§4 Definition of importer and the status of a ‘branch’

Legal provision: Article 3(1), point (17) lays down the definition of ‘importer’ as ‘any natural or legal person established within the Union that places packaging from a third country on the market.’ Commission’s interpretation: The definition of importer is based on the definition of ‘importer’ in Article 3(9) of Regulation (EU) 2019/1020 (12) and should be interpreted in line with the general interpretative guidance provided for in the Blue Guide (13). It follows from that definition that two cumulative conditions must be satisfied: (a) establishment in the EU, and (b) placing on the market packaging or packaged products originating outside the EU. The concept of being ‘established’ must be interpreted as having a registered address in a Member State to ensure jurisdiction for enforcement and market surveillance, as well as a guarantee that there is a responsible party within the Union for compliance, traceability, and corrective actions. In most cases, a branch is not a separate legal entity and, as it only operates under the identity of the parent company, it does not independently assume rights or obligations. Contracts entered into by a branch are therefore legally binding on the parent company. Under EU and national tax laws, a branch is typically treated as a permanent establishment (14) for tax purposes. However, having tax obligations and tax registration does not confer separate legal personality and does not change the branches’ status for regulatory compliance. Several CJEU rulings (15) confirm that a permanent establishment is not equivalent to incorporation. Because a branch lacks separate legal personality, it cannot qualify as an importer under the PPWR. The requirement of being ‘established’ refers to a natural or legal person incorporated in the EU, not merely a branch office. A branch may become a separate legal entity (i.e., a subsidiary) when it is incorporated under the law of a Member State, has its own legal personality, rights and obligations, and can own assets, sue and be sued independently. Therefore, a non-EU manufacturer with only a branch in the EU must either incorporate a subsidiary in the EU, or appoint an authorised representative as defined in Article 3(1), point (19) if so, required by the Member State on which territory it is making packaging or packaged products available for the first time. The same reasoning applies to the question of whether a branch of a non-EU natural or legal person can be a ‘distributor’, as defined in Article 3(1), point (18). The EPR obligations provided under the PPWR apply to ‘producers’ (manufacturers, importers or distributors) who make available for the first time packaging or packaged products on the territory of a Member State (see point 4 of this document). The Regulation does not explicitly extend EPR obligations to entities that are only VAT-registered or have a permanent establishment without legal personality. Arguing that VAT registration alone equals ‘establishment’ for the purposes of EPR obligations would conflict with the harmonised definition of importer in Article 3(1), point (17). Member States cannot impose additional requirements that undermine the harmonisation of the notion of producer and importer under the PPWR.

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Source: EUR-Lex (Cellar) · retrieved 2026-09-07