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From the Wires
New E-Waste Recycling Laws Now in Effect in the European Union Threaten Revenue Predictability and Profitability for Non-Compliant Manufacturers
Burden of Recycling Under Waste of Electrical and Electronic Equipment (WEEE) Directives Rests On Producers; Enforcement May Dis

By: PR Newswire
Aug. 22, 2006 03:00 PM

SUNNYVALE, Calif., Aug. 22 /PRNewswire/ -- With the passing of the deadline last month for RoHS (Restriction of Hazardous Substances) compliance with European Union (EU) laws governing the recycling of electronic equipment, manufacturers now face the very real possibility of lost or at the very least, disrupted revenue when countries begin enforcement of RoHS and WEEE recycling laws, according to M-Cubed LLC, a worldwide provider of turnkey RoHS/WEEE, Excess & Obsolete and E-Waste Solutions for Fortune 500 companies.

The EU laws regarding WEEE involve much more than just Electronic Waste recycling. It requires a "design for the environment" on the R&D side of the product life cycle as well as product declaration, certification, and take- back on the manufacturing/production side through the end of use of the product. This adds much complexity to product planning and fundamentally changes how companies should conduct business in the EU.

"Every electronics manufacturer that sells products directly or indirectly into Europe needs to be compliant now with the new WEEE laws. With more than an estimated six million tons of waste electronic equipment being dumped into EU landfills every year, we expect full enforcement of these new laws to start," said Mike Battaion, vice president, technology development for M- Cubed. "For most electronics manufacturers, getting shut out of a particular European country for non-compliance can have a devastating financial impact. For the larger public companies, it can cause serious revenue unpredictability that will negatively impact stock price, and will require disclosure of risk to revenue under the Sarbanes-Oxley rules."

While each EU State has in place or is developing its own take-back WEEE requirements, in every scenario the burden for recycling ultimately rests with the producer. Confusingly, the "producer" has five different definitions depending upon how a company conducts business in a particular EU state. The stringent WEEE law, which was originally passed by the EU in 2003 and took effect in August 2005, is just now beginning to see across-the-board enforcement. Early this year, a British pharmaceutical company was heavily fined and fell victim to the rules through its failure to provide a specific in-store notice alerting customers to the fact that its prices include a contribution to the product recycling fund, set up to ensure that WEEE is collected and recycled in a responsible manner.

"Even after most of the deadlines have run out, the RoHS and WEEE landscape is still developing and smaller U.S. companies need to develop practical, affordable approaches in order to stay legal and competitive at the same time," advises Dr. Lothar Determann, partner at the international law firm of Baker & McKenzie, which has offices in 70 cities worldwide.

Prompting the enforcement is the requirement that companies conform, as of July 2006, to the ED directive called RoHS. The RoHS deadline is seen as a catalyst that is sparking wide scale enforcement in the EU. WEEE is no longer just an EU issue, as many other countries and state legislators within the United States are busily drafting, enacting and enforcing similar regulations. Japan, South Korea, China, numerous countries in South America, and states such as California, Maine, Washington and Michigan already have legislation in place.

Compliance with WEEE and RoHS Directives In the EU

WEEE is most easily defined as Recoverable equals Re-use plus Recycle. The targets set in WEEE documents focus on Recoverable and Recyclable. As an example, in Category 3 IT and Telecommunications Equipment, 75% of product's weight must be recoverable and 65% must be recyclable. This means at a minimum 10% of the product must be reusable. The EU is not only concerned about the proper dismantling and disposal of E-Waste, its focus is also to minimize the amount of E-Waste entering landfills and that is accomplished by re-use of the product or its components.

To comply with WEEE and RoHS, providers need to supply detailed declaration documents regarding each electronic device intended for shipment into a particular country. At the end of the life cycle for a particular product, the registering entity is responsible to take back the product. The EU State registrations process, take-back schemes, procedures and documentation can be expensive, time-consuming, and it varies dramatically from country to country. This European and upcoming worldwide efforts to greatly reduce E-waste in landfills has created an opportunity for companies such as M-Cubed to offer turnkey RoHS/WEEE and Environmental Solutions to manage corporate environmental product waste.

"M-Cubed's turnkey solution to RoHS and WEEE is a great fit for us," said Thomas Fallon, vice president of operations for Infinera, a digital optical networking company. "M-Cubed's solution is a key element in Infinera's RoHS and WEEE strategy and to achieve compliance."

"M-Cubed provided excellent support in assisting Mirapoint in putting our WEEE program in place. Additionally M-Cubed provides sound advice on other RoHS challenges," said Jerry Davis, senior vice president, operations for Mirapoint, Inc., a manufacturer of secure messaging appliances. "Competitive pricing, expert advice, sense of urgency and a program that works is all part of M-Cubed's offerings."

About M-Cubed LLC

M-Cubed is a global provider of turnkey RoHS/WEEE, Excess, Obsolete and E- waste environmentally friendly solutions for Fortune 500 companies. Founded in 1984, M-Cubed is a pioneer in the management of documentation for recycling corporate E-waste. The process and procedures developed by M-Cubed are more stringent than the strictest E-waste regulations in any country in the world. M-Cubed is ISO 14001 certified, ISO 9001 and 13485 certified through its partners and is qualified to provide full RoHS, WEEE and E-Waste solutions for both its customer's products as well as its facilities. M-Cubed has offices worldwide in the United States, Europe and Far East.

Any company that would like a complimentary RoHS and/or WEEE or E-Waste assessment to determine if it is compliant or to understand what it will take to get compliant, can contact M-Cubed at 800.377.9933 or visit http://www.m-cubed.com/.

M-Cubed, LLC

CONTACT: Tim Helms of Helms Communications, +1-925-606-6936 or
timhelms@comcast.net, for M-Cubed, LLC; or Mike Battaion of M-Cubed, LLC,
+1-408-752-1560, ext. 202, or mike@m-cubed.com

Web site: http://www.m-cubed.com/

Published Aug. 22, 2006
Copyright © 2006 SYS-CON Media, Inc. — All Rights Reserved.
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Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

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