Global Regulatory Policy Development and Implementation: Focus on China

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Global Regulatory Policy Development and
Implementation Focus on China
IEEE International Symposium on Electronics in
the Environment, New Orleans, May 17, 2005
Tad Ferris, (??), Partner Hongjun Zhang, (???),
Ph.D., Senior Counsel
China Group, Business Section Email
tad.ferris_at_hklaw.com (global cell)
202-285-2735 2099 Pennsylvania Avenue,
NW Washington, D.C. 20006 USA 14th Fl, IBM
Tower Pacific Century Pl. 2A Workers Stad. Rd.
Chaoyang District Beijing, 10002 China
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Take-Back and Recycling of Waste Electrical and
Electronic Products

• TAKE BACK AND RECYCLING
• In early 2004, Chinas National Development and
  Reform Commission (NDRC) ?????????? officially
  began work on a regulation entitled Regulations
  on Recycling and Disposal of Waste and Used
  Household Electrical Appliances, although early
  research efforts on this issue in China can be
  traced back to 2001.
• The drafting process is still underway.
• These Regulations are often referred to as China
  WEEE because they contain many features included
  in the European WEEE Directive.

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China WEEE Key Proposed Elements

• The scope of China WEEE is extremely broad.
  (China WEEE indicates that it covers electrical
  and electronic products.)
• That said, NDRC is adopting an approach similar
  to that in China RoHS (discussed later in this
  presentation), whereby only listed products would
  be covered by the Regulations provisions.
  Currently, the products categories listed in
  China WEEE include
• Air conditioners
• Computers
• Refrigerators
• Televisions
• Washing machines
• This list of product categories can be considered
  the first batch of products categories subject
  to the China WEEE take-back and recycling
  requirements.

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China WEEE Key Proposed Elements

• Recycling Promotion. Encouragement of recycling
  of items other than the 5 listed in the law
  (e.g., 5 items will be subject to mandatory
  take-back and recycling, and China encourages
  recycling of other items). (Article 2).
• Local Implementation. Provincial Peoples
  Governments will be responsible for development
  detailed implementing rules, based on the
  national baselines established in national (WEEE)
  law. (Article 5).
• Funding Mechanism. National government shall
  appropriate special funds to subsidize WEEE
  recycling and disposal. Implementing measures
  for this mechanism will be developed by the
  Ministry of Finance and National Development
  Reform Commission. (Article 7).
• Note Article references may change as the
  result of adjustment of draft China WEEE prior to
  promulgation.

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China WEEE Key Proposed Elements

• Manufacturers. Manufacturers of electrical and
  electronic products shall
• Design products that are readily recycled/reused,
  contain non or low-hazardous and toxic
  substances, and are affixed with labels or marks
  that provide information highlighting material
  composition and recycling and disposal measures.
• Conduct WEEE recycling/disposal on their own or
  entrust this recycling/disposal to qualified
  recycling/disposal entities.
• Provide to Provincial authorities with
  jurisdiction over their facility information on
  production, sales, export and WEEE
  recycling/disposal.
• (Article 9).
• Importers. Importers of electrical and
  electronic products must register their imports
  with relevant Provincial Authorities and assume
  responsibilities of Manufacturers per Article 9,
  above. (Article 10).

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China WEEE Key Proposed Elements

• Recycling Enterprises. Essentially refers to
  entities undertaking take back of covered WEEE.
  Must be certified by the government to
  undertake these activities. (Article 12).
• Disposal Enterprises. Basically refer to
  entities undertaking dismantling, re-assembly,
  testing, and actual recycling and disposal of
  covered WEEE. Subject to very stringent
  government review and certification. Recycled
  WEEE, prior to re-sale, must meet certain
  security and performance standards, and be
  labeled/marked as recycled. (Article 13).
• Used product security and performance standards
  and related implementing measures for China WEEE
  are not yet completed. In fact, in some cases,
  drafting work on such measures has not yet
  commenced.

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China WEEE Current Estimated Timing
July to October 2005 - current rough estimate of
range of dates for promulgation of China WEEE,
although this will depend largely on State
Council schedule.

MAY 2005

2005 - 2006 Implementing rules and
standards for China WEEE may be issued
2007 - Effective date for
application of China WEEE to first batch of
products (2 years from promulgation date)
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Restriction of Hazardous Substances in Electrical
and Electronic Products

• RESTRICTION OF HAZARDOUS SUBSTANCES
• In 2002, Chinas Ministry of Information Industry
  (MII) ????? commenced drafting of Management
  Methods on Prevention and Control of Pollution
  Caused by Electronic Information Products.
• Drafting work is still underway.
• This draft regulation is often referred to as
  China RoHS or the RoHS Methods because it
  reflects the substance bans included in the
  European RoHS Directive.

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China RoHS Key Proposed Elements

• SCOPE
• China RoHS presently covers all electronic
  information products (Article 3(1)).
• Products and their parts made by using electronic
  information technology, which includes electronic
  radar products, electronic communication
  products, broadcast and television products,
  computer products, household electronic products,
  electronic measurement products, electronic
  components, electronic materials and software
  products, etc.
• China RoHS will apply to products manufactured in
  and imported into China, although it is already
  apparent that some aspects of China RoHS will
  drive changes in manufacturer specifications that
  may also affect raw material and component
  providers.
• Note Article references may change as the
  result of adjustment of the draft rule prior to
  promulgation.

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China RoHS Key Proposed Elements

• SCOPE
• China RoHS contemplates applying the substance
  restrictions (via Article 19) to electronic
  information products listed in a separately
  promulgated Catalogue.
• The Catalogue would be issued in successive
  batches (not necessarily at pre-determined
  intervals).
• MII recently indicated that it supports the idea
  of a focus, at least for the first batch of the
  Catalogue, on consumer electronics.
• Work on batch 1 of the draft Catalogue is still
  underway.

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China RoHS Key Proposed Elements

• SUBSTANCE RESTRICTIONS
• As of July 1, 2006, specified phase out date (for
  products in batch 1 of the Catalogue) for the
  following substances
• Lead
• Mercury
• Cadmium
• Hexavalent Chromium
• Polybrominated Biphenyls (PBB)
• Polybrominated Diphenyl Ethers (PBDE)
• China RoHS also provides for possible future
  additions to this list. However, MII indicates
  that it does not contemplate additions at this
  point.

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China RoHS Key Proposed Elements
China RoHS includes a number of sweeping
provisions that may require additional detail,
possibly via subsequently developed implementing
rules or standards. These include

• Product designers shall adopt approaches for
  product design that are non-toxic and harmless,
  or low-toxic and less harmful, and employ
  easily degradable and recyclable materials,
  provided that industrial technological
  requirements can be met when making these design
  changes. (Article 8).
• Manufacturers shall use materials that are easily
  recyclable. (Article 9).

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China RoHS Key Proposed Elements

• Manufacturers shall use materials that do not
  waste resources. (Article 9).
• Manufacturers shall comply with environmental
  protection standards issued to implement China
  RoHS. (Article 9).
• Manufacturers and importers shall use non-toxic,
  harmless, readily biodegradable and recyclable
  packaging materials for the electronic
  information products they make or import.
  (Article 15).
• Sellers of covered products shall have strict
  outsourcing channels and shall not sell products
  containing substances regulated by China RoHS.
  (Article 16).

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China RoHS Key Proposed Elements

• MARKING/LABELING (Where China makes its own
  RoHS unique).
• Safe-use period marking on products or in
  product manuals. (Article 10).
• Place-of-origin marking on products or in product
  manuals. (Article 13).
• Toxic-substance content marking on products or in
  product manuals. (Article 14).
• Recyclability marking on products or in product
  manuals. (Article 14).
• Material-content marking on product packaging or
  in product manuals. (Article 15).

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China RoHS Current Estimated Timing
August to October 2005 - current rough estimate
of range of dates for promulgation of China RoHS

MAY 2005
July 1, 2005 - originally proposed effective
date in draft China RoHS (will almost certainly
be moved to a point later in the year)
December 2005 - MII plans to complete catalogue
of products subject to substance bans and other
implementing measures
July 1, 2006 - effective/start date for
substance phase out provisions in current China
RoHS. Also subject to possible revision.
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China RoHS Implementation

• MII established a Standards Working Group to set
  about developing the work plans for subgroups
  that will address the following China RoHS
  implementation issues
• Certification and Labeling.
• Lead-Free Soldering.
• Concentration Limits and Testing (for 6
  substances targeted per current China RoHS).
• MII has indicated that it will apply the
  substance restrictions in consultation with
  industry and in consideration of the availability
  of appropriate substitutions. MII refers to
  exemptions as exclusions, as MII recently
  indicated that it may not approach this issue as
  something that industry must apply for (as in the
  case of an exemption). This bares careful
  monitoring.

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• Thank You
• ??