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Plastic Packaging Supply Contract (B2B)

Supply of Plastic Packaging Goods (B2B) Terms & Conditions

BS.PPTC.01

This Supply of Plastic Packaging Goods (B2B) Terms & Conditions template is designed for use by suppliers when selling goods to business customers where the goods comprise packaging and some or all of that packaging is subject to the new “plastic packaging tax” (PPT) that applies from 1 April 2022. If this general purpose plastic packaging goods template does not meet your needs, one of the accompanying template PPT documents in this subfolder might do so. They cover more specialised sales of plastic packaging goods.

Under Sections 42-85 of the Finance Act 2021, a business producing any relevant goods or having such goods imported on their behalf becomes liable under that Act for PPT. The goods will be relevant goods where they comprise or include any “chargeable plastic packaging component”. That type of component is defined by the Act.

Where you are liable for an amount of PPT under the Act, and you supply any such component (or goods including any such component) to your business customers, you might wish to pass on to them an equivalent amount, i.e. recoup it in addition to the price of the goods rather than absorbing the PPT cost that you have had to bear.

Whether or not you decide to absorb the PPT, you should include in your sales contracts for any goods comprising or including any such component a suitable clause to take account of the effects and requirements of the PPT provisions of the Finance Act 2021, including the requirement to provide customers with certain information.

This document template includes a pricing clause that takes account of the supplier’s liability for PPT on plastic that it is supplying to the buyer under the contract. To ensure that, after any necessary adaptation by you, all of the provisions of the Terms and Conditions meet your requirements and circumstances, you should take legal advice as to whether and how the PPT provisions of the Finance Act 2021 do or might affect your business.

This template is for use when the seller sells goods to a buyer which comprise or include any “component(s)” as defined by the Act, all of the goods are in the nature of packaging, and some or all of that packaging is “plastic packaging” of a type that attracts liability under the Finance Act 2021. The template is suited to a case where it is intended to cover a particular order placed under a contract, as opposed to a long term supply contract.

This template should only be used between two UK-based businesses where the goods are for delivery only in the UK.

This document provides a comprehensive series of protections for the Seller in a business to business transaction, carefully regulating the relationship between Buyer and Seller.

The template is designed to be used only when supplying business customers, not consumer customers. However, where you are liable for PPT on any component and you do not simply want to absorb that tax cost but instead increase your price to consumers to reflect that cost, you should consider what if anything you should include in your terms of sale to consumers in relation to that increase.

This template includes a "Contract Schedule", the use of which enables the terms and conditions to be easily converted into a binding agreement. The contract schedule should be used in conjunction with the terms and conditions and cannot stand alone as a contract. The terms may still stand alone as a set of standard (often pre-contractual) terms and conditions.

The retention of title provision in these terms and conditions does not allow for the recovery of proceeds of a sub-sale or the acquiring of title in subsequently manufactured goods. If you are to supply goods for these purposes it is recommended that you use terms and conditions designed for use with either goods for resale or manufacture.

If you wish to use this document in a scenario that involves personal data, standard clauses for data protection and data processing are available in our UK GDPR & Data Protection Group.

Optional phrases / clauses are enclosed in square brackets. These should be read carefully and selected so as to be compatible with one another. Unused options should be removed from the document.

This Supply of Plastic Packaging Goods (B2B) Terms & Conditions template contains the following clauses:

1. Application of Conditions

2. Interpretation

3. Basis of Sale

4. Orders and Specifications

5. Price

6. Payment

7. Delivery

8. Non-Delivery

9. Inspection/Shortage

10. Risk and Retention of Title

11. Assignment

12. Defective Goods

13. Buyer’s Default

14. Limitation of Liability

15. Confidentiality, Publications and Endorsements

16. Communications

17. Force Majeure

18. Waiver

19. Severance

20. Third Party Rights

21. Law and Jurisdiction

and the following Schedule:

Contract of Sale

This document is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.

Once you have subscribed to the appropriate document folder click on the “Download Document” button below. You will be asked what you want to do with the file. It is recommended that you save the document to a location of your choice prior to viewing.

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