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Product Stewardship (Televisions and Computers) Regulations Liable Party Information Session
The e-waste problem
Electronic waste is a significant and growing part of the
waste stream
Televisions and computers contain hazardous substances
such as lead, bromine, mercury and zinc
Waste volumes are increasing and expected to grow to
44 million units (181,000 tonnes) by 2027-28
Developing a solution: initial phase
Consultation Regulation Impact Statement (July 2009) Broad range of options considered
Decision Regulation Impact Statement (Nov 2009) Best option is a co-regulatory scheme
Obligations on importers/domestic manufacturers to participate
Computers, televisions, printers, and computer products
Government decision (Nov 2009) Endorsed by all state and territory governments
Developing a solution: detailed design
Meetings of Industry Working Group
Studies undertaken
Consultation paper on the Regulations (March 2011)
Exposure draft of the Regulations (September 2011)
Regulations made and in effect (8 November 2011)
The Regulations: An Overview
Operate under the Product Stewardship Act 2011
Co-regulatory: government sets the outcomes, industry works
out how to achieve those outcomes
Primary objective: minimise waste (particularly hazardous
waste) and maximise resource recovery, in a safe and
environmentally sound way
Industry run and funded collection and recycling of televisions,
computers and computer products (products identified in
Schedule 1 of regulations)
Key obligations
Under the Act and Regulations there are two key obligations: Liable parties must be members of ‘an approved co-regulatory
arrangement’
Administrators of approved co-regulatory arrangements must take all
reasonable steps to ensure that collection and recycling outcomes are
achieved
Membership of an approved arrangement
Primary obligation of a liable party is to be a member of an
approved co-regulatory arrangement
Expected that co-regulatory arrangements approved by
February 2012
Administrators of approved arrangements will report their
membership as at 1 April 2012
The Department will identify liable parties that are not
members as at that date
When is an importer a liable party?
An importer will be a liable party in 2011-12 if it: Is a constitutional corporation
Imported relevant products in 2010-11
39 ‘Television’ Product Codes
11 ‘Computer and Monitor’ Product Codes
10 ‘Printer’ Product Codes
15 ‘Computer Product’ Product Codes
Imported above the threshold in 2010-11 Televisions class: 5,000 televisions
Computers, printers and computer products class: 5,000 computers or
printers, or 15,000 computer products
Example
Import figures are obtained under data sharing
arrangements with Customs and Border Protection
In this example, the company would be a liable party in
2011-12 because it exceeded the 5,000 unit thresholdProduct code
Applicable threshold
Units imported (2010-11)
Conversion factor (kg/unit)
Converted weight (kg)
8471.49.00.92 Computers or printers
4,000 13.5 54,000
8471.41.00.91 Computers or printers
4,000 10 40,000
8471.70.00.74 Computer products
10,000 0.6 6,000
Total for computers and printers
8,000 94,000
Total for computer products
10,000 6,000
When is an importer a liable party?
To deter import-splitting, imports of related companies are
counted together for assessing whether a company is a liable
party e.g. Where Company A imports 2,000 televisions and related
Company B imports 4,000 televisions, both are liable parties
This applies to televisions, computers and printers – not computer
products (e.g. keyboards, mice)
Only applies to companies that have imported >1,000 units
Imports of related companies are only relevant for whether a
company is a liable party, not for calculating import share
Related bodies corporate
XYZ Holdings
Company A0 units
Company D0 units
Company B4000 computers
Company C0 units
Company E2000 computers
Liable party reporting obligations: related bodies A liable party must report on related bodies corporate (if
any) that imported or manufactured products in the same
class
Example: A company imported 10,000 televisions in 2010-11, and had a
subsidiary that imported 4,000 televisions in that year. The company
must report details of the subsidiary to the Department
Purpose of this requirement is to help the Department
identify liable parties.
Reports are due 1 March 2012, and 1 September in following
years
No need to submit a nil report
Liable party reporting obligations: manufacturing
Liable parties must report on number of products in the
relevant class manufactured in Australia (if any)
Example: A company imported 10,000 televisions in 2010-11. If it
manufactured 1000 televisions in that year it must report this to the
Department.
This reporting requirement does not apply to computers
Purpose of the requirement is to provide information on
relevant manufacturing activity
Reports are due 1 March 2012, and 1 September in following
years
No need to submit a nil report
July 2012 – June 2013 First Target Period
Regulations in effect
8 Nov 2011
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb 11 11 12 12 12 12 12 12 12 12 12 12 12 12 12 12
Timeline for the National Television and Computer Recycling Scheme
Estimated date for approval of co-regulatory arrangements
Reporting deadline
1 March 2012
Membership deadline
1 April 2012
Department write to liable parties with
2011-12 import data
Key obligations
As mentioned previously, there are two key obligations: Liable parties must be members of ‘an approved co-regulatory
arrangement’
Administrators of approved co-regulatory arrangements must take all
reasonable steps to ensure that collection, recycling, and material
recovery outcomes are achieved
What is a co-regulatory arrangement?
A co-regulatory arrangement is set of measures designed to
meet the outcomes in the Regulations
It is administered by a body corporate responsible for
ensuring that these outcomes are achieved This may be a liable party that is also a member of that arrangement
It deals with matters specified in the Regulations, including
governance, membership and funding to achieve the
outcomes in the Regulations
Outcome: Reasonable access to collection services Approved arrangements must provide reasonable access to collection
services across Australia
Reasonable access requirements ensure availability of services to
households and small business in regional and remote, not just metro
areas, by 31 December 2013
Reasonable access defined in the regulations using a set of metrics –
these establish an objective basis to assess compliance
Administrators have flexibility in the type of collection services they
offer – allowing tailoring to suit different situations
Households and small business must not be charged to drop off
products at a designated collection service
Outcome: Recycling Target
Outcome: Recycling Targets
Recycling means the initial processing of a product, including
disassembly or shredding, for the purpose of recovering
useable materials
Scheme targets are set as a percentage of the waste
estimated to be generated in the year
Percentage targets start at 30% waste recycled by June 2013
and rise every year to 80% by 2021
Recycling target for a co-regulatory arrangement will be
allocated based on import/manufacture share of members
Recycling targets: calculating import share
Product code
Applicable threshold
Units imported (2010-11)
Conversion factor (kg/unit)
Converted weight (kg)
8471.49.00.92 Computers or printers
4,000 13.5 54,000
8471.41.00.91 Computers or printers
4,000 10 40,000
8471.70.00.74 Computer products
10,000 0.6 6,000
Total for computers and printers
8,000 94,000
Total for computer products
10,000 6,000
An arrangement’s share of the Scheme target will depend its
members’ share of all liable parties’ imports in the relevant
product class.
This is measured using “converted weight”, not actual weight
- in this example, 100,000kg or 100 tonnes.
Recycling targets: taking exports into account
Exports can be taken into account to reduce an
arrangement’s target, where an audited report is provided
with this information
Example: An arrangement’s members’ imported 5,000 tonnes of televisions in 2011-12 but 1,000 tonnes of those televisions were exported in the same year. For calculating the arrangement’s share of the Scheme target, the relevant figure is 4,000 tonnes.
Note: Again, “converted weight” rather than actual weight is used
Outcome: Material Recovery Target from 2014-15
Material recovery means the proportion of materials (by
weight) that is sent after recycling for processing into
useable materials Complements the recycling target
A measure of the quality of recycling
Material recovery target of 90% applies from the financial
year 2014-15 2014-15 start allows time to develop consistent measurement and
reporting methods
Membership requirements
The Act and Regulations set the outcomes to be achieved –
they do not set membership requirements
However, it is likely that members will be required to
contribute financially in proportion to their
import/manufacture share
Membership requirements will be set out in applications for
approval of co-regulatory arrangements, and considered by
the Department as part of its assessment
Summary: implications for importers/manufacturers
Work out whether your company is a liable party: Did it import/manufacture relevant products in 2010-11?
Is it over the 5,000 or 15,000 threshold?
If not, is it over the 1,000 threshold and liable because of
imports/manufacture by related companies?
If a liable party: Consider whether a related body corporate/manufacture report must be
submitted (due 1 March 2012)
Ensure that the company is a member of an approved arrangement
(by 1 April 2012)
Ensure that products have their proper tariff classification
Questions