Complying with the RoHS Directive
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1 Complying with the RoHS Directive SMTA Workshop October 27, 2005 Kenneth S. Rivlin Jean-Philippe Brisson
2 Notice This Presentation is for General Guidance Only and Does Not Contain Definitive Advice Consult Your In-House Legal Team or Retain Outside Legal Counsel
3 Outline Section One Section Two Section Three EU Approaches to Compliance Complying with the RoHS Directive Concluding Thoughts
4 Section One EU Approaches to Compliance
5 Global Approach/New Approach Examples Voltage Directive EMC Directive (exemption fixed industrial tool) How do you demonstrate compliance? Run tests Put CE mark
6 EU Substance Bans Directive 67/548 Annex regulating use of dangerous substances Implemented throughout EU Cadmium regulations How do you demonstrate compliance? You do not demonstrate anything you just comply!
7 Where Does RoHS Fall? Early suggestion in preparation and negotiation of WEEE and RoHS Global approach CE mark Rejected by industry So RoHS is similar to 67/548
8 Section Two Complying with the RoHS Directive
9 RoHS Implementation RoHS Directive fairly effectively implemented RoHS Directive partially implemented IS PT IE SP GB FR DK NL BE LU CH NO GER SE IT POL CZ SK AT HU HR BA FIN ES LV LT YU AL MK GR BY ROM BUL RUS UK TUR No RoHS implementation MAL CY
10 RoHS Directive Standard Strict liability Exceed MCV w/out exemption = violation and prohibition on sale Strict liability Likely to be implemented by several EU jurisdictions Default approach Under this approach Up to each company to assess compliance risk and mitigate risk accordingly Do nothing high risk, no cost Test everything no risk, high costs
11 Example by ERA Technology Quad-flat-pack IC Lead is 0.09% by weight of component Tin/lead alloy (a material) with 15% lead is used as coating on lead-frame
12 Who is responsible? Persons importing into the EU Persons making a sale in the EU Supply chain Impacted contractually
13 UK Approach Transitioning from strict liability to negligence? Due diligence defense Producer may avoid liability by showing it took all reasonable steps and exercised all due diligence to avoid placing on the market a non-compliant EEE How? Obtain certificates of compliance (and keep them for 4 years) Implement due diligence system Identify the person (down the supply chain) who is responsible for the erroneous information
14 Take no further action Component/materi al Yes to all 3 questions 1. From same supplier, 2. regularly checked over previous 3 years and 3. always RoHS compatible No Has it been assessed in the last 12 months? Yes High risk of a banned substance being present? No Take no further action No to any of 3 questions Reassess Yes Is it marked to indicate compliance? Yes Is this a high risk component or material? Yes Have previous supplier declarations been accurate? No Analyse every batch until confident risk is low No Request materials declaration certificate from supplier No Yes Certificate obtained? Yes Is this a new part or from a new supplier? Yes to either Analyse random batches UK RoHS Guidance Document modified by ERA Technology No No Analyse before use (repeat frequency based on risk) Yes Is there any doubt over reliability of declaration? No Take no further action NB Regularly check accuracy of low cost screening against more accurate technique
15 UK Requirements Get materials declaration at least annually Request that the product be marked Analysis (testing) No analysis First batch Random batches Every batch Technical dossier
16 Due Diligence Defense Available? Defense is available There is uncertainty IS PT IE SP GB FR DK NL BE LU CH NO GER SE IT POL CZ SK AT HU HR BA FIN ES LV LT YU AL MK GR BY ROM BUL RUS UK TUR Due Diligence is not available as an affirmative defense; enforcement agencies might still consider such measures in assessing penalties MAL CY
17 What Should You Do? At minimum, qualify for the UK defense Anything more? Other countries Internal requirements Possible options Third-party testing Obtain and track concentration values for all homogeneous materials Yes/No certificate of compliance Rely on compliance with laws contract term
18 Over-Compliance and Minimal Value? Which substances? Full disclosure or. 6 RoHS substances + WEEE substances and components Level of information? Report concentration values at homogeneous material level? Report the concentration values at the part level? Intentional/non-intentional addition of substances
19 Section Three Concluding Thoughts
20 Next Steps 4 requirements UK Other Member States Primary customers Internal Implement Compliance Strategy Revise all contracts Survey primary customers Notify suppliers Request data Audit Analyze
21 A&O Compliance Website ALLEN & OVERY
22 WEEE Implementation WEEE Directive fairly effectively implemented WEEE Directive partially implemented IS PT IE SP GB FR DK NL BE LU CH NO GER SE IT POL CZ SK AT HU HR BA FIN ES LV LT YU AL MK GR BY ROM BUL RUS UK TUR No WEEE implementation MAL CY
23 Put on the Market Put on the Market interpreted as EU market; consistent with Blue Guide Interpretation of Put on the Market uncertain IS PT IE SP GB FR DK NL BE LU CH NO GER SE IT POL CZ SK AT HU HR BA FIN ES LV LT YU AL MK GR BY ROM BUL RUS UK TUR Put on the Market interpreted as domestic market MAL CY
24 Fines & Penalties IS NO FIN RUS SE ES LV DK LT IE GB FR NL BE LU CH GER POL CZ SK AT HU HR BY ROM UK Fines are reasonable (for example, maximum $10,000) Fines above $10,000 PT SP IT BA YU AL MK GR BUL TUR Penalties include criminal liability, product recall, cumulative penalties or other serious penalties MAL CY
25 Definition of Producer Definition is generally consistent with the June 15 Commission letter Member State has provided additional clarification regarding the definition PT The definition is generally not consistent IS IE SP GB FR DK NL BE LU CH NO GER SE IT POL CZ SK AT HU HR BA MAL FIN ES LV LT YU AL MK GR BY ROM BUL RUS UK TUR CY
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