Most likely, an extra six months were gained by entrepreneurs who did not have time to prepare for the transition from paper-based waste records to a fully electronic procedure and did not register in the online Database of Products and Packaging and Waste Management (BDO). The revolution took place on 1 January 2020, and late entrants were threatened with severe financial penalties with an upper limit of up to PLN 1 million and serious impediments to their operations. However, the legislator decided to respond to the problems signalled by entrepreneurs.
As it turns out, many entrepreneurs only found out about the new regulations at the end of last year, which meant that they did not manage to submit the relevant applications for entry in the BDO Register. Some of them waited until the last minute for final information on the registration requirement, as the Climate Minister’s regulation on the types and quantities of waste for which there is no obligation to keep records was published in the Journal of Laws only on 30 December 2019.
MPs respond to business demands
A parliamentary bill postponing by six months the full digitisation of the BDO, which is revolutionary for many entities, including the mandatory use of electronic waste transfer cards replacing their current paper versions, was submitted to the Sejm at the end of last year. The amendment, passed by MPs, was clarified in the Senate and finally adopted at a Sejm session on 23 January 2020.
Once the President signs the decree, businesses will have six months to prepare for the changes. Until 30 June 2020, they will be able to dispose of waste under the old rules using paper records, but this documentation will still have to be entered into the electronic database immediately, by 31 July 2020 at the latest.
Later, paper cards will only be usable in the event of a system failure.
Who should register?
The additional six months are a lifeline for businesses that have not had time to prepare for the edited regulations and have not registered in the electronic BDO register.
This obligation applies not only to entities that generate and manage waste, but also to those that introduce packaged products into Poland or generate hazardous waste.
However, it should be remembered that the legislator has provided for a number of specific exemptions in this respect, so every entrepreneur, regardless of the nature and size of their business, should verify their registration obligation. Registration with the BDO may also result from the content of contracts concluded between contractors – as a rule, in the case of construction, repair or cleaning services, the service provider will be the waste producer. However, the parties may agree otherwise in the contract.
Up to a million zlotys for failure to register - BDO
The law provides for imprisonment or a fine for failure to apply for entry in the BDO, for a change of entry or for deletion from the register, or for submitting an application that does not correspond to the actual state of affairs. Conducting business activity without the required entry in the BDO is punishable by an administrative fine of between PLN 5,000 and PLN 1 million. The same amount may be imposed for failure to include the registration number on documents prepared in connection with the business activity. Transport of waste without an entry in the BDO may result in a penalty of between PLN 2,000 and PLN 10,000. The National Revenue Administration, Border Guard, Police, Road Transport Inspection, Environmental Protection Inspection authorities and Provincial Marshals are authorised to carry out inspections.
Furthermore, entrepreneurs who fail to register will not be able to legally transfer waste to a collection company, which in turn may refuse to collect it. It is worth remembering that the register is publicly available – entrepreneurs will be able to check for themselves whether their business partners are operating in accordance with the law.
A risky last-minute post
It should be emphasised that entrepreneurs will have to wait for the entry itself, so it is risky to postpone this obligation until the last minute. Although the registration itself currently requires the electronic completion of an application form, which is sent to the relevant marshal’s office, the authority has 30 days to consider the application and assign a registration number. Despite assurances from officials that the system works efficiently and intuitively, companies complain about problems with the portal and difficulties with proper registration. It will therefore be risky to leave this obligation to the last minute, which may result in severe penalties and disruptions to business operations.
Still few entrepreneurs registered with the BDO
One of the reasons for the changes is to make it easier to keep an eye on and fight the grey area in the waste management system. Right now, there are over 177,000 entities registered in the BDO, but officials think there should be way more. The additional six-month transition period for the digitisation of the register is therefore the last chance for businesses to prepare for the changes and protect themselves from painful financial consequences and the risk of disruption to their operations.
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