In April of 2026, the Pollution Adjudication Board (PAB) of the Department of Environment and Natural Resources (DENR) in the Philippines approved two key resolutions establishing strict guidelines and substantial fines for businesses failing to comply with the Extended Producer Responsibility (EPR) Act of 2022 (RA 11898). PAB Resolutions No. 01 and No. 02, Series of 2025, detail the penalties for non-registration and other violations related to EPR programs.
Key Violations and Penalties
The resolutions outline specific fines and procedures for different types of non-compliance, targeting “obliged enterprises” (OEs) covered by the EPR Act.
1. Fines for Failure to Register
This resolution addresses the fundamental requirement for OEs to register under the EPR Act. Key points include:
Violation: Failure to register as an Obliged Enterprise as required by Section 44-E of the EPR Act.
Penalty: A fine of not less than Five Million Pesos (PHP 5,000,000.00) but not exceeding Ten Million Pesos (PHP 10,000,000.00).
Procedure: The National Ecology Center (NEC) will issue a Notice of Violation. The concerned enterprise has thirty (30) days to submit a position paper to justify its non-coverage. The case will then be endorsed to the PAB for final evaluation and imposition of the fine.
2. Penalties for EPR Program Non-Compliance
This guideline targets OEs that have registered but fail to fulfill their programmatic responsibilities under Section 44-F of the Act. The violations include:
Failure to establish an EPR Program.
Failure to meet the waste recovery and diversion targets set within the EPR Program.
Falsification of documents, misdeclaration of waste footprint, or using any scheme to evade responsibility under the Act.
Penalties for these violations are progressive and severe:
First Offense: A fine of not less than PHP 5,000,000.00 but not exceeding PHP 10,000,000.00.
Second Offense: A fine of not less than PHP 10,000,000.00 but not exceeding PHP 15,000,000.00.
Third Offense: A fine of not less than PHP 15,000,000.00 but not exceeding PHP 20,000,000.00, along with the automatic suspension of the business permit.
For enterprises that fail to meet their program targets, the fine will be either the amount specified above or a fine twice the cost of recovering the shortfall, whichever is higher.
Impact on Businesses
These resolutions significantly increase the financial and operational risks for obliged enterprises that neglect their responsibilities under the EPR Act. The multi-million-peso fines create a strong financial incentive for companies to ensure they are not only registered but are also actively and honestly implementing their EPR programs. The threat of business permit suspension for repeat offenders represents a critical operational risk that could halt a company’s activities entirely. Businesses must now prioritize accurate data collection, transparent reporting, and the effective execution of their waste reduction and recovery strategies to avoid these severe penalties.
