WEEE and RoHS Directives Implications for Material Composition Data Exchange and Reporting

Transcription

1 WEEE and RoHS Directives Implications for Material Composition Data Exchange and Reporting August 30, 2004 Jean-Philippe Brisson & OVERY

2 Outline Section One Section Two Section Three Section Four Section Five Section Six Background and Overview WEEE Directive Open Issues under WEEE RoHS Directive Open Issues under RoHS Final Thoughts & OVERY

3 Notice This Presentation is for General Guidance Only and does not Contain Definitive Advice & OVERY

4 Section One Background and Overview & OVERY

5 RoHS Directive Overview Restriction of Hazardous Substances Electrical and Electronic Equipment (EEE) Pb, Hg, Cd,, Cr6+, PBBs and PBDEs Adopted, published and effective Industry must comply by July 1, 2006 Pb & OVERY

6 WEEE Directive Overview Waste of EEE Recycling and recovery program Private sector manages and funds program Adopted, published and effective Must be up and running by August 13, 2005 & OVERY

7 Key European Union Institutions EU Commission EU Council EU Parliament EU Court of Justice & OVERY

8 European Union Lawmaking Commission initiates, Commission and Parliament agree, and Council adopts Directives are binding only on Member States Member States must implement Directives into domestic law * This is where we are with WEEE & RoHS Regulatory flexibility of Member States is different for WEEE and RoHS Directives & OVERY

9 So What? Why Should You Care? Penalties & OVERY

10 So What? Why Should You Care? Penalties Import Bans Playstation One 0 & OVERY

11 So What? Why Should You Care? Penalties Import Bans Remaining Competitive 1 & OVERY

12 So What? Why Should You Care? Penalties Import Bans Remaining Competitive How much of your business goes to the EU? 2 & OVERY

13 Allen & Overy 2,400 attorneys 50 environmental attorneys WEEE and RoHS Product Team 3 & OVERY

14 Section Two WEEE Directive & OVERY

15 Categories and Examples of EEE Regulated Under the WEEE Directive 1. Large Household Appliances 2. Small Household Appliances Refrigerators Washing Machines Microwaves 3. IT and Telecommunications Equipment Vacuum cleaners Toasters Centralized Data Processing Mainframes Minicomputers Printer units User Terminals and Systems Cellular telephones Fax machines Personal Computing Personal computers (CPU, mouse, screen & keyboard included) Lap-top computers (CPU, mouse, screen & keyboard included) Printers Copying equipment Telephones 5 & OVERY

16 Categories and Examples of EEE Regulated Under the WEEE Directive 4. Consumer Equipment 5. Lighting Equipment Radio sets Television sets Musical instruments Straight fluorescent lamps 6. Electrical and Electronic Tools Drills Saws Sewing machines 7. Toys, Leisure and Sports Equipment Electric trains or car racing sets Hand-held video game consoles Video games 8. Medical Devices 9. Monitoring and Control Instruments Pulmonary ventilators 10. Automatic Dispensers Coke Machine Smoke detectors Heating regulators 6 & OVERY

17 Four Exemptions Under WEEE (1) EEE intended for military purposes (2) Large-scale stationary industrial tools (3) Implanted and injected medical devices (4) EEE part of another type of equipment that does not fall within the scope of the WEEE Directive Issue Which exemptions, if any, also apply to the RoHS Directive? 7 & OVERY

18 Area No. 1 U.S. Producer? Producer? (OEM) New Product (EMS) Manufacturing Information Requirement Financial Guarantees Crossed-out Dustbin Icon Sale or or Substance and Design Restrictions Professional Importer? Europe Mail Order Internet Product Cycle From EEE Manufacturing to WEEE Treatment Distributor (Retail) Second- Hand Market for WEEE Reused as a Whole Area No. 2 Waste Household Area No. 3, Inc. Waste Non-Household Collection of WEEE WEEE Reused as a Whole Collection Center Distributor (Retail) Transportation of WEEE Area No. 4 (Comp X) Component Environmentally Sound Disposal 25%* Incineration for energy Reuse and Recycling of Components and Substances 10%* 65%* Minimum Recovery * for EEE Categories 3 and 4 75%* Minimum De-Pollution, Disassembly, Shredding, Recover, and Others Area No. 5 Selective Treatment Annex II Removal of Fluids WEEE Not Reused as a whole Treatment, Recovery and Disposal of WEEE 8 & OVERY

19 WEEE Directive Key Requirements (1) Information requirements (2) Design requirements (3) Financial guarantees (4) Collection of WEEE (5) Financing of treatment, recovery and disposal of WEEE 9 & OVERY

20 Section Three Open Issues under the WEEE Directive & OVERY

21 Issue 1 - Covered Companies WEEE Three types of companies are Producers manufacture and sell EEE under their own brand name sell under their brand EEE manufactured by others export or import EEE into the EU on a professional basis Irrespective of selling technique (e.g., internet) 1 & OVERY

22 Issue 2 Scope of Information Reporting Obligations (1) WEEE Directive Art. 11(1) Obligation on producer to report info to treatment centers Must identify location of dangerous substances and preparations in EEE What material must be reported? 6 banned substances? RoHS Annex II substances? References to Directive on Dangerous Substances and Preparations? ELV precedent? 2 & OVERY

23 Issue 3 Scope of the Directive TAC Guidance Document General guidelines Batteries Ink cartridges Relationship with ELV Directive Will Member States follow the guidance? 3 & OVERY

24 Issue 4 Meeting the WEEE Requirements (Collection, treatment, recovery and disposal) Collective or Individual Compliance? EU solution or Member State per Member State Approach? Factors include Private household v. non-private household WEEE Product types and value of WEEE Key markets 4 & OVERY

25 Section Four RoHS Directive & OVERY

26 Covered Products RoHS Applies to same EEE Categories as WEEE Exceptions (specific to RoHS) EEE Categories 8 and 9 medical devices, and monitoring and control instruments Certain applications of the banned substances are exempted pursuant to RoHS Directive Annex e.g.,, lead in high-melting temperature-type type solders (i.e., tin-lead solder alloys containing more than 85% lead) solders for servers, storage and storage array systems (exemption granted until 2010) 6 & OVERY

27 RoHS Supply Chain Impacts Question for the component manufacturers Who will buy a component that contains lead in 2006? 7 & OVERY

28 Section Five Open Issues under the RoHS Directive & OVERY

29 Issue 1 MCVs (1) RoHS Directive Art. 5(1)(a) 2 documents Commission decision Guidance document December 5, 2003 Proposed Commission Decision 0.1% for lead, mercury, Cr6+, PBB and PBDE 0.01% for cadmium = same as current EU law (applicable only to some products) By weight of homogeneous materials with short definition No reference to intentional addition of banned substance 9 & OVERY

30 Issue 1 MCVs (2) June 10, 2004 TAC Meeting Proposal to move definition of homogeneous material from Decision to RoHS Guidance Proposal is rejected and, with it, the proposal to establish the MCVs! July 16 and 20, 2004 TAC Meetings Definition of homogeneous material is moved to the RoHS guidance Decision adopted by TAC (without definition) Commission has 3 months to adopt 0 & OVERY

31 Issue 1 MCVs (3) Accordingly Risk that Member States will implement MCVs differently Most recent draft RoHS Guidance document Homogeneous material means a unit that can not be mechanically disjointed in single materials. Homogeneous means "of uniform composition throughout", so examples of "homogeneous materials" would be individual types of plastics, ceramics, glass, metals, alloys, paper, board, resins and coatings Mechanically disjointed means that the materials can be, in principle, separated by mechanical actions such as unscrewing, cutting, crushing, grinding and abrasive processes Intentionally added? 1 & OVERY

32 Issue 2 EU Commission Consultation on Application Exemptions (1) RoHS Directive Art. 5(1)(b) Stakeholder Consultation launched by EU Commission Started early May 2004 Ended July 5, 2004 Commission requests information on 13 exemptions, including 1. Lead in solders for servers, storage and storage array systems and certain network infrastructure equipment 2. Lead used in compliant-pin pin VHDM 2 & OVERY

33 Issue 2 EU Commission Consultation on Application Exemptions (2) Commission Requests Information (cont d) 4. Lead in high-melting temp. solders and any lower melting temp. solder required to complete a viable electrical connection 5. Lead in solders to complete a viable electrical connection internal to certain integrated circuit packages (flip chips) (until 2010) Results 91 responses No decision because insufficient information Commission will wait until technical study by mid-october 3 & OVERY

34 Issue 3 Compliance with RoHS (1) How do you comply? How do you demonstrate compliance? Within supply chain To governmental authorities Compliance is a Member State responsibility Potential approaches Government Testing Independent Laboratory Testing Certification Self-declaration 4 & OVERY

35 Issue 3 Compliance with RoHS (2) Commission hired consultant to review these issues April 2004 Report Clarification of definition of MCV Self-Declaration Adoption of Standard for Reporting Formats Adoption of Standard for Compliance Testing Information Exchange Networks 5 & OVERY

36 Issue 3 Compliance with RoHS (3) Self-Declaration Every product put on the market is presumed to comply Producer s responsibilities Request declaration from each supplier Review accuracy when in doubt Focus on specific products Focus on specific suppliers Enforcement If challenged, producers would show enforcement authorities that have taken reasonable steps to comply Material composition data may be audited by authorities 6 & OVERY

37 Issue 3 Compliance with RoHS (4) UK Implementation Requirement to submit technical documents or other information showing that a particular product complies with substance ban within 28 from a request by Government Document retention requirement of 4 years 7 & OVERY

38 Issue 3 Compliance with RoHS (5) UK Implementation Defense for producers to show that he took all reasonable steps and exercised all due diligence to avoid violating the substance ban Must show that it was reasonable under the circumstances to rely on the information, having regard in particular to the steps which he took and those which might reasonably have been taken, for the purpose of verifying the information; and to whether he had any reason to disbelieve the information 8 & OVERY

39 Issue 3 Compliance with RoHS (6) Liability of component manufacturer? If producer is not liable, other person may be held liable Open Issues What will become industry practice Whether the UK DTI will consider industry practice reasonable Whether other Member States will follow UK approach 9 & OVERY

40 Issue 4 Testing Procedures under RoHS Ensure uniform testing of EEE to determine RoHS compliance Across supply chain Across Member States International Electrotechnical Commission (IEC) Advisory Group on Environmental Aspects Working Group on RoHS Test Methods Unclear how IEC work will feed into the Commission or TAC work 0 & OVERY

41 Section Six Final Thoughts & OVERY

42 WEEE and RoHS Timeline February 13, 2003 August 13, 2004 August 13, 2005 July 1, 2006 December 31, 2006 Directives become effective Member States adopt domestic laws (1) collection systems must be in place; (2) producers start financing; and (3) all products must be marked Substance ban takes effect Member States must meet 4 kg target (2008 for some accession Member States) 2 & OVERY

43 Summary Several open issues Trend is toward self-certification Each producer must conduct its own due diligence Component manufacturers also must have a compliance program Standards for data exchange and reporting are crucial building blocks in compliance strategy 3 & OVERY

44 Thank You & OVERY

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