Post by Josefa Barbera Rojas, Paralegal
Chile is taking significant strides in modernising its approach to waste management and recycling through Law 20.920, commonly referred to as the “REP Law” (Responsabilidad Extendida del Productor). Enacted in 2017, this legislation places responsibility squarely on the shoulders of importers and manufacturers of “priority products” to manage the waste they produce.
The REP Law not only aims to reduce the environmental footprint of industries but also fosters a nationwide recycling culture. It does so by introducing stringent compliance requirements, new regulations targeting hazardous waste trafficking, and a Recycling Fund to finance waste collection and sorting efforts.
This blog post will unpack the core elements of the REP Law, including its priority product categories, the compliance obligations for businesses, and the challenges faced in its implementation as Chile works toward its ambitious 2034 recycling targets.
Priority products
According to the regulations, these can be sorted into 5 main categories:
- Tires
- Packaging and Containers (including paper and cardboard, plastic, metals, special cardboard for liquids and glass)
- Lubricating oil
- Electronic device
- Batteries
Is important to be aware that each category can have several specific subcategories that will evolve in time, and it’s the Ministry of Environment’s responsibility to establish these qualifications, along with the goals each subcategory must accomplish to remain within the scope of the law.
Entities affected by the REP Law and compliance requirements
All entities that import or produce any type of “priority products” are subject to this law. Regarding the “Packaging and Containers” category, the regulation is stricter, specifying that all companies importing such products into the country are subject to the law. This includes wine producers, bottling plants, perfume importers, oil producers, cosmetic companies, and others.
How do companies fulfil their obligations?
Companies can fulfil obligations by ensuring they do the following:
- By signing up on the Registry of Emissions and Transfer of Pollutants (RETC Spanish acronym)
- Financing the “recycling funds”: money that every company apports in proportion to their waste emission, paid to an authorised entity known as GRASNIC.
- Accomplishing sorting and recollection goals established by the Ministry of Environment.
Once the payment is made to GRASNIC, GRASNIC will hire recollection and sorting teams.
Not following up with regulations can carry on with monetary fines that round between 1.000 UTA to 10.000 UTA (from around 845,000 up to 8 million dollars).
You can access to various legal forms that you can submit in order to avoid possible monetary in the next link: https://portal.sma.gob.cl/index.php/ley-rep/instructivo-y-reporte/
Problems faced by the regulation
In 2022, the Ministry of Environment set progressive annual targets that companies subject to the law must meet, starting enforcement in 2023 with the goal of reaching full compliance by 2034.
According to news reports, 85% of the businesses related to the production and import of “packing and containers” do not meet the requirements established by the regulation. This means that companies fulfilling their obligations are bearing the costs of compliance.
This level of noncompliance also complicates the government’s ability to assess the true effectiveness of the regulation, making it unclear whether these new measures are having a positive impact.
The Ministry of Environment, along with its supervisory agencies, has set ambitious yet essential targets to be achieved by 2034, aligning with Chile’s commitments to multiple international agreements. To strengthen adherence to this recycling control system, the administration is exploring options for enhanced compliance measures, including a potential reporting system that could be implemented as early as 2025.
Conclusion
The REP Law represents a significant milestone in Chile’s environmental strategy, placing responsibility for waste management directly on producers and importers of priority products. While the legislation sets ambitious targets to reduce waste and boost recycling by 2034, its success depends on widespread compliance, strong enforcement, and ongoing collaboration between the government, industries, and citizens.
Current challenges, such as high noncompliance rates and uneven cost distribution, highlight the need for enhanced oversight and innovative solutions. As Chile continues to align its recycling goals with international sustainability commitments, the development of stronger reporting systems and incentives will be key to driving progress.
For companies, the message is clear: proactive compliance with the REP Law is not only a legal obligation but also a critical step toward contributing to a greener, more sustainable future for Chile.
Harris Gomez Group METS Lawyers ® opened its doors in 1997 as an Australian legal and commercial firm. In 2001, we expanded our practice to the international market with the establishment of our office in Santiago, Chile. This international expansion meant that as an English speaking law firm we could provide an essential bridge for Australian companies with interests and activities in Latin America, and to provide legal advice in Chile, Peru and the rest of Latin America. In opening this office, HGG became the first Australian law firm with an office in Latin America.
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