São Paulo Municipality Establishes Compulsory Adoption of Reverse Logistics Policies for Products in the Municipal Sphere

On December 30, 2020, Municipal Law No. 17,471/2020 will come into effect, establishing the compulsory implementation of reverse logistics in the city of São Paulo for a variety of products:

(i) lubricating oil and related containers;

(ii) lead-acid batteries;

(iii) portable batteries;

(iv) electronics and their components;

(v) fluorescent, sodium vapor and mercury, mixed light, light-emitting diode (“LED”) and similar bulbs;

(vi) unserviceable tires (shredded as well);

(vii) plastic, metal, glass, steel, paper, cardboard or mixed, hard covered, laminated or multilayered packaging, such as for food, beverages, personal hygiene products, fragrances, cosmetics and cleaning supplies, and related;

(viii) other utensils and consumer goods, defined by the municipal competent body, or by the Environmental Agency for the State of São Paulo (“CETESB”);

(ix) pesticides, their residues and containers, or other products whose packaging, after use, represent hazardous residue;

(x) edible oil;

(xii) expired or disused household medicine and its packaging; and

(xiii) automotive filters.

According to the referred Municipal Law, the manufacturers, importers, distributors and traders for those products and containers sold in the municipality of São Paulo will be obliged to structure and initiate reverse logistics systems.

For the purposes of the Law, the manufacturer is equivalent to the merchandiser that sells items from owned or exclusive brands, regardless of the origin, handling or manufacturing.

The manufacturers, importers, distributors and traders will be responsible for the implementation and operationalization of the reverse logistics to the proportional limit of products they put in the market regarding the municipal limits, according to progressive, intermediary and final goals, established in sectorial agreements or terms of commitment.

Certain articles in the Law regarding goals were vetoed. Nevertheless, there are provisions to be met, at the least, by December 2024, for the recovery of 35% of the amount, in total volume, of packaging put in the market in 2023.

Additionally, in accordance with the Law, the reverse logistics systems that were subject to sectorial agreements or terms of commitment formalized at the national, regional or state levels shall be considered in order to prove compliance with the new Law, as long as they are demonstrably acting within the municipal level, and meeting the requirements of guidelines and goals provided for in the municipal legislation.

The Law also establishes that, in the case that the holder of the public urban cleaning service executes activities that are the responsibility of the manufacturers, importers, distributors and traders in the scope of the reverse logistics systems, such government actions shall be duly remunerated.

Demarest’s Environmental Law team is available for any clarifications on this and other related matters.

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