As of February 22, 2022, the SENT transport monitoring system will be extended to cover the movement of Green List waste exceeding 20 kg and hazardous waste. The measure is essentially yet another item on a long list of waste management requirements, keeping up with the ESG trend, implemented through the EU's extended producer responsibility concept under the Green Deal.

What is classified as waste from a legal perspective?

The inclusion of waste shipments in the SENT system will have many businesses thoroughly verifying whether their activity does not incidentally involve waste shipments. Market practice shows that entrepreneurs are often unaware that their business may be dealing with waste. To a large extent, this stems from the fact that the business understanding of ‘waste’ differs from its legal definition. By law, waste is defined as anything that is discarded, regardless of intent, and is no longer fit for its original purpose, with economic value being irrelevant. Experience shows us that businesses are unpleasantly surprised to find the following considered as waste: damaged vehicles, car parts intended for reconditioning, racks and protective elements returned by customers, faulty electronics, batches of goods withdrawn from the market of another country, as well as any unsold goods.

Who is responsible for hazardous waste and what are the penalties for failure to notify in SENT?

The extension of the SENT system will have a particularly strong impact on entities involved in international trade in goods, and especially those operating in the aftermarket services market.

If the new requirements are not met, the consequences can be severe in a number of areas. Illegal waste management means exposure not only to criminal and administrative sanctions for missing permits, but also - when it comes to hazardous waste - to criminal liability for participating (even unknowingly) in the so-called "waste mafia". This liability arises since responsibility for hazardous waste is borne by its producer until its final disposal or recovery by an authorized entity. If, for example, its waste is disposed of in an illegal landfill instead of in a proper facility, the producer is subject to fines of up to PLN 1 million, while members of the producer's management board may be held criminally liable.

As for penalties imposed for failure to notify in SENT, they amount to as much as 46% of the gross value of transported goods (but not less than PLN 20,000), while illegal cross-border transport of waste is punishable by a fine of up to PLN 500,000.

How does the SENT system work?

The SENT system itself, in operation since 2017, was originally introduced as a solution for monitoring road transport of sensitive goods (now rail transport, too) to counter tax evasion focused on specific categories of excise goods. SENT provides real-time (after the introduction of geolocation even "live") insight into the whereabouts of transported sensitive goods.

Operation within this system imposes numerous obligations on the parties involved - including submission of a declaration to the system prior to the start of transport by the sender, completion of the declaration and inspection of the transported goods by the carrier, along with confirmation of receipt by the consignee. These obligations, in parallel to combating the black and gray market in trade in sensitive goods, are also aimed at tackling the activities of dishonest traders who misclassify goods, facilitating the detection and sanctioning of such practices (including the enforcement of tax charges at rates applicable to the goods actually transported).

Extensive inspections announced by the Ministry after 22 February 2022 suggest that businesses are given little time to implement the required changes, such as obtaining relevant permits, registering with the system and even properly training employees and introducing internal procedures. Neglecting these obligations will not only result in the penalties mentioned above but will also affect the market position of the business due to the results of non-financial reporting and ESG criteria and, consequently, their ability to receive funding, insure their business or compete in public tenders.