Quebec’s Regulation respecting the recovery and reclamation of products by enterprises obligates enterprises marketing household batteries in Quebec to either operate or be a member of an approved program to recover and reclaim end-of-life household batteries in Quebec.
To access the regulation, please click here.
The Regulation indicates that the household battery category is composed of two sub-categories:
1. Rechargeable cells of any shape and batteries composed of such rechargeable cells, except lead-acid batteries, batteries designed to be used in motor vehicles and batteries exclusively designed and intended for industrial purposes;
2. Single use button cells, batteries composed of such cells, other single use batteries and batteries composed of such cells.
In addition to batteries sold separately, batteries marketed in Quebec as components of other products are also covered by the Regulation.
Pending the revision of the Regulation expected in 2016, Call2Recycle Canada, Inc. asks its members to report only the batteries that are components of construction and renovation tools, and gardening tools.
For the list of gardening, construction and renovation tools, please click here.
The Regulation indicates that every enterprise that “markets” a new product referred to in the Regulation under a brand, a name or a distinguishing guise owned or used by the enterprise must recover and reclaim, or cause to be recovered and reclaimed, by means of a recovery and reclamation program, any product of the same type as the product marketed by the enterprise and that is deposited at one of its drop-off centres or for which the enterprise offers, if applicable, a collection service.
If a product is marketed under more than one brand, name or distinguishing guise, the obligation falls on the enterprise responsible for the product’s design.
Despite the first and second paragraphs, that obligation falls on the enterprise that acts as the “first supplier” of that product in Quebec, whether or not the enterprise is the importer, in the following cases:
1. the enterprise referred to in the first or second paragraph has no domicile or establishment in Quebec;
2. the enterprise that markets the product acquires the product outside Quebec, regardless of whether the enterprise owning or using the brand, name or distinguishing guise has a domicile or establishment in Quebec; or
3. a product does not bear any brand, name or distinguishing guise.
Practically speaking, in general, the obligation falls on the brand owner or the “first supplier” of the products in Quebec. “First supplier” means an enterprise having a domicile or establishment in Quebec (i.e. a physical location) that acquires a covered product outside Quebec in order to market it in Quebec. The first supplier is the enterprise located in Quebec that is the most upstream in the distribution chain in the province. Thus, a first supplier can be an importer, broker, wholesaler, distributor, retailer or any other stakeholder in Quebec that first intervenes in a product’s distribution chain.
Obligated enterprises that decide not to operate an individual program to recover and reclaim the products referred to in the Regulation must become members of an approved program. For household batteries, the approved program is that of Call2Recycle Canada, Inc.
To become members, enterprises must agree to do the following:
- By the 30th day following every calendar quarter, send to Call2Recycle Canada, Inc.:
- an accurate report of total products marketed in Quebec during the calendar quarter using the reporting form provided by Call2Recycle Canada, Inc.;
- a check equal to the fees (plus applicable taxes) owed Call2Recycle Canada, Inc. based on the fee schedule in place, amended from time to time, as provided by Call2Recycle Canada, Inc.;
- Keep proper books and records in respect of all products marketed in Quebec in accordance with good business practices and generally approved accounting procedures, and ensure these records shall be available at all reasonable times for examination or audit by Call2Recycle Canada, Inc. in accordance with Canadian Auditing Standards. This obligation remains even if a contributor by proxy reports the quantities of products marketed in Quebec and pays the fees on behalf.of the obligated enterprises;
- Bear their fair share of the two reserve funds set up by Call2Recycle Canada, Inc. on behalf of its members to comply with regulatory obligations.
Contributors by proxy, also called “voluntary contributors”, are enterprises that, while not covered by the Regulation, make the declarations and contributions in the name of covered enterprises.
Even in cases where contributors by proxy are used, the obligated enterprises must be members in good standing of Call2Recycle Canada, Inc.
In the case of batteries marketed in Quebec separately (“Phase 1”), the obligation to implement a recovery and reclamation program started July 14th, 2012 or on the date of marketing, acquisition or manufacture of such products if it is subsequent to that date;
In the case of batteries marketed in Quebec as components of other products (“Phase 2”), the obligation started July 14th, 2013 or the date of marketing, acquisition or manufacture of such products if it is subsequent to that date.
The start date for the reporting of the quantities marketed and the remittance of ecofees will be August 1, 2015. The first report and ecofee remittance are due by October 30, 2015.
Note: The quantities marketed since January 1, 2015 will have to be reported, but ecofees will be due only on quantities marketed starting August 1, 2015, not on quantities marketed before this date.
FAQs Concerning Regulatory Obligations
Quebec Regulatory EN
Case 1. The manufacturer ships and invoices from Ontario, and it does not have representatives in Quebec. Are we covered by the Regulation?
Yes. Since the manufacturer does not have representatives in Quebec to take your orders, you are deemed the first supplier in Quebec, hence the obligation falls on you.
Case 2. The manufacturer ships and invoices from Ontario, but we give our orders to its representatives in Quebec. Are we covered by the Regulation?
No. Since the manufacturer has representatives in Quebec to take your orders, it is deemed the first supplier in Quebec, even if it ships and invoices from outside of Quebec.
Case 3. We are part of a chain of stores. We don’t deal directly with the manufacturer, instead we receive the products from our national distribution centre (DC) in Ontario. Are we covered by the Regulation?
Your national DC in Ontario plays the same role as the manufacturer in Cases 1 and 2 above. If the chain has personnel in Quebec to take your orders, then the chain is the first supplier in Quebec, but if it does not have personnel in Quebec to take your orders, then you are deemed the first supplier in Quebec and the obligation falls on you.
Case 4. We place our orders in Ontario, but the manufacturer ships and invoices us from within Quebec. Does this make any difference?
No, it does not. Wherever the manufacturer ships and invoices from, what matter is whether the manufacturer’s representatives that you deal with for your orders are located in Quebec or outside of Quebec.
Case 5. The manufacturer is based outside of Quebec and we give our orders to its representatives in Quebec, but we own the brand. Does this make any difference?
Yes, it does. Even though you place your orders to the manufacturer’s representatives in Quebec, since you own the brand, the obligation falls on you.
Case 6. We are covered by the Regulation, so we must declare the quantities that we market in Quebec, but are they what we purchase or what we sell?
For the purpose of the Regulation, any product that enters the province is considered as “marketed” in Quebec. Hence you must report the quantities that you purchase, not the quantities that you sell.
Case 7. Our national distribution centre (DC) is located in Quebec. Parts of the products received by our DC from outside of Quebec are forwarded to stores outside of the province. What quantities of the products received by our DC have to be reported?
For the purpose of the Regulation, the quantities forwarded by your DC to your stores outside of Quebec may be deducted from the total quantities received by your DC from outside of Quebec, but the process must be properly documented for audit purposes.