Regulation 70 Recycling in-scope material from returned refund items

(1)

The deposit management organisation must make arrangements for recycling the in-scope material from which returned items are made.

(2)

The arrangements made under paragraph (1) must include provision conferring a right of first refusal, for each specified period, on registered scheme producers.

(3)

A right of first refusal under paragraph (2) means a right to purchase the appropriate quantity (if any) of each in-scope material that has been recovered from returned items (a “recovered material”) during the relevant specified period for the market value of that in-scope material.

(4)

In paragraph (3)—

(a)

the “appropriate quantity” of a recovered material is an amount which does not exceed the relevant proportion of that recovered material;

(b)

“market value” means the price at which the in-scope material would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts.

(5)

The relevant proportion of a recovered material is calculated as follows—

SPA/TPA

where—

“SPA” means the number of deposit items with containers made wholly or mainly from the recovered material and supplied by the registered scheme producer during the specified period;
“TPA” means the total number of deposit items with containers made wholly or mainly from the recovered material and supplied by all registered scheme producers during the specified period.

(6)

In this regulation—

“returned items” (“eitemau a ddychwelwyd”) means the refund items collected or accepted by the deposit management organisation under regulation 43 or 68;
“specified period” (“cyfnod penodedig”) means a period specified in arrangements made by the deposit management organisation under paragraph (1).