In the past, some heavy metals such as cadmium, mercury, lead and chrome were used in the manufacture of plastic pallets and plastic crates. Cadmium is a particular concern; some crates manufactured in the 1960-1995 period contained up to 300 ppm cadmium. Article 11 (1) of the PPWD (Directive 94/62/EC) prohibits the placing on the market of packaging with a heavy metal concentration exceeding 100 ppm. Article 11 (3) of the PPWD allows the Commission to determine the conditions under which the 100 ppm limit will not apply to recycled material and to product loops which are in a closed and controlled chain. On February 8, 1999, a 10 year derogation was granted by the Commission for plastic crates and plastic pallets (Decision 1999/177/EC) to give time to the industry to reuse and recycle existing crates into new crates (with a max added content of virgin material of 20%). The Decision envisages the possibility to further extend the derogation. The derogation provided in Decision 1999/177/EC for plastic pallets and plastic with heavy metal crates expired on March 4, 2009. Despite industry efforts to reuse and recycle old crates as prescribed, a vast quantity of crates with a heavy metal concentration exceeding 100 ppm is still in circulation in the European Union (at least 500 mln crates). This is because the life expectancy of plastic crates (over 20 years in many cases) is longer than the period of derogation granted; the threshold of 20% applicable to the quantity of virgin material which may be added to old crates in the recycling process slows down the heavy metal dilution process; since the exemption was granted, the market and the distribution pattern of bottled drinks have changed dramatically, which a sharp decrease in the circulation of glass bottles leading to the slowing down of the circulation and recycling rate of the existing crates. Since the coming into force of the 100 ppm limit for heavy metals, the industry has made sure that all new pallets and crates bought from its suppliers and made from virgin material are in compliance with said limit. It would be sound to allow the industry to carry on reusing and recycling old crates both from an environmental and economic perspective. •  The current system (reuse of legally manufactured crates plus recycling in closed loop at the end of their life cycle) serves the objectives of the PPW Directive in promoting reuse and recycling while preventing the production of a huge quantity of waste. •  The heavy metals in the plastic crates or plastic pallets do not pose a risk to human health: the colour pigments containing the heavy metals are encapsulated and not in direct contact with food. •  The recycling process does not pose a risk to the environment: no heavy metal is released in the environment in the process. •  The current derogation allows the industry to make the best possible use of (scarce) available resources; the old crates are turned into a valuable material. •  The end of the derogation would imply the destruction of at least half a billion crates. The destruction of those crates and the production of an entire population of new plastic crates would have a substantial environmental impact linked not only to the disposal of millions of tons of waste but also to the production of new crates with virgin material. Such cost would not be compensated by any environmental benefits. New crates made from virgin material do not contain any heavy metal. Therefore, the population of heavy metal containing pallets and crates is decreasing substantially each year. As a result, the members of The Brewers of Europe, UNESDA and EFBW strongly believe that the solution which would best preserve the environment would be to grant a new permanent derogation to the industry so as to enable the longest reuse possible of a valuable and non contaminating packaging material. European Parliament and Council Directive 94/62/EC of 20 December 1994 on packaging and packaging waste covers all packaging placed on the market in the Community and all packaging waste, whether it is used or released at industrial, commercial, office, shop, service, household or any other level, regardless of the material used. Member States should take measures to prevent the formation of packaging waste, and to develop packaging reuse systems reducing their impact on the environment. The Member States must introduce systems for the return and/or collection of used packaging to attain the following targets: •  by no later than 30 June 2001, between 50 and 65% by weight of packaging waste to be recovered or incinerated at waste incineration plants with energy recovery; •  by no later than 31 December 2008, at least 60% by weight of packaging waste to be recovered or incinerated at waste incineration plants with energy recovery; •  by no later than 30 June 2001, between 25 and 45% by weight of the totality of packaging materials contained in packaging waste to be recycled (with a minimum of 15% by weight for each packaging material); •  by no later than 31 December 2008, between 55 and 80% by weight of packaging waste to be recycled; •  no later than 31 December 2008 the following targets for materials contained in packaging waste must be attained:    • 60% for glass, paper and board;    • 50% for metals;    • 22.5% for plastics and;    • 15% for wood. The 2006 Report on the implementation of Directive 94/62/EC on packaging and packaging waste concluded that almost half of the Member States held derogations applying until 2015. Nevertheless, the objectives set for 2008 in Directive 2004/12/EC were to remain valid, even after 2008. The incineration of waste at plants with energy recovery is regarded as contributing to the realisation of these objectives. Greece, Ireland and Portugal, because of the large number of small islands, the presence of rural and mountain areas and the low level of packaging consumption respectively, will not be bound by the targets until 2011. Directive 94/62/EC lays down essential requirements with which these countries should comply regarding the composition and the reusable and recoverable nature of packaging and packaging waste. The Commission is to promote the development of European standards relating to these essential requirements. Member States must ensure that packaging placed on the market complies with the essential requirements of Annex II: •  to limit the weight and volume of packaging to a minimum in order meet the required level of safety, hygiene and acceptability for consumers; •  to reduce the content of hazardous substances and materials in the packaging material and its components; •  to design reusable or recoverable packaging. Member States should develop information systems (databases) on packaging and packaging waste so that realisation of the targets of this Directive can be monitored. The data they hold must be sent to the Commission in the formats laid down in Annex III. Directive 2005/20/EC sets a later deadline for the 10 new Member States (the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia, Slovakia) to meet the targets of this packaging directive. These derogations are valid until 2015. Romania and Bulgaria have also been granted specific derogations, defined in their respective Treaties of Accession.