WEEE and RoHS Directives – electronic and electrical equipment – business errors

The UK Regulations implementing two EU Directives, namely (1) the Waste Electrical and Electronic Equipment ("WEEE") Directive and (2) the Restriction on the Use of Certain Hazardous Substances in Electrical and Electronic Equipment ("RoHS") Directive, are expected to be made in the UK this summer.

The main producer responsibility obligations under the WEEE Directive are likely to come into force in the UK from 1 January 2006. Obligations to place an identifying mark on new electrical and electronic equipment commence from 13 August this year. The substance bans imposed by the RoHS Directive are expected to come into force on 1 July 2006.

The requirements of these Directives are not solely of concern to environment and compliance managers. There are a growing number of anecdotal examples that the wider business implications of these Directives are not always being considered at a high enough level. Indeed there are examples where, for one reason or another, serious errors in business planning are proving very costly.

The Directives potentially cut across a wide range of operational issues from product design to sales. Further, it is not only producers of electronic and electrical equipment that must consider these issues; there are also implications for distributors and end users.

Broad areas in which WEEE and RoHS issues will require consideration include:

• Product design - achieving compliance, reducing costs on disposal and associated IP rights.
• Supply contracts – requirements for compliance (and demonstrating compliance) both in existing and future agreements; allocation of liability for treatment/disposal of WEEE sold after 13 August 2005.
• Compatibility issues for existing equipment - between RoHS compliant and non-compliant components/spare parts; increased costs for non-compliant replacement components.
• Accounting – potential contingent liabilities for the treatment and/or disposal of WEEE
• Sales/acquisitions of businesses and corporate vehicles - due diligence, allocation of liability and obligations in relation to equipment and products sold before 13 August 2005 and in respect of compliance of current products.

The potential effects of the WEEE and RoHS Directives are complex and many practical issues on their implementation are yet to be fully resolved by the regulatory authorities. Further significant developments are to be expected over the coming months.

For further information and guidance, contact Paul Sheridan on +44 (0) 20 7367 2186 or at paul.sheridan@cmck.com or Andrew Ryan on +44 (0) 20 7367 3255 or at andrew.ryan@cmck.com.