EU EPR Registration Exemption 2026: What SMEs Need to Know

Will Small Businesses Be Exempt From EU Packaging EPR Registration? What the October 2026 Proposals Really Say

EU policymakers are considering significant changes to Extended Producer Responsibility requirements under the PPWR. Some proposals could remove registration and EPR fees for producers placing minimal packaging quantities on the market. But what has actually changed, and could medium-sized businesses also benefit?

Published: 27 October 2026 | PPWR Academy | EU Regulatory Update

Is the EU removing EPR registration requirements for small businesses?

Not yet. As of 27 October 2026, there is no newly adopted EU-wide exemption that removes packaging Extended Producer Responsibility (EPR) registration requirements for all micro or small enterprises.

However, discussions have progressed significantly.

On 9 October 2026, Austria, supported by Czechia and Estonia, formally proposed exempting EU-established producers placing minimal quantities of packaging on the market from EPR registration, scheme participation, financial contributions and authorised-representative requirements.

Separately, the European Parliament and Council of the EU adopted negotiating positions on 20 and 21 October to simplify requirements for appointing EPR authorised representatives.

These are important developments for companies selling packaging or packaged products across EU borders.

But there is a critical distinction:

Exemption from EPR registration is not the same as exemption from appointing an EPR authorised representative.

Understanding that distinction is essential before businesses change their compliance arrangements.

Why is the EU reconsidering packaging EPR requirements?

Under the EU Packaging and Packaging Waste Regulation (PPWR), Regulation (EU) 2025/40, producers can have EPR obligations in individual Member States where they first make packaging or packaged products available.

Depending on the country and circumstances, these obligations may involve:

• Registering with a national producer register.

• Participating in a producer responsibility organisation or other EPR compliance arrangement.

• Reporting the quantities and categories of packaging placed on the market.

• Financing packaging waste collection and treatment.

• Appointing an authorised representative in another Member State.

For companies operating across several EU markets, these processes may need to be managed separately in each relevant country.

Imagine a small Spanish e-commerce business selling packaged products to customers in France, Germany, Belgium and Italy.

Although the quantities shipped into each market may be relatively small, the company could face multiple registration procedures, reporting processes and authorised-representative arrangements.

The administrative effort does not necessarily decrease in proportion to packaging volumes.

This concern has prompted proposals for simpler, more proportionate requirements without abandoning the underlying principle that producers contribute to packaging waste management.

1. Austria, Czechia and Estonia propose an exemption from EPR registration

One of the most consequential developments occurred on 9 October 2026.

Austria, supported by Czechia and Estonia, submitted a formal paper to the Council of the EU titled:

A proportionate EPR framework for small producers and the Single Market.

The document, registered as Council document 14126/26, was prepared for the Environment Council meeting of 12 October 2026.

Unlike proposals focused exclusively on authorised representatives, this paper calls for a broader restructuring of packaging EPR obligations.

A proposed exemption for minimal packaging quantities

The three countries propose a genuine de minimis exemption for EU-established producers placing minimal quantities of packaging on the market.

Under their proposal, qualifying producers would be exempt from:

• EPR registration.

• Participation in an EPR compliance scheme.

• Payment of EPR financial contributions.

• Appointment of an EPR authorised representative.

This is a proposal, not an exemption that businesses can currently apply automatically.

The document does not establish an exact numerical threshold for the proposed full exemption.

That is important because it leaves open a fundamental question: how much packaging would a business be allowed to place on the market before EPR obligations apply?

A second tier with simplified EPR obligations

The same document proposes a simplified regime for producers whose packaging quantities exceed the minimal exemption threshold but remain very small.

These producers would continue contributing to packaging waste management, potentially through proportionate flat-rate EPR contributions, while benefiting from simplified administrative requirements.

The paper also proposes:

• A single European entry point for producer registration.

• Greater EPR-related responsibilities for online marketplaces.

• A pause in developing the new registration implementing rules until an EU-wide solution is established.

• Further simplification through the forthcoming Circular Economy Act.

The significance of this proposal is that it addresses the underlying structure of EPR administration, rather than only one obligation within it.

Source: Council of the EU, A proportionate EPR framework for small producers and the Single Market, 9 October 2026, document 14126/26.

Read the official Council document (PDF)

2. European Parliament supports relief for micro and small enterprises

On 20 October 2026, the European Parliament adopted its negotiating position on a legislative proposal to suspend certain EPR authorised-representative requirements.

The measure forms part of the EU's Environmental Omnibus VIII simplification package, legislative procedure 2025/0395(COD).

Parliament's position focuses on microenterprises and small enterprises established in the EU.

Its proposed suspension would not generally extend to medium-sized enterprises.

The negotiating position also preserves other EPR obligations, including financial responsibilities, and includes safeguards against businesses artificially restructuring to qualify for the exemption.

What counts as a micro or small enterprise?

Under the EU's SME framework:

The employee threshold and applicable financial criteria must be assessed together, including relevant linked or partner enterprises.

Parliament's proposed relief therefore targets the two smallest categories rather than SMEs as an entire group.

It is also limited to authorised-representative requirements. It does not abolish EPR registration.

Parliament's vote established a position for negotiations with the Council. It did not complete the EU legislative process.

Source: European Parliament, legislative procedure 2025/0395(COD), decision of 20 October 2026.

Follow the official European Parliament legislative file

3. Council proposes a different threshold: less than one tonne

On 21 October 2026, the Council of the EU adopted its own negotiating position.

Instead of using company size as the primary eligibility test, the Council proposed a packaging-volume threshold.

Under its position, an EU-established producer making less than one tonne of packaging available for the first time in another Member State during a calendar year could be exempted from appointing an EPR authorised representative in that destination country.

The proposed suspension would run until 1 January 2032, with a Commission review by 31 December 2030.

The threshold is applied by destination Member State.

For example, consider an EU-established producer supplying:

• 700 kg of packaging to Germany.

• 500 kg to France.

• 900 kg to Belgium.

Under the Council's proposed approach, the producer could potentially qualify for authorised-representative relief in each of these countries.

This would depend on the final adopted rules and the producer's specific circumstances.

However, the producer would not automatically become exempt from national EPR registration, reporting or financial contributions.

The Council's approach is also significant because it does not expressly restrict eligibility to micro or small companies.

A medium-sized company placing sufficiently small quantities of packaging in a particular destination Member State could potentially qualify.

Source: Council of the EU, Simplification: Council agrees negotiating stance to cut red tape for small packaging producers, 21 October 2026.

Read the Council's official announcement

Read the legislative negotiating text, document 14765/26 (PDF)

4. Germany has also proposed postponing registration in the new system

Germany has raised a separate proposal.

On 8 September 2026, the German Federal Environment Ministry announced that its government had presented amendments intended to reduce PPWR-related administrative burdens.

The German proposal included:

• Exempting businesses placing less than 10 tonnes of packaging annually from certain authorised-representative requirements.

• Suspending registration in the new system until mid-2028, pending the introduction of a central European registration system.

Germany explicitly acknowledged that such changes would require amendments to the PPWR.

The proposed suspension of registration in the new system should not be confused with cancellation of all existing national EPR registration obligations.

It remains a government proposal, not an EU-wide legal exemption.

Source: German Federal Environment Ministry, Kritik an der EU-Verpackungsverordnung (PPWR): Bundesregierung setzt sich für Entlastungen ein, 8 September 2026.

Read the German government's announcement

5. Does the PPWR already contain a 10-tonne exemption?

This is where businesses need to be particularly careful.

Article 44(8) of Regulation (EU) 2025/40 already provides for simplified reporting information for producers placing less than 10 tonnes of packaging on the market of an individual Member State during a calendar year.

The reduced reporting dataset is specified in Annex IX, Part B, point 2.

That does not automatically mean a business placing less than 10 tonnes of packaging:

• Does not need to register.

• Does not need to finance packaging waste management.

• Is exempt from all EPR reporting.

• Can disregard applicable national compliance requirements.

The existing 10-tonne reporting provision, Germany's suggested 10-tonne authorised-representative threshold and the Council's proposed one-tonne threshold are different measures.

Businesses should not treat them as interchangeable.

Member States may also provide proportionate administrative procedures, fees or other arrangements for low-volume producers.

The European Commission's guidance makes clear that businesses must continue complying with applicable national EPR registration rules.

Sources:

Regulation (EU) 2025/40, particularly Articles 44–46

European Commission: Extended producer responsibility for packaging for Small Businesses

6. What is proposed, and what actually applies today?

The following comparison summarises the position as of 27 October 2026.

None of the newly proposed measures in this table should be treated as an adopted EU-wide registration exemption.

7. What should businesses do while the EU negotiates?

The direction of policy discussions is becoming clearer: EU institutions and Member States are examining ways to make EPR administration more proportionate.

However, companies still need to manage their existing obligations.

A practical approach involves five steps.

Step 1: Identify where you have EPR producer responsibilities

Start with the relevant product flows.

Determine where packaging or packaged products are first made available and which business is the EPR producer in each relevant Member State.

Remember that the PPWR's definition of producer for EPR purposes is different from its definition of manufacturer for packaging conformity.

For more information, see our guide:

You May Be a PPWR Manufacturer Without Realizing It

Step 2: Track packaging quantities by destination country

Record the amount of packaging placed on each relevant market.

A useful structure is:

Destination Member State → Packaging category → Material → Weight → Reporting period

Tracking quantities at the appropriate national and packaging-category levels can support current EPR reporting and help assess eligibility if future thresholds are adopted.

Step 3: Review existing national EPR arrangements

For each relevant country, identify:

• The applicable national registration requirements.

• Any existing simplified schemes or national exemptions.

• Reporting and financial-contribution requirements.

• Whether an authorised representative is required.

• Who within your organisation manages compliance.

Do not assume that an EU legislative proposal immediately changes national compliance arrangements.

Step 4: Monitor the legislative outcome

The Commission, Parliament and Council have not adopted a single agreed solution.

Companies should monitor legislative procedure 2025/0395(COD), the ongoing discussion about low-volume registration exemptions, and future Circular Economy Act proposals.

A threshold discussed in a Council document does not become legally applicable simply because it appears in an official proposal.

Step 5: Keep EPR administration separate from other PPWR work

Potential EPR simplifications do not remove the PPWR's broader requirements.

Companies must still assess applicable obligations concerning packaging conformity, supplier information, technical documentation and future material-specific requirements.

A possible exemption from EPR administration should therefore not delay supplier readiness or packaging compliance planning.

For a practical starting point, read:

PPWR Supplier Readiness: 7 Questions to Ask Your Packaging Suppliers

8. What happens next?

The European Parliament and Council now have negotiating positions on the authorised-representative proposal.

A final agreement would need to pass through the applicable legislative process before becoming binding law.

The broader question of simplifying or replacing fragmented national EPR registration processes may be addressed through further Commission proposals, including the forthcoming Circular Economy Act.

Austria, Czechia and Estonia have put an explicit registration exemption on the policy agenda.

That is a significant development.

But it is not yet a legal entitlement.

For businesses, the appropriate response is to continue meeting applicable obligations while preparing to take advantage of any simplifications formally adopted in the future.

Frequently asked questions about EPR exemptions under the PPWR

Are microenterprises exempt from EPR registration under the PPWR?

No general EU-wide exemption from packaging EPR registration applies solely because a company is a microenterprise. Specific national arrangements may exist, and a broader exemption has been proposed for EU-established producers placing minimal packaging quantities on the market. That proposal has not been adopted.

Are small businesses exempt from packaging EPR fees?

Not automatically. Depending on the Member State, smaller producers may benefit from proportionate fees, reduced administrative charges or other national arrangements. The Austrian-led October 2026 proposal would create broader relief for qualifying minimal packaging quantities, but it is not current EU law.

Will medium-sized enterprises benefit from the proposed EPR changes?

Possibly. The Parliament's October 2026 position limits authorised-representative relief to micro and small enterprises. The Council instead proposes a volume threshold, potentially allowing medium-sized enterprises to qualify in individual destination markets.

What is the proposed one-tonne EPR threshold?

The Council proposed that qualifying EU-established producers placing less than one tonne of packaging on another Member State's market during a calendar year should not have to appoint an EPR authorised representative there. It is not a proposed exemption from all EPR obligations.

Does the existing 10-tonne PPWR threshold eliminate registration?

No. Article 44(8) concerns a reduced reporting dataset for qualifying packaging quantities. It does not establish a general exemption from producer registration or financial responsibility.

Is the EU introducing one central EPR registration system?

A central European registration entry point has been proposed as a way to reduce the need for separate administrative procedures. No general EU-wide replacement for national EPR registers has yet been adopted.

Do these proposals apply to companies established outside the EU?

The principal authorised-representative relief proposals discussed here concern EU-established producers. Businesses established outside the EU should not assume they qualify. Their obligations must be assessed separately under the PPWR and relevant national rules.

The bottom line: simplification is under discussion, not yet an exemption

The October 2026 proposals indicate that the EU's packaging EPR framework may undergo meaningful administrative simplification.

The changes being discussed range from targeted authorised-representative relief to a broader exemption from EPR registration and contributions for minimal packaging quantities.

But until legislation is adopted, businesses should continue to assess and fulfil their applicable requirements.

The important question is not only whether your company is small. It is also where you place packaging on the market, what quantities are involved, and which obligations are actually being changed.

Want to understand what PPWR means for your organisation?

Join a free PPWR Academy webinar for practical explanations of economic-operator roles, EPR responsibilities, packaging data, supplier evidence and upcoming compliance requirements.

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Official sources and further reading

1. Council of the EU — 9 October 2026. A proportionate EPR framework for small producers and the Single Market, document 14126/26, submitted by Austria with the support of Czechia and Estonia. Official document (PDF)

2. European Parliament — 20 October 2026. Legislative procedure 2025/0395(COD), including Parliament's negotiating position on EPR authorised representatives. Legislative Observatory

3. Council of the EU — 21 October 2026. Negotiating mandate on authorised-representative requirements, document 14765/26. Official negotiating text (PDF)

4. Council of the EU — 21 October 2026. Simplification: Council agrees negotiating stance to cut red tape for small packaging producers. Official press release

5. German Federal Environment Ministry — 8 September 2026. Government announcement concerning proposed PPWR relief. Official announcement

6. European Union — 22 January 2025. Regulation (EU) 2025/40 on packaging and packaging waste, particularly Articles 44–46 and Annex IX. Full regulation on EUR-Lex

7. European Commission — guidance available as of October 2026. Extended producer responsibility for packaging for Small Businesses. Official Commission guidance

Regulatory status verified as of 27 October 2026. This article provides general educational information and does not constitute legal advice. Companies should verify applicable national EPR provisions and any subsequent EU legislative changes before modifying their compliance arrangements.