Deposit and Return Scheme for Scotland Regulations 2020 (as amended): business and regulatory impact assessment

Section 4: Additional implementation considerations

Enforcement/ compliance

253. SEPA will be the regulator for DRS obligations. The regulatory role includes monitoring producers’ compliance with the regulations, for instance the requirement to register with the SA, report sales and label scheme articles; ensuring retailers are charging the deposit, and fulfilling their obligations as return points, where applicable; and ensuring the SA is operating in accordance with its operational plan, including annual reporting to SEPA and the Scottish Ministers.

254. The regulations will require producers to register with the SA. This should mean a more streamlined process for both SEPA and producers.

255. SEPA’s costs will be reimbursed by the SA.

256. The SA will seek to reduce fraud in order to ensure targets are met and to reduce scheme costs. In other countries, the SA develops methods to assess whether producers are accurately reporting sales and whether retailers are complying with their regulatory and contractual responsibilities. They may also work with the relevant regulator where appropriate to support each other’s efforts to promote compliance.

UK, EU and International Regulatory Alignment and Obligations

Internal Market/ Intra-UK Trade

257. The Joint Policy Statement means that Scotland’s regulatory approach is aligned with England and Northern Ireland. While the subsequent decision to postpone the Welsh DRS means there may be a temporary divergence in policy between Wales and Scotland/ England/ Northern Ireland, the Scottish Government is committed to working with the Welsh Government to ensure any interoperability issues are addressed.

International Trade Implications

258. The DRS is not expected to affect international trade or investment.

259. The draft Deposit and Return Scheme for Scotland (Amendment) Regulations 2025 and the draft Deposit and Return Scheme for Scotland (Designation of the Scheme Administrator) Order 2025 were notified to the World Trade Organisation in December 2024 under the terms of the Technical Barriers to Trade agreement, allowing 60 days prior to their introduction. No comments were received.

EU Alignment consideration

260. In April 2024, the European Parliament approved the EU Packaging and Packaging Waste Regulation, which will require EU Member States to achieve a separate collection for recycling rate of 90% for single use plastic drinks bottles and drinks cans, by 2029 – using a DRS or other EPR system. Other measures include recycled content targets for plastic packaging.^[123] The DRS is therefore aligned with the EU’s objectives and replicates a policy approach already adopted, or being adopted, in the majority of EEA countries.

Legal Aid

261. No impact on legal aid is expected.

Digital impact

262. The DRS will not be only applicable in a digital context.

263. Take-back obligations will not be imposed on online retailers, but the three nations have committed to keeping this under review. All retailers, including online, will be obligated to charge the deposit.

264. One option sometimes considered for a DRS, in the UK and elsewhere, is a “Digital DRS” or “Serialised DRS”, in which each individual beverage container has a unique identifier. A DRS could be adapted to take account of changing digital technologies and an industry-owned SA will be well placed to monitor this with the drinks industry.

Business forms

265. As producers will be registering with the SA, the SA will be designing any forms.