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ILTAM WEEE Workshop

22nd March 2006Herzlia, Israel

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1. WEEE & ROHS brief introduction2. WEEE specifics

Differences between B2C and B2BNew waste versus historical wasteRegistrationChoice of responsibility strategy LabelingAccounting implications

3. Transposition status in the EU member states & case examples of some countries

4. Roadmap to WEEE compliance; what are the most important requirements, what needs to be done, what are the timetables and what are the potential sanctions

5. Design considerations of WEEE compliance6. ROHS - Material Declaration/ Declaration of Conformity7. WEEE & ROHS as global phenomenon's; similar requirements in China

and the US8. Discussion, conclusion and close-up

Workshop Agenda 22.3.2006 at 9-13

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Proventia Solutions Company Presentation

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Proventia Group• A technology group focused on increasing customers’ business efficiency and

sustainability• State of the art environmental solutions based on leading technology and service

concepts.• Revenue in 2005 MEUR 27, budgeted turnover 2006 MEUR 75.• Five business lines and operations in Europe, Asia and Americas• Proventia is backed by major private and institutional investors

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Proventia Solutions• Founded in 1999, 100 % subsidiary of Proventia Group• Leading Scandinavian software and professional services provider in

sustainability management issues• GRI Technology Partner and Hyperion Partner

Consulting Services Software SolutionsCorporate Sustainability:

CSR Strategies and RiskManagementData Collection Integrity and Sustainability PerformanceIndicatorsGRI Consultancy

Product Responsibility:

WEEE, RoHS, EuP Compliance

ComLib (Compliance Library) service

www based environmental product responsibility service

Other Software:

EnStepQuality & EHS software

WFMWaste Flow Management Software

Corporate Sustainability Management Software:

CSMStand alone Corporate sustainabilityManagement SoftwareSDRHyperion based CorporateSustainability management software

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WEEE & ROHS

- Brief introduction

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WEEE & ROHS directives

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Background to WEEE & ROHS legislation

• EU legislation including the Waste Electrical and Electronic Equipment (WEEE) and Restrictions on certain hazardous substances (ROHS) Directives aim to:

– Protect human and environmental health and reduce environmental risks– Harmonise trade within the single market– Increase recovery, recycling and reuse of WEEE, and reduce the amount

going to landfill

• Electronics require separate legislation for three main reasons:

– The amount of waste electronics is growing far more rapidly than any other waste fraction

– The amount of hazardous content of the WEEE stream causes serious environmental problems during the end-of-life of these products.

– Electronics products are very resource intensive products, requiring especially energy in vast amounts

• WEEE is a so-called minimum directive whereas ROHS is a harmonisationdirective as a result there are 25 different versions of the WEEE “law” in the EU-25.

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Why WEEE & ROHS legislation – Health and environmental issues

• WEEE is one of the largest source of heavy metals and organic pollutants in the municipal waste stream.

• Continuing landfill without special treatment could pollute soil and groundwater

• Incineration of WEEE generated 36 tonnes of mercury and 16 tonnes of cadmium per year in EU

Potential damages for Human health Potential damages for the Environment

Brominated flame retardants

Cancerogenic, neurotoxic, may have negative effects on Reproduction

Soluble in landfill leachates, volatile to a certain extent, bioaccumulative and persistent.

Cadmium (Cd) May hurt kidneys, carcinogenic, induce skeletal demineralisation.

Incineration may produce dioxins and furans

Chromium VI Allergic reactions, is caustic when in contact with the skin, genotoxicl

Bioaccumulative, persistent and toxic for the environment

Lead (Pb) Can damage the nervous systems, the endocrine and cardiovascular systems, the kidneys

Easily absorbed into cells, with toxic effects

Nickel (Ni) Can affect the endocrine and immune systems, the skin, and the eyes

Accumulating in the environment, it has high toxic effects on plants, animals and micro-organisms.

Mercury (Hg) Can cause damage to the brain and has cumulative impacts

Spread in the water, is accumulated by living organisms

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Scope• Electrical and electronic equipment which belong to a category mentioned in

annex 1. (WEEE scope is all and ROHS scope is all except categories 8 and 9):

1. Large household appliances2. Small household appliances3. IT and telecommunications equipment4. Consumer equipment5. Lighting equipment6. Electrical and electronic tools (with the exception of large-scale

stationary industrial tools)7. Toys, leisure and sports equipment8. Medical devices (with the exception of all implanted and infected

products)9. Monitoring and control instruments10. Automatic dispensers

• There are some interpretation difficulties of products in the Grey area; in case of doubt, contact EACH local authority separately, unfortunately!

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Scope related - Spare parts and WEEE • Spare parts are not covered by

WEEE in general. Here, the term spare part refers to a component level part, such as a disk for example.

• If the spare part or capacity extension fulfills the criteria of a “product” or a combination of “products” then the WEEE will apply to the spare part and/ or capacity expansion as well.

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Scope related - Capacity expansion

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Concerning scope

• The scope of both directives should be harmonisedacross all EU-25 as far as possible

A situation where according to the national interpretation in one country a product would fall under WEEE&ROHS but not according to the interpretation in another country should not happen

• Interpretation issues are resolved at the EU level and will also in the future probably be published in so called Guidance documents as the one recently updated: FAQ on WEEE & ROHS (available at http://europa.eu.int/comm/environment/waste/weee_index.htm)

• Similar legislation being globally developed will not have the same scope 1:1 as in the EU.

• WEEE concerns equipment and instruments whereas ROHS covers also components.

• Spare parts for products put on the market before 1.7.2006 are not covered by ROHS.

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WEEE Directive• WEEE came into force 13.2.2003 and

Member States were given 18 months to implement into national law

• In practice, recycling infrastructure needs to be in place 13.8.2005

• National implementation may vary across Member States

• WEEE mandates the collection of WEEE as well as stipulates recycling technologies and recycling targets

• Preliminary collection target 4 kg WEEE/ inhabitant/ year by 31.12.2006 (B2C)

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WEEE - Responsibilities• In compliance with WEEE and related national legislation, a producer must

– Organise for the separate collection of all collectable electronics and electrical waste and they must be collected and stored so, that parts suitable for reuse and recycling can be primarily reused and secondarily recycled as efficiently as possible

– Ensure that all collected waste is transported to an accepted treatment center, unless the products are reused as whole

– Ensure that waste products are handled in a treatment center with an appropriate permit (variance between countries)

– Finance all of the above activities– Handle responsibility either individually or collectively through a Producer

Responsibility Organisation

• In B2B, the parties can reach any agreement concerning the waste management responsibilities so long as it is ensured that WEEE is appropriately collected and treated

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WEEE Practical requirements

• The essential requirements for compliance from a practical perspective for companies in terms of WEEE are:

– Registration as a producer in national producer registers– Product labeling– Providing a user information package– Providing recycling instructions– Handling waste management– Record keeping– Annual reporting

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RoHS Directive

• Same products as the WEEE Directive except:– medical equipment– monitoring and control equipment

• From July 1st, 2006 producers will have to show that their products do not contain more than maximum permitted levels (0,01% for cadmium and 0,1% for the others) of:

Flammability protection, PCBs, Connectors, plastic covers and cables

PBDEs

New polymers (PC-ABS), phosphorus-nitrogen

PBBs

Corrosion protection of steel, decorative & hardener for steel housing (PC)

Hexavalent Chromium

lithium-ion and nickel-metal hydride batteries, digital instruments

PCBs, semiconductors, PVC stabiliser, Batteries

Cadmium

Non-mercury materials (in lamps switches shorter life)

Thermostats, relays, switches, discharge lamps, PCBs, medical equipment, mob phones, telco eqp

Mercury

Sn, Ag, Cu, Bi, Zn combinations for solderings

Soldering, batteries, CRTs, light bulbs, fluorecent tubes

Lead

SubstitutesUsed in Substance

ROHS:Direktiivi 2002/95/EY

Vna 853/2004

europa.eu.int/comm/environment/waste/we

ee_index.htm

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ROHS: “homogenous material”• The term “homogenous” means “of uniform compositions throughout”. • A homogeneous material is a single substance. • A plastic cover is a homogenous material if it consists of one type of plastic that

is not coated with or has attached to it or inside it any other kinds of materials. • An electric cable that consists of metal wires surrounded by non-metallic

insulation materials is an example of a non-homogenous material because the different materials could be separated by mechanical processes.

• A semiconductor package contains many homogenous materials which include plastic moulding material, tin-electroplating coatings on the lead frame, the lead frame alloy and gold-bonding wires

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ROHS applications• The following table gives an indication of where ROHS substances are commonly

found and works as a first risk analysis tool to help in identifying the risks related to products

Flame retardants are widely used (plastics, housings, cables, PCBs, connectors, fans, components)penta-BDE in textiles, polyurethane foam, not common in electronicsocta-BDE in ABS, injection moulded plastics, PCBsdeca-BDE in HIPS, PE, ABS, PBT, epoxy, nylon plastics

PBB/PBDEs

Metal finishing for corrosion protection, such as yellow chromate (substitute trivalent chromate), pigments, paints, aluminium conversion coatings, alloys (residual Cr 6+)

Cr 6+

Switches, lamps, bulbs, lighting (displays, scanners, projectors), pigments, paints, polyurethane materials, PVC & rubber additives

Mercury

PVC cables, pigments (yellow), paints, metal finishing/ plating (low resistance corrosion or wear protection; connector, switch, relay contacts, fasteners), phosphorescent coatings, recycled plastic materials

Cadmium

Solders, PVC cable (UV/heat stabiliser), pigments, paints, platings, coatings, lubricants, detectors, fuses, photoconductors, glass, metal parts, chassis, washers, leads, internal/external interconnects

Lead

Common applicationsSubstance

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WEEE

- Specifics

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Producer?• ”producer” means any person who, irrespective of the selling technique used, including by

means of distance communication– (i) manufactures and sells electrical and electronic equipment under his own brand,– (ii) resells under his own brand equipment produced by other suppliers, a reseller not

being regarded as the ‘producer’ if the brand of the producer appears on the equipment, as provided for in subpoint (i), or

– (iii) imports or exports electrical and electronic equipment on a professional basis into a Member State.

• In cases 1 and 2, responsibility for compliance rests with the organisation that owns the brand name which is displayed on the product. The brand name referred to is the brand name under which the product is sold, and does not imply any responsibility for organisations which own brand names of components contained within the product.

• For example, a Compaq computer may advertise that it contains an Intel Pentium processor. But the brand name under which the product is sold is Compaq and there is no producer obligation on Intel. Similarly, a Panasonic HiFi unit may advertise that it uses a Dolby sound system. But it is sold as a Panasonic product and Panasonic has 100% of the producer obligation.

• Compliance with the WEEE Directive rests with the organisation that sells the fully-assembled product to the user. For example, a Sony PlayStation contains a power supply unit supplied by Philips and displaying the Philips brand name; no obligation on Philips, obligation rests 100% with Sony.

• The Producer is also responsible for any spare parts contained in the product when it reaches its end-of-life, irrespective of the supplier of that spare part.

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WEEE

- B2B vs. B2C differences

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Most significant differences between B2C and B2B

No requirement for financial guarantee.

Joining a producer responsibility organisation, insurance or blocked bank account

Financial guarantee

Only 1:1Producers responsible collectively

Products placed on the market before 13.8.2005 (historical waste)

Producer responsible

Producer responsibleProducts placed on the market after 13.8.2005

not set, not binding4 kg/ inhabitant/ year (min.), except new member states

Recycling goal

yesyesTake back obligation

B2BB2C

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WEEE Directive – Reuse and recovery targets• Recovery of waste: all ways which

materials or energy can be recovered from waste

• Recycling: reprocessing the waste materials for the original purpose or other purposes, but excluding energy recovery.

• Reuse: any operation by whole WEEE appliances or components/parts of a bigger EEE, is used for the same purpose as originally designed

• Incineration with energy recovery: use of combustible waste as a means of generating energy through direct incineration with heat recovery.

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New waste, old waste

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New vs. historical waste• New waste

– Companies have to finance and organise the collection and appropriate treatment of electrical and electronics products put on the market after 13.8.2005. They can do this either collectively through joining a producer responsibility organisation or individually.

• Historical waste– An important provision of the WEEE directive is that producers are required

to collect and finance the collection and recycling of so-called historical waste (waste from products put on the market before August 13th, 2005) when a replacement is made. This 1:1 rule concerns only situations where new equipment is replacing old equipment which has been used for the same purpose as the new equipment. The provision makes no difference as to who the producer of the old equipment was or is. Since it is impossible to know or estimate the costs for this type of waste disposal, it is absolutely necessary to find out in the offer phase whether the customer has any old equipment and what that old equipment is. Please note, that old equipment may contain extremely hazardous substances for which disposal costs are very significant.

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WEEE

Registration (& PRO’s)

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Registration & PRO’s• Registration is mandatory prior to sales in certain countries whereas in other

European countries a foreign company can not register. Registration is only required when selling products falling under WEEE, i.e. individual equipment, not for component sales.

• Registration requirement is entirely dependant on operating mode in each country; in most cases where the company has a local legal representation, registration is mandatory

• Registration is done by each national registration body, which differs from country to country but is usually some environmental authority. In some cases a company joining a PRO need not register with the authority, such as in Finland.

• Reporting format varies very widely between member states; there is no common approach.

• In B2B sales companies do not have to join a PRO. However, there may be certain countries where individual compliance has been made so difficult that joining a PRO may be necessary also for a B2B producer.

• Joining PROs and determining the most suitable one should be done simultaneously with producer registration.

• Each European country is likely to have more than one PRO organisation and thus the most suitable one needs to be chosen. The situation also needs to be monitored over time as new PROs emerge and some may cease to operate.

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WEEE process• A company will register in countries with a legal presence and some other countries and

a fee is paid to the authority usually either once or once a year Company then makes a separate agreement either with a PRO (collective responsibility) or with a waste contractor who takes care of take-back and recycling (individual responsibility).

– If the PRO is chosen, Company will pay a membership fee, yearly fee and a fee based on the amount of sales but is not involved with the take-back and recycling.

– With individual responsibility Company would usually make an agreement with a waste contractor and pay him based on the amount of waste collected and possibly a yearly fee as well.

– In both cases Company will be responsible for reporting to the authorities yearly on the amount of placed goods and collected goods into the market.

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Reporting• All producers are required to annually report to each country’s relevant national

register the amounts in kilograms of sold equipment in each category as well as the amounts of any collected wastes for those products for which the company in question in that particular country is considered “producer”.

• Necessary changes need to be made to corporate ERP systems to enable the reporting of this information automatically (adding kilograms to BOM items, etc.).

• Need to decide and determine who has the reporting responsibility.

• The function responsible for reporting should keep records of the amount and type of equipment being returned from customers as historical or new waste (this may not be wise to be included in the automated reporting).

• Reporting needs to include information on:– amount of goods delivered into market– amount of re-used goods– amounts of collected and recycled goods– amounts of exported goods.

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WEEE

- Individual versus collectiveresponsibility?

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Individual versus collective responsibility

• In B2B sales, companies do not need to set financial guarantee and thus joining a PRO is not absolutely necessary

• However, a B2B company can also join a PRO if it so desires• Joining a PRO is especially relevant when

– There is a large number of customers– There are many different products and sales volumes are high– Products are geographically spread widely– Products easily migrate into private households

• In the above case, the company will find it very difficult to collect the products from the market whereas in the opposite case, individual responsibility might be the most cost efficient solution

• Individual responsibility is likely to yield more benefits for R&D and product design

• Through individual responsibility the company also has a far better control of the recycling operations compared to a collective system.

• Regardless of the responsibility handling choice, in B2B sales, the seller has to accept historical waste on a 1:1 basis when the new equipment is replacing an old equipment meant for the same purpose, unless the PRO has a collection center relatively near.

• It should be noted that in many B2B operations, the seller is alreadydismantling and collecting used equipment according to current agreements

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Individual responsibility…

• Choosing individual or collective responsibility is an important strategic decision• Important issues to consider include:

– Can we manage the waste flows?– Can we obligate the customers to return the products through agreements?– What if an old product ends up with the competitor?– What are the costs of collection and recycling?– What added value/ positive image may this bring?– What are the risks associated with individual responsibility?– How will individual responsibility be administered; how much resources are

required?– Can we use individual responsibility to enhance customer loyalty and product life

cycle management?• Individual responsibility means at least the following additional tasks:

– One-off: Formulating waste management plan to accompany registrations (in some states), potentially making agreements with recyclers, making changes to current sales agreements/ general terms & conditions

– Continuous: monitor and report collected and sold amounts, check for historical waste with deliveries

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Example of individual responsibility

http://www.tek.com/Measurement/Service/recycle/index.html?wt=1074&link=/Measurement/Service/recycle/index.html

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Example of individual responsibility

http://www.abb.fi/global/fiabb/fiabb250.nsf!OpenDatabase&db=/global/fiabb/fiabb254.nsf&v=1D4E&e=fi&url=/global/seitp/seitp202.nsf/0/A6851B28F154919AC1256FDD002A6A74!OpenDocument

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WEEE

- Labeling requirements

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Requirement Specification• WEEE requires appropriate marking of

products, ROHS does not require any labeling.• The requirements for WEEE labeling and

marking are laid down in the DIRECTIVE which has been interpreted into local laws and regulations.

• Because the directive is not specific enough, a European standard (EN 50419) has been developed which contains more specified information on the marking.

• Where the directive and national regulations implementing it are in conflict with the standard, the legal regulation will always prevail.

• Three types of markings are required– Crossed-out wheeled bin picture– Identification of producer and– Date of putting on the market

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Marking requirements

• Producer identification can be either brand name, trademark, company registration number or other suitable form of identification, which is recorded in each respective Member State’s register of producers in accordance with Article 12(1) of the WEEE directive

• Symbol for showing that the product has been placed on the market after 13.8.2005 can be demonstrated either though date of manufacture/ put on the market or though the use of the additional marking (solid black line) to complement the crossed-out wheeled bin marking.

• If there are no other requirements for durability of markings the following applies:

– Symbol can be rubbed by hand for 15 seconds with a piece of cloth soaked with water and again for 15 seconds with a piece of clothsoaked in petroleum spirit. After this, the marking shall be legible, it can’t be easily removed and it shows no curling.

– Marking should be on product unless due to size or functionality this is not possible.

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Symbol, graphical

• The dimensions in the figure shall apply.

• There are no other size recommendations except that the height of the solid black bar shall be greater than 0,3 a or 1 mm.

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Information to users

• The user of any equipment should be given at least the followinginformation:

– the requirement not to dispose of WEEE as unsorted municipal waste and to collect such WEEE separately;

– the return and collection systems available to them;– their role in contributing to reuse, recycling and other forms of

recovery of WEEE;– the potential effects on the environment and human health as a

result of the presence of hazardous substances in electrical andelectronic equipment;

– the meaning of the crossed-out wheeled bin symbol

• Currently there exists no standard or guideline concerning how and where this information should be given companies are free to choose the most suitable method

• The European CENELEC organisation may start standardisation work on this

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Information to treatment facilities/ recyclers

• To facilitate reuse and correct treatment of WEEE, including maintenance, upgrade, refurbishment and recycling, producers need to provide

– the different components and materials contained in the equipment and

– the location of dangerous substances and preparations in the product.

• These can be made available in the form of manuals or by means of electronic media (e.g. CD-ROM, online services).

• This information needs to be given within one year after the equipment is put on the market.

• There are no specific other content or format requirements for this information

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WEEE in accounting and financialstatements

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WEEE in accounting

• In Finland, as in most other countries also, there is no guidance or law on how to incorporate WEEE in accounting therefore need to interpret existing accounting legislation and practices

• IFRIC (International Financial Reporting Interpretations Committee) has published a draft guidance on WEEE implications based on the IAS37 standard

• In Germany, the German Accounting Interpretation Committee (AIC) has also issued a guidance document on WEEE accounting implications

• Some countries, such as the UK, have examined WEEE implications on a national level.

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WEEE

- National differences in regulations

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WEEE – 25 transpositions

• WEEE is a minimum directive leaving room for each member state to implement and transpose it in a different manner so long as the minimum level set forth in the directive is met.

• In practice there are 25 different interpretations in the EU. This is further made difficult by different transposition mechanisms (decrees, laws, etc.)

• In many countries there is more than one text transposing the WEEE directive, for example in Finland a change has been made to the Waste Law and additionally an Ordinance has been issued for WEEE.

• The biggest differences relate to the household WEEE; the regulations for B2B are rather similar.

• In all EU countries where legislation is in place, companies operating in the B2B area can negotiate as they best see fit with respect to the financing of the waste management obligations

• Any company needs to be aware of the specific country legislation to be sure that they are operating in compliance across all market areas.

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WEEE Status in EU Member States, Norway and Switzerland

yes

yes

yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Yes

PROs existing

yes

yes

Yes

yes

yes

yes

yes

yes

yes

yes

yes

WEEE transposed

y/yHungary

y/yGreece

y/yGermany

n/nFrance

y/yFinland

y/yEstonia

y/yDenmark

y/yCzech Republic

n/nCyprus

y/yBelgium

y/yAustria

Registration possible / deadline passed

Member State

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…con’t

yes--yesSwitzerland*

yesy/nyesSweden

yesy/yyesSpain

y/yyesSlovenia

yesy/yalmostSlovakia

yesy/yyesPortugal

yes

yes

yes

yes

no

yes

Yes

yes

Yes

yes

PROsexisting

no

yes

Yes*

Yes

Yes

Yes

Yes

Yes

Almost

Yes

WEEE transposed

n/nUK

n/nPoland

--Norway*

y/yNetherlands

n/nMalta

y/yLuxemburg

y/yLithuania

y/yLatvia

n/nItaly

y/yIreland

Registration possible / deadline passed

Member State

* Not EU member states

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WEEE registration

• Registration practices vary GREATLY!• Most problems are experienced with Germany: difficult system,

communication only in German, requirement for foreign companies to register, necessity for proxies, financial guarantee, need for German bank account, debit agreements, etc.

• Some countries, such as the Netherlands, are very strict with respect to the waste management plan

• Other countries are very slow! Typically over 3-5 months handling time!• Some countries require PRO, such as Greece and in some countries

registration with a PRO is all that is required, for example a possibility in Spain and Finland

There is no one single way to do this; but differently in EACH country

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Germany: Elektro- und Elektronikgerätegesetz- ElektroG

• The German transposition of the WEEE and ROHS Directives was adopted on 23.3.2005 and entered into force on 24.3.2005.

• The ElektroG includes both WEEE and ROHS in one Gesetz.

• Important dates include– 13.8.2005 Crossed out bin marking required on all products for which guarantee

is required– 24.11.2005 by which all Producers must be registered with the competent

authority; otherwise no right to sell in the German market– 24.11.2005 by which financial guarantee must be demonstrated for B2C WEEE– 24.3.2006 by which collection systems for household WEEE must be in place

and take-back begins– 1.7.2006 after which no products containing Pb, Cd, Hg, Cr VI, PBDE and PBB

can enter the German market

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ElektroG - Organisation

• The Federal Environmental Agency (UBA Umweltbundesamt) acts as the “Competent Authortity” to which the ElektroGdesignates responsibility. However, the competent authority can transfer parts of the responsibilities Clearing house

• The ElektroG requires Producers to set up a Clearing House (“eine Gemeinsame Stelle”)

• Basically the Clearing house is the responsibility of the Minister of the Environment but this has been delegated to the foundation Elektro-Altgeräte Register (EAR) (www.stiftung-ear.de and www.ear-projekt.de)

• Producers can already test register with the EAR.• The EAR foundation was originally set up by two trade

associations, ZVEI and Bitcom.• The clearing house can not enter into agreements with waste

management companies!

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ElektroG – Tasks

• The German situation requires companies, in practice to:

1. Register with EAR through on-line program.• In case of foreign companies, they have to register through a proxy,

which they first have to find.• …and allow EAR to debit administrative fees directly from a

German bank account of the company

2. Set up and update a financial guarantee and have EAR approve this• …and allow EAR to debit fee for this activity

3. Organise for waste management (make contracts with relevant companies) and have this approved by the EAR• … and allow EAR to debit fee for this activity

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WEEE

- Roadmap

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Key requirements for WEEE compliance• The following lists the key requirements in order to secure successful WEEE compliance:

– Nominate key person(s) [and their stand-ins]• Key person will have the overall responsibility and serve as the focal point of contact

– Define extent of legal obligations • Sales amounts and business models in EU countries

– Define desired compliance model• Individual versus collective responsibility; over-compliance or compliance

– Perform registrations as required/ identified through above & reporting!• …and keep records of this activity!

– Double-check agreement templates reflect chosen compliance model• Sales agreements, offer templates, general terms & conditions and other relevant sales and marketing materials

– Ensure product labeling and information requirements are met• WEEE requires specific labeling and user as well as recycling information to be given together with products

– Train/ update sales personnel• Sales persons are often the contact point to the customer and thus they need to be aware of all activities undertaken

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Sanctions…?

• There is no official position on sanctions, once again, they depend on the country

• Usually range from notification to fine to pulling products off the market

• So far there is only one case of WEEE fines, which is from Ireland

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WEEE

- Design considerations

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ROHS & WEEE for R & D

• The main implications for R&D from WEEE and ROHS are

– the need for designers to be aware of both directives and understand them on a general level

– the need for designers to specify ROHS compliant solutions into products– the need to identify critical and high risk components– the need for designers to design solutions that enable removal of the

components specified in the WEEE annex– the need for designers to design solutions that enable attaining the

designated recycling ratios of the WEEE – the need to ensure that the production process is ROHS compliant– the need to include labels on specific outgoing instruments and solutions– The need to ensure project documentation is adequately thorough– the need to ensure that only ROHS compliant suppliers are selected for

purchases including and especially the need to ensure that when project managers purchase directly from suppliers/partners some part, their ROHS compliance is monitored

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WEEE impacts for design• As a minimum the following substances, preparations and components have to be

removed from any separately collected WEEE:

– polychlorinated biphenyls (PCB) containing capacitors– mercury containing components, such as switches or backlighting lamps,– batteries,– printed circuit boards of mobile phones generally, and of other devices if the surface

of the printed circuit board is greater than 10 square centimetres,– toner cartridges, liquid and pasty, as well as colour toner,– plastics containing brominated flame retardants,– asbestos waste and components which contain asbestos,– cathode ray tubes,– chlorofluorocarbons (CFC), hydrochlorofluorocarbons (HCFC) or hydrofluorocarbons

(HFC), hydrocarbons (HC),– gas discharge lamps,– liquid crystal displays (together with their casing where appropriate) of a surface

greater than 100 square centimetres and all those back-lighted with gas discharge lamps,

– external electric cables,– components containing refractory ceramic fibres – components containing radioactive substances – electrolyte capacitors containing substances of concern (height > 25 mm, diameter >

25 mm or proportionately similar volume)

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ROHS

- Conformity Declarations

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ROHS requirements

• In essence the only requirement is to have products free of banned substances; no bureaucratic procedures, etc.

• In practice, however, companies are

– Creating ROHS compliance projects– Assessing supplier ROHS risks– Performing supplier audits– Requiring conformity declarations– Producing conformity declarations– Performing spot checks– Analysing products– Searching for alternatives– Changing data management– Building databases– Labeling– Issuing new supplier guidelines– Changing/ renegotiating purchase contracts – … Etc!

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ROHS declarations from suppliers• A company needs to ensure ROHS compliance preferably through (1) supplier conformity

declarations, (2) binding agreements and (3) spot testing. This will be the best way to demonstrate due diligence

1. Declarations– In all component purchasing, a company needs to require the suppliers to

demonstrate by an official material declaration or certificates, that their products do not include any banned substances according to the ROHS directive; preferably on the part number level

– When purchasing standard components, one material declaration can be used for all types of a certain product from the same supplier.

– Purchased components can, over a period of time, be from a number of batches. Separate declarations for each batch should not be necessary unless the manufacturer has made a change to the production process. NOTE! Batch-to-batch variation may occur

– Received declarations and other relevant documentation must be filed for minimum of four years

2. Agreements– Declarations are not legally binding documents and thus suppliers need to be

obligated through agreements to provide ROHS compliant parts; especially necessary outside of the EU!

3. Spot testing– Random testing with screening methods is suggested as supplementary to other

ROHS activities

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ROHS Decision

Tree

DTI / ERA

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ROHS & WEEE

- Other market areas

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• Besides in the EU, WEEE and RoHS legislation is planned and being implemented in Asia and the US

WEEE & ROHS legislation – Globally

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WEEE USA

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WEEE in USA is state legislation• Roughly 30 States in the USA have developed or are developing WEEE legislation• Legislation mostly concentrates on screens, computers and/or mobile telephones • Financing mechanisms vary

– Advanced Recycling Fee collected by distributors and resellers– Producer Responsibility (Maine)– Taxes– Tax deductions/ reliefs

• Timetables vary, some will be enforced 2007 ??• WEEE in force

– Maine– California– Arkansas – Virginia

• Being developed– New Jersey – Illinois – South Carolina

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WEEE in USARhode Island:

EPR/PRO

Massachusetts:Municipalcollection

New Jersey:Encourages of voluntary

Take-back of mobiles

North Carolina:Tax funded WEEE program

Oregon:$ 3 fee per electronic prod

sold to fund

South Carolina:3. April

Electronics RecyclingAwareness Day

Oregon:$ 3 fee per electronic prod

sold to fund

Vermont:PRO,

non-compliance=no sales

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California

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SB 20/50 - General• SB 50 in force 1.1.05 • DTSC (Department of Toxic Substances Control) defines what is covered by

the legislation, basically CED (Covered Electronic Device). (CRTs, TVs, monitors, laptops, etc. over 4” in size)

• End users must pay recycling fee (USD6-10/ monitor) when buying a product; the reseller can keep 3% of the payment as compensation

• Board of Equalization monitors and manages payments between resellers and recyclers

• RoHS in California includes direct reference to EU ROHS and will be in force from 1.7.2007

• California also has mobile phone recycling legislation (Assembly Bill 2901) from 1.7. 2006 whereby retailers must take-back used phones free of charge and inform consumers about recycling

PUBLIC RESOURCES CODE 42463...f) (1) "Covered electronic device" means a cathode ray tube, cathode ray tube device, flat panel screen, or any other similar video display device with a screen size that is greater than four inches in size measured diagonally and which the department determines, when discarded or disposed, would be a hazardous waste pursuant to Chapter 6.5 (commencing with Section 25100) of Division 20 of the Health and Safety Code.

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California – More information

• DTSC - Department of Toxic Substances Control– http://www.dtsc.ca.gov/HazardousWaste/CRTs/SB20.html

• CIWMB – California Integrated Waste Management Board – http://www.ciwmb.ca.gov/electronics/Act2003/

• BOE – California Board of Equalization– http://www.boe.ca.gov/sptaxprog/ewaste.htm

• SB20/50:– http://www.leginfo.ca.gov/cgi-

bin/postquery?bill_number=sb_20&sess=PREV&house=B&author=sher

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Problems of State vs. Federal legislation

• Initially producers objected all types of WEEE and ROHS initiatives

• Very difficult, problematic and costly to be aware of all developments in all States; compare the situation in the EU with 25 different Member States where companies are finding it very difficult to stay ahead of the legislation

• May lead to a situation where industry calls for federal initiatives even though this could mean more stringent regulations in some states

• Earlier initiatives for federal WEEE legislation have failed

• PBDE bans have been implemented in many states and also a federal initiative exists.

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Other Americas

• Canada:

– Alberta – recycling program in place for laptops, printers, TVs, monitors. – Ontario – Legislation ready but not enforced yet– British Columbia – Regulations for electronics being developed – Nova Scotia – Legislative draft– Manitoba – Delay in legislation

• Latin America:

– Mainly take-back programs– Concern about imported WEEE– Legislations and drafts:

• Mexico (in force 6.1.04, implementation and standards being developed)

• Brazil – Draft• Columbia – Draft• (Peru – Packaging materials)

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China

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WEEE pressure in China

• Big environmental challenges

• Effect of EU politics and legislation

• Desire to ensure competitiveness of Chinese electronics industry

• Demand for raw materials

• Press coverage, domestic and international, on poor electronics recycling and waste dumping

• Willingness of Chinese legislators to improve Chinese industrial standards through legislative means and standards.

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Electronics recycling in China

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Take-Back and Recycling of Waste Electrical and Electronic Products

– In early 2004, China’s National Development and Reform Commission (NDRC) [国家发展与改革委员会] officially began work on a regulation entitled “Regulations on Recycling and Disposal of Waste and Used Household Electrical Appliances,” although early research efforts on this issue in China can be traced back to 2001.

• The drafting process is still underway.– These Regulations are often referred to as “China WEEE” because they contain

many features included in the European WEEE Directive.– The scope of China WEEE is extremely broad. China WEEE indicates that it

covers “electrical and electronic products.”– NDRC is adopting an approach, whereby only listed products would be covered

by the Regulation’s provisions. Currently, the products categories listed in ChinaWEEE include:

• Air conditioners• Computers • Refrigerators• Televisions• Washing machines

– This list of product categories can be considered the “first batch” of products categories subject to the China WEEE take-back and recycling requirements.

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China WEEE – Key Proposed Elements– Manufacturers of electrical and electronic products shall:

• Design products that are readily recycled/reused, contain non or low-hazardous and toxic substances, and are affixed with labels or marks that provide information highlighting material composition and recycling and disposal measures.

• Conduct WEEE recycling/disposal on their own or entrust this recycling/disposal to qualified recycling/disposal entities.

• Provide to Provincial authorities with jurisdiction over their facility information on production, sales, export and WEEE recycling/disposal.

– Importers. Importers of electrical and electronic products must register their imports with relevant Provincial Authorities and assume responsibilities of Manufacturers (Article 10).

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Restriction of Hazardous Substances in Electrical and Electronic Products

– In 2002, China’s Ministry of Information Industry (MII) [信息产业部] commenced drafting of “Management Methods on Prevention and Control of Pollution Caused by Electronic Information Products.”

• China ROHS approved 28.2.2006 and will be in effect 1.3.2006.– This draft regulation is often referred to as “China RoHS” or the “RoHS Methods”

because it reflects the substance bans included in the European RoHS Directive.– China RoHS presently covers all “electronic information products” (Article 3(1)).

• Products and their parts made by using electronic information technology, which includes electronic radar products, electronic communication products, broadcast and television products, computer products, household electronic products, electronic measurement products, electronic components, electronic materials and software products, etc.

– China RoHS will apply to products manufactured in and imported into China, although it is already apparent that some aspects of China RoHS will drive changes in manufacturer specifications that may also affect raw material and component providers.

– Marking/labeling (Where China “RoHS” is unique).• “Safe-use” period marking on products or in product manuals. (Article 10).• Place-of-origin marking on products or in product manuals. (Article 13).• Toxic-substance content marking on products or in product manuals. (Article

14).• Recyclability marking on products or in product manuals. (Article 14).• Material-content marking on product packaging or in product manuals. (Article

15).

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CONTACTS:

Minna-Maari Karvonengsm: 050-547 5947minna-maari.karvonen@proventia.fi

Proventia Solutions OyItälahdenkatu 15-17

00210 HelsinkiFinland

Tel: 09-2517 3385Fax: 09-2517 3381www.proventia.fi

www.comlib.fi

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Disclaimer• Information, interpretations of the application of the relevant laws and views provided by

Proventia are based on information available from public sources and/or the professional experience of Proventia personnel. As the field of WEEE- and ROHS -issues is very young and much of the relevant legislation and regulations still has not been finished or such legislation is in a process of being enacted or implemented, Proventia is operating in uncertainty and several assumptions must have been made to form views and to present interpretations of application of relevant legislation. Therefore, in no event shall Proventia be liable for loss of profits, loss of data, or any indirect, special, incidental, punitive, exemplary, multiple or consequential damages arising out of this agreement, project or delivery. Proventia's total liability to the principal shall be limited to the amount paid by the principal for the consulting services provided by Proventia to the principal hereunder.

• Proventian esittämät tiedot sekä sovellettavien lakien ja määräysten tulkinnat perustuvat julkisista lähteistä saatavilla oleviin tietoihin ja Proventian henkilöstön omaan ammatilliseen kokemukseen. Koska WEEE:hen ja RoHS:ään liittyvät kysymykset ovat uusia ja nopeasti kehittyviä ja relevantti lainsäädäntö on uutta, keskeneräistä tai voimaan saattamatonta, Proventia joutuu työskentelemään osittain olettamusten varassa. Uusien lakien tulkintaan saattaa myös liittyä epävarmuuksia, koska lakien tulkinnoista ei välttämättä ole olemassa kokemuksia tai ennakkotapauksia. Proventian vastuu rajoittuu kaikissa tapauksissa määrään, jonka asiakas on maksanut Proventialle Proventian asiakkaalle tuottamista palveluista. Proventia ei vastaa mistään asiakkaalle mahdollisesti aiheutuvista välillisistä tai epäsuorista vahingoista, kuten esimerkiksi tulonmenetyksistä, saamatta jääneistä voitoista, tappiosta tai seurannaisvahingoista.