A steward may deduct packaging or paper associated with products that are initially supplied to residential consumers but are returned to retail, never re-supplied to a residential consumer, and disposed of outside the residential waste stream. Stewards cannot claim this deduction if the returned product and its associated paper or packaging are subsequently re-supplied to a consumer as it will re-enter the residential waste stream (i.e. returned products that are placed back on the shelf or sold in bulk to be re-sold by a retailer selling discounted goods). Product returns without their associated paper or packaging cannot be claimed as deductions.
Retailers may only claim this deduction for packaging and paper product for which they are the Brand Owner or First Importer. A Brand Owner claiming this deduction must be able to substantiate the quantity of returns to retail.