Under California's packaging law, everything starts with one question: who is the producer? The SB 54 producer definition decides who joins the PRO, who reports, and who pays. Get it wrong, and you either pay for packaging that isn't yours or miss obligations that are.
Here's how producer status works for the common setups we see.
Key takeaways
- The brand owner is usually the producer.
- If the brand owner isn't reachable in California, the licensee, importer or distributor may be.
- Shipping packaging from e-commerce has its own rules.
- Small producers can apply for an exemption.
The basic hierarchy
SB 54 uses a ladder. You go down only if the step above doesn't apply:
- Brand owner. The company that owns or licenses the brand on the product. If the brand owner sells, distributes or imports into California, it's the producer.
- Exclusive licensee. If the brand owner isn't in California's reach, a company with an exclusive license to use the brand in California may be the producer.
- Importer or distributor. If neither of the above, the company that first imports or distributes the product into California.
For most US consumer brands that design, brand and sell their own products, the answer is simple: you're the producer.
Common scenarios
| Setup | Likely producer |
|---|---|
| Your brand, made overseas, sold on your website to CA buyers | You |
| Your brand, sold through REI or Nordstrom in CA | You (the brand owner) |
| A retailer's private-label product | The retailer (brand owner) |
| Unbranded product imported and sold in CA | The importer |
| Foreign brand with no US entity, sold by a US distributor | Possibly the distributor; check the ladder |
| A co-packer filling your branded product | You, not the co-packer |
E-commerce shipping packaging
Packaging used to ship products to customers, like mailer boxes, poly mailers and void fill, has specific rules. Generally, the party that packs and ships to the California consumer may be treated as the producer of the shipping packaging. If you ship your own orders, plan to report your shipping materials. If a marketplace or 3PL packs for you, check the regulations and your contract.
Small producer exemption
SB 54 exempts small producers below a revenue threshold. Under CalRecycle's guidance, producers who wanted to comply individually or claim the small-producer exemption had until June 1, 2026 to register and apply through the PEPRS portal. If you missed that, check with CalRecycle on current options.
Note: "small" here is about the law's threshold, not about how big your brand feels. Many mid-size brands won't qualify.
Why producer status matters beyond California
Each EPR state defines "producer" a bit differently, but most follow the brand-owner-first approach. Settling your status in California usually answers most of the question for Oregon, Colorado, Minnesota, Maryland and Washington. See packaging EPR laws by state.
What to do once you know you're the producer
- Join the PRO before the January 1, 2027 deadline CalRecycle has cited.
- Build your packaging inventory: every component, material, weight, units sold in California.
- Ask packaging suppliers for specs in one standard request.
- Set up yearly reporting.
Full overview in our SB 54 guide.
Contracts and private label
If you make products for retailers under their brand, you're usually not the producer, they are. But they'll still need your packaging data. Expect requests, and consider building the data once so you can share it quickly. In supply agreements, be clear about who reports and who pays.
A quick decision tree
- Is there a brand on the product or its packaging?
- No → the importer or first distributor into California is likely the producer.
- Yes → go to 2.
- Is the brand owner selling, distributing or importing into California (directly or through others)?
- Yes → the brand owner is the producer.
- No → go to 3.
- Is there an exclusive licensee for California?
- Yes → the licensee may be the producer.
- No → the importer or distributor likely is.
- Separately, who packs and ships orders to California consumers? That party may be the producer of the shipping packaging.
Use this as a starting point and confirm edge cases with counsel or CalRecycle's screening tool, "Are You a Producer?"
Edge cases we see often
Marketplace sellers. If you sell your branded products on a marketplace, you're usually still the brand owner and producer of the product packaging. Shipping packaging depends on who packs.
3PL fulfillment. A 3PL that packs your orders in your branded mailers is acting for you. Contracts should say who reports the shipping materials.
Gift sets and bundles. If you combine other brands' products into your branded set, you may be the producer of the outer packaging.
Wholesale to retailers. Your product packaging is yours to report even if a retailer sells it.
Foreign brands. If the brand owner has no presence in California's reach, look to the licensee or importer.
Keep a producer record
Document your conclusion: which products, which packaging, who is the producer and why. Update it when channels change. It's a short document that prevents confusion later and helps when your PRO or a retail partner asks.
Producer status checklist
- Every brand you sell listed, with its owner
- Channels mapped: DTC, wholesale, marketplace, private label
- Producer named for product packaging in each channel
- Producer named for shipping packaging in each channel
- Contracts updated to say who reports and pays
- Small-producer threshold checked
- Decision documented and dated
What to do this week
- List every brand you sell and who owns it.
- Map each sales channel and note who packs and ships to California consumers.
- Write a one-page producer record with your conclusion and reasoning.
- Check the small-producer threshold against last year's revenue, and confirm with CalRecycle if you're close.
Key terms
- Brand owner: The company that owns or licenses the brand on the product.
- Exclusive licensee: A company licensed to use a brand in California, which may be the producer if the owner isn't reachable.
- Importer: The company that first brings a product into California.
- Shipping packaging: Boxes, mailers and fill used to ship to consumers.
- Small producer exemption: Relief for producers under the revenue threshold, by application.
Mistakes to avoid
- Assuming your retailer or 3PL is the producer of your branded packaging.
- Leaving producer duties out of supply and fulfillment contracts.
- Not documenting how you reached your conclusion.
The bottom line
For most brands, the producer is simply the brand owner. The tricky parts are shipping packaging, private label and marketplace setups. Write down your conclusion, put it in your contracts, and you'll avoid paying for the wrong packaging or missing your own.
How Secuabase helps
We collect packaging specs from your suppliers, including material, weight and recycled content, and organize them by SKU so your SB 54 and other EPR reports are ready. If you supply private label, we make it easy to share the data your retail customers need.
For our first partners we run it free on one product line. Book a quick chat.
FAQ
Who is the producer under SB 54?
Usually the brand owner; otherwise a licensee, importer or distributor.
Is a retailer the producer for private label?
Usually yes.
Is there a small-producer exemption?
Yes, for producers below the revenue threshold, by application.
General information, not legal advice. Confirm with CalRecycle. Facts checked October 2026.
Sources