The Container Deposit System Management Organization

※ Request cannot be canceled after production.

◦ Request for the deposit refund label
- Brands with a product sales system*: Request to the headquarters through the product sales system.
*the system for ordering expendable supplies such as disposable cups, coffee beans, and napkins, etc.

- Brands without product sales system: Use the Deposit Payment Management System or request to the headquarters according to the guidance from the headquarters.

※ Labels for non-standard containers are manufactured after the payment of handling subsidy → payment within 7 days after the invoice issuance

◦ The franchise headquarters shall order labels and pay for the cost. Individual stores (franchises) can request the required quantity of labels to headquarters through ① the COSMO Payment Management System* or ② franchise internal ordering systems. When you are collecting the quantities of the stores (“collecting the quantities of the stores” does not make any sense – I do not know what this means) through the COSMO Payment Management System (①), it is easy to deliver to the individual stores. When the labels are ordered at once by the headquarter (②), you can enter the delivery location.

* In line wth the Ministry of Environment’s policy to alleviate the inconvenience of using multiple systems, such as each brand’s own product sales system and the disposable cup deposit payment management system, for franchises, the feature where the franchises request label orders to the headquarters through the disposable cup deposit management system ends on December 31, 2022.

※ However, if a brand does not have its own product sales system and wishes to use the disposable cup deposit payment management system for requesting label orders with the franchises’ agreement, COSMO will provide the system to the franchises of the corresponding brand. If needed, please contact COSMO.

◦ Deposit label order
- Franchise headquarters
* Available by the end of October 2022, depending on the system improvement, testing schedules with the Minting Corporation, etc. (Order and delivery within 3 weeks are possible.)

◦ Deposit payment period
- Subsequent payment (payment within 5 weeks after label order)
* The deposit payment deadline is extended to December 31 for orders before November 26, 2022.

◦ Label production cost (6.99 KRW per label)
- not paid separately (deducted from label order price)
* Subject to change depending on financial support plans

◦ Handling subsidy
- Paid when ordering label
* Full support for standard container handling subsidy (4 KRW); non-standard container (10 KRW)

◦ Delivery fee
- Free for orders of 3 rolls or more
* Regardless of label type (paper/plastic)

◦ Label attachment
- Attached at franchise stores

◦ Categories: total of 4 types
* By material (paper or plastic) and standard or non-standard

◦ Size: 23 * 55 mm

◦ Unit Price: 6.99 KRW per label (tax exemption)

◦ Barcode: 14 digits in CODE-128 format

◦ Offered unit: roll (1,000 labels per roll)

◦ Purchase unit: Small (1-2 rolls), medium (3-9 rolls), large (10-20 rolls)
* Box size: Small (150 * 150 * 70 mm), medium (300 * 150 * 130 mm), large (300 * 300 * 170 mm)

◦ The handling subsidies paid by the franchise headquarters when purchasing the deposit labels are settled internally within the brand.

◦ The recycling methods and procedures for paper and plastic cups are different. Therefore, deposit labels are classified to make them more effective for storing and recycling.

[Initial operation plan for the system implementation]

∎ The deposit (300 KRW per container) should be paid within 5 weeks after placing the label order, considering the time to collect the deposit through product sales.
* Additional orders can be placed within 5 weeks from the initial order. However, additional orders are restricted if the payment is not made within the deadline.

∎ For the deposit refund and recycling label fees (6.99 KRW per label), the invoice is issued with the support fund deducted when the label purchase is made.

∎ For the standard container handling subsidy (4 KRW per label), the invoice is issued with the support fund deducted when the standard container label is purchased.

* When purchasing labels for non-standard containers, the relevant handling subsidy (10 KRW per label) must be paid in advance.

* After confirming the receipt of the handling subsidy, the label order (printing) will proceed.

◦ The label’s safety for human consumption has been analyzed and confirmed as safe by a reputable testing facility (FITI Testing & Research Institute).

◦ The deposit label is made by Korea Minting, Security Printing & ID Card Operating Corporation with anti-counterfeiting features.

◦ To prevent duplicate deposit payments, an individual barcode with a unique number is applied to each label. If a consumer requests a deposit payment through POS or the seller’s app for a barcode already paid, the Disposable Cup Deposit Payment Management System can determine if it is a duplicate.

◦ The deposit cannot be paid in installments.

◦ You can return labels through the disposable cup deposit management system. You can process returns not only in roll units, but also in individual quantities.

◦ There is no standard for the size of the return box, but the label being returned must be delivered to COSMO. In this case, the business operator bears the return shipping fee subject to the deposit.