Araki International IP & Law

Newsletter February 2024

Overviews of Japanese Recycling Regulations – What do you need toknow if your business in Japan uses containers and packaging?
In Japan, recycling-related regulations have been tightened in recent years,
including the introduction of a system of charging for shopping bags. Companies doing
business in Japan need to understand Japan's recycling-related laws and regulations
and properly fulfill their obligations when applicable. This article provides the overviewsof Japan’s recycling-related laws and regulations regarding the containers andpackaging under the Law for Promotion of Sorted Collection and Recycling ofContainers (the “Recycling Act”) and the Law on Promotion of Effective Utilization ofResources (the "Resources Utilization Act”) that companies should particularly keep inmind.
I.

Subject Matter: Specified Containers and Packaging
Certain business operators must fulfill obligations such as recycling, promotion ofwaste containers and packaging, and labeling obligations with respect to the “specifiedcontainers and packaging” under the Recycling Act and Resources Utilization Act. Thus,
first question to comply with these obligations is what are “specified containers andpackaging”. In general, “specified containers and packaging” mean containers andpackaging of goods which become unnecessary when the relevant goods have been
consumed or when the relevant containers and packaging have been removed from thegoods. 1 It is sometimes not straightforward to apply this definition. eere are someexamples:-Labels, stickers, seals and tapes, etc. that are not considered to “contain” or “wrap”
materials generally do not fall under the “specified containers and packaging”;
whereas stickers on bottles fall under such definition, if they cannot be separated

1 Article 2, Paragraph (1), Recycling Act© Araki International 2024

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from the bottles-Packaging for samples generally do not fall under the “specified containers andpackaging” because samples are not “merchandise”; whereas bags for productinstructions fall under such definition, because the product instructions are part ofthe merchandise-Storage cases for jewelry generally do not fall under the “specified containers andpackaging”; whereas cartridges of disposal camera films fall under such definition,because the cartridges in the latter example will be unnecessary when the productis consumed, but storage cases in the former example will not be unnecessary evenwhen they are separated from the products.

II.

Recycling Obligation under the Recycling ActA.

Scope
1.

Target Businesses: Designated Manufacturer/Users2

Certain business operators called “designated manufactures/users” doing specificacts with respect to the specified containers and packaging described above, which are
made of certain materials, must fulfill the recycling obligations. Specifically, designatedmanufacture/users include three categories of businesses that are (i) specified
container users,3 (ii) specified container manufactures,4 and (iii) specified packaging
users5.
Specified container/packaging users ((i) and (ii) above) include businesses that (a)use specified containers/packaging for products to be sold, (b) import products put into
specified containers or wrapped by specified packaging, or (c) entrust a third party
these acts.6 Specified container manufactures include businesses that (a) manufacture
specified containers, (b) import specified containers, and (c) entrust a third party theseacts.7 Please keep in mind that some importing activities are included in the scope ofthe regulations.
As above, although a broad range of businesses are subject to the recycling
obligation, there is an important exemption – the small businesses that fall within the2 Article 11, Paragraph (3), Recycling Act.
3 Article 2, Paragraph (11), Recycling Act.
4 Article 2, Paragraph (12), Recycling Act.
5 Article 2, Paragraph (13), Recycling Act.
6 Article 2, Paragraph (9) of Recycling Act.
7 Article 2, paragraph (10) of Recycling Act.

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requirements (both requirements of annual sales and number of employees) as
described in the table below are exempted from the recycling obligation.8
Total annual sales
Number of employees
In the case of240 million JPY or less,20 or fewer employees
Manufacturing
andIn the case of
70 million JPY or less, and 5 or fewer employees
Retail/Wholesale,Services
2. Materials of Specified Containers and Packaging
Only containers and packaging made of certain materials are subject to therecycling obligation:9-

Specified containers and packaging made of plastic-

Specified containers and packaging made of paper (excluding paper cartons forbeverages and alcoholic beverages (non-aluminum) and containers and packaging
made of corrugated cardboard)-PET bottles for beverages, alcoholic beverages and specific seasonings-

Glass containers

B.

Obligations
1.

Recycling Obligation

If a business operator falls within the target businesses that are “designatedmanufactures/users” described above, it must fulfill the recycling and record keeping
obligations under the Recycling Act.10 Designated manufacturers/users must recycle
certain amounts of specified containers and/or packaging every fiscal year pursuant tothe ordinance of the competent ministry. Businesses may fulfill the recycling obligation
through either of the following three routes.
▪ Self-collection route
Collect waste containers and/or packaging by themselves based on the approval
from the competent minister▪ Designated organization route
Contract with a Designated Organization and fulfill obligations under such contract
including payment of recycling fee▪ Own recycling route

8 Article 2, Paragraph (11), Recycling Act; Article 2 and Article 4, Enforcement Order of Recycling Act.
9 Article 4, Enforcement Regulations of the Recycling Act.
10 Article 38, Recycling Act.

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Entrust recycling to a third-party recycling business operator, either on its own or by
entrusting it to another party
The second “designated organization route” is often used, where the recycling fee
will be calculated as below:
Self Calculation
Recyclingfee

Estimated
Quantity of
Waste

Self-Calculation
Coefficient

Outsourcing Unit Price

Estimated
Quantity of
Waste

Amount ofcontainers andpackaging usedin the previous
FY

Amount of containers
and packaging
collected by itself

Amount of containers
and packaging used forproducts consumed byits business activities

Simplified Calculation

Recyclingfee

2.

Amount ofcontainers andpackaging
used in theprevious FY

Amount ofcontainers
andpackaging
collected
by itself

Simplified
Coefficient

Record keeping obligation

Designated manufactures/users also need to fulfill the record keeping obligation
under the Recycling Act.11 They must keep books, describing matters specified by theorder of the competent ministry with regard to the sale of goods using specified
containers, manufacture, etc. of specified containers, or sale of goods using specified
packaging, and recycling of waste containers and packaging that conform to the sorting
standards. Further, they must preserve those books for 5 years.

III.

Obligations to Promote Reduction of Waste Containers and Packaging
under the Recycling ActA.

Obligations of Designated Container/Packaging Users
In addition to the recycling obligation above, if a business falls within the certain

11 Article 38, Recycling Act.

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Outsourcin
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categories of businesses called “designated container/packaging users”, it must fulfill
obligations to promote reduction of waste containers and packaging discharged
through rationalization of use of containers and packaging.
“Designated container/packaging users” mean business operators, which use
containers and packaging in their business and conduct various retailing businessspecified by Cabinet Order as a business type for which reduction of excessive use ofcontainers and packaging and other rationalization of use of containers and packaging
are particularly necessary: such as retailing of merchandise, textile/clothes, beverage,
automobile components/accessory, furniture/fixture/machinery and appliances,
pharmaceuticals/cosmetics, books/stationary, sports goods/leisure, items/instruments,
and tobacco/cigarette.12
Designated container/packaging users must set targets for reducing the basic unit ofuse of containers and packaging, and systematically implement measures to achievethese targets.13 Importantly, in 2020, the new system of charging for shopping bags
was introduced, where the designated container/packaging users must charge a fee forthe use of plastic shopping bags with handles to be used for carrying purchased goods,
with the exceptions of shopping bags with a thickness of 50 micrometers or more,those containing 100% marine biodegradable plastic, or those containing at least 25%of biomass plastic that meet requirements specified by the ordinance.
Also, the designated container/packaging users shall promote reduction ofemissions of containers and packaging through other activities such as:- Promote the reduction of container and/or packaging emissions by charging a fee forthe use of non-plastic shopping bags
- Offer premiums for consumers declining the use of containers and packaging- Promote the use of bags that are reusable, etc.
Other requirements designated container/packaging users fulfill include thefollowing:- Provide information (e.g., presenting information that contributes to the promotion of
reduction of waste containers and packaging discharged at stores.)- Establish an internal system (e.g., appointing a person in charge, and providing
12 Article 7-4(1), Recycling Act; Article 5, Enforcement Order of Recycling Act.
13 Ministerial Ordinance to Provide for Standards of Judgment Concerning Promotion of Reduction ofContainer and Packaging Waste Discharge through Rational Use of Containers and Packaging by
Business Operators in the Retail Business© Araki International 2024

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training for employees.)- Consider safety and functionality of containers and packaging- Grasp the status of implementation of rationalization of use of containers andpackaging, etc.
- Cooperate with related parties in order to effectively implement measures
B.

Additional Reporting Obligation of Large Container/Packaging Users
Further, the designated container/packaging users (limited to specified container

users or specified packaging users) that use at least 50 tons of containers andpackaging in the previous fiscal year of the relevant fiscal year (the “largecontainer/packaging users”), such large container/packaging users must report to thecompetent minister every fiscal year the matters specified by the order of thecompetent ministry, for instance, the amount of containers and packaging used andthe state of implementation of measures they have worked on to promote reduction ofwaste containers and packaging discharged through rationalization of use of containers
and packaging.14
C.

Enforcement
If designated manufactures/users subject to the recycling obligation fail to fulfil suchobligation, they are subject to the guidance and advice, recommendations by thecompetent minister, public announcement of non-compliance, and order by thecompetent minister to take measures pertaining to the recommendations.15 A
designated manufacturers/user that has violated such order is punished by a fine of not
more than 1,000,000 yen.16
IV.

Obligation under the Law on Promotion of Effective Utilization ofResources ("Resources Utilization Act”)

A.

Identification Mark Requirement
In addition to the obligations under the Recycling Act, specified containers andpackaging made of certain materials as listed below are subject to the obligation ofidentification mark under the Resources Utilization Act:17

14 Article 7-6, Recycling Act; Article 6, Enforcement Order of the Recycling Act.
15 Article 20, Recycling Act.
16 Article 46, Recycling Act.
17 Article 2, Paragraph (11), Resources Utilization Act, Article 5, Table 5, Order of Enforcement ofResources Utilization Act.

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Araki International IP & Law- Containers and packaging made of plastic- Containers and packaging made of paper (exclude paper cartons for beverages andalcoholic beverages (non-aluminum) and containers and packaging made ofcorrugated cardboard)- PET bottles for beverages, alcoholic beverages and specific seasonings- Steel cans for beverages and alcoholic beverages- Aluminum cans for beverages and alcoholic beverages
Please note that the materials of containers and packaging subject to the identification
mark obligation under the Resource Utilization Act are different from those subject to therecycling obligation under the Recycling Act, and it is important to understand correctly
what the subject matters of each obligation are.
Further, specified containers and packaging listed below are subject to the voluntary
identification labeling, although that is not a legal obligation.
- Paper cartons for beverages and alcoholic beverages (non-aluminum)- Containers and packaging made of corrugated cardboard
Target businesses such as manufacturers to produce containers, business entities
who instruct the manufactures of containers and packaging or to import and sellcontainers and packaging, shall display the identification marks on the target containers
and packaging pursuant to the relevant laws and ordinance. The format requirements ofsuch marks are specified in the relevant ordinance of Ministry, but the marks generally
used are as follows:18

Plastic containers
and packaging

Paper containers
and packaging

18 Website of Ministry of Economy, Trade and Industry pamphlet_mark_gimu.pdf (meti.go.jp), last visitedon February 7, 2024.

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PET bottles forbeverages, alcoholic
beverages
and specific seasonings

Steel cans forbeverages
and alcoholic
beverages

Aluminum cansfor beverages
and alcoholic
beverages
In the case of business operators that import and sell goods put into specified
containers or wrapped by specified packaging, the importer shall display theidentification marks in either of the following case:19
a. When such business operators manufacture or order such containers or packaging
outside Japan by themselves, or when it is possible for them to directly or indirectly
instruct the material, structure, use of its own trademark, etc., of the containers orpackaging; orb. When Japanese language is indicated on the containers and packaging by means ofseals, labels, etc.
B.

Enforcement
If a business operator subject to the identification mark obligation fails to fulfil suchobligation, it is subject to the recommendations by the competent minister, publicationof non-compliance, and order to take measures pertaining to the recommendations.20 A
business operator that has violated such order is punished by a fine of not more than500,000 yen.21

19 Article 2, Table 1, Ministerial Ordinance to Provide Standards for Labeling of Specified Containers andPackaging; Article 2, Ministerial Ordinance Concerning Specified Containers and Packaging Prescribed inthe Upper Column of Column 6 of Appended Table 5 of the Order for Enforcement of the Act on thePromotion of Effective Utilization of Resources.
20 Article 25, Resource Utilization Act.
21 Article 42, Resource Utilization Act.

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Contact
Akiko Araki
Managing Partner of Araki International IP&Law
Attorney-at-law (Japan and California)
akiko.araki@arakiplaw.com
CV: https://arakiplaw.com/our-people/araki/
About Araki International IP&Law
Araki International is a Japanese domestic law firm established by an attorney having
experience with international law firms. The firm’s mission is to make companies andpeople shining in the global market. To reach that goal, the firm is active in helping
international clients running businesses in Japan in various legal areas. The firm’s
practice has been recognized in multiple rankings of international media, such as IAM
and the Legal 500.
https://arakiplaw.com/en/
info@arakiplaw.com
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