What is Bottle Bill and how it works ?

The term “bottle bill” is really another way of saying “container deposit law.” A container deposit law needs a minimum refundable deposit on beer, soft drink and other beverage containers in order to make certain a high rate of recycling or reuse.

How a bottle bill works

Place on beverage containers are not a new idea. The deposit-refund system was produced by the beverage industry as a means of certification the return of their glass bottles to be washed, refilled and resold.

When a vendor buys beverages from a distributor, a deposit is rewarded to the distributor for each can or bottle purchased. The consumer pays the deposit to the dealer when buying the beverage. When the consumer returns the unfilled beverage container to the retail store, to a liberation center, or to a reverse vending machine, the deposit is refunded. The retailer recover the deposit from the distributor, plus an extra handling fee in most U.S. states. The handling fee, which normally ranges from 1-3 cents, helps cover the cost of handling the containers.

The costs to distributors and bottlers can be equalize by the sale of fragment cans and bottles and by short-term investments made on the deposits that are collected from retailers. In addition to this income, distributors and bottlers realize extra profits on beverage containers that consumers fail to return for the refund.