WEEE and RoHS Directives What has changed since October 2005? Hans-Jochen Lueckefett, MR a.d. Managing Director
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1 1 WEEE and RoHS Directives What has changed since October 2005? Hans-Jochen Lueckefett, MR a.d. Managing Director
2 2 WEEE and RoHS: What has changed since Oct. 2005? The Topics of this Presentation and the Discussion Overview of WEEE and ROHS Implementations Product Scope Cooperation with Distribution Partners The Agent Model Registration in 25 EU Member States Reporting Obligations Effects of Non-Compliance Types of Compliance Schemes The Impact of Competition Financial Aspects of WEEE 1 st WEEE Services GmbH as Single Interface Exemptions for RoHS And how about EUP?
3 3 Overview of WEEE and RoHS Implementation EU Member State Austria, Belgium, Denmark, Finland, Germany, Greece, Hungary, Ireland, Luxemburg, Netherlands, Portugal, Slovakia, Slovenia Spain, Sweden Italy Cyprus, Czech Republic, Estonia, France, Poland Latvia, Lithuania, Malta, UK National Legislation implemented? YES YES, partly YES NO Start of take back and recycling obligations? in the past B2C: 13th Aug n.a. n.a. Start of RoHS Compliance? 1st July 2006
4 4 WEEE and RoHS: There are still some Open Questions Differentiation between components and finished products Definition of the scope with respect to fixed installations With respect to RoHS: How to cope with spare parts and repaired units in general? And what if they are stored outside the EU? EU FAQ WEEE - RoHS BMU Anw. WEEE RoHS ToE Austria Your question: there is no channel other than environmental authorities and courts.
5 5 Put on the Market The Different Use of WEEE and RoHS WEEE: put on the national market, because enforcement of national authorities is required RoHS: put on the EU market because the restriction is a product attribute which must apply in all 25 EU member states to avoid a barrier to trade unfortunately: put on the market for RoHS is interpreted differently in many EU member states Therefore RoHS compliance requires sophisticated sales strategy in It may also help to use the exemption for spare parts in Art. 2 Nr. 3 RoHS Directive.
6 6 Put on the Market The Importance of Art. 2 Nr. 3 RoHS Directive Such Spare Parts Can only be used for the repair/reuse of EEE, put on the market before July 1, The exemption for such spare parts for products put on the market before July 1, 2006 Only applies, if that EEE is not put on the market as a new product. When does this happen? When the product doesn t return to the user. How about replacement units?
7 7 RoHS what does Restriction mean? 1. MCV: Maximum Concentration Values (EU Commission Decision 18 August 2005) Cadmium: 0.01 % by weight in homogeneous material All others: 0.1 % 2. Homogeneous Material (EU Commission Decision 24 Mai 2005) A material that cannot be mechanically disjoint into different materials. Good example: cable = 2 homogeneous materials (metal and insulation material) No further EU Commission Communication about how to apply the MCV principle; No guidelines for testing and certification
8 8 Current Exemptions for RoHS 1. Product Categories 8+9 (Art. 2 I EU RoHS Directive): Cat. 8: Medical Products Cat. 9: Monitoring and Control Instruments 2. Annex of the EU RoHS Directive 3. Several amendments to the RoHS Directive by the EC, containing e.g.: Lead and cadmium in optical and filter glass Lead in high melting temperature type solders (i.e. lead-based alloys containing 85 % by weight or more lead) lead in solders for servers, storage and storage array systems, network infrastructure equipment for switching, signalling, transmission as well as network management for telecommunications lead in electronic ceramic parts (e.g. piezoelectronic devices) Etc. Currently 20 exemptions are published or waiting for final adoption. Over all very slow procedure of decision making involving studies of consultancy firms and discussions with all member states.
9 9 RoHS Information Needed and to be Given 1. No mandatory third party certification 2. No manufacturer s marking required And therefore no standardisation With this: how to answer questions? 1. Product/component compliance declaration: We hereby declare that all products supplied to you meet the requirements of the RoHS Directive. Our components supplied to you meet the material restrictions specified in the RoHS Directive. 2. Product not falling under RoHS This product is intended to be part of a large-scale stationary industrial tool or a fixed installation. Such large-scale stationary industrial tools and fixed installations are explicitly outside the scope of the RoHS and the WEEE Directives and are therefore not subject of the material restrictions specified in the RoHS Directive.
10 10 Cooperation Agreement with Distribution Partners According to the applicable WEEE Regime the Sales Partner is producer of EEE under the definition of the WEEE Directive. The Manufacturer offers support and services for the Sales Partner s WEEE compliance taking over the obligations set out in Annex 2 to this Agreement.
11 11 The Agent Model A Chance for Foreign Companies The European Distribution Partner... - is the producer under legal terms - has to register - has to report periodically The Foreign Manufacturer... - is not the producer under legal terms - therefore he is not able to register But: - he can join a national compliance scheme to take over the take back and recycling obligation from his distribution partner(s) The Agent Model can be applied so far in the following countries: Austria, Belgium, Finland, Netherlands, Sweden
12 12 Where can Foreign Companies Register Directly? Germany: Foreign producers can be seen as producer under legal terms irrespective of the country where he is located. Hungary: Foreign producers having a local representative in Hungary (i.e. a CS) can register directly. Portugal: Foreign companies can register directly since 12th April Slovakia: Foreign companies can register if they are a member of a national CS. maybe Greece: depends on the negotiation results with the registry, positioned within the only compliance scheme Appliances Recycling S.A.
13 13 Registration is Different in 25 EU Member States With respect to: product scope (e.g. definition of grey areas) obliged parties (e.g. is a local representation required?) authorities (environmental ministries, compliance schemes, private organisations etc.) guarantees (e.g. only for individual producer responsibility? for B2C and B2B?) dates (e.g. start and due date of registration, start of take back)
14 14 Therefore European Harmonisation is in Political Discussion Karl-Heinz Florenz, Chairman of the Environmental Committee in the European Parliament: In 2007 the European Parliament and the Council will pass the WEEE Directive in a revised version. [...] However the EU cannot prohibit to its member states what they regard as ecologically reasonable when going beyond the WEEE Directive, for example. BUT: A European harmonisation will not be put into force very soon, since member states are opposing.
15 15 Ongoing Reporting Obligations for Producers Input Reporting Reporting of actual sales figures with differen: - reporting cycles per country (monthly, quarterly, yearly...) - reference parameters (per product category, per subcategory, per brand...) - reporting sizes: units, tonnage... Output Reporting Reporting of quantities taken back: - in Austria: per collection category ( 24 EAV) - in Germany: per WEEE category - ( 13 ElektroG) Reporting of recovery targets: Art. 7 EU WEEE Directive - comes into force on 31 December Methodology subject of discussion between industry and governments.
16 16 Input Reporting with WEEE SDR Software To comply with the different national legislations for submitting sales data (input) to the national registers, producers ERP systems have to fulfil the following requirements: Differentiation whether the product falls under the national legislation or not (country specific) Distinction between B2C and B2B product (country specific) mapping products to national Types of Equipments (ToE) this requires extreme flexibility of ERP systems, as ToEs may change net weight of products match different reporting formats match different reporting frequencies and reporting periods
17 17 Input Reporting with WEEE SDR Software With this the producer must choose between these options: 1. Do the reporting manually: 2. Modify the existing ERP system: time-consuming complex time-consuming expensive requires ongoing maintenance 3. Use webix WEEE SDR: smart and highly efficient cost effective easy to handle
18 18 What happens if producers do not comply with WEEE & RoHS? 1. Fines: E.g. in Italy: Any producer who, having failed to register with the Chamber of Commerce pursuant to article 14, paragraph 2, markets EEE shall be liable to a financial penalty charge ranging from euro 30,000 to euro 100,000. (Art. 16 VII Decreto Legislativo) First proceedings opened in Ireland! 2. Sales Ban: in Germany 3. Watch-dog associations may be invited by competitors to look for noncompliant producers to avoid competitive advantages of illegal behavior 4. Special devices have been created, which scan electrical and electronic products on prohibited substances according to RoHS
19 19 Different Types of Compliance Schemes (CS) CS in monopolistic markets (e.g. Belgium, Sweden, Greece): producers have no choice but to join the one and only CS they have to accept the CS s pricing system they may have to deal with only one party since the CS often assumes the role of the national registry (e.g. in Greece) CS which need to be approved by the national authorities (e.g. Austria, Spain) certain requirements exist which only few CS can fulfil low competition CS in competitive markets (e.g. Germany): producers have the choice between all existing service providers for take back and recycling no separate approval of service providers is required high competition
20 Austria 1 20 The Impact of a Competitive Market Structure on Recycling Prices 0.50 Norway (0,462) Belgium (0,45) Norway Belgium 0.40 Ø Cost per kg sold Switzerland (0,351) Austria 2 Sweden (0,313) Netherlands (0,299) Austria 3 Austria 4 0,16 Switzerland Sweden Netherlands Monopolistic Structure 0,16 0, June July Aug. Sept. Oct. Nov. Dec. Jan. 06 0,11 x 0,10 x 0,06 x Spain 1 Spain 2
21 21 Differentiation of B2C / B2B Products Art. 3 k) WEEE Directive: WEEE from private households means WEEE which comes from private households and from commercial, industrial, institutional and other sources which, because of its nature and quantity, is similar to that from private households. How to identify B2B, the others? - not by target customer definition of the producer But - By physical attributes, such as the potential usability in private households or similar This legal provision will not become practical, since - The producer s Government does not have the mandate to enforce compliance and - The customer s one doesn t have the power to do it. Art. 8 Nr. 4 WEEE Directive: Member States shall ensure that producers supplying B2C EEE by means of distance communication also comply with the requirements set out in this Article in the Member State where the purchaser of that equipment resides.
22 22 Financial Aspects of WEEE Some Basics 1. Historic WEEE: Accruals: no Guarantees: no 2. New WEEE: Accruals: open question, presumably only for IPR Guarantees: yes in Germany, Italy and Portugal Are there solutions for both issues of WEEE? 3. What are the costs to be covered? Take-Back and recycling. Costs depend on - the setup of compliance schemes and - on the quantities of WEEE is a producer obliged to take back for recycling? Cost of WEEE management
23 23 The Scope of 1st WEEE Services Pan-EU Consulting & Admin Services Pan-EU process management & single customer interface Legal Assessment & trouble shooting Cooperation with Distribution Registration Process & IT Consulting for business oriented WEEE Compliance - System Selection - Take-back & Recycling - Reporting (in- & output) - WEEE Financing & Guarantees - Trusteeship Legal and administrative paperwork Logistics & Recycling Financing & Guarantees
24 24 1st WEEE as Single Interface for Asian Producers Country A Customer 1st WEEE Preparatory Work Administrative Proceedings Take Back / Recycling Financing / Guarantees Trouble Shooting Register Country B Country C Clearinghouse Register Register Compl. Clearinghouse Scheme Compl. Clearinghouse Scheme Compl. Scheme
25 25 The 1.WEEE Services GmbH Quality House Business oriented WEEE Compliance Monitoring & auditing of suppliers Day to day interaction via tailored interfaces Regular customer reporting Sound Financial Solutions Regular Customer Reviews Business fundamentals and key performance measures monitoring the quality of services Deliverables agreed upon with customer
26 26 What are the most important Quality Criteria? Compliance WEEE Compliance No legal action against customer No negative PR e.g. Pick-up according to national legislations Treatment and recycling according to WEEE (Art. ) Timely and correct reporting to National Registers, Clearing Houses or other government bodies Waste Legislation compliance Certified logistical and recyclers
27 27 Who are the Founding Companies of 1 st WEEE Services GmbH KuP TP
28 28 and what comes next? 1. This presentation is work in progress 2. New EU legislation for industrial environmental protection will come soon ( REACH, EUP ) 3. Harmonisation of WEEE legislation across the EU no hope. 4. Harmonisation on a worldwide level: industry should drive it.
29 29 WEEE and RoHS Thank you very much for your attention and your patience! For further questions: 1 st WEEE Services GmbH i.g. Hans-Jochen Lueckefett Tel: / lueckefett@1st-weee-services.com
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