Announcement

Collapse
No announcement yet.

Help decipher state deposit laws for can ends?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Help decipher state deposit laws for can ends?



    Hi All,

    In the process of getting final quotes on cans from Ball, and as things felt like they were about to wrap up smoothly, I was hit with state deposit laws with the can lids and their engraving/incising on top. Does ANYONE have any clue on this? There's no one regulatory body, and I really don't want to get into any dumb legal regulatory issues because this isn't a clear and well-managed area of red tape.

    I'm super confused. Being in Oklahoma, theres multiple options we fall under, I'm not even sure if theres a difference between beer vs non-alcoholic.

    This is the jumbled mess the can rep emailed me:

    Further information regarding deposit labeling is as follows:

    The 3-state ends list the abbreviations for the 3 states which include California (CA-CRV), Hawaii (HI) and Maine (ME) that require deposits be paid on the non-carbonated beverages that are sold in their states.

    The 4-state ends list the abbreviations for the 4 states which include California (CA-CRV), Hawaii (HI), Maine (ME) and Iowa (IA) that require deposits be paid on the non-carbonated beverages, wine and liquor that are sold in their states.

    The 10-state ends list the abbreviations for the 10 states which include California (CA-CRV [California Redemption Value]), Connecticut (CT), Hawaii (HI), Iowa (IA), Massachusetts (MA), Maine (ME), Michigan (MI), New York (NY), Oregon (OR) and Vermont (VT) that require deposits be paid on the carbonated beverages that are sold in their states.

    If alcohol content of the beer is less than 3.2%, then can use 10-state ends or ends that have 3.2% maximum alcohol message for their deposit labeling. This is all dependent upon which states they will be distributing the beer.

    The 11-state ends list the abbreviations for the 11 states which include California (CA-CRV), Connecticut (CT), Hawaii (HI), Iowa (IA), Massachusetts (MA), Maine (ME), Michigan (MI), New York (NY), Oregon (OR) and Vermont (VT) and West Virginia (WV) that require deposits be paid on the carbonated beverages that are sold in their states.

    The 11-state ends for beer products with alcohol content of more than 3.2% by weight that are being shipped into Oklahoma include, California (CA-CRV), Connecticut (CT), Hawaii (HI), Iowa (IA), Massachusetts (MA), Maine (ME), Michigan (MI), New York (NY), Oregon (OR) and Vermont (VT) and Oklahoma + (OK+) that require deposits be paid on the beer that is sold in their states. If not shipping into Oklahoma, can use 10-state ends.

    In order to be able to use the ends with the 11-state incising that includes West Virginia your company must set-up a Soft Drinks Tax Account with the State of West Virginia. The Soft Drinks Tax Account is different than the registration for doing business in the State of West Virginia. Ball can only sell the 11-state ends to companies that have been issued a certification number from the State of West Virginia. Ball's Bristol, VA end plant must call and get a certification number from the State of West Virginia before they can ship the ends containing the 11-state incising to any customer. This is required because anyone selling non-alcoholic beverages (no taxes on alcoholic beverages) in West Virginia must prepay a tax on all of the ends they purchase from Ball or purchase a bond from the State of West Virginia to cover the taxes that are due on the purchase of the ends that are shipped into West Virginia.

    Please contact the State of West Virginia Department of Tax to request the forms that must be completed and returned in order to obtain a certification number from the state. Their telephone number is 304-558-8626 or 304-558-8622. You will need a business registration license and crown purchase bond with the State of West Virginia Tax Department. This registration license is issued from the Tax Department and not the Secretary of State’s office. You must have the license from the Secretary of State in order to obtain the business registration license.

    You would need to confirm, but if you find that you won't be using the 11-state ends with West Virginia, the next choice might be the 10-state ends that include California-CA CRV, Connecticut-CT, Hawaii-HI, Iowa-IA, Massachusetts-MA, Maine-ME, Michigan-MI, New York-NY, Vermont-VT and Oregon-OR. I am not able to tell you which deposit incising you will need to use.

    The state of Oregon’s bottle bill legislation will increase the returnable deposit on cans from 5 cents to 10 cents, effective April 1, 2017. All affected beverage containers not reflecting a 10 cent refund value must be removed from store shelves no later than Jan. 1, 2018.<https://urldefense.proofpoint.com/v2/url?u=http-3A__www.oregon.gov_OLCC_pages_bottle-5Fbill.aspx&d=DwMFaQ&c=jF7FvYH6t0RX1HrEjVCgHQ&r=9i tBePFNmm2tYmNfeR6fnl35GnQ0c8lizwPB23hLsLc&m=uP-JvXDyfxmU6jFGNrs0azF6-U_Z8j2Odo5eqezLBfg&s=HP3ccc92usT5vcBME6IpggV0e4-ZroUpjGHvmdq_6Ws&e=> Labels for water, beer, soft drinks and other specified beverages being offered for sale in Oregon must show the correct refund value both before and after April 1, 2017. The Oregon Liquor Control Commission (OLCC) is asking the industry to have appropriately labeled containers on Oregon shelves as close as possible to April 1 to minimize confusion for consumers. From the OLCC: “OLCC intends to take a collaborative approach to ensuring that containers are properly labeled, rather than engaging in punitive compliance measures as a first step. However, no matter what refund value is shown on the label, containers redeemed prior to April 1, 2017, will be redeemed at 5¢ and beginning April 1 will be redeemed at 10¢.
    Can anyone make sense of this? We're wanting the option to co-pack for some microbreweries, but this may make that difficult. Any suggestions at all would be appreciated!

    Carter

  • #2
    Originally posted by Tonganoxie Bob
    Carter, I started to type an answer but realized that more written works would probably add to, rather than detract from, the confusion. Atlas did an article on this a few years ago, which we ought to update. If you want to give me a call to discuss, don't hesitate.

    Robt.

    Robert Drumm
    Atlas Labels & Packaging
    913.897.9645
    robert@atlaslabels.com
    That would be fantastic. It still blows my mind that there isn't any one regulatory group per state or region to talk to regarding this. I'll give you a call tomorrow sometime and drop a voicemail if I don't get a hold of you.

    Thanks Robert!

    Comment

    Working...
    X