Majority of drinks to see producer fees below 5 cents under beverage return scheme: Janil

SINGAPORE – Beverage producers are able to limit the cost impact of

transiting to the beverage container return scheme (BCRS)

, with producer fees remaining under five cents for most drinks sold in Singapore, said Senior Minister of State for Sustainability and the Environment Janil Puthucheary.

The National Environment Agency (NEA) “is also exploring how we can assist small producers in making a smoother transition” to the scheme, Dr Janil wrote in a Facebook post on Jan 15.

His comments come amid concerns over the compliance costs of the recycling scheme, which smaller industry players warned are likely to be passed on to consumers.

According to a CNA report published on Jan 13, importers and small retailers cited additional costs involved in product registration and affixing new BCRS-approved labels, which could push up prices. They estimated that the prices of bottled and canned drinks in Singapore could rise by 25 cents to 60 cents.

Under the upcoming scheme, consumers will pay an extra 10 cents as deposit for bottled and canned drinks ranging from 150ml to 3 litres. But they will receive a full refund of the deposit when they return the empty containers with the scheme’s deposit mark at designated return points across the island.

According to the BCRS website, the fees for beverage producers include a one-time registration fee of $500, with an additional $5 charged for each product registered. There are also producer fees that are charged per unit – 3.1 cents for each aluminium container and 3.7 cents for a plastic one.

Dr Janil said that the Government recognises that the impact of the scheme varies across the industry, depending on how products are processed and distributed to the market, as well as the total volume of production or imports.

“We are mindful of the logistical and other challenges faced by some importers and producers with smaller volume of beverages,” he said.

To address the challenges, scheme operator BCRS Limited has been engaging affected producers to explore more practical and flexible means to meet the scheme requirements, he added.

The scheme is set to kick off on April 1, but the transition period has been extended by six months to Sept 30 following feedback from stakeholders. This means that while the scheme officially begins in April, most beverage containers eligible for the refundable 10-cent deposit are likely to reach the shelves only closer to the latter part of the transition period.

The scheme

has been delayed multiple times

. In 2020, NEA said the return scheme would be implemented by 2022. It later said the proposed start date would be by mid-2024.

In July 2024, it was reported that the scheme would be delayed again to April 2026 at the request of beverage producers, as they needed more time to adjust to the changes.

.