The U'S' HighTech Industry and The EU WEEE, RoHS Directives

1
The U.S. High-Tech IndustryandThe EU WEEE, RoHS
Directives

• Jennifer Guhl
• Director, International Trade Policy
• AeA
• SEMI EHS Meeting
• February 19, 2003

2
Focus of Remarks

• About AeA and AeA Europe
• Background on U.S. High-Tech Industry Involvement
  in the Development of WEEE and RoHS
• Remaining Unknowns and Concerns
• Whats on the Horizon?

3
About AeA and AeA Europe

• AeA represents 3,000 members and is the nations
  largest high-tech trade association
• AeA has 17 Councils in the U.S., as well as
  offices in Brussels, Belgium and Beijing, China
• AeA Europe founded in 1992 to represent the
  interests of U.S. high-tech industry in Europe
• AeA Europe Executive Cmte. Chair - Agilent
• EHS Committee Chair Sun Microsystems
• WEEE/RoHS Issue Lead - Hewlett Packard
• Environmental Bulletin/Legal Issues - Allen
  Overy

4
Trade Drives U.S. High-Tech Growth

• The high-tech industry is the largest importing
  and exporting sector in the U.S., as well as the
  largest overseas manufacturing investor
• EU is our top export destination
• U.K. is the industrys top manufacturing
  investment destination in the world

5
U.S.-EU High-Tech Economic Ties

• EU is U.S. High-Tech Industrys Largest Goods
  Export Market
• 51 billion in 2001
• 83 growth between 1996-2001
• 24 of total U.S. high-tech goods exports
• EU is U.S. High-Tech Investors Primary Intl
  Destination
• 45 billion in 2001
• 25 growth since 1996

6
Background

• From 1992 1997, the European Commission,
  European Parliament, and the Council issued a
  series of policy papers calling for increased
  measures to
• Reduce waste
• Increase recycling and reuse
• Implement the polluter pays and substitution
  principles
• AeA Europe provided feedback and participated in
  consultations

7
Background

• 1998 First Draft of WEEE
• Waste management provisions
• Design mandates
• Material bans
• Use of recycled plastics
• Neither AeA nor AeA Europe opposed the WEEE
  Directive
• Recognized the unique environmental and political
  circumstances
• Expressed concerns with design mandates and
  certain aspects of e-waste system

8
Background

• July 2000 Commission split the WEEE into two
  Directives
• WEEE
• Based on Article 175
• Restrictions on the Use of Certain Hazardous
  Substances in Electrical and Electronic Equipment
  (RoHS)
• Based on Article 95
• Also ended up with DG ENT mandate on design

9
Current Status

• Final texts published in the Official Journal
  (OJ) and came into effect on February 13, 2003.
• Member States have 18 months to transpose the
  Directives into national law
• WEEE implementation can vary
• RoHS to be adopted verbatim, but Comitology
  process may alter requirements

10
Overview of RoHS

• Bans the use of lead, mercury, cadmium,
  hexavalent chromium, PBB and PBDE as of July 1,
  2006
• Not based on scientific studies about the use of
  these substances in electrical and electronic
  equipment (EEE)
• Same scope as WEEE Directive, with limited
  exemptions for certain applications/products

11
Overview of RoHS

• Exemptions are under review
• Maximum concentration values and technical
  definitions to be determined by Comitology
  Committee
• Committee chaired by Commission and populated by
  Member State officials (same as EOL Vehicles)
• Has two years to decide on scope of the
  Directive, maintain exemptions, and/or propose
  additional bans

12
Overview of WEEE

• Obliges producers of electrical and electronic
  equipment to set up systems to collect their
  end-of-life products
• Sets out criteria for treating and recovering
  that waste
• Also sets recovery and recycling targets

13
What are EEE and WEEE?

• EEE is equipment dependent on electric currents
  or electromagnetic field and equipment for
  generation, transfer, and measurement
• WEEE is EEE which is waste including components,
  sub-assemblies, and consumables, which are part
  of the product and time of discarding"

14
What is Covered?

• All "equipment which is dependent on electric
  currents or electromagnetic fields in order to
  work properly and equipment for the generation,
  transfer and measurement of such currents and
  fields, falling under the categories set out in
  annex 1 of the WEEE Directive and designed for
  use with a voltage rating not exceeding 1,000 V
  for alternating current and 1,500 V for direct
  current"

15
What is Covered?

• Listed Categories of EEE
• IT and telecom equipment
• Consumer equipment
• Electrical and electronic tools
• Non-exhaustive List of Covered EEE
• Computers
• Printers
• Telephones
• Calculators

16
Exemptions

• EEE Intended Specifically for Military Purposes
• Large-scale Stationary Industrial Tools
• Implanted and Infected Medical Devices

17
U.S. Companies Subject to WEEE

• Producer All Companies that Sell in EU
• Irrespective of selling technique (incl.
  internet)
• Manufacturers selling EEE under their own brand
• Companies reselling under their brand EEE
  produced by others
• Persons importing or exporting on a professional
  basis into any member state (first holder)
• But excludes reseller if producers name appears
  on equipment

18
Brief Outline of Producer Obligations

• Collection
• Facilities in place August 13, 2005
• 4kg by December 31, 2006
• Treatment by Dec. 31, 2006
• Recovery 70-90 recovery, 50-80 recycling by
  December 31, 2006
• (4) Environmentally Sound Disposal
• (5) Information
• (6) Design

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Main Driver Member State Obligations

• Member States Must Establish Take-back Systems by
  August 13, 2005
• Cannot dispose of WEEE with regular, unsorted
  waste
• Set up collection facilities and have a WEEE
  treatment program in place
• Broadly worded flexibility for Member States
  uncertainty for industry

20
Collection Targets

• 4 kg on average/ inhabitant/year from private
  households by December 31, 2006
• New Collection targets will be set by December
  31, 2008
• Based on the percentage of quantities of EEE sold
  to private households in the preceding years

21
Collection of Household WEEE

• Member States have until July 2005 to
• Establish collection facilities at least free of
  charge
• Distributor Obligations
• Person who provides EEE to users on a commercial
  basis
• at least free of charge
• One-on-one basis, equivalent equipment serving
  same functions
• alternative arrangements and hire third parties
• For 5 years, Member State may offer alternative
  free take-back systems

22
Collection of Household WEEE

• Member States may allow producers to establish
  and operate individual and/or collective
  take-back systems

23
Historical/Orphan Household WEEE

• Historical WEEE to be financed by producers on
  the market when costs occur
• Unclear on what basis (market share?)
• Orphan WEEE to be financed collectively by
  producers
• Producer provides guarantee, which can be used to
  finance management of its WEEE

24
Collection of Non-Household WEEE

• Producers are to provide for collection
• May hire third parties
• No requirement that it be free of charge

25
Collection Obligations of Producers

• Household WEEE
• From Collection facilities
• Unclear whether the distributor brings WEEE to
  collection facilities
• Non-Household WEEE
• Producer must finance the collection of
  Non-Household WEEE (from companies?)
• No requirement that it be for free
• Following collecting, re-use as a whole or
  transportation to treatment facility

26
Treatment Obligations

• Producers Must Treat WEEE (by Dec. 31, 2006)
• Depollution, disassembly, shredding, recovery
  or preparation for disposal of WEEE
• Individual or collective basis
• May hire third parties
• Removal of all fluids and selective treatment per
  Directives Annex (removal of PCBs, cables,
  printed circuit boards, etc.)
• Minimum quality, storage and treatment
  requirements
• Permit requirements
• Treatment outside Member State is possible

27
Recovery Obligations

• Producers Must Provide for the Recovery of WEEE
• Recovery includes recycling, and incineration
  with energy recovery
• Individual or collective
• May hire third party
• Priority to reuse of whole appliances

28
Recovery and Recycling Targets

• Recovery is per appliance
• IT and consumer equipment 75
• Small household appliances, lighting, tools,
  toys, monitoring and control - 70
• Re-use and recycling is per component, material
  and substance
• IT and consumer equipment 65
• Small household appliances, lighting, tools,
  toys, monitoring and control - 50
• New Targets by Dec. 31, 2008

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Information and Reporting - 1

• Member States must ensure that private households
  are informed about take-back systems and how they
  can help
• Consumers are to be encouraged to facilitate
  WEEE collection and recovery
• Producers or distributors may be required to
  provide information (e.g. instructions)

30
Information and Reporting - 2

• Producers Must Mark EEE with Crossed Out Waste
  Bin Symbol by Aug. 2005
• EP proposed additional date mark
• Commission reject EPs proposal
• Visible fee for historical waste is optional

31
Information and Reporting - 3

• Producers Must Provide Information to Treatment
  Facilities
• EEE components and materials, as needed
• Location of Dangerous Substances and Preparations
• EP "producers to provide manuals for
  maintenance, re-use, upgrade and refurbishment
• Producers to Keep Records on the Mass of WEEE,
  their Components, Materials or Substances
• Entering (input) or exiting (output) a treatment
  facility
• Entering (input) recovery or recycling facility

32
Information and Reporting - 4

• Member States must Annually Report to Commission
  on
• Quantities and categories of EEE put on market,
  collected, reused, recycled and recovered, by
  weight or numbers
• Member States will likely impose reporting
  obligation on producers, distributors and
  recovery facilities

33
What Remains WEEE

• Ensure common Member State definitions and
  interpretation
• Working with EICTA and ORGALIME which have
  grassroots presence in the EU
• ORGALIME event on April 3
• Monitor implementation of design provisions re
  reuse

34
Product Design

• Member States shall encourage the design and
  production of EEE to facilitate the dismantling
  and recovery, in particular the re-use and
  recycling of WEEE, their components and
  materials.
• Producers should not prevent, through specific
  design features or manufacturing processes, WEEE
  from being re-used
• Unless such specific design features or
  manufacturing processes present overriding
  advantages, for example, with regard to the
  protection of the environment and/or safety
  requirements

35
What Remains RoHS

• Provide technical justifications for exemptions
  to Comitology Committee
• AeA Europe Lead Solder manual
• Explains uses of lead, redefines high melting
  temperature solder, suggests de minimus level
• AeA Europe, EICTA and JBCE event in April
• Two Year process
• Ensure placed on the market is enforced as the
  date the product is sold to a retailer/distributor
  
• However, Commission using End-of-Life Vehicles
  Directive as a precedent

36
Whats on the Horizon?

• Not over yet
• Commission issuing framework directive on
  Eco-Design of End-Use Equipment (EuE)
• EEE and Energy Efficiency specifications
• Could lead to a proliferation of design mandates
• May require Life Cycle Analysis of all products
• Many U.S. states using the WEEE and RoHS as
  justification for legislation in U.S.

37
Stay Informed

• Due to uncertainty, its critical to remain
  informed
• AeA Europe Environmental Bulletin published
  monthly with Allen and Overy
• AeA works with U.S. Government, as well as U.S.,
  European and Japanese IT industries to keep the
  European Commission and EU Member States informed
  of U.S. industrys position