Packaging Accounting in Your Company

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Packaging is the aggregate product attached to goods,  which are utilised in order to protect, contain, deliver, preserve, use comfortably, and sell raw materials and produced goods as well as to inform the about the product during the complete  cycle of the circulation of packaging from producer to consumer. The packaging and packaging material that the services provider attaches to products and that returns to the service provider after the provision of services is also considered as packaging.  Packaging is detached from the goods prior to or during consumption.

Laws and regulations on packaging accounts for businesses 
According to Section 24 of the Natural Resources Tax law companies have to keep accounts of packaging. The accounting is necessary to determine the amount of packaging placed by the company on the Latvian market together with goods. Based on the accounting documents the amount of the NRT and the volume of the waste that should be managed by the company are determined.

Methodologies for accounting
 In order for the company to be able to chose the best accounting methodology, the company first needs to determine the flow of packaging, i.e. the type of packaging (primary, secondary, tertiary) and packaging material (plastic, glass, wood, etc.) used, as well as how it reaches the company, what packaging is added or removed as part of the company’s economic activities and in what packaging does the product leaves the company.

An appropriate packaging accounting methodology helps to prepare precise and timely reports as well as ensures a correct calculation of the Natural Resources Tax.

Method of direct determination – determining the weight of the packaging item in accordance with the Cabinet of Ministers Regulation No.: 404 Procedures for the Calculation and Payment of Natural Resources Tax and Procedures for the Issuance of Permits for Use of Natural Resources Article 54 and annex 9.

Method of indirect determination – determining the weight of the packaging material in one of the following ways:  

• Packaging certificates;
• Bills of landing (CMR and other freight documentation forms) that declare the type and material of the packaging;
• Statement on weight.

Cabinet of Ministers Regulation No.: 404 Procedures for the Calculation and Payment of Natural Resources Tax and Procedures for the Issuance of Permits for Use of Natural Resources, article 54 and Annex 9.

Other documents substantiating packaging accounts:

1. Documents of accounting records and certification documents. 
2. A document drawn up and signed by the supplier.
3. A contract on the purchase of goods.
4. A statement by the Packaging Certification Centre of Latvia. 
5. A copy of the international freight transport bill of landing approved by the Customs.

[Cabinet of Ministers Regulation No.: 404 Procedures for the Calculation and Payment of Natural Resources Tax and Procedures for the Issuance of Permits for Use of Natural Resources, Article 58]

To receive detailed information of packaging accounts, please contact Latvijas Zaļais punkts: Ilze Retiga – ph.: +371 6703 9815
ilze.retiga@zalais.lv


In case your company is unable to ensure the development and maintenance of a packaging accounts system or you have any questions regarding the accounts system we suggest consulting with the Centre of Packaging Certification of Latvia – a professional auditor and a LZP cooperation partner.
Phone: +371 6729 0001; e-mail: info@lisc.lv; www.lisc.lv