Why are WEEE in industry confused?

21st, April 2008

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1.                      Introduction

 

The WEEE (Waste Electrical Electronic Equipment) Directive was incorporated into UK Law 2nd January 2007 and it requires all producers of EEE (Electrical Electronic Equipment), who are Manufacturers, Importers and/or Re-branders, to register with a producer compliance scheme in order to record the EEE they place on the UK Market.  The scheme put in place systems on your behalf for the recovery, reuse, treatment and environmentally sound disposal of your EEE when it reaches the end of its life.

 

2.                      The Confusion

 

The complexity of the legislation, its 18 month delay and the misreported costs of compliance has created a confused and reluctant market place.  The questions most frequently raised by company directors wanting to move towards compliance are in the main linked to the following complex elements of the legislation:

 

a.      Who is a Producer?

·         A manufacturer is a person or organisation manufacturing EEE for placement in the UK

·         An importer is a person or organisation importing EEE for placement in the UK that is not accompanied with a producer ID number issued by the Environment Agency

·         A re-brander is a person or organisation re-branding EEE with their logo for placement in the UK

b.      Are my products exempt?

·         There are very few exemptions and specialist advice from a Producer Compliance Scheme will quickly help you in assessing your products against exemptions.  Alternatively, download a copy of the BERR WEEE guidelines from www.berr.gov.uk and use the WEEE flow chart to assess each of your products

c.      What is the difference between B2C and B2B Compliance?

·         B2C is EEE that will be held by a private household user at the end of its life

·         B2B is EEE that will be held by a business or non household user at the end of its life

d.      What options do I have to comply?

i.         B2C Producers

·         Set up your own compliance scheme and pay for the recovery, reuse, treatment and environmentally sound disposal of your market share of the WEEE recovered from Designated Collection Facilities (mostly Local Authority Amenity Sites)

·         Join a producer compliance scheme and pay for the recovery, reuse, treatment and environmentally sound disposal of your market share of the WEEE recovered from Designated Collection Facilities (mostly Local Authority Amenity Sites)

ii.       B2B Producers

·         Set up your own compliance scheme and:

1.       Pay for the recovery, reuse, treatment and environmentally sound disposal of your EEE when it becomes end of life

2.       Make alternative arrangements through explicit statements and systems implemented by the compliance scheme

·         Join a producer compliance scheme and:

1.       Pay for the recovery, reuse, treatment and environmentally sound disposal of your EEE when it becomes end of life

2.    Make alternative arrangements through explicit statements and    systems implemented by the compliance scheme

e.      What is my Tax Liability?

·         The Environment Agency charge an annual fee based upon the turnover of the producer as a whole, ie. if you place £1 of EEE but have a total turnover of £1m you will pay the £1m Band.

 

3.                The Essential Guide to sourcing your B2C Producer Compliance Scheme

 

The key to finding the producer compliance scheme most appropriate to you is to benchmark the scheme’s offer using the following questions to ensure apples for apples:

 

a.    Would it be cost effective to run my own compliance scheme based up on the EEE I place on the Market?

b.      What is the Cost of Membership?

·         What do I get for the membership cost?

·         What charges are not included in the membership cost?

·         Does the scheme provide all of the explicit statements required by the end user?

c.      What is the WEEE Collection charging method used under Regulation 8; is it:

·         Fixed, you will be charged per tonne, per category against the weight of the EEE you placed on the market in the previous year

·         Market Share, you will be charged per tonne, per category against the weight of your Market Share calculated using  (A ÷ B) x C

1.  A = EEE you placed in the UK during the compliance period

2.  B = EEE placed by everyone

      3.  C = WEEE collected from DCF’s (mainly Local Authority Civic Amenity Sites)

·         Other methods such as a levy which is a hybrid of Fixed and/or Market Share charging

d.    What are the costs of collecting WEEE from your location(s) if any?

 

4.       The Essential Guide to sourcing your B2B Producer Compliance Scheme

 

The key to finding the producer compliance scheme most appropriate to you is to benchmark the scheme’s offer using the following questions to ensure apples for apples:

 

a.      Would it be cost effective to run my own compliance scheme based of the EEE I place on the Market?

b.      What is the cost of membership and:

·         What do I get for the membership cost?

·         What charges are not included in the membership cost?

·         Does the scheme provide all of the explicit statements required by the end user?

c.      What is the WEEE Collection charging method under Regulation 9; is it:

·         9.1 Obligation remains with the Producer

1.  Fixed, you will be charged per tonne, per category  against the weight of the EEE placed on the market in the  previous year

 2.  Pay as and when WEEE arises

·         9.2  Shared Obligation with the producers and end user with implementation of explicit statements in company documentation

          1.  Fixed, you will be charged per tonne, per category against  the weight of the EEE placed on the market in the previous year

                                      2.  Pay as and when EEE arises with conditions

·         9.2 Obligation to end user with implementation of explicit statements in company documentation

d.      What are the costs of collecting WEEE from your location(s) if any?

 

NB: It is important that producers wishing to introduce Regulation 9.2 understand the importance of ensuring the alternative arrangements are legally binding through appropriate contract and product documentation.  Where the producer is unable to show legally binding alternative arrangements Regulation 9.1 will be assumed and the producer will be responsible for meeting all associated costs.

 

5.          Red Herrings

 

The complexity of the legislation has meant the producer compliance schemes membership offers are widely diverse, with no real consistency in their pricing methods.  The producer needs to be aware of the many statements used by producer compliance schemes to attract members.  The following are a few common selling points used, which at best could be described as Red Herrings:

 

·         “It will be too expensive to run your own scheme”

·             Quoting the cost of ‘Membership Only’ when talking to potential members

·         “It is much cheaper to be with a single scheme for your B2C & B2B”

·         “WEEE Compliance from £6 per tonne” etc

·         “We are the largest compliance scheme” etc

 

6.          Implementation Plan

 

To move to compliance please follow the below process:

 

·         Contact several schemes to assess if you have a liability under WEEE Regulations

·         Ask for a quote from several compliance schemes remembering to ask the questions in the essential guides above

·         Ensure you adjust your explicit contract statements to reflect your method of compliance

·         Ensure your compliance scheme is doing the lion share of the work as that is why they are charging you a membership fee.

 

Vincent F Eckerman

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