Danish Ministry of the EnvironmentDanish Environmental Protection AgencyTranslation DHOctober 2002

STATUTORY ORDER NO. 713 OF AUGUST 24, 2002ON DEPOSITS AND COLLECTION ETC.

OF PACKAGING FOR BEER AND CERTAIN SOFT DRINKS

Pursuant to Section 9, Section 9 a, Section 9 c(2), Section 9 e (4), Section 9 f (2), Section 51, Section 53, Section 53 a, Section 53 c (3) Section 55 c, Section 56, Section 67, Section 80, Section 88 (3) and Section 110 (3) and (4) of the Danish Environmental Protection Act, cf. Consolidated Act No 753 of 25 August 2001, as amended by Act No 475 of 7 June 2001, the following provisions are laid down:

Part 1

Scope of the Statutory Order and definitions

1.- This Statutory Order covers packaging for carbonated mineral water etc. on which a duty is paid in accordance with Section 1 of the Act on Duty on Mineral Water etc., packaging for carbonated mineral water that is unsweetened and unflavoured, as well as packaging for beer.

(2) This Statutory Order also covers carbonated mineral water etc. with an advertised content of carbon dioxide.

(3) Unless otherwise expressly laid down, this Statutory Order does not cover casks or transport packaging, including crates/boxes, pallets and trays.

2.- The following definitions shall apply in this present Statutory Order:1) Grocery store: enterprise marketing beer or soft drinks to consumers, primarily with

a view to consumption elsewhere, including middlemen with a permanent place of business from which a wide range of groceries is sold.

2) Distributor: central warehouse or similar enterprise which distributes beer or soft drinks in packagings to its own grocery stores or receives empty packagings for beer or soft drinks from these stores and which is not at the same time a middleman.

3) Importer: party importing beer or soft drinks into Denmark in packaging with a view to resale.

4) Middleman: wholesaler or other party, but not middlemen with a permanent place of business from which a wide range of groceries is sold, which sells on beer or soft drinks to grocery stores, returns recipients or other middlemen,

5) Producer: any person manufacturing or bottling beer or soft drinks in Denmark in packaging with a view to resale.

6) Returns recipient: enterprise with a permanent point of sale which receives returned disposable packaging against repayment of a deposit.

7) Provider: a producer, importer or middleman.

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8) Disposable packaging: packaging for beer or carbonated soft drinks registered by the producer or the importer as disposable packaging.

9) Packaging: disposable packaging or refillable packaging.10) Packaging type: packagings for beer or soft drinks made of the same material and

having the same volume and shape (design).11) Refillable packaging: packaging for beer or carbonated soft drinks registered by the

producer or importer as refillable packaging with the exceptions that follow from the rules in this present Statutory Order.

12) Reuse: any action in which packaging, which is designed with regard to its lifetime for the purpose of being reused at least a particular number of times, is refilled or reused for the same purpose as that for which it was designed, with or without the aid of auxiliary products available on the market and which allow refilling of the packaging. Reused packaging becomes packaging waste when it can no longer be reused.

13) Reutilisation: utilisation as defined in the Danish Ministry of the Environment and Energy’s Statutory Order No 619 of 27 June 2000 with the exception of the forms and methods stated in R 1, R 12 and R 13, cf. Annex 6, of the same Statutory Order.

14) EAN article number: an 8- or 13-digit number consisting of an EAN prefix (country code), an enterprise reference number, an article reference number as well as a check digit for the identification of the individual goods. A UPC article number corresponds to this. An EAN article number can be used globally, unless it is approved for the Danish market only.

15) Add-on code: a bar code as specified in Annex 5 containing 4 numeric digits and which is chosen by the provider or allocated by Dansk Retursystem A/S in accordance with Section 55(3).

16) Product type: packaging for beer or soft drinks with a specific EAN article number.17) Handling remuneration: the payment for sorting made in accordance with the rules

of this present Statutory Order.18) Soft drink: mineral water etc. comprised by Section 1.19) Returns group: empty refillable packaging for beer or soft drinks for which the

same “normal” or “reduced” handling remuneration is paid for accepting as returns and sorting.

20) Deposit returns group: group of disposable packagings of the same material for which the same deposit is collected.

21) Sorting: placing of empty refillable packagings in the associated crates/boxes or trays of the same bottle size for the same producer or importer, for collection, where same bottle size shall mean a bottle of the same volume, external diameter and height, and of the same material.

22) Auditing company: the registered or state certified auditor mentioned in Section 73 who has entered into an agreement with Dansk Retursystem A/S (Danish Return Scheme A/S).

23) Sales group: group of packagings for beer or soft drinks for which the same fees and deposits are paid and which are of the same material.

24) Collection material: packaging: plastic sack, carton, container or other receptacle indicated by Dansk Retursystem A/S for use for collection of disposable waste.

General deposit and return requirements

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3.- Any person selling beer or soft drinks shall collect a deposit for the packaging from the purchaser.

(2) The deposit shall be fixed according to recommendation by the industry organisations for beer and soft drink producers.

(3). The deposit (inc. VAT) shall be as follows, cf. however subsection 4:

1) Packagings not over 99 cl : DKK 1.50 2) Packagings over 99 cl : DKK 4.25

(4) The deposit (inc. VAT) shall be as follows:

1) 50 cl plastic packaging : DKK 2.50 2) Danish Standard 70 cl beer bottle : DKK 4.25

(5) The party which sold packaging with beer or soft drinks shall accept the packaging back and repay the deposit to the party returning the packaging provided the following conditions are met:

1) Refillable packaging: the refillable packaging shall be accepted back if it corresponds to the types of packaging sold and can be placed in crates/boxes or trays as sorted items together with the packaging types sold.

2) Disposable packaging: grocery stores shall accept back the disposable packaging if it is of the same material as the disposable packagings sold. Other parties who sell beer or soft drinks shall accept back the packaging they have sold.

(6) The duty in subsection (5) to accept back disposable packaging and repay deposits for these shall not limit the duty to accept back all disposable packagings and repay deposits which lies with grocery stores which have received subsidies for efficiency measures etc., cf. Section 43(1)4) and Section 47(2)5). The duty to accept back disposable packaging and repay a deposit for these shall not apply to providers whose disposable packagings are marked in accordance with the rules of this Statutory Order.

4.- It is a condition for repayment of deposits for disposable packaging

1) that the disposable packaging meets the marking requirements as specified in Section 55, cf. Annex 5, and

2) that EAN and add-on bar codes, if applicable, can be read electronically.

5.- Producers and importers selling refillable packaging shall ensure that the refillable packaging is included in a deposit and return system in which the packaging is collected in associated crates/boxes and trays by the party to whom the producer or importer sold the packaging with a view to return of the packaging for reuse. The percentage returned shall be at least 98.

(2) Producers and importers who accept back refillable packaging shall ensure that the packaging is a reutilised in the form of materials recovery when the packaging can no longer be reused.

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Part 2

Registration with Dansk Retursystem A/S

6.-Providers shall be registered with Dansk Retursystem A/S.(2) Providers shall register by completing a form designed by Dansk Retursystem

A/S. The following shall be stated in the registration:

1) the commercial status shall be recorded as a producer, importer or middleman,2) name, address, telephone number as well as fax number and e-mail address if

applicable, 3) bank details for the account to which deposits for disposable packaging can be

repaid, and4) CVR-number (central business registration number).

(3) Dansk Retursystem A/S shall issue a certificate for the registration which shall contain the information provided by the provider on registration.

7.- Grocery stores, distributors and returns recipients can register with Dansk Retursystem A/S.

(2) Registration takes place by completion of a form designed by Danish Retursystem A/S.

(3) Grocery stores and distributors shall provide the following information in the registration:

1) name, address, telephone number as well as fax number and e-mail address if applicable,

2) name of member of staff responsible for receiving returns,3) bank details for the account into which handling remuneration and investment

subsidies can be paid,4) EAN location number, if available 5) central business registration number (CVR-number)6) number of reverse vending machines and type, and7) number of packagings accepted as returns over the past 12 months by the registered

party.

(4) Return recipients shall provide the following information in the registration:

1) name, address, telephone number as well as fax number and e-mail address if applicable,

2) name of member of staff responsible for receiving returns,

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3) bank details for the account into which investment subsidies can be paid,4) EAN location number, if available5) central business registration number (CVR-number), and6) number of packagings accepted as returns over the past 12 months by the registered

party.

(5) Dansk Retursystem A/S shall issue a certificate for the registration which shall contain the information provided by the grocery store, distributor or returns recipient on registration.

Section 8.- On registering with Dansk Retursystem A/S and before sale or delivery of new product types and packaging types producers and importers shall provide Dansk Retursystem A/S with information concerning the packaging’s

1) content (beer or soft drink)2) volume, 3) weight,3) material,4) colour, 5) dimensions, and 6) EAN article number.

(2) In connection with registration in accordance with subsection (1) it shall be stated whether the producer or importer wishes to sell the packaging as disposable packaging or as refillable packaging. The rules on disposable packaging and refillable packaging, respectively, apply in accordance with the registration for the packagings sold by the producer or importer, however cf. Section 9(2).

(3) In the case of packagings registered as disposable packaging the producer and importer shall further state whether marking of the packaging takes place by direct printing on the packaging or its label or by using self-adhesive deposit labels, cf. Section 55(2). Furthermore, the producer and the importer shall advise about the 4-digit add-on code it is requested to be used on the packaging, cf. Section 55(2) and (3). The add-on code, respectively EAN-bar code in question which is approved for the Danish market only must in Denmark be used only by the producer or importer who has registered the product with to Dansk Retursystem A/S.

(4) The producer and importer shall forward documentation to Dansk Retursystem A/S showing that the disposable packaging is marked in accordance with the requirements of marking in Section 55.

(5) In the case of packaging registered as refillable the producer and importer shall submit documentation to Dansk Retursystem A/S showing that the packagings that the producer or importer intends to sell are included in a deposit and return system, cf. Section 5, with a view to reuse.

(6) Registration in accordance with subsections (1)-(3) shall be carried out by completing a form designed by Dansk Retursystem A/S.

(7) In connection with registration in accordance with subsection (1), the producer or the importer shall enclose 10 copies of the packaging in question.

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9.- Dansk Retursystem A/S shall notify the producer and the importer within 2 weeks of receipt of the documentation stated in Section 8(4) of whether the packaging meets the requirements of marking according to this present Statutory Order. In cases where the add-on code chosen by the producer or the importer is already used by another producer or importer, Dansk Retursystem A/S shall give notice of this. The producer or importer shall in such cases choose another add-on code.

(2) If Dansk Retursystem A/S does not find it documented that packaging notified as refillable packaging is included in a system with a view to reuse of the packaging, Dansk Retursystem A/S shall register the packaging as disposable packaging. In this case the rules for disposable packaging shall apply to the packagings in question sold by the producer or importer.

(3) Packaging registered with Dansk Retursystem A/S in accordance with Section 8 may be supplied by the producer and importer no earlier than 4 weeks after registration, unless Dansk Retursystem A/S has given notice that supply may take place earlier.

(4) Before the end of the deadline mentioned in subsection (3) Dansk Retursystem A/S shall notify the producer or importer of whether the packaging has been recorded as disposable packaging or as refillable packaging. Before the deadline Dansk Retursystem A/S shall further notify the size of the logistics fee to be paid to Dansk Retursystem A/S for each individual packaging and the size of the collection fee and deposit amount to be paid to Dansk Retursystem A/S. Furthermore Danish Retursystem A/S shall give notice of the sales group, and deposit group respectively returns groups, to which the packaging belongs.

(5) At the latest at the expiry of the deadline mentioned in subsection (3), Dansk Retursystem A/S shall notify returns recipients of the registered packaging and will read the relevant data into the returns recipients’ reverse vending machines.

Part 3

Payment of deposit to Dansk Retursystem A/S

10.- Producers and importers shall pay a deposit to Dansk Retursystem A/S for each individual disposable packaging marked in accordance with this Statutory Order and which is sold here in Denmark or exported.

(2) Every 4 weeks Dansk Retursystem A/S shall collect deposits from producers and importers based on the statement that the auditing company sends to Dansk Retursystem A/S in accordance with Section 38(3). The deposit shall be collected for a 4-week period, however cf. Section 11.

(3) Dansk Retursystem A/S shall send an invoice for payment of deposits within 2 weeks of a statement having been made of the number of disposable packagings for which deposits are to be paid, broken down by deposit returns group. The statement shall be sent to the producer or importer together with the invoice.

(4) The deposit shall be paid to Dansk Retursystem A/S within 8 days of the invoice date.

(5) Producers and importers who wish to use self-adhesive deposit labels in connection with the marking of the packaging, cf. Section 56, shall pay deposits to Dansk Retursystem A/S when the deposit labels are supplied.

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11.- The first time Dansk Retursystem A/S has given the producer or importer notification in accordance with Section 9(4) that one or more of his registered packagings is recorded as disposable packing, Dansk Retursystem A/S shall once a week for a period of 2 months total collect from the producer or importer an amount to cover Dansk Retursystem A/S’s deposit balance with the producer or importer in question. The total deposit amount to be collected shall be calculated as indicated in subsection (2).

(2) The deposit amount shall be collected as an amount on account to be fixed as the producer’s or importer’s average sales of disposable packaging for a week based on the producer’s or importer’s information in connection with the registration about the expected total sales of disposable packagings broken down into deposit returns groups in the first 2 months following registration. Where the producer or importer will not give information about the expected sale for the first 2 months after registration, the producer and importer shall once a week give Dansk Retursystem A/S information about the number of disposable packagings broken down into deposit returns groups that he sold in the preceding week. Dansk Retursystem A/S collects a deposit amount based on the information about sales from the producer or importer.

(3) The rules of Section 10(3)-(5) concerning collection of deposit shall apply correspondingly.

Repayment of deposits by Dansk Retursystem A/S

12.- Dansk Retursystem A/S shall repay the deposit to the returns recipient for the empty disposable packagings collected from the returns recipient by Dansk Retursystem A/S, cf. Sections 59 and 61. It is a condition for payment of the deposit that the disposable packaging collected by Dansk Retursystem A/S can be read electronically on bar code and that it meets the requirements of marking, cf. Section 4.

(2) Dansk Retursystem A/S shall further repay deposits for disposable packagings accepted as returns and compressed by the returns recipient, cf. Section 63(1), when Dansk Retursystem A/S has approved that the returns recipient can carry out compression.

(3) Repayment of deposits for disposable packagings collected by Dansk Retursystem A/S shall take place as soon as possible and within 5 weeks after collection has taken place. Deposits for packagings accepted as returns in a compressor the returns recipient’s premises shall be repaid as soon as possible and within 2 weeks of the transfer of data from the reverse vending machine (the central control unit) to Dansk Retursystem A/S.

(4) Dansk Retursystem A/S shall not pay out deposits if the returns recipient knew or should have known that no deposit has been paid to Dansk Retursystem A/S for the disposable packaging.

(5) Dansk Retursystem A/S shall repay deposits for excess deposit labels returned in an unopened box, cf. Section 56(1) for up to 12 months following purchase of the deposit labels. Furthermore Dansk Retursystem A/S shall repay excess collected deposits paid by the producer or importer as amounts on account to Dansk Retursystem A/S in accordance with Section 11(2).

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13.- The Danish Environmental Protection Agency in consultation with Dansk Retursystem A/S can decide that Dansk Retursystem A/S shall stop repayment of deposits to returns recipients for a disposable packaging (product type) if the total deposit amount repaid for the disposable packaging exceeds the total deposit amount that the producer or importer paid to Dansk Retursystem A/S for the packaging in question or it is evident that it will not be possible for Dansk Retursystem A/S to collect the unpaid deposit amounts from the producer of importer.

(2) Dansk Retursystem A/S shall notify returns recipients immediately of the packaging for which Dansk Retursystem A/S will therefore not repay deposits and any special characteristics of the packaging. Dansk Retursystem A/S shall at the same time ensure that reverse vending machines installed in grocery stores no longer pay out deposits for the packaging when it is accepted back.

(3) Dansk Retursystem A/S shall collect the unpaid deposit from the producer or importer in question if it can be shown that the producer or importer has a duty to pay a deposit to Dansk Retursystem A/S for the disposable packagings in question.

Fees in general

14.- At the request of the Danish Environmental Protection Agency, Dansk Retursystem A/S and the auditing company shall provide any information and allow any investigations and calculations to be carried out that are considered necessary in order to be able to fix and approve fees, to set up and approve returns groups, and to set up and approve sales groups.

15.- Logistics and collection fee rates shall be fixed so that for the fee area in question the revenues and the costs associated with the individual fee area are balanced out over a 6-year period. Each fee with its own rate shall be considered a separate fee area.

(2) The fee rates shall be revised in connection with the budget and otherwise where necessary based on the latest profit and loss account and the expected future trend in the activities giving rise to fees and the costs, so that endeavours shall be made currently to bring about a balance.

16.- The calculation of the fee rate for a fee area shall include revenues in the form of fees and interest thereon and any other revenues that can be attributed to the fee area.

17.- Dansk Retursystem A/S shall notify all providers by 15 November each year of the fixed size of the fees mentioned in the present Statutory Order, which will be payable from the next turn of the year. The fixing of fee amounts shall be subject to approval by the Danish Environmental Protection Agency and shall be notified by Dansk Retursystem A/S to all providers and upon request to grocery stores, distributors and returns recipients.

Registration fee

18.- On registration of one or more new packaging type or a new product type the producer and importer shall pay a fee of DKK 2,000 to Dansk Retursystem A/S. The fee of DKK 2,000 applies also to registrations of new packaging types or product types filed subsequently in the calendar year in question.

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(2) The fee shall cover in full or in part the expenses incurred by Dansk Retursystem A/S in connection with the registration of the packaging’s EAN article number or technical specifications, ongoing maintenance of data bases, technical consultancy to producers and importers and information to returns recipients which read packaging bar codes electronically in connection with the acceptance of returns.

Logistics fee

19.-Producers and importers shall pay a logistics fee to Dansk Retursystem A/S for each packaging which they sell to grocery stores as well as to middlemen who resell on the packaging to grocery stores. In addition, a logistics fee shall be paid for each packaging containing beer or soft drinks supplied to a distributor.

20.- The fee period is 4 weeks.(2) Based on the information reported by the auditing company, cf. Section 38(3).

Dansk Retursystem A/S shall prepare a statement of the number of packagings per sales group for which the producer and importer are liable to pay a logistics fee. Dansk Retursystem A/S shall send the statement and an invoice for payment of logistics fees to the producer or importer in question within 4 weeks of the end of the period.

(3) The logistics fee shall be paid within 8 days of Dansk Retursystem A/S’s invoice date.

21.- The logistics fee shall cover the costs paid by Dansk Retursystem A/S in accordance with the Act and the rules of this Statutory Order, cf. paragraphs 1), 2), 4)-8), 10)-13), 15)-17) and 22) of Section 69, as well as amounts for corporation tax that do not concern the tax expense mentioned in Section 66(2)5) and amounts paid out as dividends on the corporate capital invested in the company, cf. Section 71. The expenses shall be included in the logistics fee unless deposits credited as income in accordance with Section 66(2) cover the expenses, cf. Section 65.

22.- The costs of handling remuneration paid to grocery stores shall be distributed between returns groups for refillable packaging in accordance with the guidelines in Annex 1. The costs of administration of the handling remuneration and of the checking of sorting shall be divided between all refillable packagings according to numerical quantity.

(2) The costs of investment subsidies paid out in accordance with Section 42, and administration in this connection including interest costs in connection with the taking out of loans, shall be financed over a period of 6 years and distributed linearly at one sixth per year. The costs shall be distributed annually between the sales groups as follows, however, cf. subsection (3).

1) 60% of the annual costs shall be financed by the logistics fee on refillable packagings, the fee on glass bottles only financing the costs of acquisition of glass tables or of alteration of glass tables. The share of the logistics fee calculated in this manner must not, however, with regard to disposable packagings exceed DKK 0.0020 per glass packaging and DKK 0.0634 per plastic packaging.

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2) The other 40% shall be financed by the logistics fee on disposable packaging. The share of the logistics fee calculated in this manner must not, however, with regard to disposable packagings exceed DKK 0.0634 per packaging.

(3) If the share of the logistics fee stipulated in accordance with subsection (2) for refillable packagings or disposable packagings cannot cover the full cost of investment subsidies the deficit shall be divided between the packagings based on the principle that each packaging of the same material and the same volume bears the costs that it imposes on the system.

(4) Expenses for tests and analyses of costs for sorting of refillable packagings shall be distributed between all refillable packagings.

(5) Costs in excess of what is stated in subsections (1)-(4) and the costs concerning registration of packaging types and product types where the expense is covered in part only by the registration fee mentioned in Section 18 and the costs of administration in connection with registered grocery stores where the costs can only partly be covered by the administration fee mentioned in Section 26 shall be distributed equally between all packagings according to numerical quantity.

(6) The costs of payment of dividends on the corporate capital invested in the company, cf. Section 71, as well as payment of corporation tax shall be distributed equally between all packagings by numerical quantity.

(7) The specific distribution of other costs between disposable packagings and refillable packagings shall be approved by the Danish Environmental Protection Agency in connection with approval of the logistics fee, cf. Section 17.

(8) The Danish Environmental Protection Agency may determine that the fee is instead to be fixed by the Agency in accordance with the rules of this present Statutory Order.

Collection fee

23.- Producers and importers marketing disposable packaging shall pay a collection fee to Dansk Retursystem A/S for each individual disposable packaging with beer or soft drink which they sell on the Danish market.

24.- The fee period is 4 weeks.(2) Based on the information reported by the auditing company, cf. Section 38(3),

Dansk Retursystem A/S shall prepare a statement of the number of packagings per sales group for which the producer and importer are liable to pay a collection fee. Dansk Retursystem A/S shall send the statement and an invoice for payment of collection fees to the producer or importer in question within 4 weeks of the end of the period.

(3) The collection fee shall be paid within 8 days of the date of Dansk Retursystem A/S’s invoice.

25.- The collection fee shall cover the annual costs paid by Dansk Retursystem A/S in accordance with the Act and the rules of this present Statutory Order for deposit administration and the collection etc. of registered disposable packagings, cf. paragraphs 9), 12), 13), 15-18) and 22) of Section 69 and corporation tax as mentioned in Section 66(2)5). The costs shall be included in the collection fee for the disposable

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packagings fixed in accordance with the guidelines in Annex 6, unless the expense is covered by deposits credited as income in accordance with Section 66(2), cf. Section 65.

(2) The collection fee shall be laid down by Dansk Retursystem A/S and shall be approved by the Danish Environmental Protection Agency. The Environmental Protection Agency may determine that the fee is instead to be fixed by the Agency in accordance with the rules of this present Statutory Order.

(3) The collection fee shall be fixed disposable packagings with the same net volume capacity within each of the following material categories: aluminium, steel, plastic and glass. Where registration is made of disposable packagings made of materials other than the above mentioned, Dansk Retursystem A/S can establish new materials categories.

Administration fee

26.- Grocery stores registered with Dansk Retursystem A/S, which receive handling remuneration, shall pay a fee of DKK 500 annually to Dansk Retursystem A/S.

(2) The fee shall be used for full or partial coverage of the company’s costs of registration and maintaining data concerning the individual grocery store, processing of reported sales and returns quantities from providers and distributors for the individual grocery store as well as calculation of the grocery store’s handling remuneration and payment of this.

(3) Where registration is made with Dansk Retursystem A/S after the date of the annual collection a proportionate deduction shall be made from the fee for the time, which has elapsed.

Interest etc.

27.- If fees or deposits are not paid on time interest shall be paid. Interest shall be payable from the due date and otherwise in accordance with the statutory provisions on this, cf. the Danish Environmental Protection Act, Section 88(2).

28.- If the producer or the importer has submitted incorrect information concerning the number of packagings containing beer or soft drinks sold and for this or other reasons has paid too little in fees or deposits, Dansk Retursystem A/S shall collect the amount due.

(2) If the producer or importer has paid too much in fees or deposits the excess amount shall be repaid by Dansk Retursystem A/S within 14 days after the matter has been confirmed by Dansk Retursystem A/S.

29.- The amounts mentioned in Section 27 and Section 28(1) shall be paid to Dansk Retursystem A/S within 14 days of a demand from the company. If amounts due are not paid on time Dansk Retursystem A/S will bring the case before the courts unless otherwise agreed with the Danish Environmental Protection Agency.

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Handling remuneration

30.- A handling remuneration shall be paid to registered grocery stores for sorting of empty refillable packagings accepted as returns, cf. however subsection (2).

(2) The handling remuneration shall be the amounts stated in Annex 1 for the returns groups in question and shall comprise a “normal” and a “reduced” handling remuneration. Where reverse vending machines and sorting systems etc. are installed a reduced handling remuneration shall be paid to grocery stores that have received subsidies in accordance with the rules of this present Statutory Order, cf. Section 42.

(3) The Danish Environmental Protection Agency may determine that a special handling remuneration rate is to be fixed for middlemen with a permanent place of business from which a wide range of groceries is sold which is based on examination of the costs of sorting amongst this store group. In this event the handling remuneration shall be calculated in accordance with the same guidelines as apply to other grocery stores in accordance with Annex 1.

(4) Where a new returns group is set up for a refillable packaging as a result of documented changes in the costs of sorting of the refillable packaging, cf. Section 33, the level of the handling remuneration will be adjusted to the rate that was calculated for the returns group in accordance with the guidelines in Annex 1.

31.- An account of the grocery store’s claim to handling remuneration shall be prepared by Dansk Retursystem A/S based on the information on refillable packaging accepted as returns, which is sent from the provider to the company, cf. Section 41. At the request of the store the statement shall be sent by Dansk Retursystem A/S to the grocery store in question. If the store has requested this, the statement shall be sent to the distributor if he is registered with Dansk Retursystem A/S.

(2) Dansk Retursystem A/S shall pay out handling remuneration every 4 weeks covering claims to handling remuneration for the stated quantity of refillable packaging accepted as returns in the preceding 4 weeks.

(3) If the grocery store has received too much handling remuneration the amount shall be offset by Dansk Retursystem A/S in subsequent payments of handling remuneration. If the amount cannot be offset Dansk Retursystem A/S will send a demand for repayment of the amount due within 14 days. If the amount due is not paid on time following a payment demand Dansk Retursystem A/S shall bring the case before the courts unless otherwise agreed with the Danish Environmental Protection Agency.

(4) If the grocery store has received too little handling remuneration the amount due shall be paid by Dansk Retursystem A/S within 14 days of confirmation.

32.- Dansk Retursystem A/S shall - accordance with a specified procedure that is approved by the Danish Environmental Protection Agency - carry out checks on whether sorting was made of refillable packagings for which handling remuneration has been paid.

(2) The checking procedure is divided into periods of 4 weeks’ duration. If at two consecutive checks it is found that a grocery store has not sorted the refillable packagings and this is not due to lack of crates/boxes and trays or other special circumstances Dansk Retursystem A/S shall stop the payment of handling remuneration

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for the 4 week-period in question to the grocery store concerned. The next check shall be made in the following 4-week checking period. If the grocery store still does not sort refillable packagings, no handling remuneration shall be paid for this 4-week period either. The checking procedure shall be repeated until Dansk Retursystem A/S is satisfied that the grocery store sorts the refillable packagings for which handling remuneration can be paid. Payment of handling remuneration shall be resumed with effect from the checking period in which the sorting is carried out.

(3) Should disagreement arise in connection with the return of empty refillable packagings concerning whether the packagings from a grocery store registered with Dansk Retursystem A/S were sorted, the delivering party or the party accepting the refillable packagings as returns may demand that Dansk Retursystem A/S carries out a check of whether the packagings have been sorted.

33.- A producer or importer may demand testing and analysis of the handling costs for a packaging type for which handling remuneration is paid unless similar testing or analysis of the packaging type has been carried out within the past two years.

(2) Requests for testing and analysis to be carried out shall be sent to Dansk Retursystem A/S stating the reasons. Dansk Retursystem A/S shall reject a request for testing and analysis if this is obviously groundless.

(3) Dansk Retursystem A/S shall carry out testing and analyses of the handling costs in grocery stores that have received subsidies in accordance with Section 42 in accordance with the guidelines and the procedure specified in Annex 1. In addition, Dansk Retursystem A/S may carry out supplementary testing and analyses on its own initiative in accordance with the guidelines in Annex 1.

(4) If the analysis carried out by Dansk Retursystem A/S shows that the handling costs for a particular packaging type vary by DKK 0.05 or more per packaging relative to the rate specified for the returns group to which the packaging type belongs, Dansk Retursystem A/S shall set up a new returns group for the packaging type as necessary in accordance with the guidelines in Annex 1. The establishment of new returns groups shall be approved by the Danish Environmental Protection Agency.

Part 4

Statement of sales of packagings

34.- As part of the administration of the fee arrangements, Dansk Retursystem A/S shall divide packagings for beer and soft drinks into sales groups and establish new sales groups as necessary, cf. Section 2, 23). Dansk Retursystem A/S shall notify all providers and registered distributors of existing sales groups and the establishment of new sales groups.

35.- Providers must keep an account of the number of packagings containing beer or soft drinks, by sales group and EAN article number, supplied during the period by the provider to

1) grocery stores, including own grocery stores2) middlemen,3) distributors,

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4) hotels and restaurants,5) abroad, with and without, respectively, deposit mark and add-on code, and6) others.

(2) Middlemen and distributors must keep an account of the number of packagings containing beer and soft drinks, by sales group and EAN article number from the individual producer and importer, supplied during the period to each individual grocery store and returns recipient.

36.- Every 4 weeks providers shall report to the auditing company the number of refillable packagings containing beer or soft drinks, by sales group, supplied during the period to the individual distributor and grocery store, including the provider’s own grocery stores. The report shall contain details of the name and address and customer number of the grocery store and distributor with the provider.

(2) Every 4 weeks Dansk Retursystem A/S shall to all providers send a revised list of all registered grocery stores and distributors that reports are to cover.

(3) Once a year, the first time on 1 April 2004, producers and importers shall report to Dansk Retursystem A/S the total number of refillable packagings supplied in the previous calendar year with a view to Dansk Retursystem A/S making up the total return percentage for refillable packagings.

(4) Every 4 weeks distributors shall report to the auditing company the number of refillable packagings, by sales group, from the individual provider, that the distributor has supplied during the period to the individual grocery store in the chain. The report shall contain details of the name and address and customer number of the individual grocery store.

(5) The reporting shall be carried out by the responsible management of the enterprise and shall be supplied in a standard format and electronically as instructed by the auditing company in collaboration with Dansk Retursystem A/S. Reporting shall in accordance with subsections (1) and (4) take place within 14 days of the end of the period.

37.- Every 4 weeks providers and distributors shall report the following information to the auditing company concerning sales and supplies of disposable packagings to returns recipients including the provider’s own returns recipients:

1) name, address and customer number of the individual returns recipient,2) number of disposable packagings sold or supplied to each individual returns

recipient shown separately for each individual EAN item number,3) number of disposable packagings by deposit returns group exported with a deposit

mark and add-on code.

(2) Every 4 weeks Dansk Retursystem A/S shall send a revised list to all providers and distributors of all returns recipients that reporting is to cover.

(3) Furthermore, providers shall report to Dansk Retursystem A/S information as specified in subsection (1) concerning sales of disposable packaging to distributors.

(4) Reporting in accordance with subsections (1) and (3) shall be carried out by the responsible management of the provider or the distributor and is to be supplied in a

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standard format and electronically as instructed by Dansk Retursystem A/S. Reporting shall be carried out within 14 days of the end of the period.

(5) If the provider or distributor supplies less than 500 disposable packagings per product type in total in a 4-week period information shall every 4 weeks be reported only on the total sale per product number (EAN article number). Providers and distributors shall at the same time submit a list of the returns recipients they have sold or delivered to during the period .

38.- Based on the information that providers and distributors are to submit every 4 weeks concerning sales and supplies of packagings, cf. Sections 36 and 37, the auditing company shall prepare a statement of total sales or deliveries, to

1) to the individual grocery store and distributor of refillable packagings for beer and

soft drinks by sales group,2) per provider of refillable packagings for beer and soft drinks by sales group,3) per provider of disposable packaging for beer and soft drinks by sales group, and,4) per returns recipient by sales group.

(2) The auditing company shall furthermore make up any exports of disposable packagings with a deposit mark and add-on code.

(3) Every 4 weeks the auditing company shall send the statements mentioned in subsections (1) and (2) to Dansk Retursystem A/S to be used for the company’s collection of deposits, logistics fees and collection fees. The auditing company must not pass on other information of a commercial nature, cf. however Sections 76-81.

Part 5

Statement of returned quantities of refillable packaging

39.- As part of the administration of the arrangements for payment of handling remuneration, Dansk Retursystem A/S shall divide empty refillable packagings for beer and soft drinks into returns groups.

(2) Empty refillable packagings for beer and soft drinks are divided into the following returns groups:

1) glass bottles 2) plastic bottles containing not more than 99 cl3) plastic bottles containing more than 99 cl.

(3) Dansk Retursystem A/S will establish new returns groups in accordance with the provision in Section 33, cf. Annex 1, and notify all providers, registered distributors and registered grocery stores of new returns groups.

40.- Providers shall state to the individual registered grocery store, distributor and middleman in an invoice or a separate statement referring to an invoice the number of empty refillable packagings for beer and soft drinks, by returns group received by the provider as returns from the store, distributor or middleman.

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(2) Providers and registered distributors shall keep accounts of the receipt of empty refillable packagings by returns group from each individual grocery store. This account shall form a basis for preparing a statement of the handling remuneration paid out in the period and checks by the authorities.

41.- Every 4 weeks providers and registered distributors shall report the following information to Dansk Retursystem A/S concerning empty refillable packagings accepted as returns from grocery stores, including the provider’s own grocery stores:

1) name, address and customer number of the individual grocery store from which empty refillable packagings have been accepted as returns,

2) the number of refillable packagings accepted as returns, by returns group accepted by provider or distributor as returns from the grocery store.

(2) In addition, providers shall report to Dansk Retursystem A/S, as specified in subsection (1), information on empty refillable packagings accepted as returns from distributors.

(3) Producers and importers shall, as specified in subsection (1), report the total number of empty refillable packagings that they have received from middlemen.

(4) Producers and importers shall once a year, the first time 1 April 2004 report to Dansk Retursystem A/S the total number of empty refillable packagings accepted as returns in the preceding calendar year so that Dansk Retursystem A/S can make up the total returns percentage for refillable packagings.

(5) Reporting shall be carried out by the responsible management of the provider or distributor and shall be supplied in a standard format and electronically as instructed by Dansk Retursystem A/S. Reporting in accordance with subsections (1)-(3) shall be carried out within 14 days of the end of the period.

Part 6

Investment subsidies etc.

42.- On application investment subsidies shall be paid to registered grocery stores entitled to handling remuneration in accordance with the rules of this present Statutory Order for measures to increase efficiency and secure the future of the handling of packagings accepted as returns in the store’s bottle department. The subsidy shall be paid for the acquisition or alteration of

1) reverse vending machines for the receipt and electronic recording of loose refillable plastic bottles and disposable packagings as well as cap checks,

2) sorting systems for refillable plastic bottles and disposable packagings,3) containers for collection of packagings,4) emptying systems for containers,5) installation of facilities, and6) documented costs of consultancy and project management in connection with

installation and alteration.

(2) A subsidy shall be paid to registered grocery stores which have acquired or altered for their own account facilities as mentioned in subsection (1) meeting the

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functional and technical requirements in Annex 2, within the subsidy framework stated in Section 43(3), for the following objects:

1) glass tables for bottles without a cap,2) alteration of glass tables,3) bottle positioners,4) alteration of existing conveyor belts,5) extra containers,6) other facilities and equipment,7) installation of facilities, and8) documented costs of consultancy and project management in connection with

installation and alteration, and9) automatic feeder of disposable packaging for reverse vending machine.

(3) In connection with applications in accordance with subsection (2) concerning facilities etc. acquired by the grocery store, Dansk Retursystem A/S shall decide whether this meets the requirements of Annex 2. Should special circumstances apply to the applicant, Dansk Retursystem A/S may allow a subsidy to be paid for other facilities or equipment for the receipt or separation of packagings.

(4) In connection with the budget Dansk Retursystem A/S shall recommend the subsidy framework for the scheme in the budget year. The subsidy framework shall be approved by the Danish Environmental Protection Agency. The total subsidy framework for the scheme financed by fees shall not exceed DKK 260m over a six-year period commencing with the entry into force of this Statutory Order, cf. however Section 97(6).

(5) Dansk Retursystem A/S may enter into framework agreements with suppliers concerning supply of the equipment mentioned in subsections (1) and (2) to be used for the acquisition thereof by the subsidy recipients. Framework agreements shall be entered into in accordance with the procedure in Council Directive 93/36/EEC of 14 June 1993 coordinating procedures for the award of public supply contracts, including invitation to tender following negotiation with prior publication and with entry into parallel framework agreements with freedom of choice for the subsidy recipient. The framework agreements may be entered into for a term of up to 3 years. Dansk Retursystem A/S shall notify applicants for investments subsidies of how subsidised equipment can be acquired under the framework agreements.

43.- Subsidies in accordance with Section 42 shall be paid on condition that

1) the subsidy recipient’s annual quantity of returned packagings for beer and soft drinks is either at least 350,000 packagings, or the store has invested by 1 January 2001 in one or more reverse vending machines for receipt of returned packagings for beer and soft drinks and accepts as returns at least 100,000 packagings annually,

2) reverse vending machines and sorting systems meet the functional and technical requirements stated in Annex 2,

3) the principles for receipt of packaging as well as for the design and adaptation of facilities have been followed, cf. Section 44 (1) and (2),

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4) the subsidy recipient undertakes to accept back and pay out deposits for all types of registered disposable packaging for beer and carbonated soft drinks that can be accepted as returns in the subsidy recipient’s reverse vending machine,

5) the subsidy recipient undertakes to install sorting systems meeting the requirements of Annex 2,

6) the subsidy recipient submits documentation of the costs paid for the investments made,

7) subsidised material is acquired after 15 January 2002 and in accordance with the prices and delivery terms laid down in one of more framework agreements that Dansk Retursystem A/S may have entered into with a supplier, cf. Section 42(5), and

8) the subsidy recipient allows Dansk Retursystem A/S and the authorities to carry out installation, inspection, testing, repairs and technical alterations to reception and sorting facilities etc., including central control units, and installation of compressors free of charge for the store with a view to allowing the acceptance of returned disposable packagings and repayment of deposits for these as well as implementation of safety measures in connection with this.

(2) The fixing of the annual quantity of returns shall be based on the number of disposable packagings accepted back by the applicant in the 12 months prior to the application.

(3) The grocery stores entitled to subsidies shall be divided into store groups as specified in Annexes 3 and 4. Subsidies to the individual grocery store in accordance with Section 42 can be a maximum of the following within the overall investment framework, cf. Section 42 subsection (4):

1) Group 1: DKK 120,0002) Group 2: DKK 130,0003) Group 3: DKK 255,0004) Group 4: DKK 380,0005) Group 5: DKK 500,000

(4) Dansk Retursystem A/S shall set a maximum amount for the subsidy that can be paid to the individual elements of the investment in accordance with Section 42. The maximum amounts shall be approved by the Danish Environmental Protection Agency.

(5) Applicants shall receive subsidies to the extent there are funds within the subsidy framework, cf. Section 42 (4). However, the subsidy to the individual applicant may not exceed an amount equal to the subsidy paid to applicants within the same group who applied for subsidies before 28 February 2002 in accordance with the rules in the Danish Ministry of the Environment’s Statutory Order No 1116 of 21 December 2001.

(6) The subsidy recipient shall use the subsidy within 3 years from the date that Dansk Retursystem A/S has allowed the subsidy.

44.- Dansk Retursystem A/S shall obtain information and carry out charting and analysis of grocery stores entitled to subsidies with a view to establishing principles for packaging reception and handling as well as the design and adaptation of facilities etc. on the subsidy applicant’s premises.

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(2) In connection with an application from the individual subsidy applicant Dansk Retursystem A/S, after a hearing of the applicant, shall decide on the form, appearance and size of facilities and shall prepare a statement of the project’s costs. If the subsidy recipient can document that 75 per cent or more of the annual returns quantity made up as mentioned in Section 43(2), is received in crates/boxes and trays, the individual subsidy recipient’s facilities can be designed accordingly. The subsidy cannot exceed the framework amounts mentioned in Section 43(3).

(3) The applicant shall notify Dansk Retursystem A/S of the applicant’s choice of supplier. Dansk Retursystem A/S shall, free of charge, assist with coordination of purchasing etc. from providers if the company is requested to do so by the party entitled to subsidy.

45.- On application subsidies will be paid to returns recipients registered with Dansk Retursystem A/S, who are not entitled to subsidies in accordance with Section 43. Subsidies are granted for efficiency measures for the reception of returned disposable packagings and only if the expenses can be defrayed over the deposits credited ad income by Dansk Retursystem A/S, cf. Section 65 and 66.

(2) Dansk Retursystem A/S may enter into framework agreements with providers in accordance with the same guidelines as are specified in Section 42(5) concerning supply of the subsidised equipment in accordance with the procedure in Council Directive 93/36/EEC of 14 June 1993.

46.- The size of the subsidy described in Section 45 shall depend on the annual quantity of disposable packaging accepted by grocery store as returns. The subsidy shall not exceed:

1) DKK 60,000 for returns recipients receiving at least 50,000 returned packagings (group A)

2) DKK 40,000 for returns recipients receiving less than 50,000 but more than 35,000 returned packagings (group B).

(2) The fixing of the annual quantity of returns shall be based on the number of disposable packagings accepted by the applicant as returns in the 12 months prior to the application.

47.- Subsidies as described in Section 45 shall be paid for the following:

1) Reverse vending machines for the reception and electronic recording of disposable packaging delivered loose, with integrated sorting module, if applicable.

2) A simple sorting module with up to 3 sortings for stores in group A and 2 sortings for stores in group B.

3) Containers for collecting packagings.

(2) The payment of subsidy shall be conditional upon

1) reverse vending machines and containers being acquired in accordance with one or more framework agreements which may have been entered into between the supplier and Dansk Retursystem A/S, cf. Section 45(2),

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2) the recipient of the subsidy producing documentation for incurred expenses for the investments made,

3) the recipient of the subsidy undertaking to allow a central control unit supplied and inserted by Dansk Retursystem A/S to be installed for the company’s account, and

4) the subsidy recipient allowing Dansk Retursystem A/S and the authorities to carry out inspection, testing, repairs and technical alterations to reception and sorting facilities etc., including the central control unit, installation of compressors without costs for the returns recipient and any other installations with a view to allowing the acceptance of returned disposable packagings and repayment of deposits for these as well as implementation of safety measures in connection with this, and

5) grocery stores that receive subsidies undertake to take return of and pay deposit for all types of registered disposable packagings for beer and carbonated soft drinks that can be accepted back in the subsidy receiver’s reverse vending machine.

48.-Applications for subsidies as described in Section 45 shall be received by Dansk Retursystem A/S by 1 October 2004, cf. however subsection (4).

(2) Applications shall be processed and subsidies paid by Dansk Retursystem A/S in order of priority and in accordance with an overall plan for the allocation of subsidies. The plan shall be prepared and revised as necessary by Dansk Retursystem A/S. Dansk Retursystem A/S shall prepare a description of the principles of the plan, which shall be approved by the Danish Environmental Protection Agency.

(3) If it is not possible to pay subsidies to all applicants within the overall subsidy framework, Dansk Retursystem A/S shall pay subsidies to the applicants who receive the most disposable packagings.

(4) Applicants applying for subsidies after 1 October 2004 shall receive subsidies if there are still funds for this within the subsidy framework following the allocation of subsidies to other applicants.

(5) The total subsidy framework shall not exceed DKK 75m.

49.- Dansk Retursystem A/S shall notify the applicant of the expected date of payment of the subsidy as described in Section 42 and Section 45. Prior to payment of the subsidy Dansk Retursystem A/S will check that facilities etc. purchased and the installation of these has taken place in accordance with the terms of the subsidy and in a proper manner. If this is not the case Dansk Retursystem A/S will not pay any subsidy unless the departures are of minor importance.

(2) Dansk Retursystem A/S shall record the applicants to whom subsidies have been paid and the terms and conditions on which subsidies were given.

50.- Subsidies are granted to importers and producers of beer and soft drinks to cover in part costs for marking with self-adhesive deposit labels in accordance with the rules of Section 55(2)3) and 4). Subsidies are granted for documented costs for marking of disposable packagings sold in the period up to April 2003.

(2) Subsidies are granted by an amount for each marked disposable packaging. The subsidy amount appears from Annex 8 and is fixed based on the transport packaging that has been used for packaging of the disposable packagings. The total subsidy framework shall not, however, exceed DKK 3m.

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(3) Dansk Retursystem A/S shall process applications and pay out subsidies. Applications for subsidies shall have been received by Dansk Retursystem A/S not later than 30 April 2003.

(4) Dansk Retursystem A/S shall notify the applicant of the expected date of payment of the subsidy. Prior to payment of the subsidy Dansk Retursystem A/S will check that the application was received on time and that the subsidy recipient has produced documentation for the costs paid. On request of Dansk Retursystem A/S documentation shall be certified by an auditor. Where these requirements have not been complied with, Dansk Retursystem A/S will not pay any subsidy unless it is a matter of minor importance.

(5) Subsidies for marking shall not exceed the amount limits laid down by the Commission for subsidy schemes from time to time in the Commission’s notices on subsidy schemes that shall not be notified to the Commission because the subsidy amount is not deemed to result in any noticeable influence on trade and competition between the member states of the Community (de minimis subsidy schemes).

(6) In connection with an application for subsidy, the applicant shall notify Dansk Retursystem A/S of whether the amount limits mentioned in subsection (5) above will be exceeded if the subsidy amount is received.

(7) Subsidies received contrary to subsection (5) shall be repaid.

51.- Subsidies are granted to registered grocery stores for full or partial cover of costs for acquisition of stands for collection and sorting of disposable packagings. The subsidy shall not exceed DK 2,000 per subsidy recipient.

(2) It is a condition that the grocery store is registered with Dansk Retursystem A/S not later than 1 December 2002, and that the grocery store does not receive other subsidies under the rules of this Statutory Order. The rules of Section 48(1)(3) and (4) and Section 50(5)-(7) shall apply correspondingly.

(3 The total subsidy framework in pursuance of subsection (1) shall not exceed DKK 3,5m.

52.- Subsidies granted in accordance with Section 42, Section 45 and Section 50 shall be repaid if the subsidised facilities etc. are permanently taken out of operation or if the terms and conditions for obtaining a subsidy either are not met or have been substantially disregarded. The value of the subsidy shall be written down annually by 20% of the subsidy amount apart from subsidies that shall be repaid in accordance with the rules of 50(7).

(2)The amounts to be repaid in accordance with subsection (1) shall be paid to Dansk Retursystem A/S within 14 days of a demand from the company. If the amount due is not paid on time following a demand Dansk Retursystem A/S shall bring the case before the courts unless otherwise agreed with the Danish Environmental Protection Agency.

53.- With a view to securing the most financially advantageous collection of disposable packaging, Dansk Retursystem A/S may pay expenses for full or partial cover of cost of purchasing and installing facilities for compression of disposable packaging at returns recipients’ premises, cf. Annex 7.

(2) Compressors shall be installed as an integral part of reverse vending machines or in connection reverse vending machines with a central control unit.

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(3) The returns recipient shall follow the instructions given by Dansk Retursystem A/S concerning the operation, maintenance and safety of the compressor.

(4) Every year in connection with the budget Dansk Retursystem A/S shall prepare an assessment of the quantity of disposable packaging that returns recipients are to accept as returns in order for it to be financially worthwhile to install a compressor and of the self-financing that the returns recipients shall have to contribute in such event if the returns recipient does not receive sufficient quantities of returned disposable packagings. Dansk Retursystem A/S shall send the assessment to the Danish Environmental Protection Agency for information along with the company’s proposed budget for the coming year.

54.- Unless Section 43(1)8) shall apply, Dansk Retursystem A/S shall lend and install central control units at the premises of grocery stores with reverse vending machines if requested by the grocery store.

Part 7

Deposit and collection system for disposable packaging

Marking requirements

55.- Disposable packaging marketed in Denmark shall with a view to collection and repayment of deposits be marked. Marking shall be carried out by direct printing on the packaging or by application of a self-adhesive deposit label supplied by Dansk Retursystem A/S.

(2) The producer and the importer shall mark disposable packaging in one of the following manners at their own choice:

1) Direct printing of the full marking on the packaging or its label: the marking shall consist of an EAN bar code used globally, a deposit mark and an add-on code with four digits to be chosen by the provider himself, cf. however, subsection (3). A separate add-on code shall be used for each EAN article number. The marking shall comply with the requirements contained in Annex 5 with regard to appearance, size and positioning on the packaging.

2) Direct printing of the full marking on the packaging or its label: the marking shall consist of an EAN bar code approved for the Danish market only and a deposit mark. The marking shall comply with the requirements contained in Annex 5 with regard to appearance, size and positioning on the packaging.

3) Self-adhesive deposit label on packagings with a printed EAN bar code used globally: the marking shall consist of the globally used EAN bar code and a deposit label with a deposit mark and an add-on code with four digits to be chosen by the provider, cf. however, subsection (3). Products with separate EAN article numbers from the same provider can be put on the deposit label with the same add-on code. The marking shall take place by application of an self-adhesive deposit label and shall be carried out as described in Annex 5.

4) Self-adhesive deposit labels on packagings without EAN bar code: the marking shall consist of a deposit label with a deposit mark and an EAN bar code approved for the Danish market only, which either Dansk Retursystem A/S allocates to the producer or the importer or which he himself orders from the relevant EAN-organisation in

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connection with the registration. The marking shall take place by application of a self-adhesive deposit label and shall be carried out as described in Annex 5.

(3) The producer and importer shall use the four-digit code reported by the producer and importer to Dansk Retursystem A/S to the producer or importer in connection with registration of the packaging or product type, cf. Section 8 (3) and Section 9(1). In connection with registrations in pursuance of Section 8, Dansk Retursystem A/S shall ensure that producers and importers using the same globally used EAN article number do not use the same four-digit add-on code and that producers and importers do not use the same EAN article number approved for the Danish market only.

(4) It is not permitted to mark a packaging or the label thereon with the deposit mark and add-on code or an EAN bar code approved for the Danish market only, cf. Annex 5, unless the packaging is registered with Dansk Retursystem A/S, cf. Sections 8 and 9.

56.- Against payment of a deposit as well as an amount to cover the production costs, Dansk Retursystem A/S will supply self-adhesive deposit labels to producers and importers. The deposit labels will be supplied in closed sealed boxes containing a minimum quantity of 1000 labels with deposit denominations of DKK 1.50, DKK 2.50 or DKK 4.25. The deposit labels may be supplied by Dansk Retursystem A/S with an EAN article number or an add-on code. Dansk Retursystem A/S will issue a dated receipt to the purchaser on delivery.

(2) Dansk Retursystem A/S shall keep accounts of deposit labels supplied and to whom they were supplied.

57.- Marking of disposable packagings with deposit labels other than those supplied by Dansk Retursystem A/S is not permitted.

(2) Dansk Retursystem A/S is responsible for the technical design of the deposit labels.

(3) At the request of a producer or importer Dansk Retursystem A/S shall provide information on enterprises offering to affix the deposit labels onto the packagings.

58.-If Dansk Retursystem A/S stops the repayment of deposits for a packaging, cf. Section 13, and this is not due to circumstances for which the producer or importer marketing the packaging is responsible, Dansk Retursystem A/S shall assign the producer or importer a new add-on code or a new EAN bar code approved for the Danish market only. Dansk Retursystem A/S shall, giving reasonable notice, notify the producer or importer of the date from which the producer or importer is to use the new add-on code or a new EAN bar code approved for the Danish market only. The supply of packaging with previously used add-on code or EAN bar code approved for the Danish market only shall thereafter not be permitted.

Collection system

59.- Dansk Retursystem A/S shall collect disposable packagings on which a deposit is paid from returns recipients registered with Dansk Retursystem A/S as needed, however at least every 4 weeks.

(2) If it takes returns recipients longer than 4 weeks to fill the collection unit, Dansk Retursystem A/S shall collect disposable packagings when the collection units with

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disposable packagings are filled and the returns recipient requests Dansk Retursystem A/S to collect the packagings.

(3) Dansk Retursystem A/S shall take suitable measures to ensure and check that disposable packagings are not damaged in connection with the transportation etc. of the packagings from the returns recipient to Dansk Retursystem A/S’s counting facility.

(4) Dansk Retursystem A/S shall ensure that disposable packagings collected are reutilised in the form of materials recovery.

60.- The Danish Environmental Protection Agency may determine that Dansk Retursystem A/S shall collect disposable packagings for beer and soft drinks that are not registered with Dansk Retursystem A/S from grocery stores that have been given a subsidy.

(2) Dansk Retursystem A/S shall prepare a separate budget and accounts for the collection etc. of non-registered disposable packagings.

61.- In order to have the deposits repaid registered returns recipients must allow Dansk Retursystem A/S or subcontractors of Dansk Retursystem A/S to collect the returned disposable packaging.

(2) Registered returns recipients shall separate disposable packagings in the collection units supplied by Dansk Retursystem A/S into plastic, glass and metal and other material categories, if applicable, cf. Section 25(3), which are collected in the collection units supplied by Dansk Retursystem A/S.

(3) Dansk Retursystem A/S shall be responsible for recording and counting the non-compressed disposable packagings collected which may form the basis for settlement of deposits with the returns recipients.

(4) Dansk Retursystem A/S shall provide the necessary capacity with regards to area and buildings (terminals) as well as the necessary equipment, including counting facilities, compressors, EDP systems, communication lines, container trucks, etc. In addition, Dansk Retursystem A/S shall be responsible for the purchase, management and distribution of the equipment required for collection unless it follows otherwise from the rules of this present Statutory Order.

(5) Dansk Retursystem A/S shall be responsible for central operation of the terminals. Dansk Retursystem A/S shall ensure that the necessary measures have been taken to ensure correct and secure deposit settlement, including both with regard to the establishment of technical facilities and installations and the employment of personnel.

62.- Following the installation of a compressor at the returns recipient’s premises Dansk Retursystem A/S shall notify the date from which settlement of deposits can take place for compressed packagings by electronic data transfer to Dansk Retursystem A/S.

(2) If a compressor is out of order the settlement of deposits between the returns recipient and Dansk Retursystem A/S shall take place on the basis of a count carried out in the way described in Section 63(2).

Statement of quantities of returned disposable packaging

63.- The count of quantities of returns of disposable packaging from returns recipients with installed compressor, cf. Section 53, shall be carried out in the reverse vending machine at the premises of the returns recipient and be registered on the central control

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unit. The data are transferred electronically to a central server with an operator with whom Dansk Retursystem A/S makes an agreement as mentioned in subsections (4)-(6).

(2) The count of quantities of returns that is not made in accordance with subsection (1) shall be carried out by means of counting machines at Dansk Retursystem A/S’s terminals. The count shall be carried out electronically, including by scanning the packaging’s bar codes. If a disposable packaging cannot be scanned in a counting machine, manual scanning shall be carried out with a view to identifying the bar code of the packaging.

(3) When scanning disposable packagings on the counting machines or reverse vending machines, electronic registration about the packaging is made of the following data:

1) packaging type, 2) product type (EAN article number), 3) the deposit returns group or sales group to which the packaging belongs, and 4) the provider.

(4) The information registered by Dansk Retursystem A/S on the counting machines in accordance with subsection (3) shall be forwarded electronically to a central server with an operator as soon as possible. The operator shall be independent of Dansk Retursystem A/S.

(5) Dansk Retursystem A/S makes an agreement with the operator to the effect that from the central server, the auditing company, cf. Section 76, shall receive the information mentioned in subsection (3) about the disposable packagings accepted as returns with a view to allowing the auditing company to carry out an analysis and reconciliation of the probability that reported data from providers and distributors are correct, cf. Section 77.

(6) Dansk Retursystem A/S shall furthermore make an agreement with the operator to the effect that Dansk Retursystem A/S receives information from the central server only about the number of disposable packagings received as returns divided into deposit returns group level. Dansk Retursystem A/S shall terminate the cooperation with the operator if he sends other information to Dansk Retursystem A/S contrary to the agreement.

(7) The information recorded on Dansk Retursystem A/S’s counting machines in accordance with subsection (3) shall be erased automatically after transmission to the central server. Dansk Retursystem A/S must not copy, store or otherwise make the information available after erasure.

64.- The electronic counting of disposable packagings carried out in accordance with Section 63(1) and (2) shall form a basis for the payment of deposits to returns recipients. However, this shall not apply if there has obviously been a mistake in connection with the count. In such cases Dansk Retursystem A/S will attempt to establish as far as possible the actual number of returned packagings for which the returns recipient is to receive a deposit.

(2) If it is not possible to establish the actual number of packagings that Dansk Retursystem A/S has collected from a returns recipient, Dansk Retursystem A/S will make an estimate of the number of packagings collected and repay deposits to the returns recipient based on this.

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Deposits credited as income

65.- Dansk Retursystem A/S may credit deposits paid to the company which have not been redeemed as income if the income has been finally settled in accordance with good and proper accounting practice according to a declaration from the company’s auditor, cf. Section 9 c (1) of the Act.

66. Dansk Retursystem A/S shall use deposits credited as income to ensure that the company’s obligation to repay deposits in accordance of the rules of this present Statutory Order are met before such income is used for any other expenditure. The Danish Environmental Protection Agency may order Dansk Retursystem A/S to reduce or increase the size of the amount that is thus available for consolidation of the company.

(2) Dansk Retursystem A/S may use deposits credited as income to cover the following, cf. however subsection (1):

1) Costs of central control units for reverse vending machines and other security equipment (scanners, etc.), if applicable.

2) Repayments on loans taken out by Dansk Retursystem A/S in accordance with Section 44 of the Ministry of the Environment’s Statutory Order No 1116 of 21 December 2001 to cover the costs of readiness for disposable packagings.

3) Acquisition of know-how in connection with the development and operation of the deposit and return system.

4) Costs of information on the deposit and return system.5) Costs for corporation tax of deposits credited as income.6) Costs for stands on which collection facilities for reception of disposable packaging

can be placed in registered grocery stores, cf. Section 51.7) Costs associated with the collection etc. and reuse of non-registered packaging.8) Subsidies for increasing the efficiency of the acceptance of returned disposable

packaging by returns recipients, cf. Section 45, and subsidies for producers and importers for marking with deposit label, cf. Section 50.

(3) In connection with the budget Dansk Retursystem A/S shall prioritise the various items of expenditure in subsection (2) and establish the maximum amount that may be used to cover the costs within each individual item of expenditure.

(4) The company’s prioritising according to subsection (3) shall be approved by the Danish Environmental Protection Agency.

67.- If following consolidation of Dansk Retursystem A/S and coverage of costs in accordance with Section 66 there is a further amount from deposits credited as income available, the board of Dansk Retursystem A/S shall decide on the use of the retained funds in the year in question in the form of subsidies for the public good, including environmental measures, education and information.

(2) The subsidy may be paid out to persons, foundations, institutions, associations etc.

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(3) Subsidies must not be paid if they constitute state subsidies within the meaning of the EC Treaty.

(4) Deposits credited as income retained by Dansk Retursystem A/S following the termination of the exclusive right that the company has in accordance with the rules of this Statutory Order shall be paid out by the board of the company for the purposes mentioned in subsection (1).

68.- Dansk Retursystem A/S may pay costs for the purposes mentioned in Section 63(2) 1)-5) via the fees on packaging if the costs cannot be met or can only partly be met by deposits credited as income.

(2) The Danish Environmental Protection Agency may approve that Dansk Retursystem A/S contracts a loan for the payment of the costs mentioned in Section 66(2) with a view to Dansk Retursystem A/S at a later date using deposits credited as income for repayment of the loan including interest etc. It is a condition that security is provided for the loan either by way of funds over which the company can dispose freely and which have not been saved up prior to 25 March 2002 and which have not been disposed over otherwise, or that the security is provided by a party other than Dansk Retursystem A/S. It is furthermore a condition that the party providing security and the lender abstain from invoking any financial claim against Dansk Retursystem A/S if the amount from deposits credited as income does not make it possible for Dansk Retursystem A/S to repay the loan.

Part 8

Dansk Retursystem A/S

69.- In accordance with the rules in this present Statutory Order Dansk Retursystem A/S will pay necessary and reasonable costs of: 1) handling remuneration to grocery stores, cf. Section 30,2) subsidies for the acquisition of reverse vending machines, sorting facilities etc., cf.

Section 42,3) subsidies for the acquisition of reverse vending machines for the reception of

disposable packaging, cf. Section 45,4) the administration of the schemes mentioned in paragraphs 1) and 2), including

recording and maintenance of data, cf. Section 26 subsection (2), as well as charting, analyses and guidance and consultancy to stores, cf. Section 44,

5) purchase and installation etc. in the grocery stores of electronic security equipment and control units for use for sorting, deposit settlement, etc. cuff .Section 43(1)8) and Section 47(2)3),

6) fees for supervision by the authorities etc., cf. Section 70,7) costs of checking of sorting etc., cf. Section 32, and other checking tasks, cf. Section

92(4),8) expenses of auditing company as agreed, cf. Section 76,9) purchase and installation etc. at the premises of returns recipients of compressors,

cf. Section 53, 10) reporting of return and collection percentages for packagings covered by this

Statutory Order, cf. Section 5, subsection (1), and Section 73,11) testing and analyses of the costs of sorting refillable packaging, cf. Section 33 and

Annex 1,

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12) information on the deposit and return system,13) costs of rental of buildings and premises or purchase of real estate, 14) costs associated with the reception of non-registered packaging, cf. Section 60,15) interest and repayments on loans, 16) wages and administration,17) acquisition of know-how etc. in respect of the development and operation of the

deposit and return system,18) the operation of the deposit and collection system for disposable packaging, 19) corporation tax20) subsidies to producers and importers for marking with deposit label, cf. Section 5021) subsidies for stands for collection and sorting of disposable packagings at the

premises of grocery stores, cf. Section 51, and22) any other costs of the operation of the schemes, including expenditure cf. Section

68(1) that are not contained in paragraphs 1) - 21).

70.- Dansk Retursystem A/S shall pay an amount annually to the Danish Environmental Protection Agency to cover the Agency’s documented costs of supervision and control as well as administration in connection with the deposit and return scheme and external support for this.

71.- Dansk Retursystem A/S may pay out a maximum dividend on the corporate capital invested in the company equal to an amount calculated as the net corporate capital paid in to the company multiplied by a rate set for a full year at the reference interest rate known as the “Copenhagen Interbank Offered Rate” (CIBOR 12 months) published by the Danish Nationalbank on 31 December plus one percent.

(2) Payment of dividends shall take place subject to the provisions concerning this in the Danish Companies Act.

(3) Amounts calculated in accordance with subsection (1) which are not paid out in accordance with subsection (2) may be paid out the following year subject to subsection (2).

72.- Dansk Retursystem A/S shall invite tenders for its purchases of goods and services in accordance with the provisions applicable to bodies in public law under EU law.

(2) In accordance with the rule in subsection (1) Dansk Retursystem A/S shall invite tenders for the tasks that the company carries out involving collection and processing of packaging and packaging waste.

73.- Within the frameworks laid down for the company’s activities in this present Statutory Order, Dansk Retursystem A/S shall ensure that the total collection percentage for disposable packagings is at least 90% by 1 January 2004 and at least 95% by 1 January 2005.

(2) In connection with the annual report Dansk Retursystem A/S shall give an account of the return and collection percentages and provide more information on this to the necessary extent.

(3) The Danish Environmental Protection Agency may determine that Dansk Retursystem A/S must implement one or more information campaigns designed to contribute to the return and collection percentages for packaging being reached.

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74.- Dansk Retursystem A/S shall not carry on any business other than administration etc. of the deposit and return system in accordance with the rules in this present Statutory Order and the Act nor take on obligations, including payment of costs that are not concerned with this administration, cf. however, subsections (2) and (3).

(2) The Danish Environmental Protection Agency may approve activities of Dansk Retursystem A/S, including acquisition of equipment, that are naturally associated with the tasks carried on by the company under the present Statutory Order, including activities the purpose of which are to ensure that other deposit-carrying packagings can be received in the reverse vending machines of grocery stores and returns recipients.

(3) The Danish Environmental Protection Agency may make approvals in accordance with subsection (2) conditional and lay down more detailed terms including terms to the effect that

1) separate accounts etc. must be kept for the activities,2) costs incurred in connection with the activities shall be financed by the users who

must be considered to benefit from the activities,3) security must be provided for the financial obligations that Dansk Retursystem A/S

undertakes in connection with the activities,4) the activity shall cease without further notice if the Danish Environmental

Protection Agency assesses that they are incompatible with the legislation, including EU law, and that

5) the activities are time-limited.

75.- Dansk Retursystem A/S may only contract loans for purposes and on terms approved by the Danish Environmental Protection Agency. Dansk Retursystem A/S may only pledge assets subject to the approval of the Environmental Protection Agency.

(2) Dansk Retursystem A/S shall only acquire real estate and buildings subject to the approval by the Danish Environmental Protection Agency.

(3) Fees and deposits paid to Dansk Retursystem A/S and interest thereon shall be placed on an account with a bank and must only be used for payment of costs in accordance with the rules in the present Statutory Order.

Obtaining and disclosure of certain information

76.- Dansk Retursystem A/S shall enter into an agreement with a state certified or registered accountant (the auditing company) in respect of the submission of information to the auditing company by providers and distributors concerning sales and supplies and in respect of the auditing company’s storage, processing and disclosure of information in accordance with the rules of this present Statutory Order. Dansk Retursystem A/S shall send a copy of the current agreement to the Danish Environmental Protection Agency for information.

(2) Dansk Retursystem A/S shall inform all providers and distributors of the auditing company to which reporting is to take place.

(3) The auditing company must not at the same time be the auditor of Dansk Retursystem A/S or enterprises represented on the board of Dansk Retursystem A/S.

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77.- In cooperation with the auditing company Dansk Retursystem A/S shall lay down control instructions with a view to the auditing company being able to carry out reconciliation and analysis of the probability that the data reported by the providers and distributors are correct.

(2) Dansk Retursystem A/S shall send a copy of the current control instructions to the Danish Environmental Protection Agency for information.

(3) The auditing company shall notify Dansk Retursystem A/S of departures according the instructions relative to expected and usual reports from providers and distributors concerning sales and supplies by sales group. Where necessary Dansk Retursystem A/S shall request the auditing company to obtain further information from the provider or distributor with a view to attempting to clarify the reason for the departures.

(4) Information disclosed the auditing company to Dansk Retursystem A/S, cf. subsection (2), shall not contain information stating the name and place of business of the provider or distributor.

(5) If the auditing company becomes aware that the procedures laid down have been seriously violated, the auditing company shall notify the Danish Environmental Protection Agency.

78.- In cooperation with the company’s auditor Dansk Retursystem A/S shall lay down control instructions with procedures for the IT-security at Dansk Retursystem A/S. In accordance with the control instructions, the auditor shall make current control with a view to securing that the IT-security and storage, processing and disclosure of data in Dansk Retursystem A/S follow the fixed procedures and the rules of this Statutory Order.

(2) Dansk Retursystem A/S shall send a copy of the control instructions mentioned in subsection (1) to the Danish Environmental Protection Agency for information.

79.- At the request of the auditing company or the Danish Environmental Protection Agency providers, distributors and grocery stores shall submit any information and documentation to the auditing company and the Agency concerning the enterprise’s sales and supplies of packagings containing beer and soft drinks for a specified period. In this connection it may be determined that the provider, distributor or grocery store or the returns recipient shall at its own expense have a state certified or registered accountant review the period’s invoices and that the accountant shall submit a declaration concerning the accuracy of the information submitted.

80.- At the request of the Danish Environmental Protection Agency the auditing company shall notify the result of the investigation mentioned in Section 79 to the Agency. In addition, the auditing company shall notify Dansk Retursystem A/S of the result of the investigation in the form of information as mentioned in Section 38(3). If a provider, distributor, grocery store or returns recipient has submitted incorrect information to an extent that is not of minor significance or following a demand has failed to provide information that the enterprise has a duty to provide, Dansk Retursystem A/S shall report this to the Danish Environmental Protection Agency.

81.- The auditing company has a duty to process and store information reported to the company in accordance with the rules of this Statutory Order in an adequate manner,

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including with a view to avoiding unauthorised persons gaining access to the information and other misuse. This shall apply also to information that may have been reported to the auditing company in accordance with the rules of Statutory Order No. 1116 of 21 December 2001.

(2) If the cooperation between Dansk Retursystem A/S and the auditing company ceases, the auditing company shall ensure that information concerning the individual provider’s or distributor’s supplies of packagings containing beer and soft drinks per store or returns recipient, including if necessary EDP equipment containing such information, is transferred only to another auditing company which has an agreement to carry out the task in accordance with the rules of this Statutory Order, cf. Section 76. If no such agreement has been entered into between Dansk Retursystem A/S and another auditing company, the information, including any EDP equipment containing such information, shall be handed over to the Danish Environmental Protection Agency. The Environmental Protection Agency may determine that the information and associated equipment is to be handed over to another auditing company or destroyed.

(3) The Danish Environmental Protection Agency may order Dansk Retursystem A/S to cease cooperation with an auditing company if the Agency finds that the cooperation is not compatible with the administration in accordance with the Act or the rules of this present Statutory Order.

Part 9

Transfer of Dansk Retursystem A/S’s shares and assets to the state

82.- The Minister for the Environment’s right to purchase the shares in Dansk Retursystem A/S, cf. Section 9 e (1) of the Act, shall be recorded in the company’s share register.

(2) Dansk Retursystem A/S shall send a copy of the company’s share register to the Danish Environmental Protection Agency and shall inform the Danish Environmental Protection Agency immediately of any change in ownership by sending a copy of the note concerning this in the share register.

(3) The Danish Environmental Protection Agency shall provide written notification to the shareholders listed in the share register if the Minister for the Environment wishes to exercise his right to acquire the shares in Dansk Retursystem A/S. The notification shall provide information on the statutory authority for the acquisition, the circumstances providing grounds for the acquisition, the calculation and amount of compensation as well as a time-limit of at least 14 days and a place for submission of any share certificates. The shareholders may object to the calculation of the compensation on the submission of the share certificates. Following receipt of the share certificates the Minister for the Environment shall pay out the compensation to the shareholders within 5 working days.

(4) Following the acquisition of the shares the Minister for the Environment shall be recorded as shareholder in the share register of Dansk Retursystem A/S.

83.- The Danish Environmental Protection Agency shall notify Dansk Retursystem A/S in writing if the Minister for the Environment wishes to exercise his right to acquire the assets of Dansk Retursystem A/S, cf. Section 9 e (2) of the Act. The notification shall provide information on the statutory authority for the acquisition, the circumstances

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providing grounds for the acquisition, the assets that are being acquired as well as a date for their collection, which shall be no earlier than 5 working days following the notification. It may be stated in the notification that more detailed information concerning the assets acquired and the date of their collection will not be given until after an inspection in accordance with subsection (6).

(2) The compensation for acquired assets shall be their book value on the date of collection after depreciation for the period since the previous financial year at an amount corresponding to the fee income that the company has received in the period to covered depreciation on the assets acquired.

(3) On request Dansk Retursystem A/S shall provide assistance in connection with the collection of assets. In addition, the company shall submit on its own initiative all written material, including contracts, guarantee certificates, correspondence, drawings, instructions for use, etc. relating to the assets acquired.

(4) The parties shall sign a list of assets acquired in connection with collection.(5) Following collection Dansk Retursystem A/S shall send to the Minister a

documented statement of the amount of compensation, cf. subsection (2). Following receipt of this statement the Minister shall pay the compensation to Dansk Retursystem A/S within 5 working days. In the event of an objection to the amount of compensation the Minister shall pay out the uncontested part of the compensation within the time-limit and the rest within 5 working days of a decision on the objection.

(6) The Minister or a person authorised by him to do so may inspect Dansk Retursystem A/S’s assets, including carrying out technical inspections and test runs etc., to confirm the nature, condition and functioning of the assets prior to any acquisition. Dansk Retursystem A/S shall provide assistance in connection with an inspection on request.

Part 10

Budget, accounts, auditing, etc.

84 Dansk Retursystem A/S is covered by the rules applicable from time to time concerning the preparation and auditing of annual reports for limited companies.

(2) In addition to the requirements of the Danish Annual Accounts Act, the annual report’s management report shall provide information on

1) collection and return percentages for packagings for beer and soft drinks,2) the market share of disposable packagings and refillable packagings respectively,3) information activities and campaigns implemented,4) the status of efficiency measures for the return of packaging and packaging sorting

at grocery stores,5) the status of the deposit and collection system for disposable packagings,6) the company’s targets for productivity, efficiency and economy as well as the status

of the achievement of these, and7) other information required by the Danish Environmental Protection Agency.

(3) Dansk Retursystem A/S shall submit the audited annual report to the Danish Environmental Protection Agency at the same time as the annual report is sent to the

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Danish Commerce and Companies Agency in accordance with the rules in Part 19 of the Annual Accounts Act.

Internal annual report

85.- Dansk Retursystem A/S shall to the Danish Environmental Protection Agency submit an audited internal annual report containing profit and loss accounts for the individual fee areas, statement of paid deposits in accordance with Section 10 and paid out deposits in accordance with Section 12, and statement of deposits credited as income and the application thereof.

(2) The internal annual report shall cover the same period as the external annual report and shall be prepared in accordance with the same accounting principles.

(3) The internal annual report shall be prepared in such a manner that the Danish Environmental Protection Agency can carry out supervision of Dansk Retursystem A/S’s affairs in accordance with the provisions of this present Statutory Order.

(4) The Environmental Protection Agency may determine that the internal annual report shall contain information as directed by the Environmental Protection Agency.

(5) The internal annual report shall be signed by the persons stated in Section 8(1) of the Danish Annual Accounts Act and submitted to the Danish Environmental Protection Agency at latest at the same time as the external annual report, cf. Section 84(3). Section 10 of the Annual Accounts Act shall apply correspondingly.

Interim report

86.- Dansk Retursystem A/S shall submit an internal interim report to the Danish Environmental Protection Agency covering the first 6 months of the company’s financial year, containing profit and loss statements for the individual fee areas, statement of deposits paid in accordance with Section 10 and paid out deposits in accordance with Section 12, and statement of deposits credited as income and the application thereof. The provisions of Section 85, subsections (2)-(4) shall apply correspondingly.

(2) The internal interim report shall be signed by the persons stated in Section 85(5) and submitted to the Environmental Protection Agency within 2 months of the end of the period stated in subsection (1).

Budget and budget follow-up

87.- Dansk Retursystem A/S shall submit a proposal for a budget for the following calendar year to the Danish Environmental Protection Agency by 15 September in the year preceding the beginning of the budget year. Within 2 months of receipt of the budget the Danish Environmental Protection Agency shall send the Agency’s comments on the budget to Dansk Retursystem A/S.

(2) The budget shall be accompanied by a description of the company’s activities in the coming year and a description of the company’s targets for productivity, efficiency and economy in the coming year, cf. Section 84(2)6), and the basis for the company’s fixing of logistics fees and collection fees for the coming year.

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(3) The budget and the material mentioned in subsection (2) shall be prepared in such a manner that the Environmental Protection Agency can carry out supervision of the affairs of Dansk Retursystem A/S in accordance with the provisions of this present Statutory Order and shall contain a detailed description of the assumptions on which the budget is based, including a description of the basis for the budgeted fee income

(4) Dansk Retursystem A/S shall submit a six-monthly budget follow-up to the Danish Environmental Protection Agency covering the same periods as the company’s interim report and annual report. The budget follow-up shall contain an account of any departures from budget and the consequences of this. The budget follow-up may form an integral part of the internal annual report, cf. Section 85, and the internal interim report, cf. Section 86.

(5) The Danish Environmental Protection Agency may lay down further guidelines for the drawing up of the company’s budget and budget follow-up as well a basis for fixing the logistics and collection fees.

(6) Dansk Retursystem A/S shall inform the Environmental Protection Agency immediately if departures from budget are found which are of substantial significance for the company’s operation and the administration of the deposit and return system.

Recording system etc.

88.- Dansk Retursystem A/S shall plan business procedures that ensure that the company currently records the direct and indirect costs and income associated with the individual fee areas, etc., so that the company’s activities can be implemented in accordance with the rules of this Statutory Order and so that fixing of fees for each fee area can be made on a detailed and cost genuine basis of calculation.

89.- Dansk Retursystem A/S shall be in possession of a description of the company’s recording of transactions in accordance with the provisions of the Danish Bookkeeping Act. This description shall be supplemented with a detailed description of the company’s business procedure for recording and distributing costs and income to the individual activity and fee areas.

(2) The description shall be submitted to the Danish Environmental Protection Agency for information and the Danish Environmental Protection Agency shall be informed of any substantial changes therein.

Auditing and control

90.- In an audit instruction for Dansk Retursystem A/S the Danish Environmental Protection Agency may lay down guidelines for work carried out by the company’s auditor elected by the Annual General Meeting in support of the Environmental Protection Agency’s supervision of compliance with the provisions of this present Statutory Order. The audit instruction may further contain guidelines for the auditor’s reporting.91.- On request Dansk Retursystem A/S and the auditing company shall forward any information to the Danish Environmental Protection Agency for use for the Agency’s supervision and enforcement of the Act and the rules in this present Statutory Order, including concerning irregularities in connection with the administration of the schemes

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covered by this Statutory Order. Dansk Retursystem A/S and the auditing company shall further pass on information on their own initiative to the Danish Environmental Protection Agency if the information is of significance for the Agency’s supervision and enforcement.

(2) On request Dansk Retursystem A/S and the auditing company shall provide and supply information and documentation of any kind concerning the administration of the deposit and return system and the company’s affairs otherwise to the Danish Environmental Protection Agency and shall carry out investigations and calculations considered necessary by the Agency for the purpose of the authorities’ control, including checks on deposits, fees and handling remuneration.

Part 11

Supervision and appeals

92.- The Danish Environmental Protection Agency shall supervise compliance with the regulations of this present Statutory Order, cf. however subsections (2)-(4).

(2) The local council shall supervise the handling of packaging waste from dealers, etc., which is not collected by Dansk Retursystem A/S and packagings that can no longer be reused, cf. Section 5(2).

(3) The local council directs the waste for reuse mentioned in subsection (2) in accordance with the rules in this Statutory Order on waste.

(4) Dansk Retursystem A/S, by random sampling, keeps current control of compliance with the rules on marking of disposable packaging, collection and repayment of deposits, and providers’ registration with Dansk Retursystem A/S. The control shall be carried out through observations at places to which there is general public access.

93.- The Minister for the Environment’s powers in accordance with Section 9 a (3)3 and Section 9 f (1) of the Act shall be exercised by the Danish Environmental Protection Agency.

(2) The Danish Environmental Protection Agency may grant exemption from the rules of this present Statutory Order. The Danish Environmental Protection Agency may in this connection decide that certain specific rules shall be complied with.

94.- Dansk Retursystem A/S’s decisions in accordance with this present Statutory Order may be appealed to the Danish Environmental Protection Agency, cf. Section 9 f the Danish Environmental Protection Act. The appeal period is 4 weeks from the date on which the decision is notified to the appellant.

(2) Decisions by the Danish Environmental Protection Agency in accordance with this present Statutory Order cannot be brought before any other administrative authority.

(3) Decisions by Dansk Retursystem A/S in accordance with this present Statutory Order shall be notified in writing to the addressee. The reasons for the decision shall be stated. The reasons shall refer to the legal rules in accordance with which the decision was made. Where the decision is based on an administrative assessment in accordance with these rules the reasons shall also state the primary considerations that determined the result of the assessment. The decision shall contain information stating that the

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decision may be appealed within 4 weeks to the Danish Environment Protection Agency and that the appeal must be made in writing.

(4) If Dansk Retursystem A/S is in possession of information with which a party cannot be assumed to be familiar in respect of the actual circumstances, Dansk Retursystem A/S must not make a decision until the party in question has been made aware of the information. However, this will only apply if the information is not in favour of the party in question and is of substantial significance for the case.

Part 12

Penalty provisions

Section 95.- Except where more severe punishment is carried under other legislation, a fine shall be imposed upon any party who 1) fails to register himself or to register packaging with Dansk Retursystem A/S, cf.

Section 6, and Section 8,2) fails to collect or repay deposits or uses deposit rates other than those specified in

Section 3, Section 10 and Section 12, or repays deposits contrary to The Danish Environmental Protection Agency’s decision in accordance with Section 13(1),

3) fails to accept returned packaging, cf. Section 3(5) and (6),4) fails to ensure that refillable packagings are included in a deposit and return system,

cf. Section 5(1), 5) disposes of packaging in contravention of Section 5(2), or Section 59(4),6) fails to comply with requests by the authorities to provide information, carry out

investigations and calculations, cf. Section 14, 7) fails to keep accounts of packagings supplied, cf. Section 3 (2),8) fails to report packagings supplied, cf. Section 36 and Section 37,9) disregards the instructions given by Dansk Retursystem A/S concerning the

operation, maintenance and safety of compressors, cf. Section 53(3),10) markets disposable packaging contrary to Section 9(3) or without the prescribed

deposit marking or carries out marking of packaging in contravention of the rules, cf. Section 55, cf. Annex 5, Section 57, Section 98(2), and Section 100,

11) enters into an agreement with the auditing company in contravention of Section 76, or makes an agreement with an operator in contravention of Section 63(5) and (6),

12) passes on, processes or stores information in contravention of Section 38(3), Section 77(4), or Section 81,

13) fails to take precautions to avoid damage to disposable packagings, cf. Section 59(3), or fails to make registration in accordance with Section 49(2),

14) fails to provide information to the auditing company or the Danish Environmental Protection Agency, cf. Section 79,

15) fails to separate disposable packaging, cf. Section 61(2),16) fails to pass on information to the Danish Environmental Protection Agency, cf. 80, 17) fails to take the necessary precautions to ensure correct and adequate settlement of

deposits on disposable packagings, cf. Section 61(5),18) disregards an order to cease cooperating with the auditing company, cf. Section

81(3), or continues the cooperation with an operator in contravention of Section 63(6),

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19) fails to record or incorrectly records on invoices or fails to keep accounts of returned empty refillable packagings, cf. Section 40,

20) fails to report returned empty refillable packagings, cf. Section 41,21) stores, copies or otherwise makes information available in contravention of Section

63(7),22) pays costs other than for the purposes stated in Section 69,23) pays costs via fees, deposits credited as income or other income for purposes other

than those are permitted under this Statutory Order, cf. Section 16, Section 18(2), Section 21, Section 25(1), Section 26(2), and Sections 66-68,

24) fails to invite tenders or invites tenders in contravention of Section 72, 25) carries on other business, takes on obligations or implements activities without

approval, cf. Section 74, 26) contravenes conditions laid down by the Danish Environmental Protection Agency

in an approval, cf. Section 74(3) or exemption, cf. Section 93(2),27) takes out loans for purposes or on terms not approved by the Danish Environmental

Protection Agency, pledges assets or acquires real estate or buildings not approved by the Danish Environmental Protection Agency, cf. Section 75,

28) fails to notify the Danish Environmental Protection Agency of a change of ownership of Dansk Retursystem A/S, cf. Section 82(2),

29) fails to provide written material and documentation as specified in Section 83(3) and (5) or fails to provide assistance, cf. Section 83(3) and (6),

30) fails to prepare up and submit annual reports, interim reports and budgets and budget follow-up, cf. Sections 84-87,

31) disregards guidelines laid down by the Danish Environmental Protection Agency concerning the preparation of budgets and budget follow-up, cf. Section 87(5) and Section 60(2),

32) records costs and income in contravention of the business practices laid down, cf. Section 88, cf. Section 89,

33) fails to inform the Danish Environmental Protection Agency of substantial departures from budget, cf. Section 87(6), or changes in the company’s recording of transactions, cf. Section 89,

34) carries out work or reporting in contravention of a control instruction laid down by the Danish Environmental Protection Agency, cf. 90,

35) fails to provide or submit information and documentation or to carry out investigations at the request of the Danish Environmental Protection Agency, cf. Section 91, or

36) submits incorrect or misleading information in accordance with the rules in this present Statutory Order.

(2) The penalty may be increased to imprisonment for up to 2 years if the infringement was committed wilfully or by gross negligence or if a financial advantage was aimed at or achieved for the person himself or others, including savings, through the infringement.

(3) Companies etc. (legal entities) may be subjected to penalties in accordance with the rules of Part 5 of the Danish Criminal Code.

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Part 13

Entry into force and transitional provision

96.- This present Statutory Order shall enter into force on 4 September 2002 and shall be automatically repealed on 4 September 2008 unless determined otherwise.

(2) With effect from the entry into force of this present Statutory Order the Ministry of the Environment’s Statutory Order No 1116 of 21 December 2001 shall be repealed, however cf. Sections 97-99.

97.- Applications for investment subsidies submitted in accordance with Section 34 of the Ministry of the Environment’s Statutory Order No 1116 of 21 December 2001 prior to the entry into force of this present Statutory Order shall be fully processed in accordance with the rules in the Ministry of the Environment’s Statutory Order No 1116 of 21 December 2001.

(2) Applications for subsidies submitted in accordance with Section 38 of the Ministry of the Environment’s Statutory Order No 1116 of 21 December 2001 shall be fully processed in accordance with the rules of Statutory Order No 1116. Costs in this connection and subsidies granted after the entry into force of this Statutory Order shall to the necessary extent be included in the calculation of logistics fees in accordance with this Statutory Order.

(3) The rules of Sections 37-40 of Statutory Order No 1116 of 21 December 2001 on repayment of subsidies shall apply to subsidies granted in accordance with the rules of Statutory Order No 1116 of 21 December 2001.

(4) Other pending cases and appeals shall be fully processed in accordance with the rules of this present Statutory Order.

(5) The collection of fees and payment of handling remuneration for the period up to 22 September 2002 shall be carried out in accordance with the rules in Statutory Order No 1116 of 21 December 2001. Collection of fees in accordance with this Statutory Order shall take place with effect from 23 September 2002 and shall cover a period of 6 weeks up to 4 November 2002. The first report about sale and supply of packagings, which is to be made to the auditing company in accordance with the rules of Section 36 and Section 37, cf. Section 38, shall similarly comprise a 6-week period from 23 September until 4 November 2002.

(6) Subsidies paid out and approved by Dansk Retursystem A/S in accordance with the rules of Statutory Order No 1116 of 21 December 2001 shall be deducted from the total subsidy framework of DKK 260m for investment subsidies, cf. Section 42(4).

(7) For the 2002 financial year amounts shall be calculated in accordance with Section 71 for the period 1 January 2001 until the end of the financial year.

(8) Dansk Retursystem A/S’s internal annual report for 2002, cf. Section 85, shall contain a break-down of the activities for the periods from the beginning of the financial year and up to and including 24 March, from 25 March up to an including 22 September 2002 and a period comprising the remaining part of the financial year.

(9) Infringement of the regulations, conditions and terms laid down pursuant to Statutory Order No 1116 of 21 December 2001 shall be punished in accordance with the rules applicable to date.

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98-. Registration of providers, distributors and grocery stores with Dansk Retursystem A/S which took place in accordance with the rules of the Ministry of the Environment’s Statutory Order No 1116 of 21 December 2001 shall be effective in accordance with the rules of this present Statutory Order, cf. Section 6 and Section 7.

(2) Packaging types and product types that are to be registered with Dansk Retursystem A/S, cf. Section 8, and which are sold and supplied on the date of the entry into force of this present Statutory Order shall be registered with Dansk Retursystem A/S by 22 September 2002. Packagings that art not sold or supplied until after 22 September 2002 shall be registered with Dansk Retursystem A/S in accordance with the rules of Section 8.

(3) Disposable packagings sold or supplied in this country shall not later than 1 December 2002 comply with the requirements of this Statutory Order laid down for marking of disposable packaging, cf. Section 55 and Annex 5.

(4) No registration fee as described in Section 18 shall be collected for registrations carried out before 1 December 2002.

99.- Dansk Retursystem A/S may transfer activities which can be financed by fees as described in Section 8 and Section 10 of Statutory Order No 1116 of 21 December 2001 to the fee schemes in accordance with the rules of this Statutory Order.

(2) A transfer in accordance with subsection (1) shall take place with effect from 23 September 2002, and the transfer shall be made at values as they are made up at that time, cf. the provisions of Statutory Order No 1116 of 21 December 2001.

(3) The Danish Environmental Protection Agency may approve other activities being transferred to Dansk Retursystem A/S carried out during the period prior to 23 September 2002, if the activities can be financed in accordance with the rules of this present Statutory Order concerning fees and deposits credited as income.

(4) A transfer in accordance with subsection (3) shall take place with effect from 23 September 2002, and the transfer shall take place at the costs defrayed, which according to the rules of this Statutory Order can be included in the fee calculation or be expected to be covered by deposits credited as income.

(5) The transfer in accordance with subsections (1)-(4) shall be based on an audited balance sheet as of 22 September 2002.

(6) The Danish Environmental Protection Agency may determine that the balance sheet mentioned in subsection (5) shall contain more specific information.

(7) The balance sheet described in subsection (5) shall be signed by the persons stated in Section 8(1) of the Danish Annual Accounts Act and sent to the Danish Environmental Protection Agency by 23 November 2002.

100.- Disposable packagings must be sold and supplied with the marking prescribed in Section 55, cf. Annex 5, on 23 September 2002 at the earliest.

Ministry of the Environment, August 24, 2002

Hans Chr. Schmidt

/Helge Andreasen

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Annex 1

Calculation of handling remuneration

1. Introduction

Handling remuneration is the payment for sorting that is paid in accordance with the rules of this present Statutory Order, cf. Section 2 17). The handling remuneration is to reflect the costs of the time spent (converted into wage costs) that can be related to sorting packagings for beer and soft drinks at registered grocery stores, cf. Section 30 of the Statutory Order.

As a starting point, the calculation shall encompass all the operations carried out by bottle boys and store staff in connection with the handling of the returned packagings, which cause a handling remuneration to be paid.

Where a grocery store or a middleman has been made more efficient using investment subsidies, cf. Section 42 of the Statutory Order, the handling remuneration is reduced for the returns groups (returned packagings) handled and sorted by the store. Two sets of calculation conditions are therefore used in respect of handling remuneration.

1. Definitions

Normal handling remuneration: Amounts of handling remuneration paid to grocery stores which have not be made more efficient using subsidies from Dansk Retursystem A/S.

Reduced handling remuneration:

Handling remuneration paid to grocery stores that have been made more efficient and have received efficiency subsidies from Dansk Retursystem A/S.

Packaging type: Packagings for beer and soft drinks made of the same material and having the same volume and shape (design). Each packaging type marketed by a producer or importer registered with Dansk Retursystem A/S is assigned a number by the company.

Returns group: Empty refillable packagings for beer and soft drinks for which Dansk Retursystem A/S is to pay the same amount for “normal” respectively “reduced” handling remuneration. Each returns group is allocated a number. One or more packaging types may be placed within a single returns group.

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3. Returns groups and rates of handling remuneration

At the time of entry into force of the Statutory Order three returns groups are established, cf. Section 39:

1. glass bottles 2. plastic bottles of not more than 99 cl 3. plastic bottles of more than 99 cl

For each of these returns groups a normal handling remuneration and a reduced handling remuneration are paid depending on whether the packaging is returned to and sorted in a store (B) that has not had its efficiency increased using subsidies from Dansk Retursystem A/S or in a store (A) that has been made more efficient using subsidies.

Normal handling remuneration (B stores)

Reduced handling remuneration (A stores)

1. Glass bottles 2.7 øre per bottle 2.5 øre per bottle2. Plastic bottles of not more than 99 cl

5.2 øre per bottle 4.0 øre per bottle

3. Plastic bottles of more than 99 cl

7.3 øre per bottle 6.2 øre per bottle

Dansk Retursystem A/S will on an ongoing basis prepare an updated list of the packaging types belonging to each returns group. The rates for reduced handling remuneration shall apply until new rates are set in accordance with the guidelines in sections 5 or 6.

4. New packaging types

On registration of a new packaging type for beer and soft drinks, Dansk Retursystem A/S will place the packagings in the returns groups, cf. Section 33 of the Statutory Order.

If a producer, importer or Dansk Retursystem A/S considers that the placement of a new packaging type in one of the existing returns groups does not give a fair picture of a reasonable handling remuneration, the producer, importer or Dansk Retursystem A/S is entitled to have clarified whether – based on an analysis of the packaging’s handling costs – a new returns group (handling remuneration rate) is to be established or whether the packaging can be placed in one of the existing returns groups, cf. Section 33.

5. Normal handling remuneration

Preliminary testBefore a costing analysis is started for a newly registered packaging type Dansk

Retursystem A/S will carry out a preliminary test in a test environment to indicate whether a costing analysis is to be carried out in standard stores.

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In preliminary testing of a new packaging type the costs of handling and sorting are analysed. If the difference in the handling costs in the preliminary test is more than that 0.5 øre compared with the preliminary test results of the current packagings, a costing calculation is to be carried out in standard stores.

The preliminary test is carried out in a test establishment with a prototype system consisting of a reverse vending machine and sorting table (automatic stores) and manual return reception (manual stores) respectively. One or more practised bottle boys or girls are used as operators.

Standard storesIf the preliminary test causes an analysis to be carried out in standard stores, this

shall take place in Dansk Retursystem A/S’s 20 standard stores with 4 stores within each of the following 5 store groups. Dansk Retursystem A/S shall be responsible for store grouping based on the division and conditions below.

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1. Department stores - Stores that in addition to a supermarket section also have extensive sales of non-food products (textiles, hardware, kitchen equipment, etc.).

- The stores often also sell a range of consumer durables.

- Turnover per store is normally in excess of DKK 100m per year including VAT.

- The quantity of bottles returned per store is normally a minimum of 1.5m bottles per year.

2. Large supermarkets - Large self-service stores with a full range of food.

- Turnover per store: typically DKK 50m - DKK 100m per year including VAT.

- Quantity of returned bottles per store: typically 1.0m – 2.0m bottles annually.

3. Small and medium-sized supermarkets

- Self-service stores with a full range of food.

- Turnover per store: typically DKK 10m – 50m per year including VAT.

- Quantity of returned bottles per store: typically 300,000 – 600,000 bottles annually.

4. Discount stores - Discount stores carry a limited range of grocery products sold at permanently low prices. The location of the store is often similar in nature to convenience stores.

- Turnover per store: typically DKK 15m – 40m per year including VAT.

- Quantity of returned bottles per store: typically 300,000 – 600,000 bottles annually.

5. Kiosks, minimarkets, filling stations, etc.

- Convenience stores that normally have a traditional range of impulse goods and basic groceries. The stores are often situated in densely-populated urban areas or in small towns (rural areas).

- Turnover per store: typically less than DKK 15m per year including VAT.

- Quantity of returned bottles per store: typically 50,000 – 300,000 bottles annually.

The representation in the analysis of stores belonging to store chains is ensured by the fact that stores representing various chains of stores are selected within each store group.

The geographical distribution within the store groups and the store chains is secured by a suitable distribution of the standard stores east and west of the Great Belt.

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The standard stores are the 25% most efficient in each of the above-mentioned 5 store groups with regard to the costs of handling and sorting and have been chosen on the basis of a total analysis body of 80 stores with 16 stores in each store group. The standard stores selected are used for 3 years from the entry into force of the Statutory Order, after which new stores shall be selected.

The distribution of automatic stores (A) and manual stores (B) shall take place in accordance with Dansk Retursystem A/S’s classification per store group and on the basis of the distribution of returned packagings to class A and class B stores.

In addition, Dansk Retursystem A/S shall establish an independent standard group of middlemen with a permanent place of business from which a wide range of groceries is sold to the extent necessary. The standard group shall be established with a view to setting a special handling remuneration for this store group and shall be selected as the 25% most efficient with regard to the costs of handling. The standard group shall be used for a maximum of 3 years, after which a new standard group shall be selected.

Calculation assumptionsNew packaging types are analysed on the basis of the same calculation assumptions

(wage/distribution keys etc.) as all previously analysed packagings. Standard figures expressed as shown below are used to calculate the handling costs.

Standard figures are used at 2 levels:1. across stores 2. in individual stores

Across stores UnitNumber of loose bottles on bottle table

Bottles per m2

Number of crates/boxes on roller conveyor

Crates/boxes per m2

Share of fixed non-attributable costs (NAC) in time for bottle boy (BB) in manual stores

Percent

Share of NAC time for store staff (SS)

Percent

Hourly pay of bottle boy (BB) DKK 48.80 per hourHourly pay of store staff (SS) DKK 92.20 per hour exc. holiday payDistribution of quantities of returns morning/afternoon

Percent

Distribution of quantity of returns per weekday

Percent

SS service time: minimum per reverse vending machine per hour

Min. per hour

In individual storesDistribution BB/SS PercentDistribution of loose bottles and bottles in crates/boxes

Percent

Walking time BB and SS – manual Sec. per bottle

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stores only

Calculation of normal handling costThe analysis encompasses time studies of all operations carried out in connection

with the reception of returned packagings in each of the individual standard stores. The handling times for the stores are divided into 22 sub-operations, covering both

stores with and without reverse vending machines. Those of the sub-operations that are used in a given standard store are studied in respect of the time taken using uniform methods and principles.

The handling costs are divided into

- fixed non-attributable costs (NAC) and- variable attributable costs (AC) for the individual packaging types.

Fixed costs (NAC) are distributed to the individual cost carriers (in this instance the returns group) on the basis of a distribution key.

Variable costs (AC) are distributed directly to the individual cost carrier (in this instance the returns group).

Fixed costs (NAC) The handling times for the fixed non-attributable costs are divided into 8 sub-

operations:

- Standing bottles on belt (stores with reverse vending machine only).- Pushing bottles away (stores with reverse vending machine only).- Moving crates/boxes or goods.- Customer-service/changing of till roll.- Planning (stores with reverse vending machine only).- Clearing up.- Looking for crates/boxes.- Waiting time.

The time taken for the handling operations that cannot reasonably be attributed to a particular returns group is distributed to the individual returns groups based on their share of total operating time in the store and their share of the packagings returned to the store (over the past 12 months).

Variable costs (AC)The variable attributable costs are found by carrying out time studies of all

operations that are carried out in connection with the acceptance of returns and sorting of packagings in each store, and which can be directly attributed to this.

The handling times for the variable costs are divided for all stores into 14 sub-operations, covering both stores with and without reverse vending machines:

- Move crate/box on to belt or table.- Receive bottles from customer including sorting in crate/box.- Receive crates/boxes from customer.- Print out bottle receipt for customer.

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- Place empty crate/box on belt.- Sorting in crates/boxes.- Move crates/boxes from conveyor belt to pallet or floor.- Sort bottles from bags/crates/boxes/customer trolleys.- Move crates/boxes to palleting point.- Placement of crates/boxes on single-type pallets/mixed pallets.- Transportation to back yard/store/shed/basement.- Sorting and palleting of mixed pallets into single-type pallets.- Tying up.- Transportation of pallets from back store to point of collection.

Calculation methodThe handling costs per store are always calculated on the basis of the same

principles. The variable operation times are added to the NAC time and converted into handling costs using the percentage distribution for bottle boy/store staff, morning/afternoon, weekday as well as a weighted hourly pay for each store group.

In store groups encompassing both stores with and without reverse vending machines an internal weighting is first carried out of the handling costs for automatic stores and manual stores individually. The handling costs are then weighted for each of the two groups relative to the quantities of bottles returned at a national level.

The final standard handling cost is calculated across the store groups 1 – 5 mentioned in section 5 based on a weighting of the bottle quantities.

When Dansk Retursystem A/S has calculated the handling remuneration for a new packaging type the packaging is placed into the rate table below. It is placed in accordance with the normal principles for rounding up and down. If the handling costs of a new packaging have been calculated in a standard analysis at 3.8, for example, the packaging will be given a handling remuneration rate of 4.0 øre.

If the rate of 4.0 øre is already being used by other packagings registered previously, no new returns group is established.

Handling remuneration in øre per item of packaging2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5

6. Reduced handling remuneration

The handling remuneration for stores that have received investment subsidies is calculated on the basis of the same principles and calculation assumptions as described for normal handling remuneration. However, only time studies in standard stores with reverse vending machines and automatic sorting facilities etc. are used as a basis. Only once 16 stores in each of the store groups 1-2-3-4 have been made more efficient will time studies be carried out in Dansk Retursystem A/S’s standard stores. Until the pool of 64 standard stores has been established the rates below shall be used for the reduced handling remuneration. The cost and rates were established on the basis of analyses carried out in a test environment.

Reduced handling remunerationPackaging type Glass bottles Plastic bottles not Plastic bottles of

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more than 99 cl more than 99 clØre/bottle 2.5 øre 4.0 øre 6.2 øre

When the calculation conditions for the normal handling remuneration are revised the calculation assumptions for reduced handling remuneration are revised at the same time.

7. Who carries out the analysis?

Analysis of a packaging’s handling costs with a view to clarifying whether a new returns group (handling remuneration rate) is to be established or whether the packaging can be placed in an existing returns group is carried out by Dansk Retursystem A/S.

8. Documentation

General calculation methods and principles for establishing handling remuneration can be provided by Dansk Retursystem A/S on request. The associated documentation for Dansk Retursystem A/S’s calculation of handling remuneration etc. for new packaging types both using preliminary testing and where standard stores are used will similarly be supplied by the company on request.

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Annex 2

Functional and technical requirements of subsidised facilities

1. General circumstances

Investment subsidies as described in Section 42 of the Statutory Order will be paid i.a. on condition that facilities etc. meet the functional and technical requirements stated in this Annex.

The specifications of requirements are described as functional requirements such that the technical solution is designed by the actual supplier.

The total system is made up of five sub-components including a central control unit. Requirements of four sub-components are covered in this annex. The four sub-components are as follows:

- Reverse vending machine for reception of loose packagings.- Sorting facility for sorting of packagings.- Containers for collection of loose metal and plastic packagings.- Emptying system for full containers.

The reverse vending machine carries out identification and control of packaging, settlement with the customer and communication with the central control unit. The sorting facility receives information from the central control unit for sorting of packaging. In connection with the sorting the loose plastic bottles are placed in containers while glass packagings are sorted out vertically, as are plastic packagings without a cap. Refillable plastic packagings are transferred from the full containers to crates/boxes/trays via an emptying system.

The total efficiency improvement concept is based on reduction of the handling costs in connection with returns reception and sorting of packaging in the store’s bottle department.

Dansk Retursystem A/S has developed a proposal for a complete sorting system consisting of a sorting facility, containers and emptying system. The particular specifications that apply to this facility in particular are described in Annex 2.2 and form a supplement to the other requirements, cf. sections 3, 4 and 5 of this Annex as well as Annex 2.1.

A sub-component that departs from the specifications in Annex 2.2 shall not be entitled to subsidy unless the sub-component forms part of a complete sorting system comprising a sorting facility, containers and emptying system as well as coordination with a reverse vending machine.

The control requirements shall comply with a three-part control model with separate control for the reverse vending machine, sorting facility and central control.

The control model may be regarded as a closed circuit in which the contact (input/output) with Dansk Retursystem A/S takes place via the central control unit and in which both the reverse vending machine and the sorting facility receive input from the central control unit.

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The three controls shall support the P-Net standard in the European CENELEC standard: EN 50170.

All sub-components are independent of each other and therefore several different makes can be combined without changing the control unit and program. The bus standard P-NET in EN 50170 and specified interfaces are used for this.

Communication with Dansk Retursystem A/S or the central server (IT-operator) takes place via a central control unit with built-in security against accidental access to and correction of data.

Annex 2.1 contains overall requirements, some of which apply in general to all sub-components and some specifically to individual sub-components. The requirements shall be met irrespective of whether there are no direct references to this in the following.

2. Reverse vending machine and reception of packaging

The specifications apply to all reverse vending machine types for loose packagings.

2.1 FunctionsThe reverse vending machine shall be capable of receiving all disposable

packagings and refillable packagings covered by the Statutory Order.

- Identification of the packaging shall take place on the basis of scanning of bar codes.

- Shape recognition shall be carried out for control purposes.- The shape recognition shall be built-in from the start or may be retrofitted.

Acceptance or rejection shall take place by reference to a database of registered packaging shapes and approved EAN 13, EAN 8 and UPC article numbers in the central control unit as well as a tolerance specified in respect of shape recognition.

Dansk Retursystem A/S will supply up to 200 different packaging shapes that the suppliers must then read in and record in the reverse vending machines before erection in the individual stores. A suitable number of examples of each packaging shape will be supplied. The approval principle is shown by the diagram below:

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The functional requirements of the reverse vending machine are:

- Indication of wrong packaging orientation (bottle neck or can opening first). Correct orientation is with the bottom first.

- Bar code scanning of EAN/UPC number. As a minimum the following bar code types, the quality and size being in accordance with EAN Danmark’s guidelines, shall be able to be read: EAN 13, EAN 8 and UPC.

- Scanning of vertical and horizontal bar codes printed on labels or directly on the packaging.

- Shape recognition of 200 packagings from the start and a further 100 that shall be able to be read in after the machine has been placed in the store.

- Positioning and access to control cabinet, main switch, etc. with regard to sorting facility.

- It shall be possible to handle up to 4 extra signals for identification and control of packagings.

- Cap check of the cap shapes on refillable bottles with screw caps know at the entry into force of the Statutory Order.

- An error function shall be notified to the central control unit. As an option 80 characters of description may be sent as well.

- There shall be space for mounting measuring device(s) in the reverse vending machine. The available space provided shall have the minimum dimensions: length 250 mm, width 80 mm and height 150 mm. The packaging shall be received and measured in the horizontal position.

As option (not requirement):- Weight check for filled packagings. The weight check can be carried out per

packaging (EAN/UPC number) and as a permanent set value.

When choosing a reverse vending machine to suit the sorting facility designed by Dansk Retursystem A/S the following shall be observed:

- Height for access to sorting belt: 1,300 mm +0/-50 mm.- Delivery of packaging in horizontal position to the sorting system.

2.2 Control The control of the reverse vending machine deals with shape recognition, bar code

scanner, packaging orientation, cap check, as well as customer display and printer for deposit receipt. The reverse vending machine communicates with the central control unit which checks in the EAN/UPC database for validation of all criteria in order to accept or reject the packaging. A signal is sent to the central control unit. The reverse vending machine’s control unit shall be capable of communicating using the P-NET standard. It is not necessary for the control of the printer and display to support the P-NET standard.

2.2.1 Functions- Transportation of packaging from delivery by customer to sorting facility.- Scanning of the packaging’s bar code.- Identification of packaging shape.

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- Acceptance or rejection of packagings by reference to file in central control unit.- Cap check in case of refillable plastic packagings.- Prepared for up to 4 signals that are sent to the central control unit for identification

and control of packagings.- Display for customer information.- Printing of deposit receipt including calculation of deposit amount and generation

of serial number.- Service/support for external error analysis and remedial work may be carried out via

separate modem in the machine. This modem must not have access to the closed circuit and the three-part control between the machine, sorting facility and central control unit.

- Troubleshooting must not be capable of correcting the database and the records in the central control unit.

- Back-up of serial number in EAN 13 bar code deposit receipt. Must not start again from the beginning in the event of power failure.

- Facility for printing statistics of packagings received with the following information as a minimum: period, number of packagings per deposit amount and total amount of deposit paid out.

As option (not requirement):- Weight check.- Communication between reverse vending machine and the store’s cash terminal

systems with a view to ensuring correct settlement of the individual bottle receipt.

2.3 Customer informationThe customer information shall consist of instructions in a display, a deposit receipt as well as any text on the front of the reverse vending machine.

2.3.1 DisplayThe customer shall be given instructions via the display in how to use the reverse vending machine when delivering packaging, notification of whether the packaging has been accepted or rejected as well as the deposit amount for each approved packaging and the total deposit amount. The display shall be easy to read.Interface: P-NET or chosen by supplier.

2.3.2 Deposit receiptOn completion of delivery of return packaging the customer shall have a deposit receipt printed. All packagings received – both that on which a deposit is paid and that on which no deposit is paid – shall be given a deposit code and printed on the receipt.

2.3.3 Printer requirements - Activation of printer by pressing a “deposit button” with automatic printing after a

programmed time-out.- Printer type: e.g. thermal printer.- Printing of EAN 8, EAN 13 and UPC/EAN 128 bar code symbol.- Recommended types of thermal paper and till roll width to be specified and shall

not restrict user to the supplier’s own products.

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Interface: P-NET or chosen by supplier.

2.3.4 Deposit receipt information- Reverse vending machine no. (n2), machine serial no. (n5).- Date and time.- Number of packagings per deposit amount and total deposit amount.- EAN 13 bar code with the following content:

- Code ID: 20 (n2).- Consecutive number (article number: (n4)- Total deposit amount: (n6) to 2 decimal places.- Check digit: (n1).

2.4 PerformanceThe performance of the machine encompasses capacity and recordings.- Minimum machine capacity 30 packagings per minute. A maximum of 2 seconds

shall be taken for identification and transportation per packaging.- The read rate for the scanning system shall be min. 99% for codes within

specification (grade A or 1).- Shape recognition shall be capable of being carried out with 95% certainty on a

selected number of packagings.

3. Sorting facilityThe sorting facility shall be capable of receiving all disposable packagings and

refillable packagings covered by the Statutory Order.Sorting shall take place on the basis of information from the central control unit via the P-NET standard.

3.1 Functions- Sorting into various ports based on information from the central control unit.- Transportation and sorting out of refillable bottles shall take place without wear.- Maximum drop for refillable plastic bottles: 1.3 m.- Sorting out of refillable plastic bottles without a screw cap and glass bottles in the

vertical position from a sorting port.- Positioning and access to control cabinet, main switch, etc. taking into consideration

access to reverse vending machine and containers.- Any error function on the sorting belt shall be notified to the central control unit. 80

characters of description may be sent as well.- Possibility for different facility sizes.- Possibility of later replacement of container with compressor on a given sorting

port.- Possibility to establish a closed system for transportation of disposable packaging

from machine to compressor such that it is not possible to remove packaging after recording until compression has been carried out.

3.2 ControlThe control unit in a sorting facility shall be capable of receiving signals from a

central control unit concerning the sorting such that the packagings can be sorted into the defined containers based on the EAN number, packaging type and whether they have a cap.

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The sorting facility’s control unit shall be capable of communicating using the P-NET standard.

3.3 Performance- Capacity: min. 40 packagings/min.An error function on the sorting belt shall be capable of being communicated to the central control unit.

It shall be possible to continue machine function enabling the customer to deliver packagings even if the sorting does not work. In this event the packagings shall continue onto a table where the packagings are placed in a vertical position. It must be possible to place the sorting facility in a special mode such that there is no communication with the central control unit for the allocation of a sorting port.

4. Containers for collecting packagings Containers shall be capable of collecting packagings made of plastic and metal.For safety and environmental reasons glass packagings should not be collected in

the way described below.Refillable plastic bottles shall be treated gently so as to minimise impact and wear.

Containers shall be designed such that the bottles to not get stuck to the sides. The maximum drop for refillable plastic bottles is 1.3 m.

4.1 FunctionsThe containers shall be designed in accordance with the size of the sorting facility

and shall meet the following functional requirements as a minimum:- Minimum volume of a container: 0.18 m3.- It shall be possible to transport the sorted packagings to an emptying system for

overflow, either by moving containers or by transfer of all packagings at once.- The containers shall be made of material that is easy to clean and meets the

requirements of gentle treatment of the packagings.- The containers shall be provided with a connector/tap or similar for emptying the

liquid in connection with cleaning.

5. Emptying systemThe emptying system shall in particular allow easy transfer of the refillable plastic

bottles from the container to the respective crates/boxes and trays for return of the packagings to the supplier and distributor.

5.1 FunctionsThe emptying system shall meet the ergonomics requirements of the Danish

Working Environment Service with regard to working height, reach and safety provisions:- The packagings shall thus be placed at the correct working height for the bottle boy

or girl, irrespective of the quantity of packaging.- It shall be an electrically driven system.

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Annex 2.1

Overall requirements

This Annex covers overall requirements of facilities etc., cf. Section 42 and Annex 2, in relation to design principles, service and maintenance, compliance with standards, safety provisions, CE marking, declarations of conformity and documentation. Some apply in general to all sub-components. It also states for each sub-component (reverse vending machine, sorting facility, containers and emptying system) the relevant standards that apply specifically to the sub-component in question.

General:- Documentation in Danish comprising:

- Functional description.- Technical description stating e.g. noise level.- Design and principle drawings.- Component overview.- Electrical diagrams.- Safety review.- Operating instructions/instructions for use.- Service operator manual.- Maintenance instructions.- Troubleshooting and remedial measures.

- CE marking, declarations of conformity, safety inspections and instructions for use shall be drawn up and signed by the producer/supplier.

- Construction using standard components (machine parts that can be bought from a supplier with the article number) and standard materials (generally known materials that are generally available).

- Operating principle/mains voltage: electric motors 220 V or 24 V. Other operating principles, e.g. pneumatic or hydraulic, will not be approved.

- Humidity: max. 90% RH.- Minimum maintenance, cf. Machinery Directive L 207, volume 41, section L

207/18, section 1.6.- Replacement of modules and components using standard tools.- Noise level < 70 dB(A).- CE marking in accordance with EMC 89/336/EEC standards for emission EN

50081-1, and immunity EN 50082-2 for high frequency, and EN 61000-3-2 and EN 61000-3-3 for low frequency.

- EN 55022 Limits and methods of measurement of radio disturbance characteristics of information technology equipment.

- Compliance with EU Machinery Directive 98/37/EC implemented by the harmonised standards DS/EN 292-1, 292-2 and 294:- DS/EN 292-1: 1992: Machine safety – Definitions, general principles of

planning, construction and design. Part 1: Basic terminology, methodology.- DS/EN 292-2: 1992: Machine safety – Definitions, general principles of

planning, construction and design. Part 2: Technical principles and specifications.

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- DS/EN 294: 1992: Machine safety – Danger zones and safety distances. Protection of hands and arms.

- Compliance with the provisions concerning electrical equipment on machines in the harmonised standard DS/EN 60204-1.

- Compliance with the provisions and guidelines of the Ministry of Employment concerning manual handling and youth work, concerning design, including design of machines and fitting-up of the workplace from which sorting work, etc., is carried out.

Reverse vending machine:- prENV 12646, Bar Coding – Test specifications – Bar Code Scanners and decoders

(1996).- prENV 12648, Bar Coding – Test specifications – Bar Code Printers (1996).- N 0309, Bar Code Print Quality Test Specification – Linear Symbols (formerly

prEN 1635).- EAN Manual 2000 for EAN, UPC and UPC/EAN 128 bar code symbols and

specifications.- EN 60825-1 – Safety of laser products; part 1: equipment classification,

requirements and user’s guide.- Bus system P-NET to EN 50170.- Functional description of software interface in accordance with UML (Unifies

Modeling Language).- Compliance with the Low Voltage Directive 73/23/EØF.- Temperature requirements: 5 – 40 °C.

Sorting facility:- Bus system P-NET to EN 50170.- Functional description of software interface in accordance with UML (Unifies

Modeling Language).- Compliance with the Low Voltage Directive 73/23/ EEC.- Temperature requirements: 5 – 40 °C.

Containers:- Temperature requirements (working): 5 – 40 °C.- Temperature requirements (storage): -10 – 40 °C.

Emptying system:- Compliance with the Low Voltage Directive 73/23/EEC.- Temperature requirements: 5 – 40 °C.

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Annex 2.2

Requirements of sorting facilities, containers and emptying stations developed by Dansk Retursystem A/S

The following supplementary requirements which are specified for each sub-component apply to the facilities developed by Dansk Retursystem A/S. The requirements below shall always be compared with the functional and technical requirements in Annex 2. Drawings can be requested from Dansk Retursystem A/S.

Sorting facility:- Reception of returned packaging from reverse vending machine to the horizontal

position on the sorting facility.- Belt height: 1,300 mm +0/-50 mm.- Conveyor with one “divider” at 460 mm distance between sortings.- Possibility of sorting out glass bottles from any sorting port to a glass table instead

of sorting to a container.- Sorting for the end of the conveyor belt.

Containers:The following container dimensions shall be offered (mm):

A: 400 x 800 x 990 (W x L x H)B: 400 x 600 x 990 (W x L x H)C: 400 x 800 x 785 (W x L x H)D: 400 x 600 x 785 (W x L x H)

- 4 pivoting wheels Ø 75 mm + fork = 100 mm.- 3 fixed sides.- 1 loose side which can slide up/down in a guide rail on each side.- Top part of the loose side can be tilted out for easier removal of packagings.- Loose side remains upright at the bottom or is fixed to the floor or lift if necessary.- Weight load max. 75 kg.- The material shall be dimensionally stable with regard to the movement of the loose

front.- The material shall be resistant to general cleaning agents.

Emptying system:- Lifting height max. 1 m.- Lifting capacity 50 kg.- Single-handed operation for lifting/lowering of arms.- Lifting height 1000 mm.- Load: net 270 no. 0.5 l @ 60 gram = 16 kg, or 105 no. 1.5 l @ 120 gram = 13 kg +

extra if there is liquid in some of the bottles = 25 kg + container approx. 10 kg = approx. 35 kg gross.

- Adjusting screw under leg.- Stable positioning on floor, possibly with a non-slip surface under legs.- Overload safety device, e.g. 40 kg (less than the weight of a bottle boy or girl).

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- Up/down contact is placed on the side of the pillar, e.g. on arm leading around the side of the container.

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Annex 3

Investment subsidies for stores with reverse vending machine

Grocery stores entitled to handling remuneration (referred to in this Annex as subsidy recipients), which invested prior to 1 January 2001 in a reverse vending machine and receive at least 100,000 returned packagings annually are entitled to an investment subsidy, cf. Section 43(1)1).

The subsidy recipients are divided into 5 groups. There is a maximum amount framework set for each group for the subsidy per subsidy recipient, cf. Section 43 (3).

Investment subsidy may only be paid once to a subsidy recipient.On placement in groups account will be taken of the number of reverse vending machines already present on the subsidy recipient’s premises, cf. the division into groups below.

The number of sorting modules and containers for which the subsidy recipient may obtain a subsidy varies within the individual groups. In the case of groups 2, 3, 4 and 5 the principles below for the design of sorting facilities and calculation of the number of containers apply.

The placement of a subsidy recipient with one reverse vending machine in group 1 or 2 similarly takes place in accordance with the principles below regarding the dimensions of sorting facilities and calculation of the number of containers.

Principles for calculation of the number of containers and design of sorting facilitiesThe design of the sorting facility will be calculated on the basis of the number of

loose refillable plastic bottles and their distribution to packaging types that the store receives each day over a 6-day working week and based on an average observation for a year.

The number of containers and sorting modules for which subsidies may be obtained is calculated as follows:

Calculation basis for allocation of a container is that the container is filled up with loose bottles every 3 days on average.

Containers are divided into the following categories:

- A containers for one packaging type.- B containers for two packaging types of differing size and/or colour.- C containers for several packaging types.

The sorting facility is designed for the number of sorting modules that fits the number of containers. However, as a maximum one module (with associated containers) may be allocated per packaging type.

Design of the sorting facility can at the request of the subsidy recipient be deviated in individual cases, if this can be approved by Dansk Retursystem A/S. Within each of the five groups less than 6 modules can be chosen only, if the physical environment makes fitting-up with 6 modules impossible. Within group 6, subsidies will be granted in accordance with Section 43(3), if less than 8 modules are chosen.

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Group 1:Store with one reverse vending machine for loose packagings.The maximum amount framework is set based on the cost of one machine for loose

packagings, one sorting facility with max. 6 modules, lifting equipment and a number of containers corresponding to the number of modules as well as extra containers corresponding to the calculated quantity of type A containers.

Group 2:Store with one reverse vending machine for loose packagings.The maximum amount framework is set based on the cost of one machine for loose

packagings, one sorting facility with max. 8 or 10 modules, lifting equipment and a number of containers corresponding to the number of modules as well as extra containers corresponding to the calculated quantity of type A containers.

Group 3:Store with 2 reverse vending machines for loose packagings.The maximum amount framework is set based on the cost of 2 reverse vending

machines for loose packagings, 2 sorting facilities with max. 6, 8 or 10 modules, lifting equipment and a number of containers corresponding to the number of modules as well as extra containers corresponding to the calculated quantity of type A containers.

Group 4:Store with 3 reverse vending machines for loose packagings.The maximum amount framework is set based on the cost of 3 reverse vending

machines for loose packagings, 3 sorting facilities with max. 6, 8 or 10 modules, lifting equipment and a number of containers corresponding to the number of modules as well as extra containers corresponding to the calculated quantity of type A containers.

Group 5:Store with 4 reverse vending machines for loose packagings.The maximum amount framework is set based on the cost of 4 reverse vending

machines for loose packagings, 4 sorting facilities with max. 6, 8 or 10 modules, lifting equipment and a number of containers corresponding to the number of modules as well as extra containers corresponding to the calculated quantity of type A containers.

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Annex 4

Investment subsidies for stores without reverse vending machines

Grocery stores entitled to handling remuneration (referred to in this Annex as subsidy recipients) which receive at least 350,000 packagings annually are entitled to an investment subsidy, cf. Section 43(1)1).

The subsidy recipients are divided into 5 groups. There is a maximum amount framework set for each group for the subsidy per subsidy recipient, cf. Section 43(3).Investment subsidy may only be paid once to a subsidy recipient.

The subsidy recipient’s annual quantity of returns is calculated in accordance with the rule of Section 43(2). It is the annual returns quantity of the store that decides the group in which the store is placed.

The number of sorting modules and containers for which the subsidy recipient may obtain a subsidy varies within the individual groups. In the case of groups 2, 3, 4 and 5 the principles below for the design of sorting facilities and calculation of the number of containers apply.

The placement of a subsidy recipient with an annual returns quantity of 350,000 – 1,500,000 packagings in group 1 or 2 similarly takes place in accordance with the principles below regarding the dimensions of sorting facilities and calculation of the number of containers.

Principles for calculation of the number of containers and design of sorting facilitiesThe design of the sorting facility will be calculated on the basis of the number of

loose refillable plastic bottles and their distribution to packaging types that the store receives each day over a 6-day working week and based on an average observation for a year.

The number of containers and sorting modules for which subsidies may be obtained is calculated as follows:

Calculation basis for allocation of a container is that the container is filled up with loose bottles every 3 days on average.

Containers are divided into the following categories:

- A containers for one packaging type.- B containers for two packaging types of differing size and/or colour.- C containers for several packaging types.

The sorting facility is designed for the number of sorting modules that fits the number of containers. However, as a maximum one module (with associated containers) may be allocated per packaging type.

Design of the sorting facility can at the request of the subsidy recipient be deviated in individual cases, if this can be approved by Dansk Retursystem A/S. Within each of the five groups less than 6 modules can be chosen only, if the physical environment makes fitting-up with 6 modules impossible. Within group 2, subsidies will be granted in accordance with Section 43(3)1), if less than 8 modules are chosen.

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Group 1:Store with an annual returns quantity of between 350,000 and 1,500,000 packagings.The maximum amount framework is set based on the cost of one reverse vending

machine for loose packagings, one sorting facility with max. 6 modules, lifting equipment and a number of containers corresponding to the number of modules as well as extra containers corresponding to the calculated quantity of type A containers.

Group 2:Store with an annual returns quantity of between 350,000 and 1,500,000 packagings.The maximum amount framework is set based on the cost of one reverse vending

machine for loose packagings, one sorting facility with max. 8 or 10 modules, lifting equipment and a number of containers corresponding to the number of modules as well as extra containers corresponding to the calculated quantity of type A containers.

Group 3:Store with an annual returns quantity of between 1,500,000 and 5,000,000

packagings.The maximum amount framework is set based on the cost of 2 reverse vending

machines for loose packagings, 2 sorting facilities with max. 6, 8 or 10 modules, lifting equipment and a number of containers corresponding to the number of modules as well as extra containers corresponding to the calculated quantity of type A containers.

Group 4:Store with an annual returns quantity of between 5,000,000 and 10,000,000

packagings.The maximum amount framework is set based on the cost of 3 reverse vending

machines for loose packagings, 3 sorting facilities with max. 6, 8 or 10 modules, lifting equipment and a number of containers corresponding to the number of modules as well as extra containers corresponding to the calculated quantity of type A containers.

Group 5:Store with an annual returns quantity of over 10,000,000 packagings.

The maximum amount framework is set based on the cost of 4 reverse vending machines for loose packagings, 4 sorting facilities with max. 6, 8 or 10 modules, lifting equipment and a number of containers corresponding to the number of modules as well as extra containers corresponding to the calculated quantity of type A containers.

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Annex 5

Marking of disposable packaging

1. Introduction This Annex lays down guidelines for marking of all disposable packagings for beer and soft drinks comprised by this Statutory Order, cf. Section 55.

The guidelines apply to packagings - where the marking forms part of the packaging’s design (e.g. cans) or is pre-printed

on the packaging’s label (e.g. labels on plastic and glass bottles), cf. Section 55(2)1) and 2), or

- where the marking is made through application of self-adhesive deposit label with either deposit mark and add-on bar code, or deposit mark or EAN bar code approved for the Danish market only, cf. Section 55(2)3) and 4).

The purpose of the mark is to ensure deposit settlement and to ensure that the disposable packaging is returned for materials recovery or possibly reuse to the maximum possible extent.

2. Marking of disposable packaging in general

The marking of disposable packagings is made up of three elements: A deposit mark, and either An EAN bar code approved for the Danish market only, which includes the digits of

the EAN article number, cf. Section 2, 14), or an EAN bar code used globally, which included the EAN item supplemented by an

add-on code, cf. Section 2, 15)The deposit mark, the EAN bar code and the add-on code shall be part of the design

of the packaging or pre-printed on the packaging’s label. Alternatively a self-adhesive deposit label with deposit mark and add-on code or with deposit mark and EAN bar code approved for the Danish market only may be used.

The deposit mark, the EAN-bar code and the add-on code shall be designed and positioned as described in this Annex.

The following options exist to comply with the requirements of this Statutory Order concerning marking of disposable packagings, cf. Section 55(2): Marking category 1 shall be used where the total marking is printed direct on the

packaging material or on the packaging’s primary label. The marking consists of a deposit mark, an EAN bar code used globally and a unique add-on code (figure 5.1.)

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Marking category 2 shall be used where the total marking is printed direct on the packaging material or on the packaging’s primary label. The marking consists of a deposit mark, an EAN bar code approved for the Danish market only (figure 5.2).

Marking category 3 shall be used where marking with deposit mark and add-on code takes place by sticking on a deposit label and where the globally used EAN bar code is printed direct on the packaging material or on the packaging’s primary label (figure 5.3).

Marking category 4 shall be used where marking with deposit mark and an EAN bar code approved for the Danish market only takes place by sticking on a deposit label and where the packaging is without the EAN bar code, i.e. it is not printed direct on the packaging material or on the packaging’s primary label (figure 5.4).

Irrespective of whether the packagings are sold in multi-pack packaging or individually, each disposable packaging shall be marked in accordance with the guidelines in this Annex.

3. Deposit mark

3.1 The deposit mark is made up of three elements (Figure 5.0):

1. An oval logo consisting of two arrows which symbolise that the disposable packaging is included in a deposit and return system with a view to reutilisation.

2. A letter of the alphabet signifying the deposit returns group to which the disposable packaging belongs.

The deposit amount that is to be paid for a packaging is specified for each packaging type, cf. Section 3. When a disposable packaging is registered Dansk Retursystem A/S will notify the deposit returns group in which the packaging is to be placed, cf. Section 9(4):

Group A: deposit = DKK 1.50 Group B: deposit = DKK 2.50 Group C: deposit = DKK 4.25

3. The word “Deposit” making it clear to the consumer and the retailer that this is packaging on which a deposit is paid.

3.2. Printing structure of the deposit mark

The deposit mark is to be designed with sufficient contrast between the background and the deposit mark itself.

The choice of colour for the deposit mark is free, provided it is sufficiently conspicuous on the packaging.

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The colour of the background of the deposit mark shall be red. However, Dansk Retursystem A/S may permit the use of another dark colour if it is not technically possible to print the background in red.

The deposit mark must not be embossed unless a printing ink is used in the embossing at the same time so that the deposit mark is clearly conspicuous.

The font for the deposit mark shall be Helvetica Rounded Bold. The font size shall be a minimum of 6 point (the word “Deposit”) and a minimum of 8 point (letter “A”, “B” or “C”).

The total deposit mark (arrows including the text “Deposit X”) shall be 13 mm wide and 12 mm high.

4. Add-on code

Where a globally used EAN bar code is used, the disposable packaging in marking category 1 and marking category 2 shall be provided with an add-on code.

An add-on code is a bar code consisting of 4 numeric digits that is used to ensure and control the deposit settlement for and acceptance of empty packagings as returns.

The digits of the add-on code shall be chosen by either the individual producer or importer or be allocated by Dansk Retursystem A/S on registration of a new product type or packaging type, cf. Section 8(3) and Section 9(1).

The chosen or allocated add-on code shall be unique for each provider. Several providers (e.g. importers) of the same product with the same EAN bar code cannot accordingly use the same add-on code on the product.

The colour of the add-on code’s background shall be red. However, permission may be granted to use another dark colour if it is not technically possible to print the background in red.

The add-on code is printed with a serrated edge on two sides at right angles to the bars of the code.

5. EAN bar code

The producer and the importer shall personally order the necessary EAN-article numbers from its own country’s EAN-organisation. However, upon request from the producer or the importer Dansk Retursystem A/S can allocate the unique Danish bar code in marking category 4.

An EAN bar code approved for the Danish market only, may be used only by the producer or importer who have registered a packaging with the EAN-article number in question with Dansk Retursystem A/S, cf. Section 9(1).

The EAN bar code (EAN-13, EAN-8, UPC-bar code) shall be made in accordance with the EAN standard for size 1,0 on cans and size 0,8 on primary labels on disposable bottles of plastic and glass.

Besides, reference is made to the EAN Handbook 2000 issued by EAN-Denmark with subsequent amendments, if any.

6. Deposit labels

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Deposit labels are made up of either:1) An add-on code and a deposit mark, or2) An EAN bar code approved for the Danish market only, and a deposit mark. A deposit label measures a maximum of 31 mm in height and 22 mm in width. Deposit labels are printed on paper or plastic foil, for example and shall be self-adhesive.

A deposit label with add-on code shall be made with indication of the add-on code’s four digits as an extension of the right serrated border of the bar code symbol and accordingly opposite the right side of the deposit label, cf. figure 5.3.

A deposit label with bar codes shall always be placed so that the bars of the codes are parallel with bottom of the packaging and so that the text of the deposit label is read horizontally when the packaging is in an upright position.

Deposit labels must not be placed on easily removable labels (peel-off labels) or multi-pack packagings.

7. Marking category 1

Marking category 1 shall be used for disposable packagings where the total market with deposit mark, the globally used EAN bar code and add-on code are printed direct on the packaging material or the packaging’s primary label (figure 5.1).

7.1. EAN bar codeThe guidelines for EAN bar codes, as described in section 5 above, shall be

complied with.

7.2. Add-on codeOn registration or before sale or supply of new product types and packaging types

the producer or importer shall advise a four-digit add-on code for each product with own globally used EAN-article number to Dansk Retursystem A/S.

The chosen add-on code shall be unique for each provider. Several providers of a product with the same EAN-article number cannot accordingly choose the same add-on code for the product.

The guidelines for making add-on codes, as described in section 4 above, shall be complied with and the chosen four digits shall be indicated.

7.3. Deposit markThe guidelines for the design and production of deposit marks, as described in

section 3 above, shall be complied with.

7.4 Positioning of the markingThe EAN-article number and the digits of the add-on code shall be placed vertically

on the packaging. This means that the bars of the EAN bar code shall be parallel with the packaging’s bottom (ladder).

The EAN bar code and the add-on code shall be placed as an extension of each other and as close as possible to the bottom of the packaging and not more than 180 mm from the bottom. Furthermore the codes shall be placed where the packaging has its widest diameter.

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The deposit mark shall always be placed next to the EAN bar code and/or the add-on code at a distance of 2-10 mm.

When the deposit mark is placed next to the EAN bar code and/or the add-on code, the EAN bar code requirements of the size of the clear zone shall be met.

The deposit mark shall always be placed so that the text is read horizontally when the packaging is in an upright position.

The marking must not be placed on an easily removable label (peel-off label) or on multi-pack packaging.

8. Marking category 2

Marking category 2 shall be used for disposable packagings where the total marking with deposit mark and the EAN bar code approved for the Danish market only are printed direct on the packaging material or the packaging’s primary label (figure 5.2).

8.1. EAN bar codeThe guidelines for EAN bar codes, as described in section 5 above, shall be

complied with.

8.2. Deposit markThe guidelines for the design and production of deposit marks, as described in

section 3 above, shall be complied with.

8.3 Positioning of the markingThe EAN-article number shall be placed vertically on the packaging. This means

that the bares of the EAN bar code shall be parallel with the packaging’s bottom (ladder).

The EAN bar code shall be placed as close as possible to the bottom of the packaging and not more than 180 mm from the bottom. Furthermore the code shall be placed where the packaging has its widest diameter.

The deposit mark shall always be placed next to the EAN bar code at a distance of 2-10 mm.

When the deposit mark is placed next to the EAN bar code, the EAN bar code requirements of the size of the clear zone shall be met.

The deposit mark shall always be placed so that the text is read horizontally when the packaging is in an upright position.

The marking must not be placed on an easily removable label (peel-off label) or on multi-pack packaging.

9. Marking category 3

Marking category 3 shall be used where only the globally used EAN bar code is printed direct on the packaging material or the packaging’s primary label (figure 5.3).

9.1. EAN bar codeThe guidelines for EAN bar codes, as described in section 5 above, shall be

complied with.

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9.2. Add-on codeOn registration and before marketing of new product types and packaging types the

producer or importer shall advise a four-digit add-on code for each product with own globally used EAN-article number to Dansk Retursystem A/S, cf. Section 8 and Section 9.

The producer or importer may choose the same add-on code for several products. Accordingly, the add-on code need not be unique for each product. The pre-condition for this is that the products are provided with an EAN bar code made in accordance with the guidelines of this Annex, cf. section 5.

Several providers of a product with the same globally used EAN-article number cannot choose the same add-on code for the product.

9.3. Deposit markThe deposit mark forms part of the deposit label and is designed in accordance with

the guidelines described in section 3 above.

9.4 Positioning of the deposit labelDeposit labels shall be placed as close as possible to the bottom of the packaging

and not more than 180 mm from the bottom. Furthermore the codes shall be placed where the packaging has its widest diameter.

The deposit mark shall be placed as an extension to or next to the EAN bar code at a distance of not more 10 mm.

10. Marking category 4

Marking category 4 shall be used for disposable packagings where the EAN-article number is neither printed direct on the packaging material nor on the packaging’s primary label (figure 5.4).

Marking with deposit label and EAN bar code approved for the Danish market only shall take place by sticking on a deposit label.

The colour of the background of the EAN bar code shall be red.Deposit labels shall made and be placed in accordance with the guidelines described

in section 6 and section 10.3.

10.1. EAN bar codeAn EAN bar code that is approved for the Danish market only shall be used. the

EAN bar code shall be allocated by either Dansk Retursystem A/S or may be ordered from the producer or importer concerned from the relevant EAN-organisation.

The guidelines for EAN bar codes as described in section 5 above shall be complied with.

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Figure 5.0: Deposit mark on oval background

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Figure 5.1 Marking category 1

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Figure 5.2: Marking category 2

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Figure 5.3: Marking category 3

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Figure 5.4: Marking category 4

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Annex 6

Calculation of collection fee for disposable packaging

1. IntroductionA collection fee shall be paid to Dansk Retursystem A/S for each disposable

packaging for beer and soft drinks sold on the Danish market, cf. Section 23. The collection fee for a packaging shall as far as possible cover the variable and fixed costs associated with collection of the packaging in question.

By collection is meant activities, equipment, administration, etc. in connection with the collection of disposable packagings in sacks and crates/boxes from returns recipients, compression in the store or counting and compression at a terminal, transportation from a returns recipient via an intermediate store to the terminal, sale and transportation of scrap, etc., and deposit administration regarding disposable packagings and interest on deposit held on account.

Collection fees in the period from the entry into force of the Statutory Order until 31 December 2002 are based on disposable packagings having a market share of 15%, corresponding to a quantity of 400 million disposable packagings annually. Thereafter the fees will be adjusted once annually on 1 January, for the first time on 1 January 2003. The adjustment shall be carried out based on experience of realised sales and the distribution of disposable packagings to material categories, volume content and collection channel, see below, as well as the inclusion of new disposable packagings registered since the last adjustment of the fee rates.

The collection fee for a new disposable packaging registered with Dansk Retursystem A/S after the date of the annual adjustment of fee rates shall be set at the fee rate that is already applicable for disposable packagings registered previously within the same material category and with the same net volume content. In connection with the first annual adjustment of the collection fees the newly registered disposable packagings shall be included in the stipulation of the weighted fee for packagings within the same material category and with the same net volume content.

In the case of disposable packagings which due to technical restrictions (e.g. the dimensions of the packaging in relation to the opening of the reverse vending machine) cannot be returned via a reverse vending machine, the collection fee shall always be calculated individually.

2. Calculation structureThe collection fee is calculated within the following 4 material categories: Category 1: Aluminium Category 2: Steel Category 3: Plastic Category 4: Glass

Within each material category a collection fee is calculated for packagings with the same net volume capacity. However, in special cases different fee rates may be calculated for packagings within the same material category which have the same net

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volume capacity, for example if the weight of the packagings is different. The scrap price, which is included in the calculation of the fee, is dependent on weight. The calculated collection fee for 0.5 litre plastic bottles, for example, may therefore vary if some plastic bottles with this net volume weigh substantially more than other plastic bottles with the same net volume capacity.

There are three types of cost:Type 1: Variable volume-dependent collection costs per packaging within a material

category (-> price per sack or crate/box)Type 2: Variable weight-dependent income and costs per packaging within a material

category (-> net scrap price)Type 3 Fixed investment and administration costs per packaging, calculated across all

material categories (-> production costs and administration costs).

The variable volume-dependent costs (Type 1) vary according to collection channel:- Collection channel I: the returns recipient has a reverse vending machine

- Automatic packaging approval - Compression of cansi - Packing and making ready for collection in crates/boxes including marking with

labels - Collection channel II: manual reception of packaging or reception in a machine

without a compressor - Packing of whole packagings in sacks - Sealing of sacks with clips - Marking with labels on clips.

3. Method of calculating the collection fee

Type 1 – Variable volume-dependent costs These costs are made up per material category as the sum of the following per sack or crate/box of packagings and encompass the costs of:

- plastic sack - cardboard box- label set- clips for bags- transportation to intermediate store - transportation to terminal- counting at the terminal (following manual return), stated as costs (øre/sack) and

based on- packagings per sack (no.) - counting per hour (no.)- hourly rate (DKK/hour)

- weight check and compressionThe costs are made up for each material category and may vary depending on

collection channel. In the case of packagings of aluminium and steel they are drawn up both for manual reception and for automatic reception with compression. The total for

i Compression of plastic disposable bottles may also be considered if it proves profitable

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the material category in question is transferred to a spreadsheet for each packaging (e.g. aluminium can, 0.33 l).

Type 2 – Variable weight-dependent income and costsThese revenues and costs are made up as net income/scrap price (øre per gram) for

each material category:- gross income (øre/gram)- excluding freight costs (øre/gram)

Net income per gram of the material in question is transferred to a spreadsheet for each packaging.

Type 3 – Fixed costsShared costs in connection with the deposit and collection system for all disposable

packagings within all material categories are drawn up and distributed equally to the expected number of disposable packagings per year and encompass:

A. Depreciation and interest return over 6 years of investments regarding disposable packagings of:a) counting machines b) compression machines at terminals c) compressors in stores d) transport equipment e) IT equipment

The investments are made up for each collection channel and for each material category. However, aluminium and steel are drawn up jointly.

B. Fixed costs - attributable to disposable packaging:a) production costs:

1. rent or net costs of own buildings/premises – east + west 2. maintenance and service agreements for 3. machinery and equipment etc.4. consumption of heat, electricity, water, etc.5. insurance and taxes

b) administration costs for collection etc. and terminals:1. deposit administration2. contract administration3. quality follow-up 4. reporting (including collection percentages)5. purchasing (including consumables)6. sales of scrap and environmental agreements 7. operational management at terminals 8. maintenance and servicing9. development and optimisation

C. Share (50%) of Dansk Retursystem A/S’s shared administration costs:a) management, secretaries, IT support, information, etc.

D. Interest on deposits held on account, cf. Section 16.

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The total of these shared costs is transferred to a spreadsheet for each packaging.

For each individual packaging (e.g. 0.33 l can made of aluminium, 0.50 l can made of steel, 1.5 l bottle made of plastic or 0.25 l bottle made of glass) the calculated costs are totalled for manual acceptance of returns and automatic acceptance of returns with a compressor respectively. The total calculated cost per packaging are weighted based on the distribution realised in the previous year of returns of the packaging in question via collection channel I and II respectively. For the first period following the entry into force of the Statutory Order the weighting will be carried out based on the expected distribution to the two collection channels.

The collection fees thus weighted for each individual disposable packaging with the same volume within a material category are totalled and weighted among themselves relative to the number of packagings sold in Denmark, resulting in a single fee rate for all packagings with the same volume within the material category concerned.

Any surplus or deficit in previous years for each individual material category is included in the calculation of the collection fee rates for the coming budget period. Surpluses and deficits are divided between all packagings within the material category concerned.

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Annex 7

Functional and technical requirements of compressors on returns recipients’ premises

Dansk Retursystem A/S may purchase compressors for compression of disposable packagings and install these on returns recipients’ premises in conjunction with reverse vending machines with a central control unit, cf. Section 53.

The requirements given below concern compressors for compression of steel and aluminium cans. Equivalent requirements will apply with a few necessary adjustments to compressors for compression of plastic packagings.

1. Positioning, installation, connection, etc.A small compressor shall be installed on return recipients’ premises for use for

compression of steel and aluminium cans in accordance with the rules set out in Section 53.

The compressor shall be placed and installed as a direct part of the reverse vending machine or as an independent unit by the sorting facility. The positioning shall be in the immediate vicinity of the reverse vending machine, but such that it is not possible to take out packagings between the recording unit of the machine and the compressor. This positioning shall prevent repeated recording and thus the payment of deposits several times for the same packaging.

A container shall be placed below the compressor to collect the compressed cans. This container shall at the same time function as a lower screen of the compressor, primarily with a view to personal safety.

The compression module shall be connected to the sorting facility or the reverse vending machine by one or more safety devices, e.g. key switch(es). If the safety devices are removed the compressor shall be switched off along with further on-line data recording and thus the payment of deposits.

To secure the container screening and further counter fraud, the container shall be connected to the compressor by one or more security devices. Alternatively the container shall be placed behind gates with security devices.

All security devices shall be connected/activated in order for the compressor to be able to be used.

The rules and guidelines of the Ministry of Labour concerning manual handling, youth employment, design, including dimensioning of machines, about fitting-up of the work place where sorting work is carried out shall be complied with.

In addition, the following requirements apply regarding the positioning, installation, connection, etc.:

The compressor shall be placed indoors Room temperature: 5 - 40 °C The compressor shall be easy to clean The compressor shall be designed to maintenance-free for at least one year or until

compression of at least 500,000 cans.

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The maximum noise level shall be 70 dB(A)

2. Functions Cans shall be introduced horizontally into the machine and passed rotating past a

scanner. The bar code shall be recorded and a “signal” sent to the central control unit. The compressor shall be started automatically via a signal from the central control

unit when a can is scanned which is to be compressed. The can runs out of the machine and is pushed down into the compressor. The can is compressed and falls directly down into the container. The compressor stops again automatically, e.g. after 30 seconds, unless there is a

new can on the way to be compressed.

3. Technical specifications The compressor shall be designed so as to be able to be included as integral module

of the sorting facility or reverse vending machine. The compressor shall be made of stainless steel or other non-corroding material. Capacity: minimum 60 cans per minute. The compressor shall be screened with a view to secure recording, including such

that cans cannot be taken out between the scanner of the machine and the compressor.

The compressor shall be screened with a view to personal safety as well as against splashes, spray and leaking liquids.

The screening of the compressor shall be adapted to each individual sorting solution that may occur.

The degree of compression shall be adjustable from 5 mm upwards. Primarily adjustments will be made in the range 5 - 10 mm.

The compressor shall have sufficient power to compress all current metal cans. The compressor shall give a signal via a photocell or another sensor to notify that the

container is full. A signal of the full state shall be sent to the central control unit via P-Net.

The compressor shall be capable of opening if packagings other than cans (e.g. glass or plastic bottles) are fed in, so that these packagings only pass through the compressor. This will minimise the risk of “foreign” packagings blocking the compressor.

The largest matter that shall be capable of passing through the compressor in the whole state shall be a matter with a diameter of approx. 130 mm and a length of approx. 350 mm.

4. MarkingThe compressor shall be CE-marked separately. On installation the compressor shall

be included in the overall CE marking for the whole system.

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The compressor control shall support the P-Net standard in the European CENELEC standard EN 50170.

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ANNEX 8

Subsidies to labelling of disposable packagings with self-adhesive deposit label

Producers and importers who mark disposable packagings with self-adhesive deposit labels in accordance with the rule of Section 55(2),3) and 4), cf. Annex 5, can apply for subsidies in accordance with the rules of Section 50. Subsidies are granted by the below-mentioned amounts per disposable packaging which the producer or the importer has sold according to documentation on the Danish market during the period up to 1 April 2003.

The subsidy is granted as partial compensation for additional expenses in connection with labelling, unpacking and packaging with new transport packaging. Subsidies are granted for documented expenses exceeding 20 øre per disposable packaging.

Costs incurred in connection with marking with deposit labels and new packaging vary depending on the transport packaging used for the disposable packaging. The size of the subsidy granted for each disposable packaging therefore depends on the transport packaging (cardboard box, cardboard tray, multi-pack, etc.) where the disposable packaging was kept before the deposit labelling.

The subsidy per disposable packaging is granted by the following amounts:

1. Disposable packaging in cardboard box: Max. 5 øre2. Disposable packaging in cardboard tray: Max. 10 øre3. disposable packaging in multi-pack, shrink: Max. 15 øre4. disposable packaging in multi-pack, cardboard: Max. 20 øre5. disposable packaging in cardboard cover or combination of

several packaging methods in the same transport packaging: Max. 50 øre