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IT waste law brings compliance challenges, warns PwC


Companies will face significant challenges in complying with forthcoming rules to tackle the environmental problems caused by electronic and electrical waste, according to consultancy firm PricewaterhouseCoopers (PwC).

The Restriction of the Use of Certain Hazardous Substances (RoHS) in Electrical and Electronic Equipment Regulations 2005 will come into force on 1st July 2006, while rules to implement the European Union’s (EU) Waste Electrical and Electronic Equipment (WEEE) Directive are likely to be in force in June next year.

The new rules will place the costs and obligations of producing more environmentally friendly products, and ultimately disposing of the products, on the producer who may be either a manufacturer or importer in one or more EU states.

But PwC partner Marco Amitrano sees problems ahead.

“While complying with the new regulatory environment will be critical, significant attention needs to be given to the wider legal, accounting and risk management implications,” he said.

“Companies need to be developing strategic processes now to manage WEEE and RoHS to ensure everything is in place for next year. Data capture, cost modelling and tracking compliance are just some of the important considerations,” he added.

According to PwC, companies operating in several EU countries will face the greatest compliance challenges and will need to consider the potentially different legal and regulatory models implemented in each member state.

“A UK company does not have to comply until June 2006 (based on the current expected timescale) but if it is selling products into Germany for example, they need to be complying with German WEEE now as its legislation has been implemented,” explained Amitrano.

Background

The WEEE Directive came into force in the EU on 13th August 2005. It sets criteria for the collection, treatment, recycling and recovery of waste electrical and electronic equipment.

The RoHS Directive, on the other hand, regulates the dismantling and recycling of waste electrical and electronic equipment by restricting the use of hazardous substances used in their manufacture.

Member States were supposed to have implementing legislation for both Directives in place by August 2004. The UK missed the deadline, blaming its delay on difficulties in publishing the draft regulations and guidance notes. In August 2005 the Government warned that major parts of the WEEE Directive would not come into force until June next year, and has not yet published the Regulations that will implement it.

But the Regulations implementing the RoHS Directive were laid before Parliament on 7th October and will meet their implementation deadline.

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