{ "schema": "instica-epr-page/1", "url": "https://instica.com/epr/for/direct/california", "twins": { "md": "https://instica.com/epr/for/direct/california.md", "json": "https://instica.com/epr/for/direct/california.json" }, "key": "H:direct:US-CA", "family": "H", "locale": "en", "lang": "en-US", "title": "Direct sales EPR California: who is the producer? | Instica", "h1": "Direct sales EPR California: who is the producer?", "description": "Who counts as the packaging producer for direct sales sales in California: manufacturer or brand owner, brand licensee and first distributor, plus 3 more…", "answer": "For direct sales sales in California, the sourced hierarchy names the manufacturer or brand owner, brand licensee and first distributor as the producer of primary packaging. It adds secondary (manufacturer or brand owner, brand licensee and first distributor). Instica estimates which role fits your sales and prepares the data; you confirm the role, then sign and submit.", "lastVerified": "2026-09-29", "dateModified": "2026-09-29", "dataset": { "version": "v1-281284b7e7c1", "licence": "CC-BY-4.0", "licenceLine": "Reuse is allowed under CC-BY-4.0 with credit to Instica and a link to this page." }, "cite": "Instica, “Direct sales EPR California: who is the producer?”, https://instica.com/epr/for/direct/california, last verified 2026-09-29, dataset v1-281284b7e7c1, CC-BY-4.0.", "about": [], "facts": [ { "id": "producer-outcome", "anchor": "https://instica.com/epr/for/direct/california#producer-outcome", "leafPath": "calc.H.outcome[US-CA:direct]", "statement": "For direct sales sales in California, the producer outcome is primary: manufacturer or brand owner then brand licensee then first distributor; secondary: manufacturer or brand owner then brand licensee then first distributor; tertiary: manufacturer or brand owner then brand licensee then first distributor; shipping: manufacturer or brand owner then brand licensee then first distributor.", "value": "primary: manufacturer_brand_owner > licensee > first_distributor; secondary: manufacturer_brand_owner > licensee > first_distributor; tertiary: manufacturer_brand_owner > licensee > first_distributor; shipping: manufacturer_brand_owner > licensee > first_distributor", "unit": null, "pending": false, "source": { "url": "https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PRC§ionNum=42041", "quote": "the producer of the covered material is the person who sells, offers for sale, or distributes the product that uses the covered material", "quoteLang": null, "retrievedAt": "2026-09-29", "status": "verified", "label": null } }, { "id": "hierarchy-primary", "anchor": "https://instica.com/epr/for/direct/california#hierarchy-primary", "leafPath": "US-CA.producer_hierarchy.levels.primary", "statement": "California: at the primary packaging level the producer hierarchy names the manufacturer or brand owner, brand licensee and first distributor (2023).", "value": "manufacturer_brand_owner > licensee > first_distributor", "unit": null, "pending": false, "source": { "url": "https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PRC§ionNum=42041", "quote": "the producer of the covered material is the person who sells, offers for sale, or distributes the product that uses the covered material", "quoteLang": null, "retrievedAt": "2026-09-29", "status": "verified", "label": null } }, { "id": "hierarchy-secondary", "anchor": "https://instica.com/epr/for/direct/california#hierarchy-secondary", "leafPath": "US-CA.producer_hierarchy.levels.secondary", "statement": "California: at the secondary packaging level the producer hierarchy names the manufacturer or brand owner, brand licensee and first distributor (2023).", "value": "manufacturer_brand_owner > licensee > first_distributor", "unit": null, "pending": false, "source": { "url": "https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PRC§ionNum=42041", "quote": "the producer of the covered material is the person who sells, offers for sale, or distributes the product that uses the covered material", "quoteLang": null, "retrievedAt": "2026-09-29", "status": "verified", "label": null } }, { "id": "hierarchy-tertiary", "anchor": "https://instica.com/epr/for/direct/california#hierarchy-tertiary", "leafPath": "US-CA.producer_hierarchy.levels.tertiary", "statement": "California: at the tertiary packaging level the producer hierarchy names the manufacturer or brand owner, brand licensee and first distributor (2023).", "value": "manufacturer_brand_owner > licensee > first_distributor", "unit": null, "pending": false, "source": { "url": "https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PRC§ionNum=42041", "quote": "the producer of the covered material is the person who sells, offers for sale, or distributes the product that uses the covered material", "quoteLang": null, "retrievedAt": "2026-09-29", "status": "verified", "label": null } }, { "id": "hierarchy-shipping", "anchor": "https://instica.com/epr/for/direct/california#hierarchy-shipping", "leafPath": "US-CA.producer_hierarchy.levels.shipping", "statement": "California: at the shipping packaging level the producer hierarchy names the manufacturer or brand owner, brand licensee and first distributor (2023).", "value": "manufacturer_brand_owner > licensee > first_distributor", "unit": null, "pending": false, "source": { "url": "https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PRC§ionNum=42041", "quote": "the producer of the covered material is the person who sells, offers for sale, or distributes the product that uses the covered material", "quoteLang": null, "retrievedAt": "2026-09-29", "status": "verified", "label": null } }, { "id": "hierarchy-service", "anchor": "https://instica.com/epr/for/direct/california#hierarchy-service", "leafPath": "US-CA.producer_hierarchy.levels.service", "statement": "California: at the service packaging level the producer hierarchy names the manufacturer or brand owner, brand licensee and first distributor (2023).", "value": "manufacturer_brand_owner > licensee > first_distributor", "unit": null, "pending": false, "source": { "url": "https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PRC§ionNum=42041", "quote": "the producer of the covered material is the person who sells, offers for sale, or distributes the product that uses the covered material", "quoteLang": null, "retrievedAt": "2026-09-29", "status": "verified", "label": null } }, { "id": "hierarchy-other", "anchor": "https://instica.com/epr/for/direct/california#hierarchy-other", "leafPath": "US-CA.producer_hierarchy.levels.other", "statement": "California: at the other packaging level the producer hierarchy names the manufacturer or brand owner, brand licensee and first distributor (2023).", "value": "manufacturer_brand_owner > licensee > first_distributor", "unit": null, "pending": false, "source": { "url": "https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PRC§ionNum=42041", "quote": "the producer of the covered material is the person who sells, offers for sale, or distributes the product that uses the covered material", "quoteLang": null, "retrievedAt": "2026-09-29", "status": "verified", "label": null } }, { "id": "outcome-primary", "anchor": "https://instica.com/epr/for/direct/california#outcome-primary", "leafPath": "calc.H.level[US-CA:direct:primary]", "statement": "For direct sales sales in California, the producer outcome is primary: manufacturer or brand owner then brand licensee then first distributor.", "value": "manufacturer_brand_owner > licensee > first_distributor", "unit": null, "pending": false, "source": { "url": "https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PRC§ionNum=42041", "quote": "the producer of the covered material is the person who sells, offers for sale, or distributes the product that uses the covered material", "quoteLang": null, "retrievedAt": "2026-09-29", "status": "verified", "label": null } }, { "id": "outcome-secondary", "anchor": "https://instica.com/epr/for/direct/california#outcome-secondary", "leafPath": "calc.H.level[US-CA:direct:secondary]", "statement": "For direct sales sales in California, the producer outcome is secondary: manufacturer or brand owner then brand licensee then first distributor.", "value": "manufacturer_brand_owner > licensee > first_distributor", "unit": null, "pending": false, "source": { "url": "https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PRC§ionNum=42041", "quote": "the producer of the covered material is the person who sells, offers for sale, or distributes the product that uses the covered material", "quoteLang": null, "retrievedAt": "2026-09-29", "status": "verified", "label": null } }, { "id": "outcome-tertiary", "anchor": "https://instica.com/epr/for/direct/california#outcome-tertiary", "leafPath": "calc.H.level[US-CA:direct:tertiary]", "statement": "For direct sales sales in California, the producer outcome is tertiary: manufacturer or brand owner then brand licensee then first distributor.", "value": "manufacturer_brand_owner > licensee > first_distributor", "unit": null, "pending": false, "source": { "url": "https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PRC§ionNum=42041", "quote": "the producer of the covered material is the person who sells, offers for sale, or distributes the product that uses the covered material", "quoteLang": null, "retrievedAt": "2026-09-29", "status": "verified", "label": null } }, { "id": "outcome-shipping", "anchor": "https://instica.com/epr/for/direct/california#outcome-shipping", "leafPath": "calc.H.level[US-CA:direct:shipping]", "statement": "For direct sales sales in California, the producer outcome is shipping: manufacturer or brand owner then brand licensee then first distributor.", "value": "manufacturer_brand_owner > licensee > first_distributor", "unit": null, "pending": false, "source": { "url": "https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PRC§ionNum=42041", "quote": "the producer of the covered material is the person who sells, offers for sale, or distributes the product that uses the covered material", "quoteLang": null, "retrievedAt": "2026-09-29", "status": "verified", "label": null } }, { "id": "regime", "anchor": "https://instica.com/epr/for/direct/california#regime", "leafPath": "US-CA.regime", "statement": "California: the packaging rules sit in California SB 54, Plastic Pollution Prevention and Packaging Producer Responsibility Act (Public Resources Code, Division 30, Part 3, Chapter 3.1).", "value": "California SB 54, Plastic Pollution Prevention and Packaging Producer Responsibility Act (Public Resources Code, Division 30, Part 3, Chapter 3.1)", "unit": null, "pending": false, "source": { "url": "https://calrecycle.ca.gov/packaging/packaging-epr/", "quote": "SB 54 establishes a new extended producer responsibility (EPR) program to manage packaging and single-use plastic food service ware products", "quoteLang": null, "retrievedAt": "2026-09-29", "status": "verified", "label": null } }, { "id": "regulator", "anchor": "https://instica.com/epr/for/direct/california#regulator", "leafPath": "US-CA.regulator", "statement": "California: the regulator is CalRecycle (Department of Resources Recycling and Recovery), through its PEPRS portal.", "value": "CalRecycle (Department of Resources Recycling and Recovery), through its PEPRS portal", "unit": null, "pending": false, "source": { "url": "https://calrecycle.ca.gov/packaging/packaging-epr/producerguidance/", "quote": "PEPRS is CalRecycle’s online portal for: Producer Registration Data Submission Compliance Tracking", "quoteLang": null, "retrievedAt": "2026-09-29", "status": "verified", "label": null } }, { "id": "obligated", "anchor": "https://instica.com/epr/for/direct/california#obligated", "leafPath": "US-CA.obligated", "statement": "California places an obligation on packaging producers.", "value": true, "unit": null, "pending": false, "source": { "url": "https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PRC§ionNum=42051", "quote": "a producer shall not sell, offer for sale, import, or distribute covered materials in the state unless the producer is approved to participate", "quoteLang": null, "retrievedAt": "2026-09-29", "status": "verified", "label": null } }, { "id": "registration", "anchor": "https://instica.com/epr/for/direct/california#registration", "leafPath": "US-CA.registration", "statement": "California: producers must register through PEPRS (CalRecycle Packaging Extended Producer Responsibility System).", "value": true, "unit": null, "pending": false, "source": { "url": "https://calrecycle.ca.gov/packaging/packaging-epr/producerguidance/", "quote": "Circular Action Alliance manages registration, reporting, and submissions of certain exemptions and exclusions on the producers’ behalf.", "quoteLang": null, "retrievedAt": "2026-09-29", "status": "verified", "label": null } }, { "id": "organisation", "anchor": "https://instica.com/epr/for/direct/california#organisation", "leafPath": "US-CA.organisation", "statement": "California organises producer responsibility through a single producer responsibility organisation: Circular Action Alliance; membership is required.", "value": "single_pro", "unit": null, "pending": false, "source": { "url": "https://calrecycle.ca.gov/packaging/packaging-epr/", "quote": "Circular Action Alliance has been approved to serve as the first Producer Responsibility Organization.", "quoteLang": null, "retrievedAt": "2026-09-29", "status": "verified", "label": null } }, { "id": "transfer", "anchor": "https://instica.com/epr/for/direct/california#transfer", "leafPath": "US-CA.transfer_rules", "statement": "California does not allow a producer’s obligation to be transferred to another party.", "value": false, "unit": null, "pending": false, "source": { "url": "https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PRC§ionNum=42041", "quote": "The owner or operator of the online marketplace shall not be considered the retailer or wholesaler for such sales.", "quoteLang": null, "retrievedAt": "2026-09-29", "status": "verified", "label": null } }, { "id": "revenue-scope", "anchor": "https://instica.com/epr/for/direct/california#revenue-scope", "leafPath": "US-CA.revenue_scope", "statement": "California measures revenue as gross revenue inside the jurisdiction in USD, over the calendar year.", "value": "in_jurisdiction", "unit": null, "pending": false, "source": { "url": "https://www2.calrecycle.ca.gov/Docs/Web/138910", "quote": "Enter the amount of total gross annual sales (U.S. dollar) in California, as found on the most recent calendar year's tax returns.", "quoteLang": null, "retrievedAt": "2026-09-29", "status": "verified", "label": null } }, { "id": "sales-channels", "anchor": "https://instica.com/epr/for/direct/california#sales-channels", "leafPath": "US-CA.applicability.sales_channels", "statement": "California lists these sales routes as in scope: retail, wholesale, remote offering and online.", "value": "retail,wholesale,remote_offering,online", "unit": null, "pending": false, "source": { "url": "https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PRC§ionNum=42041", "quote": "the sale of covered materials shall be deemed to occur in the state if the covered materials are delivered to the purchaser in the state", "quoteLang": null, "retrievedAt": "2026-09-29", "status": "verified", "label": null } }, { "id": "threshold-small_producer_gross_annual_sales", "anchor": "https://instica.com/epr/for/direct/california#threshold-small_producer_gross_annual_sales", "leafPath": "US-CA.thresholds[small_producer_gross_annual_sales]", "statement": "California threshold on revenue: $1,000,000; effect: exempt below the threshold.", "value": "$1,000,000", "unit": null, "pending": false, "source": { "url": "https://calrecycle.ca.gov/packaging/packaging-epr/exemptionsexclusions/", "quote": "Small producers with gross annual sales of less than $1 million may apply to be exempt from most of the law’s reporting and fee requirements.", "quoteLang": null, "retrievedAt": "2026-09-29", "status": "verified", "label": null } }, { "id": "exemption-small_producer", "anchor": "https://instica.com/epr/for/direct/california#exemption-small_producer", "leafPath": "US-CA.exemptions[small_producer]", "statement": "California exemption: Temporary, renewable exemption from most reporting and fee requirements for producers with gross annual California sales under $1 million. Long-term duty remains: all packaging recyclable or compostable by 2032. It must be applied for.", "value": "small_producer", "unit": null, "pending": false, "source": { "url": "https://calrecycle.ca.gov/packaging/packaging-epr/exemptionsexclusions/", "quote": "To apply, first register in CalRecycle’s reporting system, known as PEPRS, as a Packaging EPR producer. Then fill out the small producer exemption application.", "quoteLang": null, "retrievedAt": "2026-09-29", "status": "verified", "label": null } }, { "id": "exemption-agricultural_commodity_on_site", "anchor": "https://instica.com/epr/for/direct/california#exemption-agricultural_commodity_on_site", "leafPath": "US-CA.exemptions[agricultural_commodity_on_site]", "statement": "California exemption: A person who produces, harvests and packages an agricultural commodity on the site where it was grown or raised is not a producer. It does not have to be applied for.", "value": "agricultural_commodity_on_site", "unit": null, "pending": false, "source": { "url": "https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PRC§ionNum=42041", "quote": "“Producer” does not include a person who produces, harvests, and packages an agricultural commodity on the site where the agricultural commodity was grown or raised.", "quoteLang": null, "retrievedAt": "2026-09-29", "status": "verified", "label": null } }, { "id": "exemption-crv_beverage_containers", "anchor": "https://instica.com/epr/for/direct/california#exemption-crv_beverage_containers", "leafPath": "US-CA.exemptions[crv_beverage_containers]", "statement": "California exemption: Beverage containers subject to the California Beverage Container Recycling and Litter Reduction Act are not covered material. It does not have to be applied for.", "value": "crv_beverage_containers", "unit": null, "pending": false, "source": { "url": "https://www2.calrecycle.ca.gov/Docs/Web/131538", "quote": "Beverage containers subject to the California Beverage Container Recycling and Litter Reduction Act (Division 12.1 (commencing with Section 14500)).", "quoteLang": null, "retrievedAt": "2026-09-29", "status": "verified", "label": null } }, { "id": "exemption-high_recycling_rate_material", "anchor": "https://instica.com/epr/for/direct/california#exemption-high_recycling_rate_material", "leafPath": "US-CA.exemptions[high_recycling_rate_material]", "statement": "California exemption: Covered material meeting a 65% (through 2026) or 70% (2027 on) recycling rate, outside curbside collection and commingled sorting, recycled at responsible end markets, is not covered material once CalRecycle approves the producer's demonstration. It must be applied for.", "value": "high_recycling_rate_material", "unit": null, "pending": false, "source": { "url": "https://calrecycle.ca.gov/packaging/packaging-epr/exemptionsexclusions/", "quote": "Achieve 65% recycling rates from 2024 to 2026, and 70% in 2027 and after", "quoteLang": null, "retrievedAt": "2026-09-29", "status": "verified", "label": null } }, { "id": "deadline-join_pro_or_be_approved", "anchor": "https://instica.com/epr/for/direct/california#deadline-join_pro_or_be_approved", "leafPath": "US-CA.deadlines[join_pro_or_be_approved]", "statement": "California: registration date January 1, 2027.", "value": "January 1, 2027", "unit": null, "pending": false, "source": { "url": "https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PRC§ionNum=42051", "quote": "upon approval of a plan pursuant to Section 42063, or commencing January 1, 2027, whichever is sooner", "quoteLang": null, "retrievedAt": "2026-09-29", "status": "verified", "label": null } }, { "id": "deadline-cmc_list_update", "anchor": "https://instica.com/epr/for/direct/california#deadline-cmc_list_update", "leafPath": "US-CA.deadlines[cmc_list_update]", "statement": "California: taxonomy update date January 1, 2027.", "value": "January 1, 2027", "unit": null, "pending": false, "source": { "url": "https://calrecycle.ca.gov/packaging/packaging-epr/", "quote": "This updated information will inform the next update to the Covered Material Categories List, which will be published by January 1, 2027.", "quoteLang": null, "retrievedAt": "2026-09-29", "status": "verified", "label": null } }, { "id": "penalty-0", "anchor": "https://instica.com/epr/for/direct/california#penalty-0", "leafPath": "US-CA.penalties.items[0]", "statement": "California penalty for failure to comply with the chapter or its regulations: up to $50,000 per day per violation.", "value": "$50,000", "unit": null, "pending": false, "source": { "url": "https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PRC§ionNum=42081", "quote": "an administrative civil penalty not to exceed fifty thousand dollars ($50,000) per day per violation", "quoteLang": null, "retrievedAt": "2026-09-29", "status": "verified", "label": null } }, { "id": "preset-custom_orders-pending", "anchor": "https://instica.com/epr/for/direct/california#preset-custom_orders-pending", "leafPath": "import_presets[custom_orders]", "statement": "direct sales: the Any order CSV (you map the columns) layout is not yet published. Reason: No vendor layout; every column comes from the mapping you submit.", "value": null, "unit": null, "pending": true, "source": { "url": "", "quote": null, "quoteLang": null, "retrievedAt": "2026-09-29", "status": "pending", "label": null } } ], "sections": [ { "id": "answer", "heading": null, "kind": "answer", "markdown": "\n\nFor direct sales sales in California, the sourced hierarchy names the manufacturer or brand owner, brand licensee and first distributor as the producer of primary packaging. It adds secondary (manufacturer or brand owner, brand licensee and first distributor). Instica estimates which role fits your sales and prepares the data; you confirm the role, then sign and submit." }, { "id": "producer", "heading": "Who is the producer for direct sales sales in California?", "kind": "body", "markdown": "\n\n## Who is the producer for direct sales sales in California?\n\nA packaging producer is not one business for every pack. The hierarchy for California assigns a role at each packaging level, and 6 levels have roles named in the sourced text. direct sales sales touch 4 of them in Instica’s grouping, so the table below shows every level and marks the ones that apply to this channel.\n\n**Producer roles by packaging level in California**\n\n| Packaging level | Roles named in the hierarchy | For direct sales |\n| --- | --- | --- |\n| primary | manufacturer or brand owner, brand licensee and first distributor | Applies to direct sales sales |\n| secondary | manufacturer or brand owner, brand licensee and first distributor | Applies to direct sales sales |\n| tertiary | manufacturer or brand owner, brand licensee and first distributor | Applies to direct sales sales |\n| shipping | manufacturer or brand owner, brand licensee and first distributor | Applies to direct sales sales |\n| service | manufacturer or brand owner, brand licensee and first distributor | Not part of a typical direct sales order |\n| other | manufacturer or brand owner, brand licensee and first distributor | Not part of a typical direct sales order |\n\nCalifornia: at the primary packaging level the producer hierarchy names the manufacturer or brand owner, brand licensee and first distributor (2023).\n\nPrimary packaging is the pack that directly holds the item and reaches the customer with it: the bag, jar, bottle, can or wrapper. For direct sales sales the hierarchy assigns it to the manufacturer or brand owner, brand licensee and first distributor, in that order of precedence.\n\nCalifornia: at the secondary packaging level the producer hierarchy names the manufacturer or brand owner, brand licensee and first distributor (2023).\n\nSecondary packaging groups or presents primary packs, such as an outer box, a sleeve or a multipack carton. For direct sales sales the hierarchy assigns it to the manufacturer or brand owner, brand licensee and first distributor, in that order of precedence.\n\nCalifornia: at the tertiary packaging level the producer hierarchy names the manufacturer or brand owner, brand licensee and first distributor (2023).\n\nTertiary packaging moves goods in bulk: pallets, stretch wrap, corner boards and outer cartons for warehouse and freight. For direct sales sales the hierarchy assigns it to the manufacturer or brand owner, brand licensee and first distributor, in that order of precedence.\n\nCalifornia: at the shipping packaging level the producer hierarchy names the manufacturer or brand owner, brand licensee and first distributor (2023).\n\nShipping packaging is what an order travels in to the customer: the mailer or shipping box, void fill, tape and labels. For direct sales sales the hierarchy assigns it to the manufacturer or brand owner, brand licensee and first distributor, in that order of precedence.\n\nCalifornia: at the service packaging level the producer hierarchy names the manufacturer or brand owner, brand licensee and first distributor (2023).\n\nService packaging is supplied at the point of sale to hand goods over, such as carrier bags, takeaway containers and gift wrap. For direct sales sales the hierarchy assigns it to the manufacturer or brand owner, brand licensee and first distributor, in that order of precedence.\n\nCalifornia: at the other packaging level the producer hierarchy names the manufacturer or brand owner, brand licensee and first distributor (2023).\n\nThe hierarchy also assigns a residual level for packaging that does not fit the other levels, usually to whoever first distributes it. For direct sales sales the hierarchy assigns it to the manufacturer or brand owner, brand licensee and first distributor, in that order of precedence.\n\nThe roles above are defined by the law, not by the channel. This is what each one means for a seller whose orders come through direct sales, and the tests below are the questions to answer about your own business. When you sell and ship directly you usually hold the seller, packer and shipper positions together, so the answer depends mainly on who made the product and whose brand it carries.\n\n- **manufacturer or brand owner**: The manufacturer or brand owner is the maker of the packaged product when it is sold under the maker’s own brand or with no brand shown. Look at the label: if your name or brand is the one on the pack, or no brand is shown and you made it, this role is yours.\n- **brand licensee**: The brand licensee is a business that sells under a brand it licenses from the brand owner. Look at the licence: if you pay to use another owner’s brand on goods you sell, the hierarchy treats you as the licensee.\n- **first distributor**: The first distributor is the business that first makes the packaged goods available in the jurisdiction. Look at who first made the goods available locally: if that was you, the role falls to you.\n\nThe statute or regulator text behind the California hierarchy, in its source wording:\n\n> the producer of the covered material is the person who sells, offers for sale, or distributes the product that uses the covered material\n>\n> Source: leginfo.legislature.ca.gov: codes displaySection.xhtml (https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PRC§ionNum=42041), Retrieved: September 29, 2026, Language: en\n\nParaphrase: Tier 1 is the manufacturer who owns or is licensee of the brand. Tier 2 applies when no Tier 1 person is in California: the brand owner or exclusive licensee. Tier 3: the person who sells, offers for sale or distributes the product in or into the state." }, { "id": "outcome", "heading": "What direct sales changes about the answer", "kind": "body", "markdown": "\n\n## What direct sales changes about the answer\n\nThe hub for California gives the default answer, primary: manufacturer or brand owner > brand licensee > first distributor. For direct sales sales the outcome is primary: manufacturer or brand owner > brand licensee > first distributor; secondary: manufacturer or brand owner > brand licensee > first distributor; tertiary: manufacturer or brand owner > brand licensee > first distributor; shipping: manufacturer or brand owner > brand licensee > first distributor. The difference is the secondary, tertiary and shipping levels, which an order placed through direct sales brings into scope and a plain in-store sale does not.\n\nInstica groups the packaging levels an order placed through direct sales produces as primary, secondary, tertiary and shipping. That grouping is our reading of how the channel ships goods, not wording from the law, and it is what makes the outcome here different from the default.\n\nDirect sales cover orders you take and fill yourself, through your own site, a phone order, an invoice or a trade customer. You are the seller and normally the packer and shipper, and you hold the order data in whatever system you use.\n\nFor direct sales sales in California, the producer outcome is primary: manufacturer or brand owner then brand licensee then first distributor.\n\nFor direct sales sales in California, the producer outcome is secondary: manufacturer or brand owner then brand licensee then first distributor.\n\nFor direct sales sales in California, the producer outcome is tertiary: manufacturer or brand owner then brand licensee then first distributor.\n\nFor direct sales sales in California, the producer outcome is shipping: manufacturer or brand owner then brand licensee then first distributor.\n\nCalifornia lists these sales routes as in scope: retail, wholesale, remote offering and online.\n\nCalifornia treats these sales routes as in scope: retail, wholesale, remote offering and online. Orders placed through direct sales reach the customer remotely, so the remote-sale wording is the one to read." }, { "id": "thresholds", "heading": "Does a small-seller threshold apply in California?", "kind": "body", "markdown": "\n\n## Does a small-seller threshold apply in California?\n\nOne threshold is published for California. A threshold can exempt a small producer, trigger registration or move a producer to a lighter regime, so check these before anything else as a seller on direct sales.\n\n**Thresholds published for California**\n\n| Measure | Amount | Effect | Basis |\n| --- | --- | --- | --- |\n| revenue | $1,000,000 | exempt below the threshold | gross annual sales in California, most recent calendar year |\n\nCalifornia threshold on revenue: $1,000,000; effect: exempt below the threshold.\n\nCalifornia measures revenue as gross revenue inside the jurisdiction in USD, over the calendar year.\n\nThe way California counts revenue is set out above. Sales through several channels are added together, so one storefront alone may not tell you where you stand.\n\nSales on direct sales count toward the same totals as every other channel you sell through." }, { "id": "register", "heading": "Registration and the organisation in California", "kind": "body", "markdown": "\n\n## Registration and the organisation in California\n\nOnce you know you are the producer, the next questions are where to register and with whom. The facts below are the sourced answers for California; Instica prepares the data, and you register and report yourself.\n\nCalifornia: producers must register through PEPRS (CalRecycle Packaging Extended Producer Responsibility System).\n\nThe registration point is PEPRS (CalRecycle Packaging Extended Producer Responsibility System) (https://secure.calrecycle.ca.gov/PEPRS/). Instica never stores your login for it and never files for you.\n\nCalifornia organises producer responsibility through a single producer responsibility organisation: Circular Action Alliance; membership is required.\n\nCalifornia uses a single producer responsibility organisation. Instica estimates your fees; the organisation invoices you.\n\nCalifornia does not allow a producer’s obligation to be transferred to another party.\n\nCheck the source before assuming another party carries the obligation for your direct sales sales." }, { "id": "exemptions", "heading": "Exemptions listed for California", "kind": "body", "markdown": "\n\n## Exemptions listed for California\n\nCalifornia lists 4 exemptions. An exemption is a rule in the source, so Instica quotes it rather than judging whether you qualify.\n\nCalifornia exemption: Temporary, renewable exemption from most reporting and fee requirements for producers with gross annual California sales under $1 million. Long-term duty remains: all packaging recyclable or compostable by 2032. It must be applied for.\n\nCalifornia exemption: A person who produces, harvests and packages an agricultural commodity on the site where it was grown or raised is not a producer. It does not have to be applied for.\n\nCalifornia exemption: Beverage containers subject to the California Beverage Container Recycling and Litter Reduction Act are not covered material. It does not have to be applied for.\n\nCalifornia exemption: Covered material meeting a 65% (through 2026) or 70% (2027 on) recycling rate, outside curbside collection and commingled sorting, recycled at responsible end markets, is not covered material once CalRecycle approves the producer's demonstration. It must be applied for.\n\nWhether an exemption fits a business selling on direct sales depends on your totals across every channel, not on direct sales alone." }, { "id": "deadlines", "heading": "Dates that matter in California", "kind": "body", "markdown": "\n\n## Dates that matter in California\n\n2 dates are published for California. Dates come from the regulator or the organisation, and each one shows what it covers.\n\n**Dates published for California**\n\n| Kind | Date | Covers | Note |\n| --- | --- | --- | --- |\n| registration | January 1, 2027 | — | A producer must be approved in a PRO plan (or be independent or exempt) to sell covered material from this date. A new producer joins within six months. |\n| taxonomy update | January 1, 2027 | — | The next update of the Covered Material Categories List. |\n\nCalifornia: registration date January 1, 2027.\n\nCalifornia: taxonomy update date January 1, 2027.\n\nPull direct sales orders for the period before each reporting date, so gaps in the destination data show up while there is time to fix them." }, { "id": "penalties", "heading": "Penalties in California", "kind": "body", "markdown": "\n\n## Penalties in California\n\nOne penalty is published for California.\n\nCalifornia penalty for failure to comply with the chapter or its regulations: up to $50,000 per day per violation.\n\nPenalties are quoted from the source. Instica does not predict whether one will be applied to you." }, { "id": "data", "heading": "What direct sales data Instica reads", "kind": "body", "markdown": "\n\n## What direct sales data Instica reads\n\nInstica reads one export from direct sales and maps each column to the fields an estimate needs: the order, the SKU, the quantity and where the order was sent. The destination is what splits your units by jurisdiction.\n\ndirect sales: the Any order CSV (you map the columns) layout is not yet published. Reason: No vendor layout; every column comes from the mapping you submit.\n\nThe layout of the direct sales export has not been confirmed against the publisher’s own documentation yet. Instica shows it as not yet published rather than guessing, and you can map your own columns.\n\nMap your own direct sales columns in the workspace; the required fields stay the same." }, { "id": "steps", "heading": "What to do next as a seller on direct sales", "kind": "body", "markdown": "\n\n## What to do next as a seller on direct sales\n\n1. Confirm your role for direct sales sales in California against the table above.\n2. Check the thresholds and exemptions with your total sales across every channel.\n3. Review how Circular Action Alliance registers and invoices producers.\n4. Export your direct sales orders and let Instica match the destinations and estimate the weights.\n5. Review the estimate, correct any figure you know better, then sign and submit the report yourself at the registration point.\n\nInstica measures, estimates and prepares the direct sales data. It does not decide your role, sign for you or submit anything." }, { "id": "faq", "heading": "Questions sellers ask", "kind": "faq", "markdown": "\n\n## Questions sellers ask\n\n### Am I the producer if I sell on direct sales in California?\n\nIt depends on the facts of each product. The sourced hierarchy for California names the manufacturer or brand owner, brand licensee and first distributor for primary packaging. If you made the product, own its brand or imported it, you are probably in that list; if you only resell another brand’s goods, someone else may be the producer. Instica estimates the likely role from your answers and you confirm it.\n\n### Does direct sales register or report for me?\n\nThe hierarchy for California does not name the marketplace as a producer, so plan on registering and reporting yourself or through a party you appoint.\n\n### What is different about direct sales compared with selling in a shop?\n\nAn order placed through direct sales is shipped to the customer, so shipping packaging enters the picture. For California the outcome is primary: manufacturer or brand owner > brand licensee > first distributor; secondary: manufacturer or brand owner > brand licensee > first distributor; tertiary: manufacturer or brand owner > brand licensee > first distributor; shipping: manufacturer or brand owner > brand licensee > first distributor. The hub for California describes the default for primary packaging only.\n\n### Is there a size threshold for direct sales sellers in California?\n\nCalifornia threshold on revenue: $1,000,000; effect: exempt below the threshold. The threshold counts all your sales, not only direct sales.\n\n### When is the next date I should know about?\n\nCalifornia: registration date January 1, 2027.\n\n### What happens if I do not register?\n\nCalifornia penalty for failure to comply with the chapter or its regulations: up to $50,000 per day per violation.\n\n### Do I need an organisation to handle this for me?\n\nCalifornia works through Circular Action Alliance. Instica estimates your fees and prepares your data; the organisation registers you and issues the invoice." }, { "id": "paa", "heading": null, "kind": "paa", "markdown": "\n\n### What is extended producer responsibility (EPR) reporting?\n\nFor direct sales sales in California, the producer outcome is primary: manufacturer or brand owner then brand licensee then first distributor; secondary: manufacturer or brand owner then brand licensee then first distributor; tertiary: manufacturer or brand owner then brand licensee then first distributor; shipping: manufacturer or brand owner then brand licensee then first distributor.\n\n### What are the new recycling laws in California?\n\nCalifornia: the packaging rules sit in California SB 54, Plastic Pollution Prevention and Packaging Producer Responsibility Act (Public Resources Code, Division 30, Part 3, Chapter 3.1). California: the regulator is CalRecycle (Department of Resources Recycling and Recovery), through its PEPRS portal.\n\n### What states have EPR?\n\nCalifornia: the regulator is CalRecycle (Department of Resources Recycling and Recovery), through its PEPRS portal. California places an obligation on packaging producers.\n\n### Does plastic actually get recycled in California?\n\nCalifornia places an obligation on packaging producers." }, { "id": "estimate", "heading": "How these figures are made", "kind": "boilerplate", "markdown": "\n\n## How these figures are made\n\n> **Estimate**: Instica measures, estimates and prepares. Every figure on this page is read from a sourced record or computed from one, and each carries its data quality. The customer signs and submits the report; Instica never stores regulator login details and never files on your behalf. This page is general information about published rules; confirm your own position with a qualified adviser." } ], "sources": [ { "url": "https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PRC§ionNum=42041", "label": null, "retrievedAt": "2026-09-29", "status": "verified", "quote": "the producer of the covered material is the person who sells, offers for sale, or distributes the product that uses the covered material", "quoteLang": null }, { "url": "https://calrecycle.ca.gov/packaging/packaging-epr/", "label": null, "retrievedAt": "2026-09-29", "status": "verified", "quote": "SB 54 establishes a new extended producer responsibility (EPR) program to manage packaging and single-use plastic food service ware products", "quoteLang": null }, { "url": "https://calrecycle.ca.gov/packaging/packaging-epr/producerguidance/", "label": null, "retrievedAt": "2026-09-29", "status": "verified", "quote": "PEPRS is CalRecycle’s online portal for: Producer Registration Data Submission Compliance Tracking", "quoteLang": null }, { "url": "https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PRC§ionNum=42051", "label": null, "retrievedAt": "2026-09-29", "status": "verified", "quote": "a producer shall not sell, offer for sale, import, or distribute covered materials in the state unless the producer is approved to participate", "quoteLang": null }, { "url": "https://calrecycle.ca.gov/packaging/packaging-epr/producerguidance/", "label": null, "retrievedAt": "2026-09-29", "status": "verified", "quote": "Circular Action Alliance manages registration, reporting, and submissions of certain exemptions and exclusions on the producers’ behalf.", "quoteLang": null }, { "url": "https://calrecycle.ca.gov/packaging/packaging-epr/", "label": null, "retrievedAt": "2026-09-29", "status": "verified", "quote": "Circular Action Alliance has been approved to serve as the first Producer Responsibility Organization.", "quoteLang": null }, { "url": "https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PRC§ionNum=42041", "label": null, "retrievedAt": "2026-09-29", "status": "verified", "quote": "The owner or operator of the online marketplace shall not be considered the retailer or wholesaler for such sales.", "quoteLang": null }, { "url": "https://www2.calrecycle.ca.gov/Docs/Web/138910", "label": null, "retrievedAt": "2026-09-29", "status": "verified", "quote": "Enter the amount of total gross annual sales (U.S. dollar) in California, as found on the most recent calendar year's tax returns.", "quoteLang": null }, { "url": "https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PRC§ionNum=42041", "label": null, "retrievedAt": "2026-09-29", "status": "verified", "quote": "the sale of covered materials shall be deemed to occur in the state if the covered materials are delivered to the purchaser in the state", "quoteLang": null }, { "url": "https://calrecycle.ca.gov/packaging/packaging-epr/exemptionsexclusions/", "label": null, "retrievedAt": "2026-09-29", "status": "verified", "quote": "Small producers with gross annual sales of less than $1 million may apply to be exempt from most of the law’s reporting and fee requirements.", "quoteLang": null }, { "url": "https://calrecycle.ca.gov/packaging/packaging-epr/exemptionsexclusions/", "label": null, "retrievedAt": "2026-09-29", "status": "verified", "quote": "To apply, first register in CalRecycle’s reporting system, known as PEPRS, as a Packaging EPR producer. Then fill out the small producer exemption application.", "quoteLang": null }, { "url": "https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PRC§ionNum=42041", "label": null, "retrievedAt": "2026-09-29", "status": "verified", "quote": "“Producer” does not include a person who produces, harvests, and packages an agricultural commodity on the site where the agricultural commodity was grown or raised.", "quoteLang": null }, { "url": "https://www2.calrecycle.ca.gov/Docs/Web/131538", "label": null, "retrievedAt": "2026-09-29", "status": "verified", "quote": "Beverage containers subject to the California Beverage Container Recycling and Litter Reduction Act (Division 12.1 (commencing with Section 14500)).", "quoteLang": null }, { "url": "https://calrecycle.ca.gov/packaging/packaging-epr/exemptionsexclusions/", "label": null, "retrievedAt": "2026-09-29", "status": "verified", "quote": "Achieve 65% recycling rates from 2024 to 2026, and 70% in 2027 and after", "quoteLang": null }, { "url": "https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PRC§ionNum=42051", "label": null, "retrievedAt": "2026-09-29", "status": "verified", "quote": "upon approval of a plan pursuant to Section 42063, or commencing January 1, 2027, whichever is sooner", "quoteLang": null }, { "url": "https://calrecycle.ca.gov/packaging/packaging-epr/", "label": null, "retrievedAt": "2026-09-29", "status": "verified", "quote": "This updated information will inform the next update to the Covered Material Categories List, which will be published by January 1, 2027.", "quoteLang": null }, { "url": "https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PRC§ionNum=42081", "label": null, "retrievedAt": "2026-09-29", "status": "verified", "quote": "an administrative civil penalty not to exceed fifty thousand dollars ($50,000) per day per violation", "quoteLang": null } ], "breadcrumbs": [ { "name": "Packaging EPR", "url": "https://instica.com/epr" }, { "name": "EPR for ecommerce sellers: EPR for online sellers by sales channel", "url": "https://instica.com/epr/for" }, { "name": "Direct sales EPR California: who is the producer?", "url": "https://instica.com/epr/for/direct/california" } ], "related": [ { "heading": "Part of", "links": [ { "anchor": "California extended producer responsibility", "url": "https://instica.com/epr/california" } ] }, { "heading": "Explore packaging EPR", "links": [ { "anchor": "United States packaging EPR: 7 jurisdictions", "url": "https://instica.com/epr/united-states" } ] }, { "heading": "More for this jurisdiction", "links": [ { "anchor": "Do I owe EPR fees California", "url": "https://instica.com/epr/california/do-i-owe" }, { "anchor": "California EPR deadlines 2026", "url": "https://instica.com/epr/california/deadlines" }, { "anchor": "California EPR report format", "url": "https://instica.com/epr/california/updates" }, { "anchor": "EPR fees for jars California", "url": "https://instica.com/epr/jar/california" }, { "anchor": "EPR fees for pouches California", "url": "https://instica.com/epr/pouch/california" } ] }, { "heading": "Related pages", "links": [ { "anchor": "Sell on direct sales EPR Poland", "url": "https://instica.com/epr/for/direct/poland" }, { "anchor": "Sell on eBay EPR Spain", "url": "https://instica.com/epr/for/ebay/spain" }, { "anchor": "Sell on Etsy EPR Bulgaria", "url": "https://instica.com/epr/for/etsy/bulgaria" }, { "anchor": "Sell on NetSuite EPR Finland", "url": "https://instica.com/epr/for/netsuite/finland" }, { "anchor": "NetSuite packaging EPR Ontario fees", "url": "https://instica.com/epr/for/netsuite/ontario" }, { "anchor": "NetSuite EPR Saskatchewan", "url": "https://instica.com/epr/for/netsuite/saskatchewan" } ] } ], "alternates": [ { "hreflang": "en-US", "href": "https://instica.com/epr/for/direct/california" }, { "hreflang": "x-default", "href": "https://instica.com/epr/for/direct/california" } ] }