import already contains other goods, the tax only applies to the plastic packaging itself.
  • Records will need to be kept, even if all the packaging manufactured or imported contains more than 30% recycled plastic.

The online platform for registration and payment will become available when the PPT tax takes effect on April 1, 2022. Read more information about registering for Plastic Packaging Tax.

Please reach out to our experts to learn how API can support your transition to this new packaging tax.

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