Regulation 34(6)
1.—(1) In this Schedule—
“exemption application” means an application made under paragraph 2(1);
“exemption holder”, in relation to a return point exemption, means an MRP retailer to whom the return point exemption has, for the time being, been granted;
“MRP retailer” means a scheme retailer whose business consists wholly or mainly of the sale or supply of groceries to scheme consumers;
“renewal application” means an application under paragraph 6(3).
(2) For the purposes of this Schedule—
(a)an exemption application is made on the proximity grounds if it is made on the grounds that—
(i)there is one or more alternative return points located within reasonable proximity to the premises specified in the application, and
(ii)if the exemption were granted, it would not affect the deposit management organisation’s ability to meet the collection targets (see regulation 81);
(b)an exemption application is made on the premises grounds if it is made on the grounds that the location, layout, size, design, or construction of the specified premises does not permit, or does not easily permit, or cannot reasonably be altered to permit, the operation of a return point in respect of those premises.
2.—(1) An in-scope retailer may apply before or after 1st October 2027 to the deposit management organisation for a return point exemption in respect of the premises in the exemption application.
(2) An exemption application must be made on either the proximity grounds or the premises grounds.
(3) An exemption application must—
(a)be made in such form and manner as may be directed by the deposit management organisation,
(b)contain the application information, and
(c)contain such other information (if any) as the deposit management organisation may direct.
(4) In this paragraph—
“the application information” means—
if an exemption application is made on the proximity grounds—
information about the size of the applicant, which may include information about the—
floor area of the specified premises;
number of employees or other persons working in the specified premises;
annual profit or turnover of the applicant’s business;
information about the alternative return point or points which are located in reasonable proximity to the specified premises, and
confirmation that the operator of each of those return points has been consulted about the retailer’s application for a return point exemption, and none of them has objected to the potential increase in the number of returnable items likely to be returned to their return point if the return point exemption is granted;
any further information the applicant considers may be relevant;
if an exemption application is made on the premises grounds, information which is sufficient to demonstrate that the location, layout, size, design or construction of the specified premises does not permit, does not easily permit, or, as the case may be, cannot easily be altered to permit the operation of a return point in respect of those premises.
3.—(1) Where the deposit management organisation receives, whether before or after 1st October 2027, an exemption application from an in-scope retailer (“the applicant”), it must, within a reasonable time—
(a)consider the application information supplied by the applicant under paragraph 2 of this Schedule, and
(b)in making a decision on the exemption application, have regard to all relevant factors including—
(i)the number of applications for exemption made in the proximity of the applicant;
(ii)the decisions taken with regard to such other applications;
(iii)any representations made by members of the public, or by groups representing sections of the public, regarding exemptions from the requirement to operate a return point.
(2) The deposit management organisation must—
(a)subject to sub-paragraph (3), decide whether or not to grant the return point exemption, and
(b)give a notice regarding its decision to the applicant.
(3) A notice under sub-paragraph (2) must be in writing, and—
(a)if the deposit management organisation grants the exemption—
(i)specify the premises in respect of which the exemption is granted,
(ii)specify the date on which the exemption will take effect, and
(iii)include a statement that, unless the exemption is revoked or renewed, it will expire at the end of the period of three years beginning with that date;
(b)if the deposit management organisation refuses the exemption—
(i)state the reasons for that decision, and
(ii)state that the in-scope retailer has a right under regulation 76 to ask the deposit management organisation to review its decision.
4.—(1) This paragraph applies where—
(a)an in-scope retailer makes an exemption application before 1st October 2027, and
(b)the deposit management organisation has not made a decision on that application by the end of 30th September 2027.
(2) Irrespective of the final outcome of the exemption application, the in-scope retailer is not required to operate a return point in respect of the premises specified in the exemption application during the period—
(a)beginning with 1st October 2027, and
(b)ending—
(i)if the return point exemption is granted, immediately before the exemption takes effect;
(ii)if the return point exemption is refused and the retailer has asked the deposit management organisation to review its decision under regulation 76, at the end of the period during which the review is carried out;
(iii)if the return point exemption is refused and the retailer has not asked the deposit management organisation to review its decision under regulation 76, at the end of the period within which the retailer could have asked the deposit management organisation to review its decision under regulation 76.
5.—(1) This paragraph applies where a person who becomes an in-scope retailer on or after 1st October 2027 (a “new retailer”) makes their first exemption application.
(2) The new retailer is not required to operate a return point in respect of the premises specified in the exemption application during the period—
(a)beginning with the day on which the exemption application is received, and
(b)ending—
(i)if the return point exemption is granted, immediately before the exemption takes effect;
(ii)if the return point exemption is refused and the new retailer has asked the deposit management organisation to review its decision under regulation 76, at the end of the period during which the review is carried out;
(iii)if the return point exemption is refused and the new retailer has not asked the deposit management organisation to review its decision under regulation 76, at the end of the period within which the new retailer could have asked the deposit management organisation to review its decision under regulation 76.
6.—(1) A return point exemption—
(a)continues in force for a period of three years beginning with the date specified for the purposes of paragraph 3(3)(a)(ii);
(b)may be renewed by the deposit management organisation on one or more occasions.
(2) A return point exemption must not on any occasion be renewed for a period of more than three years.
(3) An exemption holder may apply for the return point exemption to be renewed at any time before the exemption expires.
(4) The deposit management organisation may only renew a return point exemption if—
(a)a renewal application is made by the exemption holder, and
(b)the grounds on which the exemption was originally granted continue to apply.
(5) A renewal application must—
(a)be made in such form and manner as the deposit management organisation may direct,
(b)contain the exemption grounds information, and
(c)contain such other information (if any) as the deposit management organisation may direct.
(6) In sub-paragraph (5) “the exemption grounds information” means—
(a)if the exemption was granted on the proximity grounds—
(i)information about the alternative return point or points which are located in reasonable proximity to the specified premises, and
(ii)confirmation that the operator of each of those return points has been consulted about the retailer’s application for a return point exemption, and each of those operators has agreed to continue to accept returnable items which could otherwise have been returned to the retailer making the renewal application;
(b)if the exemption was granted on the premises grounds, information which is sufficient to demonstrate that the location, layout, size, design or construction of the specified premises still does not permit, does not easily permit, or, as the case may be, cannot easily be altered to permit, the operation of a return point in respect of those premises.
(7) Where the deposit management organisation receives a renewal application, it must, within a reasonable period of receiving the application—
(a)decide whether or not to renew the relevant return point exemption, and
(b)notify the exemption holder of its decision.
(8) A notice under sub-paragraph (7)(b) must be in writing and—
(a)if the deposit management organisation renews the return point exemption—
(i)specify the further period for which the exemption is to continue in force, and
(ii)specify the date at the end of which the return point exemption will expire unless it is renewed or revoked;
(b)if the deposit management organisation decides not to renew the return point exemption—
(i)state the reasons for that decision, and
(ii)state that the in-scope retailer has a right under regulation 76 to ask the deposit management organisation to review its decision.
(9) But this paragraph is subject to paragraphs 8 and 9.
7.—(1) An exemption holder must notify the deposit management organisation of any change of circumstances relevant to the grounds on which the relevant return point exemption was granted or, as the case may be, renewed.
(2) A notice under sub-paragraph (1) must be given to the deposit management organisation within the period of 28 days beginning with the day on which the change occurs.
8.—(1) An exemption holder may request that any return point exemption granted to them be revoked.
(2) A request under sub-paragraph (1) must be made in such form and manner as the deposit management organisation may direct.
(3) Where the deposit management organisation receives a request under this paragraph, the deposit management organisation must—
(a)revoke the relevant return point exemption, and
(b)notify the exemption holder, in writing, of the date on which the revocation of the return point exemption takes effect.
9.—(1) The deposit management organisation may revoke a return point exemption if the deposit management organisation is satisfied that—
(a)there has been a change of circumstances relevant to the grounds on which the exemption was granted, or
(b)if the exemption was granted on the proximity grounds, the continuing operation of the exemption will mean that there are scheme consumers who no longer have reasonable access to a return point.
(2) Where the deposit management organisation proposes to revoke a return point exemption under sub-paragraph (1), the deposit management organisation must give the exemption holder a notice (a “proposal notice”).
(3) A proposal notice must be in writing and must—
(a)state the reasons for which the deposit management organisation is proposing to revoke the return point exemption,
(b)specify the day at the end of which the return point exemption will cease to have effect, if the proposal is upheld, and
(c)specify—
(i)the form and manner in which any representations are to be made to the deposit management organisation about the proposal, and
(ii)the period within which any such representations must be made, which must not be less than 28 days beginning with the date on which the person receives the proposal notice.
(4) The deposit management organisation—
(a)must consider any representations made to it in the specified form and manner and by the specified date;
(b)may reject any representations that are made otherwise than in the specified form and manner or after the specified date (or both).
(5) The deposit management organisation must notify the exemption holder in writing of its decision.
(6) Where the deposit management organisation decides to proceed with the revocation of the relevant return point exemption, the deposit management organisation must give the exemption holder a notice (a “revocation notice”).
(7) A revocation notice must be in writing and must—
(a)state that the relevant return point exemption is being revoked, and the reasons why, and
(b)specify the day at the end of which the return point exemption will cease to have effect, and
(c)state that the exemption holder has the right under regulation 76 to ask the deposit management organisation to review its decision.
(8) A notice under sub-paragraph (5), together with any revocation notice, must be given before the end of the period of seven days beginning with the day on which the deposit management organisation makes its decision.
(9) If the person exercises the right referred to in sub-paragraph (7)(c), the revocation notice will not take effect pending the review of the decision.
(10) The day specified for the purposes of sub-paragraph (7)(b) must not be before the end of the period of 28 days beginning with the date on which the person receives the revocation notice.