Beverage producers & importers to get up to S$2,500 to support container return scheme transition

Beverage producers and importers will get up to S$2,500 to support the transition to the beverage container return scheme (BCRS), which will kick in on Apr. 1, 2026.

The grant, announced by the National Environment Agency (NEA) on Jan. 20, can be used to offset product registration fees, producer fees and the cost of scheme stickers.

Offset impact of scheme

Announcing the BCRS Producer Transition Grant, NEA shared that it recognises the impact of this scheme varies across producers, depending on how products are processed and brought to market.

The total volume of production or imports may also factor into this impact.

NEA noted that some producers are better placed to make the transition while minimising the cost impact.

"At the same time, we are mindful of the logistical challenges faced by some importers and smaller producers," the agency said.

Some producers and importers expect beverage prices to go up by as much as 60 cents as some of the costs associated with the scheme are inevitably passed on to consumers.

S$2,500 to cover fees, stickers

The BCRS Producer Transition Grant will provide all registered producers and importers with up to S$2,500 in grant support to help offset scheme-associated costs.

This grant is valid until Sep. 30, 2027, and will be automatically given through BCRS Ltd., the consortium of companies running the scheme.

No application is required for the grant, NEA said.

The grant can be used to cover product registration fees, producer fees and cost of scheme stickers.

NEA explained that the grant will automatically be applied by BCRS Ltd. to offset product registration fees and producers fees at the point of billing and no further action is required by registered producers and importers.

They will be billed the balance fees after offsetting the grant.

Producers and importers can also opt out by writing to [email protected].

Fees and scheme details

Under the BCRS, anyone who manufactures, imports or distributes beverage products in Singapore is considered a producer.

Producers have to first register as a BCRS member with BCRS Ltd., which entails a S$500 one-time fee.

They also have to pay a producer fee and a 10-cent deposit for each beverage affixed with the deposit mark.

The producer fee per unit comes in at S$0.031 for aluminium and metal containers and S$0.037 for plastic containers.

Higher fees are imposed on plastic containers as plastic scrap have lower market value.

There is also a registration fee of S$5 for each product registered.

Producers will also have to ensure that their products carry the deposit mark and a barcode that can be read by the BCRS reverse vending machines.

This process might entail packaging or sticker costs.

NEA explained that using international barcodes meant that the same barcode may appear on containers sold outside Singapore, where the 10-cent deposit has not been paid into the scheme.

Such containers may then be brought into Singapore and returned at a reverse vending machine, triggering a deposit refund even though no deposit was paid.

As such, it is preferred for producers to use a Singapore-specific barcode.

If producers choose to use international barcodes, an additional refundable security fee will be imposed.

According to BCRS Ltd., this security fee is meant to protect the integrity of the BCRS and covers collaborative investigations with NEA on potential fraud cases, monitoring and analysis of suspicious activities and swift response to scheme violations.

Importers who choose to use Singapore-specific barcodes may not be able to influence packaging design and will have to affix stickers comprising the scheme deposit mark and the new barcode, adding to costs.

Fees are paid by producers to BCRS Ltd. to operate the scheme. BCRS Ltd. is a not-for-profit organisation.

By law, importers or manufacturers of beverage products are required to maintain records of their goods and submit this information to the scheme's operator.

While the scheme kicks in on Apr. 1, producers are given a transition period until Sep. 30, to clear stocks which are not scheme-compliant.

Top image via Mothership