WEEE & RoHS Information
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The Challenges and Opportunities of WEEE and RoHS
With the new European Union directives on RoHS (Restriction of Hazardous Substances) and WEEE (Waste Electronics and Electrical Equipment) companies will have to certify their electrical products are free of lead, mercury, cadmium, chrome +6 and two brominated fire retardants (below established thresholds in homogeneous materials) by July 1, 2006 if they sell in Europe, and sell or manufacture in China. These are new requirements. The brand owner will be responsible even if he does not actually manufacture the product. The local manufacturer/importer/distributor is the first person responsible for compliance, followed by the brand owner. The brand owner is ultimately accountable if the importer of record does not meet the product restriction requirements and financial obligations (for take back). Payment of the take back fees is due when the product is imported for sale in the EU.
Where are the enforcement teeth for the RoHS requirements? Products that do not meet the standard are banned from the EU market after July 1, 2006. While government officials may not get around to randomly checking your products, you can be sure that your competition will be glad to help by letting them know if you are not in compliance.
There is another reason for companies to address these “lead free” requirements as they are sometimes referred to: suppliers will phase out production of non RoHS compliant components. So even if a product is not sold in Europe or China, it will very likely be impacted. Also, see below where California adopted the RoHS requirements effective January 01, 2007 for their “covered electronic devices”.
Material restrictions are not the only reason for taking prompt action. A strategy for addressing RoHS, WEEE and other product environmental requirements can add value by incorporating the compliance criteria into the product design and business plan. Since RoHS and WEEE compliance is quickly becoming a competitive issue, done well, it spells profit. Done as an after thought, it is an unanticipated add on cost. For publicly traded firms that sell into Europe, it could even be a SEC 10K issue if the potential financial liabilities and sales impacts are not managed properly. Take back fees (WEEE) can significantly increase the product sale price. Sales information has to be reported to EU country agencies starting next August. Take back fees are paid into the country where the product is sold. Fee payment schedules vary from monthly to annual. Ontario started waste electronics take back in 2005, California adopts RoHS on January 1, 2007 and they already have a CRT/Display advanced recycling fee in effect.
The positive side of this issue is when environmental requirements, design, production and logistics are integrated, a company is on the road to sustainable business practices, greater profits and customer acceptance.
Product environmental requirements started with packaging, moved to batteries and then electronics. Soon there will be significant new requirements for chemicals that may end up in or be used to manufacture your product. Future design criteria for energy using products are being debated in preparation for a new directive that will have an even greater future impact on products.
Bottom line: When the requirements are integrated in to the product design, a company will realize business opportunity. If done poorly, these new requirements will eliminate many existing products from the market.
Let Howland Greene help you realize your opportunities.
You can find more detailed information at the sites below or contact us:
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UK DTI Web Site for well written explanation of how the United Kingdom is implementing the RoHS and WEEE Directives.
http://www.dti.gov.uk/sustainability/weee/
UK National Lab WEEE and RoHS questions
http://www.npl.co.uk/ei/news/faqs.html
RoHS Directive - the actual text
http://europa.eu.int/eur-lex/pri/en/oj/dat/2003/l_037/l_03720030213en00190023.pdf
WEEE Directive – the actual text
http://europa.eu.int/eur-lex/pri/en/oj/dat/2003/l_037/l_03720030213en00240038.pdf
and
http://europa.eu.int/eur-lex/pri/en/oj/dat/2003/l_345/l_34520031231en01060107.pdf
(amending the earlier directive)
California Laws for CRT take back fees and implementation of the EU RoHS requirements
SB 20 – the initial California law on CRT / Display take back fees (effective in 2005) and adoption of the RoHS material restrictions in California on January 1, 2007
http://www.leginfo.ca.gov/pub/03-04/bill/sen/sb_0001-0050/sb_20_bill_20030925_chaptered.html
SB 50 – follow up legislation clarifying SB 20
http://www.leginfo.ca.gov/pub/03-04/bill/sen/sb_0001-0050/sb_50_bill_20040929_chaptered.html
REACH – Proposed Directive in the EU that will significantly impact chemical product and use in the EU
http://europa.eu.int/comm/enterprise/reach/overview.htm
EuP – Proposed Directive in the EU that will make energy use and environmental design criteria a required elements for products sold in the EU
http://europa.eu.int/comm/enterprise/eco_design/