Notice to all brand owners selling beverage products in New Brunswick
Subject: Transition of New Brunswick’s Beverage Containers Program to an extended producer responsibility (EPR) model – Deposit/refund and CRF rates in effect starting April 1, 2024.
With regards to the upcoming April 1, 2024, transition of the New Brunswick Beverage Containers Program to an extended producer responsibility (EPR) model, falling under the jurisdiction of the New Brunswick Designated Materials Regulation (Clean Environment Act), Encorp Atlantic/Atlantique (“Encorp”) wishes to advise all brand owners selling beverage products in New Brunswick of this information update on planned changes to the deposit/refund structure and implementation of a container recycling fee (CRF) on container material types as needed by Encorp to cover the net costs of handling, transportation, processing and administration for used beverage containers (UBCs).
Encorp is the federally incorporated, not-for-profit producer responsibility organization (PRO) appointed to fulfill the Regulation’s requirements for the beverage industry. Encorp will assist beverage product brand owners (as defined by the Regulation) in meeting their obligation to establish collection and recycling programs for beverage containers under relevant provincial EPR legislation. Additionally, Encorp will regularly engage with brand owners and retailers of regulated products to promote awareness of their obligations related to the new EPR Beverage Containers Program in New Brunswick.
Deposit/Refund on Beverage Containers
The New Brunswick Designated Materials Regulation requires the deposits paid for beverage containers to be refunded in full to consumers when returning empty containers for recycling at designed UBC return facilities, known in New Brunswick as “redemption centres.” Deposits on beverage containers in the new EPR Beverage Containers Program will be as per the table below.
| Container Type* | Deposit (Effective April 1, 2024) |
| All container types except non-refillable glass alcohol containers over 500 ml | 10 cents |
| Non-refillable glass alcohol containers over 500 ml | 20 cents |
| Refillable glass (beer bottles) | 10 cents |
*Will apply to all beverage containers up to a maximum of 5 L for products that fit the Regulation’s definition of “beverage.”
- Since deposits are charged to consumers separately from the price of beverage products and must be refunded in full to consumers when returning the empty container at designated UBC return facilities, they can and should be listed as separate line items on consumer receipts.
- Deposits can and should be listed separately on business-to-business
- Because deposits will be refunded in full to consumers, they will not be subject to New Brunswick’s Harmonized Sales Tax (HST).
Container Recycling Fee
A container recycling fee (CRF) mechanism will be established on container material types as needed by Encorp to cover the net costs of handling, transportation, processing, and administration for UBCs. The estimated CRFs for each container type are provided in the table below. These CRFs may change. Final CRFs will be communicated directly to brand owners and published on Encorp’s website by December 1, 2023.
*Will apply to all beverage containers up to a maximum of 5 L for products that fit the Regulation’s definition of “beverage.“
Note that the estimated CRF values provided in this table have since been reviewed and adjusted. Refer to the “Brand Owner Information Package” PDF document available on our website for up-to-date CRF information.
- The New Brunswick Designated Materials Regulation permits brand owners to recover the costs/fees related to their beverage container recycling program – meaning the CRFs charged by Encorp – at their sole discretion. However, as per the Regulation, while the presence of a CRF can be communicated to the public (for example, through means like shelf talkers or point-of-sale displays), the CRF cannot be presented by retailers as a separate line item that is part of the point-of-sale calculation (including the subtotal, HST, etc.) on customer receipts. (The only permissible “fee” retailers will be allowed to display separately on consumer receipts will be the fully refundable deposit on the beverage container.)
- The requirement above for internalized fees does not extend to business-to-business (B2B)
- CRFs will be subject to New Brunswick’s Harmonized Sales Tax (HST) of 15%. HST will be calculated at 15% on top of the CRF
In the next few weeks (November 2023), brand owners will receive a comprehensive Brand Owner Information Package from Encorp. This package includes compliance steps, FAQs, and agreements to sign. Additionally, upon receiving the package, brand owners will be invited to attend information webinars about transitioning to EPR in New Brunswick. Please be patient before reaching out with questions until you’ve received the package, as it likely contains the answers you seek. In case of urgent inquiries, do not hesitate to email us at [email protected] or call us at 1-877-389-7320.
Sincerely,
Pierre Landry, President & CEO, Encorp Atlantic
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