Boohoo will pass charges incurred by a recently introduced tax on certain types of plastic packaging on to suppliers if they cannot provide full information about their packaging in line with new rules.
The Manchester-headquartered Boohoo Group has sent a letter to suppliers asking them to provide full information on polybags and certification of recycled content, as well as confirmation of the percentage of recycled content, and face responsibility for charges incurred if the requirements are not met.
The UK introduced the Plastic Packaging Tax in April, meaning that any plastics manufactured in or imported into the UK are subject to the tax, unless evidence is provided to show that the plastics contain at least 30 per cent certified recycled material.
Boohoo is currently facing an investigation by the Competition and Markets Authority over greenwashing and wrote to its product suppliers on April 1 asking those who choose to source their own polybags to ensure that they comply with the requirements.
Boohoo claims to use a supplier with 100 per cent recycled material and packaging, which “complies with both our ambition and the new guidance” for its own packaging. However it has also given third party suppliers a grace period, during which it has absorbed charges, to certify that packaging is at least 50 per cent recycled material and made from low density polyethylene only.
This period is now set to end. A Boohoo spokesperson said: “To support in managing this change we have covered the cost of any HMRC charge so far, but to ensure that our suppliers are complying with our UpFront goal, by 2023 all customer garment packaging will be reusable, recyclable or compostable and any plastic used will contain over 50 per cent recycled content, we have been clear that this will become the responsibility of suppliers in the near future.”
