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The Boohoo Group has reportedly been charged by HMRC as some of its polybags don’t have the certificate to confirm their recycled content.
According to Drapers, Boohoo Group sent a letter to product suppliers on 26 August which said that this charge will be passed on to suppliers if they don’t provide further information.
This includes the polybag supplier name and contact details, including a monthly report, and a certification of recycled content, either Global Recycled Standard (GRS) or Standard Global Services (SGS) certification. The group will also need to confirm the percentage of recycled content (over 50% minimum).
On 1 April 2022, the UK introduced the Plastic Packaging Tax which meant that any plastics manufactured in or imported into the UK will be subject to the tax, unless evidence is provided to show that the plastics contain at least 30% certified recycled material.
On the same day, Boohoo reportedly asked product suppliers who choose to source polybags locally to ensure they comply with the tax requirements.
A Boohoo Group spokesperson told Retail Sector: “In preparation for the new policy which came into effect April around Plastic Packaging Tax, our labelling and packaging team sourced a nominated global supplier who produces 100% certified recycled material and recyclable packaging, which complies with both our ambition and the new guidance.
“We communicated all of this to our suppliers but provided them with an option of continuing to use their own suppliers, as long as they could certify that the poly bags they use were at least 50% recycled material, made from LDPE (low density polyethylene) only and a number of other standards.”
They added: “To support them in managing this change, we have covered the cost of any HMRC charge so far, but to ensure that our suppliers are complying with our UpFront goal. By 2023, all customer garment packaging will be reusable, recyclable or compostable and any plastic used will contain over 50% recycled content.”
