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WEEE regulations will burden small firms, warns FSB

December 18, 2006

The Federation of Small Businesses (FSB) has condemned the introduction of the Waste Electrical and Electronic Equipment (WEEE) Directive on 1 July 2007, claiming small businesses will struggle to comply.

The Government has announced details of the long-awaited Directive, which will require producers and retailers of electrical equipment to recycle consumers’ unwanted goods – such as mobile phones, computers and dishwashers.

The obligation most likely to affect small- and medium-sized businesses is the requirement for retailers selling electronic goods to offer a take-back scheme for unwanted items.

"Small firms selling electrical equipment will have to pay to join a Distributor Take-back Scheme to recycle consumers’ unwanted electrical goods," said an FSB spokesman.

"The fee for this has not been announced, but there is no doubt the Directive will present significant financial, operational and administrative challenges for all businesses affected by the regulations," he added.

Retailers will have to recycle consumers’ unwanted goods themselves or join the Government’s Distributor Take-back Scheme (DTS).

The Government has appointed Valpak Retail WEEE Services to operate the DTS. The scheme will be funded by collectively charging UK retailers of electrical and electronic equipment (EEE) a total of £10 million. The scheme will establish a network of designated collection facilities where consumers can dispose of their electrical waste.

Producers of electronic equipment are required to register with an approved producer compliance scheme by 15 March; to ensure that they are able to comply with the Directive from 1 July.

Producers will have to pay a registration fee to join a compliance scheme – £30 for businesses whose turnover is under the VAT threshold, £220 for those with turnover of less than £1 million per year, and £445 for those with turnover of more than £1 million per year.

Under the Directive, businesses that import EEE into the UK, or resell EEE produced by another firm under their own brand, will also be classed as ‘producers’.

Announcing the 1 July implementation date, Minister for Energy Malcolm Wicks said: "Electrical waste such as toasters, fridges and washing machines are a growing environmental problem, with more than two million tonnes being dumped in landfill last year alone.

"There is currently no incentive for those that produce them to care about the life cycle of their products," added Wicks. "These regulations will mean they can no longer shirk this responsibility."

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