Is your business prepared for the effect of EU
directives enforcing recycling?
The cumbersome titles of two recent EU directives should not
prevent IT user organisations taking their implications for
business seriously.
The Waste Electrical and Electronic Equipment (WEEE) Directive,
and its sister, the Restriction of the Use of Certain Hazardous
Substances in Electrical and Electronic Equipment (RoHS) Directive,
have compliance implications for organisations up and down the
manufacturer to customer chain.
But how much of an issue is it? Companies jumped at the threat
of Y2K and the associated compliance issues, and although some
problems did occur, the millennium bug meant increased expenditure
for many organisations.
With so much new regulation in recent years - on distance
selling, e-commerce, freedom of information and so on - and the
threat of more to come, one could be forgiven for being sceptical
about the application of these directives and the consequences of
non-compliance.
The legal deadline for implementation of the WEEEDirective is 13
August 2005. It encourages and sets criteria for the collection,
treatment, recycling and recovery of electrical and electronic
equipment. Although it makes producers responsible for financing
most of these activities, users will have to think about their role
in fulfilling these obligations.
Producers have to finance the treatment of waste, but individual
member states of the EU can make users partly or wholly responsible
for costs. Previously they only needed to budget for end-of-life of
PCs, but under the directive they will need to budget for purchases
that include the costs of recycling.
The RoHS Directive complements the WEEE Directive, and was to be
established in the UK by 13 August 2004. However, the Department of
Trade & Industry has not yet finalised the implementing
regulations.
The aim of the RoHS Directive is to restrict the use of certain
substances used in the manufacture of electrical and electronic
equipment that is put on sale after 1 July 2006, to protect human
health and the environment.
The RoHS Directive applies to any producer within the EU and to
producers of electrical and electronic equipment (including PC
printers) outside Europe if the equipment they produce is imported
into an EU member state. A producer is defined widely to include
anyone who manufactures, sells, resells, imports or exports
electrical and electronic equipment, irrespective of the method of
selling.
A DTI discussion paper proposes to introduce standard penalties
of up to three months in prison and/or a fine of up to £5,000 for
persons found to be in breach of the regulations. Where the offence
is tried on indictment the maximum penalties will be imprisonment
for two years and an unlimited fine.
So what should IT directors do about the directives? At the very
least, potentially affected organisations should familiarise
themselves with the legislation.
It would be wise to undertake a technical audit, to determine
which products and/or systems are likely to be affected by these
directives.
Establish whether the products concerned relate to a particular
end-of-life cycle - such as upgrading, repair or refurbishment -
then undertake a contractual audit of problematic areas such as
examining agreements to see who needs to sort the problem out and
who should pay.
Whatever you do, don't ignore these regulations. If you do n0t
get the better of them it is ikely they will get the better of
you.
Regulations at a glance
Producers must set up systems for the collection, treatment,
recovery and recycling of waste electrical and electronic equipment
under provisions of the WEEEDirective.
The RoHS Directive restricts the use of certain hazardous
substances in new electrical and electronic equipment.
The directives cover a wide range of electrical and electronic
products, although some are exempt from certain requirements.
Non-exempt categories include:
- Household appliances
- IT and telecoms equipment
- Consumer hardware (TVs, etc)
- Lighting and tools
- Toys, leisure & sports equipment
- Medical devices.
Any business that manufactures, brands or imports electrical or
electronic products within the EU will be affected, as will
businesses selling electrical items or those that store, treat or
dismantle waste electrical and electronic equipment.
Source:
www.environment-agency.gov.uk
Mark O'Conor is a partner at law firm DLA Piper