Tomahawk, WI 01/30/2014 (BasicsMedia) – Cereplast Inc (OTCMKTS:CERP) depends largely on the sale of its eco-friendly plastic bags for survival. Close to 90 percent of all plastic bags in the US are not recycled. Despite this, more than 500 billion plastic bags, and this often reaches to the 1-trillion mark, are used each year around the world, where the US accounts for roughly 380 billion of these products. The ban on plastic bags has already started in the US, and California is among the first states to come up with such a law in San Francisco, even though the ban applies only to the city currently.

 The coastal North Carolina region already has a ban restricted to the use of plastic bags. Similar action is set to be carried out in Portland. Many other countries around the world are implementing bans on the plastic bags, and these include England, Bangladesh, Australia, Rwanda, India, Mexico, as well as Burma. Perhaps the biggest piece of activity relating to the bags and CERP’s survival is the legislation that the French Senate has put in place. France passed the plastic bag legislation, and it was designed to take effect from January 1, 2014.

Under the recently passed legislation in France, bio-plastic bags have an upper hand to the regular types of bags. The legislation seeks to discourage the use of single-use plastic bags by increasing taxes on these products. However, if CERP intends to benefit from this French legislation, it needs to work hard to ensure that all its plastic bags, are not only biodegradable, but also that 40 percent of their constitution is made of bio-based materials. If CERP is unable to meet these conditions, it will have to pay the new €10 per kilogram tax just as other companies.

Moreover, under the new French legislation, the tax rate of around $0.08 per bag will keep rising with each new year. However, the growth of this tax rate will depend on consumer prices. Anyone who brings the bags into the French market for the first time, or delivers them into the market regularly, will have to abide by this new legislation. Cereplast Inc is quite happy with this legislation, saying that it has the chance to benefit just as it did when the Italian Decree was passed sometime back. The whole bio-plastics industry will benefit greatly from the new rule.

To its credit, Cereplast had started working on developing plastic bags that meet the new legislation passed in France. It has been collaborating with a number of its customers in France to see how it can make use of this new law to come up with products that are acceptable in the market, and do not attract fines from the local authorities simply because they fail to meet the minimum requirements. Consequently, Cereplast believes that its revenue will rise substantially purely from its transactions with its customers in France in 2014, which is good for investors.

Thus far, none of CERP’s bio-plastics has failed to meet what the market requires, and as long as it adheres to the regulations in France, 2014 will be a massive year of growth and better financial results.

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