USA Notifies WTO on SB 54 Packaging Rules Update

The United States has issued an addendum under the WTO Technical Barriers to Trade (TBT) framework regarding California’s notification G/TBT/N/USA/2088/Rev.1/Add.1.

The update concerns permanent regulations under California’s SB 54 – Plastic Pollution Prevention and Packaging Producer Responsibility Act. The notice was circulated via the WTO ePing SPS & TBT Platform in early 2026, with a comment period indicated for late January to February 2026.

This addendum revises an earlier TBT notification and signals important regulatory developments that may affect international trade.

Overview of SB 54 Regulations

California’s SB 54 represents one of the most comprehensive state-level packaging sustainability laws in the United States. The legislation focuses on the full lifecycle management of plastic packaging and single-use materials.

The law introduces extended producer responsibility (EPR) requirements and establishes ambitious environmental targets that will directly affect manufacturers, brand owners, and importers placing products on the California market.

Key Policy Objectives

Under SB 54, producers must meet the following long-term targets by 2032:

• 100% of packaging must be recyclable or compostable
• At least 65% recycling rate for plastic packaging
• 25% reduction in single-use plastic packaging compared to baseline levels

The regulation applies to:

• Single-use packaging
• Plastic food service ware

The law shifts financial and operational responsibility for packaging waste from consumers and municipalities to producers. Companies must participate in or establish Producer Responsibility Organizations (PROs) to manage compliance.

Additionally, producers are expected to contribute approximately USD 5 billion over ten years to fund recycling, mitigation, and collection programs.

California SB 54 EPR Implementation — Current Regulatory Status

Rulemaking Status

• The California Department of Resources Recycling and Recovery (CalRecycle) withdrew the proposed permanent regulations in January 2026 to revise and clarify them (especially for food/agricultural commodities), and is planning an additional 15-day comment period.
• The statutory deadlines under SB 54 (from 2022 law) remain in force, even as rulemaking continues.

Reporting Deadlines

Producer Reporting

Although the official implementing regulations are still being finalized:

• 2025 Reporting (Baseline):
  • The Producer Responsibility Organization (PRO)—Circular Action Alliance (CAA)—set a deadline of 15 November 2025 for producers to submit baseline reporting of 2023 packaging data.
    • This deadline comes from CAA guidance, not formal regulation.
• Future Reporting:
  • According to recent compliance guidance, reporting for 2025 data is anticipated to be due by 31 May 2026 — and this is expected to be the basis for the first fee assessment.

Regulatory Process and WTO Transparency

Implementation authority lies with CalRecycle, which is responsible for finalizing permanent regulations.

Under WTO transparency rules, members must notify draft or updated technical regulations that may significantly affect trade. The addendum provides WTO members and stakeholders with an opportunity to review and comment through the U.S. TBT Enquiry Point.

Why This Matters for International Trade

Under the Technical Barriers to Trade Agreement, regulatory transparency is essential when measures may impact imported goods.

Although SB 54 is a California state law, its economic scale means global exporters supplying the U.S. market—particularly California—may face new compliance obligations.

The notification helps:

• Exporters anticipate regulatory changes
• Governments assess potential trade impacts
• Businesses prepare for EPR compliance
• Stakeholders formally submit comments within the designated window

What Exporters and Stakeholders Should Do

• Assess whether your packaging or products fall within SB 54 scope
• Monitor WTO TBT comment deadlines (late Jan–Feb 2026 window)
• Coordinate with supply chain partners and PROs
• Consult regulatory and trade experts to develop compliance strategies
• Submit formal comments via the U.S. WTO TBT Enquiry Point if needed

Conclusion

The WTO addendum on SB 54 signals the continued evolution of U.S. packaging regulation with significant sustainability and trade implications. Companies exporting to California should proactively evaluate compliance pathways and engage during the comment period to safeguard market access.

Source: USA SB54 WTO Addendum Notice