Packaging Management Law 5771 2011

1 This is an unofficial translation. The binding version is the official Hebrew text. Readers are consequently advised to consult qualified professional counsel before making any decision in connection with the enactment, which is here presented in translation for their general information only. Packaging Management Law 5771 2011 Chapter A: Objectives and Definitions Objective 1. The objectives of this law are to establish measures regarding manufacturing of packaging and handling of packaging waste, intended to reduce the quantity of packaging waste, to prevent landfilling of packaging waste and to encourage reuse of packaging, in order to reduce the negative environmental effects of packaging and packaging waste, including (1) To authorize the Minister to establish measures regarding means for reduction at source, which will be applicable to packaging producers; (2) To impose extended responsibility on producers of packaged products, on producers of service packaging and on importers of products and packaging as stated, with regard to all that pertains to the marking of the packaging and the implementation of approved recycling of the derived packaging waste, including setting obligatory targets for recycling as stated, and arranging for accredited bodies that shall act on behalf of the stated producers and importers; (3) To impose responsibility on parties responsible for waste removal to establish measures regarding separation of packaging waste and regarding collection and removal of packaging waste, and to prohibit the discarding of packaging waste and the collection or removal of packaging waste in contravention to such measures; (4) To prohibit landfilling of package waste. Definitions 2. In this law "Party responsible for waste removal" A local authority, as well as anyone obligated under any statute, excluding an obligation under a by law, to collect and to remove waste from a property in its ownership or possession; "Means of reduction at source" Means which should be taken in the production stages of the packaging, intended to reduce one of the following: (1) The quantity of packaging waste, including Passed by the Knesset on 14 Shvat 5771 (19 January 2011), Bill and Explanatory Note were published in the Hazaot Chok Hamemshala 514, dated 9 Tamuz 5771 (21 June 2010), p. 1116.

2 through adapting the materials from which the packaging is made for reuse; (2) The negative effects environmental and health related of packaging waste, including adapting the materials from which the package is made for recycling or for recovery; (3) Content of the hazardous substances in the packaging; "Packaging" An object and any material whatsoever, used or designated for use as wrapping or containment for a product, or used or designated for carrying a product, for its presentation or for its protection, and to which the following conditions apply : (1) It does not constitute an inseparable part of the product and is not essential for the use of the product; (2) It constitutes one of the following: (a) Sales packaging packaging conceived so as to constitute a sales unit to the final user or consumer, at the point of purchase; (b) Grouped packaging packaging conceived so as to constitute at the point of purchase a grouping of a certain number of sales units, which can be separated from the products without affecting the characteristics of any product or its sales packaging, whether the products are sold at the point of sale to the final user or consumer together with the grouped packaging or whether it serves only as a means to replenish the stock of products at the point of sale; (c) Transport packaging packaging conceived so as to facilitate handling or transport of a number of sales products or grouped packaging as an alternative to their manual handling and for prevention of transport damage, and all to the exclusion of containers intended for transport by land, air or sea; Single use packaging packaging which is not multiple use packaging; Multiple use packaging packaging conceived for reuse by a producer or importer; "Service packaging" packaging conceived for sale or marketing in Israel, whose use for packaging the product is

3 not conducted during the production; "Accredited body" a company which was accredited by the administrator under the provisions of Section 12; "Accreditation" accrediting of a company as an accredited body under the provisions of Article A in Chapter D; "Separation, collection and removal measures" measures for separation of packaging waste and measures for collection and removal of separated packaging waste, established under Section 23; "Recovery" production of energy from packaging waste or procedure of processing packaging waste into a material used to produce energy; "Approved recovery" recovery in a recovery plant which is accredited under any law; "Hazardous substance" as defined in the Hazardous Substances Law, 5753 1993 1 ; "The Companies Law" The Companies Law, 5759 1999 2 ; "Importer" importer of service packaging or importer of packaged products; "Importer of service packaging" anyone who imports service packaging; "Importer of packaged products " anyone who imports packaged products; "Recycling targets" recycling targets by type of material and total recycling target, as per their meaning in Section 6; "Producer" producer of service packaging or producer of packaged products; "Producer of service packaging" anyone producing service packaging; "Producer of packaged products" anyone producing packaged products, on his own or through others; "Packaged product" a product which is packaged in a packaging which is not service packaging, which is intended for sale, for marketing or for production of another product in 1 2 Codex 5753, p. 28. Codex 5759, p. 189.

4 Israel; "Recycling" processing of packaging waste into products, materials or raw materials, for the purpose for which the package was initially conceived or for another purpose, including recycling of organic material, and excluding recovery; "Approved recycling" Recycling in an accredited recycling plant under any law; "Sale" including transfer to an end user, whether with or without compensation; "The Administrator" a person appointed as responsible for the field of packaging in the Ministry, under Section 47; "The defense system" each of the following: (1) Ministry of Defense and units of the Ministry of Defense; (2) Israel Defense Forces; (3) General Security Service and the Institute for Intelligence and Special Operations; (4) Nuclear research centers under the responsibility of the Atomic Energy Commission and the Biological Institute; (5) Suppliers and factories developing or producing security equipment for a body stated in paragraphs (1) to (4), regarding which the Administrator was informed by the Minister of Defense; regarding this matter, "security equipment" as defined in the Security Corporations (Defending Security Interests) Law, 5766 2006 3 ; (6) The Israel Police and Prison Service; "The Ministry" The Ministry of Environmental Protection; "Packaging waste" Packaging after their use for the purpose for which they were initially conceived, and regarding multiple use packaging after their reuse; "Maintenance of Cleanliness Fund" The Maintenance of Cleanliness Fund established under Section 10 of the Maintenance of Cleanliness Law, 5748 1994 4 "Local authority" Municipality, local council or association of local authorities whose functions include collection and removal of waste; 3 4 Codex 5766, p. 174. Codex 4748, p. 142.

5 "Reuse" Additional use of packaging for the purpose for which it was initially conceived; "The Minister" The Minister of Environmental Protection. Chapter B: Taking Reduction at Source Measures Provisions regarding measures for reduction at source Production of packaging according to the measures for reduction at source 3. The Minister, following consultation with the Minister of Industry Trade and Labor and with approval of the Knesset Economics Committee, may prescribe provisions regarding measures for reduction at source. 4. Where the Minister prescribes provisions according to Section 3, no packaging shall be manufactured unless in accordance with these provisions, except packaging intended for export. Chapter C: Duties of Producers and Importers of Packaged Products or of Service Packaging Packaging labeling requirement Packaging waste recycling requirement 5. (a) The Minister, with the approval of the Knesset Economics Committee, may prescribe provisions regarding packaging labeling, including the manner of labeling, its content, size and location. (b) Where the Minister prescribes provisions under subsection (a) (1) No producer shall produce and no importer shall market a packaged product or service packaging, unless they were labeled in accordance with these provisions; (2) No person whose occupation is the sale of packaging, of packaged products or of products which are sold in service packaging, shall sell a packaged product or a product in service packaging, unless they were labeled in accordance with these provisions. 6. (a) A producer and importer shall perform approved recycling of the packaging waste of the packaged products or of the service packaging, as applicable, that were produced or imported by them as stated, at the rates specified below, at least, in accordance with the type of the packaging material, out of the total weight of the single use packaging of the products of the same type of material sold by the producer or importer during that same year (in this Chapter recycling targets in accordance with type of material): (1) Glass, paper or cardboard 60 percent; (2) Metal 50 percent; (3) Plastic 22.5 percent; (4) Wood 15 percent.

6 (b) The total packaging waste to be recycled by a producer or importer in accordance with the provisions of subsection (a) shall not be less than 60 percent of the total weight of the single use packaging of the total products sold by the producer or importer that same year (in this Chapter total recycling target). (c) Notwithstanding the provisions of subsections (a) and (b), in the time period between 29 Sivan 5771 (July 1 st 2011) until 9 Tevet 5775 (December 31 st 2014) the recycling targets shall be in accordance with the material type and the total recycling target, as specified below: (1) In the period between 29 Sivan 5771 (July 1 st 2011) until 5 Tevet 5772 (December 31 st 2011) the recycling targets in accordance with type of material shall be as specified, below, provided that the rate of the total recycling target shall not be less than 30 percent: (1) Glass, paper or cardboard 30 percent; (2) Metal 20 percent; (3) Plastic 15 percent; (4) Wood 15 percent. (2) In the year 2012 the recycling targets in accordance with type of material shall be as specified below, provided that the rate of the total recycling target shall not be less than 40 percent: (1) Glass, paper or cardboard 40 percent; (2) Metal 30 percent; (3) Plastic 22.5 percent; (4) Wood 15 percent. (3) In the year 2013 the recycling targets in accordance with type of material shall be as specified below, provided that the rate of the total recycling target shall not be less than 50 percent: (1) Glass, paper or cardboard 50 percent; (2) Metal 40 percent; (3) Plastic 22.5 percent; (4) Wood 15 percent. (4) In the year 2014 the recycling targets in accordance with type of material shall be as henceforth specified, provided that the rate of the total recycling target shall not be less than 55 percent: (1) Glass, paper or cardboard 55 percent; (2) Metal 45 percent; (3) Plastic 22.5 percent; (4) Wood 15 percent. (d) Where a producer or an importer performs approved recovery of packaging waste, the rate of stated approved recovery of packaging waste shall be considered as if approved

7 recycling under subsections (b) and (c) was performed for it, with regard to the total recycling target, up to a rate of 10 percent of the total weight of the single use packaging of the total products sold by the producer or the importer that same year. (e) (1) Where a producer or importer exports, under the provisions of any law, packaging waste for recycling or recovery purposes, the Administrator may recognize the weight of such packaging waste, in whole or in part, as packaging waste for which approved recycling was performed under subsections (a) to (c), up to the rate of 20 percent of the recycling targets in accordance with type of material, for each material type. (2) Where the Administrator is convinced, under special circumstances, that there are no reasonable recycling or recovery alternatives in Israel and reasonable efforts were taken to create such alternatives, he may approve the export of packaging waste beyond the rate stated in paragraph (1). Producer's and importer's reporting duty to the Administrator 7. (a) A producer and importer shall report to the Administrator twice a year (in this Section semiannual report) and at the end of each year (in this Section annual report), on all of the following: (1) The number of packaged products or service packaging they sold and their weight, types of material of which the packaging of the packaged products or the service packaging are made, their capacity, their weight and whether they are single use or multiple use packaging, and in relation to the packaging of the packaged products whether they constitute sales packaging, grouped packaging or transport packaging as well; (2) The weight of the packaging waste of the packaged products or of the service packaging they collected, on their own or through another, as well as the details of the parties responsible for removal of waste or of another party from which they were collected and the types of materials of which such packaging waste is made; (3) The weight of the packaging waste of the packaged products or of the service packaging they sold, which they recycled or recovered, and also the manner of its recycling or recovery and the details of the recycling or the recovery plant, and the types of material of which such packaging waste is made. (b) A semiannual report shall be submitted to the

8 Producer's and importer's recordkeeping duty 8. Administrator within two months of the end of the period for which the report is submitted, in the format prescribed by the Administrator. (c) An annual report, which is audited by an accountant, shall be submitted to the Administrator not later than six months from the end of each financial year, in the format prescribed by the Administrator. (d) The Administrator or any party he authorized for that purpose may demand that a producer or importer provide him with any information used for preparing the report under this Section as well as any information in his possession which was used for preparing a report under Section 18 of an accredited body with whom he contracted in accordance with the provisions of Section 9; where a producer or importer is required to provide such information, he shall provide it at the time and in the manner noted in the demand. (e) Where a producer or importer does not provide a semiannual report or an annual report, or where he provides such a report but the Administrator has reasonable grounds to assume that the report is incorrect, the Administrator may, after providing the producer or importer with an opportunity to present his arguments, determine by a well reasoned decision the rate of the packaging waste for which the producer or importer performed approved recycling or approved recovery during the report period. (f) For purposes of this Section, a semiannual report shall be submitted for a period of six months which includes the months of January to June, or July to December, of each year. (g) In this Section, "types of material" the types stated in Section 6. (a) A producer and importer shall keep full and detailed records of the matters included in the reporting duty under Section 7. (b) The Administrator or any party he authorized for that purpose may review the records as stated in this Section and may receive a true copy of them. Duty to contract with an accredited body 9. (a) For the purpose of fulfilling the duties of producers or importers under this Chapter, excluding the duty to label packaging under Section 5, a producer and importer are required to contract with an accredited body by a contractual agreement; where a producer or importer contracts with an accredited body, the accredited body shall be responsible for fulfilling the stated duties of the producer or importer, for as long as the contract is valid.

9 (b) A producer and importer shall be responsible for financing the entire costs of the accredited body with which they contracted under the provisions of subsection (a), in equitable conditions, and taking into account, inter alia, their share of the weight and type of material and the possibility for recycling the packaging which was produced or imported by all the producers and importers who contracted with that same accredited body. (c) Without derogating from the provisions of the final clause of subsection (a), a producer or importer who contracted with an accredited body, shall keep full and detailed records of the information stated in Section 7(a)(1), and the Administrator or the party he authorized for that purpose may review such records and receive a true copy of them. (d) Where a producer or importer finds that an accredited body with which he contracted under the provisions of subsection (a) does not fulfill the duties of producers or importers as stated in that same subsection, in whole or in part, or he believes that concern exists that the accredited body shall not fulfill such duties, the producer or importer shall take all reasonable measures available to him in order to assure fulfillment of such duties by the accredited body. (e) The Administrator may exempt a producer or importer from the duties under this Section, if convinced that the same producer or importer can fulfill his duties under this Chapter not through the accredited body, under conditions he shall prescribe in the exemption order; the Administrator may prescribe a format for submission of such an application for exemption, and may instruct that an exempted applicant shall be considered as a party applying for accreditation under Section 13, mutatis mutandis. Exemption for negligible weight of packaging Levy on exempted producers or importers 10. Provisions under this Chapter shall not apply to a producer or importer where the weight of the packaging of the packaged products or of the service packaging he sold during the year does not exceed 1000 kg; the producer or importer shall notify the Administrator that he fulfills the stated condition, but he may notify the Administrator that he requests that the provisions under this Chapter shall apply to him. 11. The Minister, with the consent of the Minister of Finance, may set a levy to be imposed on a producer or importer who are exempted from the provisions under this Chapter in accordance with the provisions under Chapter 10, and he may set different levy rates for types of packaging of packaged products, for types of service packaging or for types of material of which the packaging is made, and also, inter alia, provisions regarding linking of the levy, manner of its payment, manner of its collection and reports which a producer or importer is obligated to submit regarding the levy; setting the levy's rate and its linkage requires approval by the

10 Economic Committee of the Knesset. Chapter D: Accredited Body Article A: Accreditation Accreditation of a company as an accredited body 12. (a) The Administrator may accredit a company as a body responsible for fulfilling the duties of producers or importers who shall contract with it under this Law, if all of the following are fulfilled: (1) It is a company as defined in the Companies Law; (2) Its exclusive objective is fulfilling duties of producers or importers under this Law and performing the actions required for that purpose; (3) If established for profit purposes its articles of association limit the possibility of distributing profits if it did not comply with the recycling targets of the producers or importers for whose fulfillment of duties it is responsible or if the provisions of Section (21)(f)(1) were not fulfilled; notwithstanding the provisions of this paragraph, during the three year period from the commencement of this Law, the Administrator may only accredit a company for public benefit as defined in the Companies Law; the Minister may, by an order, shorten such period or extend it by periods of a year each time, provided that the total of the extension period shall not exceed two consecutive years. (4) It presented a business plan to the Administrator's satisfaction according to which in close proximity to the time of accreditation it shall provide services to producers and importers so that the weight of the packaging materials which they shall produce or import shall not be less than 10 percent of the total weight of the packaging material that was produced or imported by all of the producers and importers to whom the provisions of Chapter C to the Law applies, and within three years from the time of accreditation it shall provide services to producers and importers so that the weight of the packaging materials which they shall produce or import shall not be less than 25 percent of the said total (hereinafter the rate of scope of services regarding accreditation); (5) It undertook to provide services to producers and importers who shall contract with it, under the provisions of Sections 9(a) and 16(a), for the totality of packaging waste of the packaged products or the service products, as applicable,

11 that each producer or importer who shall contract with it as stated shall produce or import; (6) It owns sufficient equity capital, to the Administrator's satisfaction, and provided guarantees to assure its compliance with the target stated in paragraph (2); (7) The general manager of the company and its controlling shareholder were not convicted of an offense, by virtue of whose nature, severity, or circumstances, the company is not entitled to be an accredited body; regarding this matter, "control" as defined in the Securities Law, 5728 1968 5 ; (8) Additional conditions as the Minister shall establish. (b) The Administrator may refuse to provide accreditation to the applicant, for reasons he shall give to the applicant and after providing him with an opportunity to present his arguments, even if the conditions in subsection (a) are fulfilled in relation to him, if he found that circumstances exist which preclude him from receiving accreditation, or if convinced that there is real concern that providing the accreditation to the applicant shall harm the implementation of the objectives of this Law taking into consideration, inter alia, the following: (1) The number of accredited bodies operating in Israel; (2) The share of the producers or importers contracted with accredited bodies in the production or import of the type of packaging material produced or imported by all of the producers and importers to which the provisions of Chapter C of the Law apply (in this subsection share in production or import of the total type of packaging material); (3) The type of packaging which producers or importers as stated in paragraph (2) produce or import; (4) The number of producers or importers who shall contract with the applicant, their share in production or import out of the total type of packaging material, or the type of packaging they produce or import. (c) Notwithstanding the provisions of subsection (a)(4) and (5), the Administrator may accredit a company as the body responsible for fulfilling the duties of producers or importers under this Law who shall contract with it although the rate of its scope of service regarding the accreditation is lower than the rate stated in subsection (a)(4), if it was convinced that exceptional circumstances exist which deem it appropriate that the company shall be responsible for fulfilling such duties 5 Codex 5728, p. 234.

12 of producers or importers in all that pertains to packaging waste of a specific type or of specific types only; such accreditation shall be effected in a manner which shall not damage the economic viability of the company and the attainment of the recycling targets of the total packaging waste. (d) In order to assure the compliance of the accredited body with the target stated in subsection (a)(2), the Administrator may prescribe conditions in the accreditation which should be fulfilled during the term of the accreditation's validity, in whole or in part, including conditions regarding information activity to promote the objectives of the Law, and may alter the stated conditions, after providing the accredited body with an opportunity to present its arguments. (e) Accreditation shall be provided for a period of five years (in this Chapter the accreditation period). (f) The articles of association of the accredited body and any modification of them require the Administrator's approval. (g) The Administrator shall publish a notice regarding accreditation of a company as an accredited body and regarding the accreditation's date in the Official Gazette (Reshumot) and on the Ministry's website. Application for accreditation Revocation of accreditation 13. (a) A company seeking to receive accreditation shall submit to the Administrator an application which shall include the following documents and details: (1) The company's articles of association; (2) A business plan and a budget plan for the accreditation period, including the planned measures regarding package labeling; (3) Planned geographical distribution of its activity during the accreditation period; (4) Sample contract of agreement between the applicant and a producer or importer; (5) Sample contract of agreement between the applicant and a party responsible for waste removal; (6) Additional details and information as established by the Minister. (b) The Administrator may demand from the applicant additional details and documents as he shall deem necessary, for the purpose of examining the application. (c)the Administrator's decision in an application under this Section shall be provided within three months from the day in which the application documents were received, including the details or the documents requested under the provisions of subsection (b). 14 (a) The Administrator, with approval of the Ministry's Director General, may revoke accreditation, after providing the accredited body an opportunity to present its arguments,

13 Implementing activities to fulfill the duties of producers or importers 15. upon the fulfillment of one of the following: (1) The accreditation was provided based on false or misleading information; (2) One of the conditions for providing the accreditation under Section 12 ceased to exist in the accredited body; (3) The accredited body violated any of the accreditation conditions or any provision under this Chapter or it violated any provision of any other legislation in connection with its activity; (4) A temporary liquidation order was issued regarding the accredited body or a receiver was appointed for it or an application for any of the above was filed, or it voluntarily decided to liquidate. (b) Where the Administrator revokes an accreditation, he may provide the company in relation to which the accreditation was revoked as well as any producer or importer who was contracted to it by a contractual agreement under this Law immediately prior to the revocation, instructions in order to assure the continued fulfillment of duties by the producers or importers under this Law, including the date and the manner in which such producers and importers are obligated to perform activities which are required for that purpose. Article B: Duties of an Accredited Body (a) An accredited body shall perform all the activities required for fulfillment of the duties of producers or importers who contracted with it for this purpose as stated in Section 9, and shall act in accordance with the provisions under this Article. (b) An accredited body may, for purpose of fulfilling the duties of producers or importers under Section 6, recycle or recover packaging waste of packaged products or of service packaging which was sold by producers or importers who did not engage with it. Duty to contract with producers and importers and reporting duty towards them 16. (a) An accredited body shall contract by a contractual agreement with any producer or importer who shall approach it for the purpose of fulfilling his duties, which correspond to the accreditation conditions of that particular accredited body, in equitable conditions; the agreement shall be made in accordance with the sample contract approved by the Administrator in the accreditation and in accordance with the conditions established in it. (b) An accredited body shall report, at least twice each year, in the format prescribed by the Administrator, to each producer and importer with whom it contracted, on the activities it performed for the purpose of fulfilling their duties, including the rate of recycling of packaging waste it performed during the report period, out of the recycling targets under

14 Section 6. Duty to contract with a party responsible for waste removal and performing collection and removal activities of packaging waste 17. (a) Without derogating from the duties of an accredited body under the provisions of this Law, an accredited body is responsible for financing the total costs required for handling the packaging waste that was separated and collected in the property of each party responsible for waste removal with whom it contracted, excluding packaging waste which was collected from a business under Section 26, including financing of (1) Separation of packaging waste; (2) Collection and removal of packaging waste; (3) Sorting of packaging waste; (4) Recycling, recovery or removal of packaging waste, under any law. (b) If packaging waste was not separated from other waste, an accredited body shall be responsible for financing the costs specified in subsection (a)(1) and (2) in relation to the packaging waste only. (c) An accredited body shall propose to each party responsible for waste removal to contract with it by contractual agreement, regarding separation of packaging waste and collection and removal of packaging waste in its property, under equitable conditions; the contractual agreement shall be drafted in a manner corresponding with the sample contract approved by the Administrator in the accreditation and in accordance with its conditions. (d) An accredited body shall contract by contractual agreement as stated in subsection (c), with each party responsible for waste removal that shall approach it, regarding the matter of separating packaging waste and collection and removal of packaging waste in its property, which correspond to the accreditation conditions of that accredited body. (e) An accredited body shall be responsible for the implementation of measures for the collection and removal of packaging waste in the property of all parties responsible for waste removal with whom it contracted, in accordance with the contractual conditions and the accreditation conditions; such collection and removal shall be implemented in an equitable manner, in a frequency and manner which shall assure collection and removal which are regular and available to the public and prevent accumulation of packaging waste, all in accordance with the sorting, collection and removal measures established by the parties responsible for waste removal under Section 23(a) and subject to any law. (f) The Administrator may issue instructions regarding the frequency of collection and removal of packaging waste under subsection (e) and the quantities of the packaging waste to be collected and removed as stated, as well as regarding removal of packaging waste from a business under Section 26, including setting criterions for collection and for removal; the

15 Administrator's instructions under this Section shall be published in the Official Gazette (Reshumot). (g) The Administrator, with the approval of the Director General of the Ministry, may exempt an accredited body which received accreditation under the provisions of Section 12(c), from the provisions under this Section, in whole or in part, if convinced that also after granting such exemption, collection and removal of packaging waste shall be performed nationwide. Reporting duty to the Administrator of an accredited body 18. (a) An accredited body shall report to the Administrator, twice a year (in this Section semiannual report), after the end of two months from the period for which the report is filed, in the format prescribed by the Administrator, regarding all of the following: (1) The producers and importers with whom it contracted by a contractual agreement in the period for which the report is filed; (2) The details as stated in Section 7(a)(1), regarding each of the producers and importers with whom it contracted as stated; (3) The parties responsible for waste removal with whom it contracted by a contractual agreement in the period for which the report is filed; (4) The details as stated in Section 7(a)(2) and (3), in relation to the packaging waste of the packaged products or of the service packaging it collected, recycled or recovered. (b) An accredited body shall report to the Administrator at the end of each year (in this Section an annual report), not later than six months from the end of the year for which the audited report is filed by an accountant, in the format prescribed by the Administrator regarding all of the following: (1) The matters as stated in subsection (a); (2) The financial balance of the accredited body for the passing year. (c) An accredited body shall report to the Administrator at the end of each year, not later than two months from the end of any financial year, in the format prescribed by the Administrator, regarding a budget plan and work plan for the coming year. (d) The Administrator or any party he authorized for that purpose may demand that an accredited body provide him with any information which was used for preparing the report under this Section; if an accredited body was required to provide such information, it shall provide it at the time and in the manner noted in the demand. (e) Where an accredited body did not provide a semiannual report or an annual report, or where it provided such a report but the Administrator has reasonable grounds to assume that the report is incorrect, the Administrator may, after providing

16 Recordkeeping duty of an accredited body 19. the accredited body with an opportunity to present its arguments, determine by a well reasoned decision the rate of the packaging waste for which the approved recycling or approved recovery were performed during the report period. (f) For purposes of this Section, a semiannual report shall be submitted for a period of six months which includes the months of January to June, or July to December, of each year. (a) An accredited body shall conduct full and detailed records of the matters which are included in the reporting duty under Section 18. (b) The Administrator or any party he authorized for that purpose may review such records as stated in this Section and receive a true copy of them. Determination of reduced weight of packaging waste due to violation of instructions by a party responsible for waste removal Meeting of producers and importers 20. (a) Without derogating from the provisions of Section 18(e), where an order under Section 24(a) was issued against a party responsible for waste removal or a financial sanction was imposed due to the absence of a contractual agreement with at least one accredited body regarding collection and removal of packaging waste from its property under Section 34(b), the Administrator may determine, regarding the packaging waste in the property of the party responsible for waste removal, a weight which shall be reduced from the weight of the packaging waste regarding which an accredited body is required to recycle under Section 6. (b) In the case of several accredited bodies, the Administrator shall determine the relative share of the reduced weight of packaging waste as stated in subsection (a), which can be reduced for each accredited body in relation to the total weight of packaging waste which was produced or imported by all the producers and importers to whom the provisions of Chapter C apply. 21. (a) An accredited body shall convene, at least once each year, a meeting of producers and importers who are contracted by a contractual agreement with it and which are not shareholders in the accredited body (in this Chapter meeting of producers and importers). (b) A meeting of producers and importers shall be an organ of the accredited body, and its resolutions shall bind the accredited body in the matters detailed in this Section. (c) In a meeting of producers and importers the accredited body shall present the matters which were reported to the Administrator under Section 18, excluding the details stated in its subsection (a)(2). (d) Where a meeting of producers and importers finds, in accordance with reports presented to it under subsection (c), that the accredited body does not fulfill the duties of the producers and importers contracted with it as stated in Section 9 and in the contractual agreement or other duties

17 which are imposed on it under any law, or that there is concern that it shall not fulfill such duties, it may demand the convening of an extraordinary meeting of the directorate of the accredited body, within a period it shall establish and which shall not be less than seven days, in which the matters detailed in the demand shall be considered; the demand shall be brought to the attention of the Administrator and the directorate's decision shall be brought to the attention of the producers and importers and the Administrator. (e) In an accredited body which is not a public company two directors shall be appointed who fulfill the conditions of Section 240 (b) of the Companies Law, as if they were external directors, who shall hold office in the directorate of the accredited body, and their nomination requires the approval of the meeting of producers and importers. (f) (1) The decision of an accredited body regarding distribution requires the approval of the meeting of producers and importers; a meeting of producers and importers may not approve distribution if there is real concern that implementing the distribution shall harm the ability of the accredited body to fulfill the duties of the producers and importers as stated in Section 9 and in the contractual agreement when their date of fulfillment arrives. (2) The decision of a meeting of producers and importers regarding distribution can be appealed to the District Court. (g) The decisions of the meeting of producers and importers shall be taken by majority vote of the producer and importer members participating in the vote, unless it was otherwise decided under subsection (h); an accredited body shall bring the decisions taken in a meeting of producers and importers to the attention of the Administrator. (h) The Minister may prescribe provisions regarding this Section, including the manner of convening a meeting of producers and importers, its deliberations and work, the times of its convening, the legal quorum in its meetings, dispatch of notices to the producers and importers who are authorized to participate in its meetings and the manner of voting, including by proxy. (i) The Minister may exempt an accredited party from the provisions of this Section, in whole or in part, if he found that under the articles of association of that accredited body, each producer or importer which is contracted with it by a contractual agreement can be a shareholder in it, under reasonable conditions in the circumstances of the matter, and that most of the producers and importers who are contracted with it by a contractual agreement are shareholders. (j) In this Section, "public company", "distribution" and "office

18 holder" as defined in the Companies Law. Representative of the Administrator 22. (a) An invitation to the directorate meetings of the accredited body and the directorate committees as well as to meetings of the producers and importers, shall be delivered to the Administrator, and he may send a representative on his behalf to any such meeting, who may participate in the meeting but not have voting rights. (b) The representative mentioned in subsection (a) may demand the convening of a directorate meeting, directorate committee meeting or meeting of producers and importers and request the inclusion of a subject in the agenda of the meeting and also examination of the documents of the accredited body, its records and assets, and receipt of copies under Sections 98(b)(2) and (d), 99(3) and 265 of the Companies Law, respectively. Chapter E: Instructions regarding Separation, Collection, Removal, and Landfilling of Packaging Waste Determining separation, collection and removal measures and duty to contract with an accredited body 23. (a) A party responsible for waste removal shall prescribe, subject to provisions under subsection (d), measures regarding the separation of packaging waste from other waste in its property, and it may allow within such measures the mixing of packaging waste with waste of similar characteristics to those of the packaging waste (in this Law measures for separation of packaging waste), as well as measures regarding collection and removal of packaging waste which was separated as stated (in this Law measures for collection and removal of separated packaging waste); however, the prescribed measures regarding the mixing of waste, do not increase the financing of an accredited body beyond the financing duty under Section 17(a) and (b). (b) (1) A party responsible for waste removal shall be responsible for separation of packaging waste and collection and removal of packaging waste from its property, in accordance with the measures for separation, collection and removal it prescribed regarding this matter under subsection (a) and the provisions under this Law. (2) for purpose of fulfilling its duty as stated in paragraph (1), a party responsible for waste removal shall contract by contractual agreement with at least one accredited body; nevertheless the provisions of this subsection do not prevent the party responsible for waste removal to also contract with a producer or with an importer who received an exemption from a contractual duty under Section 9(e), for the purpose of implementing collection and removal of the packaging waste of the packaged products or of

19 the service packaging it produced or imported. (c) A party responsible for waste removal shall transfer the packaging waste collected from its property in accordance with its duties under this Section to an accredited body with whom it contracted, without additional compensation beyond the cost of financing as stated in Section 17(a) or (b), as applicable. (d) (1) The Minister may establish criteria regarding the separation, collection and removal measures, and may not allow in such arrangements the mixing of packaging waste with waste of similar characteristics to those of the packaging waste. (2) In establishing provisions under this subsection, the Minister shall consider, inter alia, whether significant damage can be caused to the quantity and quality of packaging waste and waste of similar characteristics to those of the packaging waste that was recycled prior to the commencement of this Law. (3) Regulations under this subsection in all that pertains to local authorities shall be promulgated with the consent of the Minister of the Interior. (e) (1) The Minister, in accordance with the recommendation of the pricing committee and with approval of the Minister of Finance, may set prices regarding contracting with an accredited body for the purpose of implementing separation, collection and removal measures under the provisions of subsection (b). (2) The pricing committee shall include eight members, of which four are employees of the Ministry of Finance to be appointed by the Director General of the Ministry of Finance, and one of which shall be the chairperson, an employee of the Ministry of Industry Trade and Labor to be appointed by the Director General of the Ministry of Industry Trade and Labor, an employee of the Ministry of the Interior to be appointed by the Director General of the Ministry of the Interior and two employees of the Ministry to be appointed by the Director General of the Ministry. (3) Within 90 days of the day the Administrator initially accredited the accredited body under Section 12, the pricing committee shall submit a recommendation to the Minister as stated in paragraph (1). (f) The authorities granted to the Minister of the Interior regarding bylaws under Section 258 of the Municipalities Ordinance 6, Section 22 of the Local Authorities Ordinance 7, 6 Laws of the State of Israel, new version 8, p. 197

20 and Section 14 of the Municipal Corporations Law, 5715 1955 8, shall be granted to the Minister for the matter of a bylaw regarding separation, collection and removal measures, determined by the party responsible for waste removal which is a local authority under the provisions of this Section. Order regarding establishment of separation, collection and removal measures or contracting with an accredited body Prohibition on discarding, collection or removal of packaging waste not in accordance with separation, collection and removal measures Collection and removal of packaging waste from a business 24. (a) Where a party responsible for waste removal does not establish separation, collection and removal measures or does not contract with at least one accredited body, in accordance with the provisions under Section 23, the Administrator may, in consultation of the Director of the Local Government Administration in the Ministry of the Interior, order it, to establish such measures or to contract with an accredited body, as applicable, under the provisions it shall establish by an order, including the manner, the date and the price for establishing such measures or contractual agreement; the provisions of the order under this subsection shall be established subject to the instructions of the Minister under Section 23(d) and (e), inasmuch as they shall be established; where the Director of the Local Government Administration in the Ministry of the Interior did not respond to the Administrator within 14 days of the date of approaching him under this Section, the Administrator shall be deemed to have fulfilled the stated duty of consultation. (b) The provisions of Section 23(f) shall apply regarding the bylaw on separation, collection and removal measures, which were established by a party responsible for waste removal which is a local authority under the provisions in this Section. 25. (a) Where a party responsible for waste removal establishes measures for separation of packaging waste, no person shall dispose of packaging waste in the property of the party responsible for waste removal except in accordance with those measures. (b) Where a party responsible for waste removal establishes measures for collection and removal of separated packaging waste, no person shall collect packaging waste in the property of the party responsible for waste removal and shall not remove packaging waste from its property, except in accordance with those provisions. 26. (a) In this Section "Business" a place where packaging waste accumulates during the course of the work or business; "Business owner" a holder of a permit or license required under any law for operation of a business or its management or for work in the business, or any party which is required to receive a permit or license for the purpose of such operation or management. 7 8 Laws of the State of Israel, new version 9, p. 256 Codex 5715, p. 48.

21 (b) Notwithstanding that stated in this Chapter, a business owner may contract with an accredited body regarding collection and removal of packaging waste which accumulates in the business, in whole or in part, in accordance with the conditions of accreditation of that accredited body. (c) A business owner who contracted with an accredited body as stated in subsection (b), shall keep full and detailed records of the weight of the packaging waste of the packaged products or of the service packaging which accumulated in the business and which is intended for removal and the types of materials stated in Section 6 of which the packaging waste consists, and shall supply such information to the accredited body, according to its demand. (d) The Administrator or any party he authorized for that purpose may review the records in the business as stated in subsection (c) and receive a true copy of them, and also demand that the business owner provide him with any information pertaining to this Section; if a business owner was required to supply such information, he shall supply it on the date and manner noted in the demand. (e) Collection and removal from a business under this Section shall be performed in a frequency and manner that assures regular collection and removal and shall prevent accumulation of packaging waste, and subject to any law. (f) Regarding packaging waste which was not collected by an accredited body or at any time when the contract with the accredited body is not valid, the prohibitions stated in Section 25 shall apply to the business owner. Prohibition on landfilling packaging waste 27. (a) As of 4 Tevet 5780 (1 January 2020) a person shall not landfill packaging waste, including in a location that serves for removal and disposal of waste. (b) Notwithstanding that stated in subsection (a), the Administrator may, with the Ministry's approval, approve, in writing, the landfilling of packaging waste in a specific place, if convinced, in specific cases, that there are no reasonable recycling or recovery alternatives available; such approval shall be provided for a period not exceeding one year. Authorizing inspectors 28. Chapter F: Inspectors (a) The Minister may authorize from among his Ministry employees, inspectors in whom the powers under this Article, in whole or in part, shall be vested. (b) An inspector shall not be authorized under the provisions in subsection (a), unless he fulfills all of the following: (1) The Israel Police gave notice, not later than three months from the day it received the employee's details, that it does not object to his authorization for reasons of public safety, including his criminal record;