Deposits

The New Brunswick Designated Materials Regulation requires the deposit/refund structure for beverage containers to be as follows.

“A retailer shall collect from a consumer, at the time of the sale of a beverage container, a deposit in the amount specified in the beverage containers stewardship plan […], which shall include any applicable federal and provincial sales tax.” NB Designated Materials Regulation 2024-37, section 66(1)

“The amount of the refund for an empty beverage container shall be equal to the amount of the deposit collected from a consumer for the beverage container.”
NB Designated Materials Regulation 2024-37, section 66(2)

The deposit values are determined and set by Encorp in its Stewardship Plan submitted to Recycle NB, as the producer responsibility organization (PRO) responsible for the Extended Producer Responsibility (EPR) Beverage Containers Program.

*Applies to all beverage containers 5L and under for products that fit the Regulation’s definition of “beverage.”

Container Recycling Fees (CRFs)

The New Brunswick EPR Beverage Containers Program, managed by Encorp, is funded by the sale of processed materials to commodity markets and from unredeemed beverage container deposits. Additionally, a CRF mechanism is established on container material types as needed.

This revenue is utilized to support various Program activities, including administration and all applicable operating costs.

The CRF is calculated as the net cost of recycling beverage containers and is based on these guiding principles:

• All material types must be self-sustaining.
• There can be no cross subsidization of different material streams.
• Each stream is responsible for the direct costs of managing its containers as well as a portion of the indirect costs based primarily on market share.

While adjustments to CRFs are expected to occur annually, taking effect on April 1 of each year, Encorp reserves the right to adjust the CRFs at any time in response to unanticipated financial events. Any changes to the CRFs are announced at least 90 days before they become effective.

***As of October 28, 2025, Encorp has confirmed that the CRF rates in effect as of April 1, 2026, will remain unchanged from the current rates — no decrease or increase in CRF rates is planned.***

*Applies to all beverage containers 5L and under for products that fit the Regulation’s definition of “beverage.”

Recovering Costs

New Brunswick’s Designated Materials Regulation permits beverage product producers to recover the costs/fees related to their beverage container recycling program – meaning the CRFs charged by Encorp – at their sole discretion. However, these fees must be internalized – as stated below.

“Subject to subsection (2), a producer or a retailer on behalf of a producer may recover from the consumer the costs associated with implementing or operating a stewardship plan, including the administrative costs referred to in section 47.” NB Designated Materials Regulation 2024-37, section 50(1)

“A producer or retailer who recovers costs shall integrate those costs:
(a) in the total advertised sales price of a designated material or a product containing or including a designated material, and
(b) in the total sales price appearing on the receipt of sale of a designated material or a product containing or including a designated material.” NB Designated Materials Regulation 2024-37, section 50(2)

“A producer or retailer is not prohibited from informing the public that the total sales price of a designated material includes costs recovered under subsection (1) and communicating the amount of those costs to the public.” NB Designated Materials Regulation 2024-37, section 50(3)

FAQ

What is the difference between a CRF and a deposit?

A “CRF” stands for Container Recycling Fee. It is an environmental handling/management fee charged to the beverage industry to cover the estimated net costs of recovering and recycling the containers for their products. The exact amount set for each container depends on how cost-effective a container’s material type is to recycle. CRFs are a common and proven financing mechanism used successfully in many other Canadian provinces to fund the recycling of beverage containers. On April 1, 2024, the New Brunswick Beverage Containers Program transitioned to an Extended Producer Responsibility (EPR) model, with a CRF set by container type to cover the estimated net costs of recycling each material stream.

A “deposit” is a refundable fee that consumers pay when they purchase a ready-to-drink beverage product in a sealed container, in addition to the item’s price. It is intended to encourage consumers to return the empty beverage container for recycling or refilling instead of disposing it in a landfill or as litter. New Brunswickers are accustomed to paying a 10-cent deposit on some containers and a 20-cent deposit on others. Since April 1, 2024, as required by the Designated Materials Regulation, they receive a full refund for these deposits when they return empty deposit-bearing beverage containers to designated used beverage container return facilities, known as “redemption centres.”

Isn’t the CRF just another form of taxation?

No, Encorp is a non-profit producer responsibility organization. None of the CRFs or the deposits go to any level of Government. The CRFs are charged by Encorp directly to the beverage industry to cover the estimated net costs of recycling their containers. CRFs are common in many other provinces and reflect the growing movement towards eco-packaging and producers taking responsibility for the lifecycle of their products. There are costs involved in recycling beverage containers, and charging CRFs to beverage producers is necessary to keep New Brunswick’s beverage container deposit/refund recycling system financially sustainable.

Is tax applied to the CRF?

Yes, the CRF is subject to New Brunswick’s Harmonized Sales Tax (HST), regardless of whether the beverage itself is taxable or non-taxable. HST is calculated at 15% on top of the CRF amounts.

Can I pass on the costs for the CRFs?

Encorp charges CRFs directly to the beverage industry (beverage product producers). Producers can, at their sole discretion, decide to absorb these costs, or pass them on to retailers. Likewise, retailers can choose to absorb these costs, or pass on these costs to consumers. When passed on to consumers, the Designated Materials Regulation states that the CRF must always be integrated into the total advertised sales price of a beverage container and the sales price of the beverage container on the receipt of the sale (i.e., it cannot be presented as a separate line item that is part of the point-of-sale calculation, including the subtotal, HST, etc.). However, this requirement for internalized fees does not extend to business-to-business (B2B) invoices.

Is tax applied to the beverage container deposit?

No. In the past, tax was applied only to portions of the deposit that were not refunded to consumers. Because the EPR Beverage Containers Program switched to a fully refundable deposit system on April 1, 2024, deposits are no longer taxable.

Why not raise the deposit amount on beverage containers in New Brunswick, especially when some other provinces have higher deposits?

Encorp aims to enhance customers’ used beverage container return and redemption experience in collaboration with local return facility operators over the next few years, improving access and convenience to recycling across New Brunswick before considering any potential increases in beverage container deposits.

Are there any types of beverage containers that are not included in the New Brunswick EPR Beverage Containers Program?

Only sealed containers for ready-to-drink beverage products that fit the Regulation’s definition of “beverage” are included in the New Brunswick EPR Beverage Containers Program and considered deposit-bearing. Deposit-bearing beverages should also be packaged in containers using material types from Encorp’s list of accepted materials.

Additionally, containers greater than 5 L or containers that consumers can bring back to a retailer to be refilled (such as flagons/growlers) are not part of the EPR Beverage Containers Program and are not subject to deposits or CRFs.

Do beverage container deposits have to be shown on customer receipts in restaurants?

Whether a beverage container deposit must be shown on a customer receipt depends on how the beverage is sold and whether the customer takes possession of the container.

If a customer receives a sealed, deposit‑bearing beverage container—such as a bottled soft drink or a canned beer—and is able to leave the premises with the container, the deposit applies and should be shown as a separate line on the receipt. Because the customer is in possession of the container, they may return it to a return facility and receive a deposit refund. This also applies if a beverage is poured into a glass and the empty or partially filled container is given to the customer, as possession of the container transfers to the customer.

If a beverage is opened and served on‑premises (for example, poured into a glass) and the container is retained by the restaurant, the restaurant may recover the deposit by returning the empty container to a return facility. In this scenario, no deposit appears on the customer receipt, as no deposit is collected from the consumer and the consumer does not leave with a container that can be returned for a refund. Restaurants typically incorporate this cost into their menu pricing and should not charge a visible deposit on customer receipts in these cases.