Managing Used and End-Of-Life Products Paul Hagen

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Managing Used and End-of-LifeProducts: Reverse Logistics, the BaselConvention and National Take-Back

Schemes

Paul E. HagenBeveridge & Diamond, P.C.

[email protected]

202-789-6022

www.bdlaw.com

International Environmental Lawyers Network Conference

April 19, 2013Washington, DC
mailto:[email protected]://www.bdlaw.com/http://www.bdlaw.com/mailto:[email protected]


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Expanding Regulation Throughout

Product Life-Cycle

Material Restrictions,

Energy Efficiency, Safety

Standards, Chemical

Notifications, REACH

Raw MaterialsSourcing

Manufactureand Design

Market Access

Collection, Reuse,Recycling

Manufacturingimpacts,

Material (RoHS)

Restrictions, Energy

Efficiency

Dangerous GoodsRules, Packaging,

Labeling

EPR Laws, Export Bans,

Movement of Used / EOLEquipment

ConflictMinerals,

Timber/Wood

Products

Distribution /Logistics
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Sub-nationalUnited States, Canada, Argentina

National EU Member States: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania,

Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom

Other Jurisdictions: Australia, Bhutan, Brazil, China, Colombia, Costa Rica, Croatia, Ecuador, Iceland, India, Japan, Korea, Liechtenstein, Mexico, Nigeria, Norway, Peru, Puerto

Rico, Serbia, Switzerland, Venezuela

Pending/Under

ConsiderationBolivia, Chile, El Salvador, Thailand, Turkey, Uruguay, Vietnam

EPR Map for Electronics


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Common Compliance Challenges

Waste classification

Hazardous waste determinations

Management plan approval & licensing

Evolving collection, transportation, storage,recycling and disposal mandates

Facility permitting

Legal controls on exports for recycling, disposaland increasingly for repair, refurbishment andreuse

Dangerous goods classifications

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Evolving International WasteShipment Regimes

The Basel Convention (global)

OECD Council Decision C(2001)107/Final

OECD Expansion (e.g., Chile, Israel) Other Article 11 Agreements

U.S. Bilaterals

Waigani Convention (South Pacific)

EU Waste Shipments Regulation(EC No.1013/2006) effective July 1, 2007

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Basel Convention Parties


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The Basel Convention

Presently, 177 countries and the EU are party to theConvention (but not U.S.)

Each ratifying/acceding country expected to have

implementing legislation

Establishes global prior notice and consent systemgoverning waste shipped for final disposal or for materials

destined for recovery/recycling

Provides framework for waste definition and hazardous wasteclassifications with implications for international shipments

and domestic management

Trade bans

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Exports of Used and EOL Products

Basel Convention parties moving to

classify many types of e-waste and other

EOL products as hazardous wastes.

Proposals to classify used equipment

intended for reuse as waste unlesstested and fully functional (narrow

exemptions).

E-waste technical guidelines may be

adopted at COP-11(Geneva).

Expect new trade bans and compliancecosts for managing used and end-of-life

electrical and electronic equipment

world-wide.


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Why Does Basel Matter?

If Used/EOL products classified as hazardous waste

Stringent cross-border controls

ESM requirements and determinations by governments

Numerous national import bans based on Basel classifications

Cost and logistics implications for domestic take-back programs

European Community export ban and Basel Ban Amendment

Party to non-Party trade ban (U.S.)

Business uncertainty and disruption risk

Reputational risk

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Whats at Risk?

High risk of new regulatory controls and trade bansimpacting shipments related to: Non-warranty repairs

Off-lease equipment

Service arrangements Refurbishment operations

Product recalls

Intra-company equipment transfers

Less risk for warranty returns Expanding regulation of e-waste shipments for

recycling world-wide

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EU WEEE Recast

European Union Directive on waste electrical and electronic

equipment (WEEE) recast, OJ L 197/38, 24.7.2012

Comes into effect February 14, 2014brief timeline

New and more ambitious collection and recycling targets

New precedent for controlling non-functioning equipment destined

for repair-reuse as waste

Limited derogations for warranty returns and professional use

equipment

Watching for EU FAQs and national guidance on implementation

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EU WEEE Recast

Holder claiming shipment of used EEE is not WEEE must

substantiate claim:

Copy of invoice and contract stating equipment is destined for

direct re-use and is fully functional

Evidence of evaluation or testing on every item in theconsignment

Declaration by holder that none of the equipment is waste

Appropriate protection against damage during transportation

(packaging, stacking) WEEE subject to information and control requirements of the

Waste Shipments Regulation, EC Regulation No. 1013/2006, L

190/1, 12.7.2006

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INTERPOL O ti E i


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INTERPOLOperation EnigmaMarch 2013

First INTERPOL operation targeting the illegal trade of

electronic waste in NovDec 2012

Seizure of more than 240 tonnes of electronic equipment and

electrical goods

Launch of criminal investigations against some 40 companies

involved in the shipments

Participation of police, customs, port authorities andenvironmental and maritime law enforcement agencies in

seven European and African countries.

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Outlook for 2013

Basel COP-11 (Geneva May 2013)

Adoption of E-waste Technical Guidelines?

EU WEEE Recast implementation

Watch for FAQs

Numerous take-back laws will become effective

U.S. legislation to be reintroduced banning e-waste

exports to developing countries Increased enforcement around exports world-wide

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Documents

Managing Used and End-Of-Life Products Paul Hagen