Commission’s interpretation:
PPWR does not provide more lenient conditions for border region retailers. On the contrary, it imposes specific obligations (32) on cross-border businesses to prevent circumvention, which could undermine the deposit and return system (DRS) objectives and requirements. The exemption possibility for Member States under Article 50(5) of the PPWR is related to performance criteria and not to geographical criteria and, like any exceptions, must be interpreted restrictively. The two conditions, namely charging a deposit and establishing a DRS, are cumulative because the charging of a deposit is impossible in the absence of a DRS. This is underlined in the definition of deposit and return systems. Consequently, a final distributor can only be exempted from charging a deposit if the Member State, as a whole, has obtained an exemption from setting up a DRS. In other words, the final distributor cannot be exempted from charging a deposit if the Member State in which it is located has a DRS and is therefore obliged to charge a deposit onto consumers from other Member States.
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Source: EUR-Lex (Cellar) · retrieved 2026-09-07 · Text as adopted (Official Journal); later amendments are not incorporated in this text.