Does EPR apply to B2B packaging?

B2B exemptions are the minority posture. California (PRC §42041) and Oregon cover tertiary/transport packaging in every channel; New Jersey's S673 and New York's S 1464 would too. Colorado, Minnesota, Maryland, and Washington exempt packaging used solely in business-to-business channels; Maine excludes packaging used solely to transport products to non-consumers (its "consumer" definition includes commercial businesses); and Illinois (bill) exempts only packaging that stays in the production loop.

Can a supplier or co-packer be the EPR producer instead of the brand?

Yes. In New York and Illinois (as drafted), the producer of e-commerce shipping packaging is the business that packages the item for shipment to the consumer — often the co-packer or 3PL, not the brand. Maine assigns duty to whoever adds packaging to another producer's product for direct consumer distribution.

Do I report the corrugated box I ship my product in?

If your product reaches a consumer in that box, yes — every state counts consumer-facing shipping packaging. The split is on packaging that stays in business-to-business channels: reportable in NJ and NY, exempt in CO, MN, MD, and WA.

What is the de minimis exemption for small packaging volumes?

Almost all of them pair the revenue test with a volume test where either one qualifies you: Illinois under $2M or 1 ton, Minnesota under $2M or 1 ton, Maryland under $2M or 1 ton, Colorado under $5M or 1 ton (CPI-adjusted), Washington under $5M or 1 ton, New York under $5M or 2 tons, and New Jersey (bill) under $5M or 1 metric ton.

Does EPR Cover B2B Shipping Packaging? Who Reports, by State

Whether EPR reaches the packaging that moves products between businesses — pallet wrap, master cartons, protective shipping materials — is one of the least settled questions in U.S. packaging compliance. The answer flips state by state: California, Oregon, New Jersey, and New York count tertiary transport packaging, while Colorado, Minnesota, Maryland, and Washington exempt business-to-business channels entirely (Illinois exempts only packaging that stays in the production loop). And in two states, the shipper of record — the co-packer or 3PL that puts your product in the box — can be the legal producer, not the brand. This guide maps all 10 states with EPR laws or pending bills.

Quick answer: Consumer-facing shipping packaging — the box your customer opens — is covered everywhere. The fight is over tertiary packaging: materials used to transport, protect, and distribute products through business-to-business channels. California and Oregon already cover it; NJ and NY bills would too. CO, MN, MD, and WA exclude it. IL exempts only packaging that stays in the B2B production loop.

B2B and shipping packaging coverage, state by state

Every enacted program and pending bill treats the consumer-facing/e-commerce shipping layer the same way: it's covered material. The divergence is on the B2B/transport layer:

State	Law / Bill	B2B / Tertiary Packaging	Shipping packaging covered?	Source
CA	SB 54 (2022)	COVERED — tertiary packaging in the §42041 definition	Yes — incl. tertiary (all channels)	PRC §42041 + CMC List
OR	SB 582 (2021)	Shipping/moving materials included; rigid pallets excluded	Yes	ORS 459A.863
CO	HB 22-1355 (2022)	Excluded — materials used solely in B2B transport	Yes — consumer-facing only	C.R.S. 25-17-703
MN	HF 3911 (2024)	Excluded — B2B production-loop exemption	Yes — incl. online sales	§115A.1441 subd. 16(14)
MD	SB 901 (2025)	Excluded — triangular B2B exemption (clause 13)	Yes — incl. e-commerce; beverage ≤5 L	SB 901 exempt (13)
WA	SB 5284 (2025)	Excluded — "sold or supplied for personal, noncommercial use" + B2B clause	Yes — noncommercial use	RCW 70A.208
ME	LD 1541 (2021)	Excluded — packaging used solely for transport to non-consumers (PL 2025 c. 383)	No — def scopes to the consumer transaction	38 MRS §2146(1-C)
IL	HB 4064 (stalled)	Exempt ONLY in the production loop (clause 14) — otherwise covered	Yes — all channels except production loop	HB 4064 exempt (14)
NJ	S673 (in committee)	COVERED — tertiary/transport packaging in the definition	Yes — incl. protective transport	S673 packaging def
NY	S 1464 (Senate Rules)	COVERED — "residential and commercial" transport/distribution	Yes — e-commerce + sellers	S 1464-A §16

Why this split matters: California, Oregon, New Jersey, and New York leave producers responsible for packaging that never touches a consumer shelf. If you sell to retailers or distributors in those states, your pallet film and master cartons are compliance material — CA enforces this now under SB 54; NJ and NY would once their bills pass.

Who is the "producer" of tertiary and e-commerce packaging?

EPR producer definitions follow a brand-owner-first chain — but shipping packaging breaks the pattern in every e-commerce state. Two proven models from live and pending programs:

1. The shipper of record (NY, IL)

New York's S 1464-A (§16, e-commerce clause) and Illinois' HB 4064 (producer clause (2)(B), identical language) assign the e-commerce shipping-packaging duty to "the person that packages the item to be shipped to the consumer." If your 3PL or co-packer does the pack-out, they hold the obligation — not the brand whose logo is on the box. Brand owner remains the default for product packaging.

2. The co-packer / first distributor

Maine's LD 1541 assigns producer duty to "the person who adds packaging material to another producer's product for direct consumer distribution" — co-packers included. Oregon, CO, MN, MD, and WA all name a "person who first distributes the item in or into the state" in their chains; NJ's S673 uses an "introduces into the State" trigger. These catch suppliers who package under their own or no brand, private-label manufacturers, and distributors who repackage.

What this means for suppliers and contract packers

If you ship direct to consumers— 3PL, co-packer, or brand shipping its own boxes — NY and IL (bill) point the shipping-packaging duty at whoever performs the pack-out, and every state's chain has a first-distributor fallback.
If you're an unbranded supplier— selling packaged product with no brand or under your own name — "no brand" limbs (MD, WA) and "licensed to manufacture under another's brand" limbs (NY, IL, NJ) can make you the producer.
If your packaging stays B2B — CA, OR, NJ, and NY would still count it; CO, MN, MD, WA exempt it once de minimis is met; IL (bill) exempts only the production loop.
De minimis still protects small volumes: NY <$5M/2 t, NJ <$5M/1 t, IL <$2M/1 t, MN <$2M/1 t, MD <$2M/1 t, CO $5M (CPI-adj)/1 t, WA <$5M/1 t.

What counts as B2B, tertiary, or transport packaging?

State laws use different words for the same categories. The material types at issue:

Tertiary packaging— master cartons, corrugated shipping boxes, pallets, stretch wrap, edge protection, strapping. Explicitly in the NJ S673 packaging definition ("transportation and distribution"); NY S 1464-A covers "containment… delivery, transport, distribution."
Nondurable shipping/moving materials — packing peanuts, bubble mailers, moving boxes. ORS 459A.863 explicitly includes them; rigid pallets are excluded in Oregon.
Protective/void fill — foam-in-place, air pillows, paper void fill. Covered wherever the surrounding packaging layer is covered — all channels in CA/OR/NJ/NY, consumer-facing only in CO/MN/MD/WA.
Reusables and pallets — OR excludes rigid pallets; NJ excludes refillable kegs and water-cooler jugs; reusable transport packaging generally falls outside single-use definitions.

What producers should do before fees start

Separate your tonnage now.The difference between "covered" and "exempt" in CO, MN, MD, and WA is channel of sale, not material — a SKU sold B2C is reportable while the identical box sold B2B is not. Weight data must be split at the SKU level to claim the exemption.
Map your producer role per state. Use the coverage checker and the producer-chains post to determine whether brand owner, licensee, importer, first distributor, or shipper rules put the duty on you.
Fix producer responsibility in contracts. NY and IL shipper-of-record clauses mean brands and 3PLs should reconcile EPR clauses in fulfillment agreements before NJ/NY programs go live.
Watch the pending states. NJ committee action could come any session day — the law would extend to tertiary packaging, matching California's already-broad coverage. Track the New Jersey and New York bills on the state pages.

Does EPR Cover B2B & Shipping Packaging?