The State of São Paulo Environmental Secretary (“SMA”) issued Resolution No. 45/2015 (“Resolution”), imposing take-back responsibilities on manufacturers, importers, distributors and retailers of products and packaging that may produce significant environmental impacts.

Companies that manufacture and sell the following products and packaging are subject to the Resolution: (i) used lubricating oil and other contaminated products; (ii) edible oil; (iii) automotive lubricating oil filters and packaging for such filters; (iv) automotive batteries; (v) portable batteries; (vi) electronic equipment and related components; (vii) fluorescent lamps, sodium vapor lamps, mercury and mixed light; (viii) used tires; (ix) expired or unused medications; (x) agrochemical packaging; (xi) packaging of products containing food, drinks, cleaning and personal hygiene products, as well as packages for perfumes and cosmetics. 

Pursuant to the Resolution, SMA and the State of São Paulo Environmental Agency (“CETESB") have jurisdiction to sign agreements (“termo de compromisso”) with private companies to establish procedures for implementing and monitoring their take-back systems. Private companies that do not wish to sign such an agreement with environmental agencies will be subject to rules and procedures to be enacted by CETESB.

CETESB is the agency responsible for monitoring compliance with the obligations under the Resolution. Pursuant to the Resolution, CETESB must require manufacturers, importers, distributors and retailers to demonstrate that they are compliant with all obligations described in the Resolution before it issues or renews operation licenses (a type of authorization for companies to undertake activities that may impact the environment). In addition, CETESB must require these companies to present a solid waste management plan.

Finally, CETESB must, by the end of this year, specify guidelines that private companies must follow and targets they must achieve to implement their take-back schemes.

Non-compliance by private companies with the obligations established in the Resolution may result in the application of environmental penalties.