The range of returnable bottles expands from 1 January 2008

The range of returnable bottles expands from 1 January 2008:
recyclable plastic deposit bottles come alongside refillable glass and plastic bottles and beverage cans

Drinks packaging tax

• The drinks packaging tax on beverage packaging reutilised as raw material will be abolished from 1 January 2008 in accordance with a government decision. The decision aims to ensure open competition and free entry onto the market. Upon abolition of the tax, refillable beverage containers, cans and recyclable deposit bottles will be will be subject to the same terms and conditions of taxation. 
• The surtax on beverage cans reutilised as material was halved to 8.5 cents per litre in 2005. The supplementary tax on refillable beverage containers was done away with earlier. 
• Non-deposit beverage containers outside the scope of the recycling system will continue to be taxed at a rate of 51 cents per litre.

Refillable bottles, recyclable plastic bottles and cans

• Refillable bottles are reused as they are; they are collected and returned, washed and refilled. Glass bottles are refilled an average of 33 times and plastic bottles 18 times. The return rate of refillable bottles is 98%, which is at the top end in international comparisons. The use and recycling of refillable bottles in Finland is administered by the Ekopullo Association. 
• Deposit beverage cans came on the Finnish market in 1996. Returned aluminium cans are melted down and the aluminium is used to manufacture new cans. The manufacture of reused cans is beneficial as it only requires 5% of the energy necessary to produce a new can. Aluminium can be used repeatedly. The return rate of cans comes to around 90%. Suomen Palautuspakkaus Oy, PALPA manages the return of deposit beverage cans in Finland. 
• Recyclable plastic bottles will come on the market at the start of 2008. Recyclable plastic deposit bottles will be collected for recovery in the same way as other beverage containers have been so far. However, returned recyclable plastic bottles will not be reused as they are; rather, the plastic in them will be reutilised. PALPA will manage recyclable plastic bottles.

Why have recyclable plastic bottles?

• Recyclable plastic bottles are manufactured from polyethylene terephthalate (PET). PET is light, chemically durable and fully recyclable. PET plastic is commonly used as a packaging material for the foodstuff and other industries. 
• Recyclable plastic bottles come into being only on the beverage packaging line where the bottle is blow moulded into shape from preforms or bottle blanks, thus the consumer always gets a new bottle. 
• The introduction of recyclable plastic bottles will give consumers a wider variety of options, and they will always get their drinks in new containers. PET plastic can be used to make bottles of different sizes and shapes. The range is expanding and the consumer will be able to choose the best-suited container according to the situation and purpose of use. Recyclable bottles are made from thinner plastic than refillable bottles, thus making them lighter. 
• Traders have been hoping for recyclable plastic bottles because they will ease return logistics for beverage containers and free up storage space that previously had been set aside for empty bottles. 
• Recyclable plastic bottles also offer new opportunities for beverage manufacturers. Bottles of different shapes and colours are a means for putting across the message of each brand's attributes more effectively. They will also generate innovative shelf prominence in store displays.  
• Instead of in crates, recyclable plastic bottles will be packaged on honeycomb board pallets that serve as transport and sales units. The pallet will be convenient for traders and occupy only a small space when empty. In breweries, it will allow automated collection in the same way as crates. Honeycomb board pallets will have a deposit and be in the shared use of the industry. 

Changeover on environmental terms

• The recycling system for beverage containers, which operates at an excellent level in Finland, will continue as before and the new recyclable plastic bottles will be added to the existing system. Several bottles that currently end up as useless waste will fall within the sphere of recycling. 
• It will be possible to return refillable and recyclable plastic bottles to the same automated redemption machines. Traders are committed to investing in redemption machines in order to maintain the high return rate of beverage containers. 
• The returned recyclable plastic bottles will be flattened and ground, and the 'flakes' will be delivered for reuse. The objective is to utilise as far as possible the plastic in recyclable plastic bottles to manufacture new bottles, and the plastic can also be used for other packaging requirements or as a raw material in other industries. PALPA's negotiations concerning the choice of downstream processor for recyclable plastic bottles are nearing completion. PALPA will also ensure that the downstream processors commit to handling the material in an environmentally friendly and ethical manner. 
• The deposit values on recyclable plastic deposit bottles vary from 10, 20 to 40 cents according to the size of the bottle, and the value is marked on the label. Automated redemption machines recognise deposit bottles by reading the EAN code. The requirement for returning the deposit is that the code on the label is undamaged and readable. PALPA will start informing consumers about recycling the new recyclable plastic bottles at the beginning of the year. 
• All beverage packaging is environmentally friendly so long as it is returned to be recycled.