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Professor K.B. Chan Chairman, Hong Kong Electronic Industries Association November 2007

Green Manufacturing Update on China ROHS & Korea ROHS Regulations. Professor K.B. Chan Chairman, Hong Kong Electronic Industries Association November 2007. US$1.5 trillion economy, 6.9% growth (2006) Asia - growth engine (> 50% share incl. Japan) Slower growth in Europe & Americas.

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Professor K.B. Chan Chairman, Hong Kong Electronic Industries Association November 2007

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  1. Green Manufacturing Update on China ROHS & Korea ROHS Regulations Professor K.B. Chan Chairman, Hong Kong Electronic Industries Association November 2007

  2. US$1.5 trillion economy, 6.9% growth (2006) Asia - growth engine (> 50% share incl. Japan) Slower growth in Europe & Americas World Electronics Industry Electronics Production Source: Reed Research, 10/2006

  3. 20% of world output Growth doubles world average Largest markets of handset, DVD, TV Emerging markets: automotive electronics China - World Electronics Factory Electronics Production Source: Reed Research, 10/2006

  4. China 10.7% GDP growth in 2006 2007 Q1-Q3: 11.5% growth Foreign Exchange Reserve = US$ 1.4 tril (Sep 07) Top 5 Economies Source: Gov’t news, Commercial news, IMF

  5. Top 7 Asian Electronics Producing Countries Source: Reed Research

  6. EU: WEEE & RoHS (2005 & 2006) • China: • RoHS (2007) • WEEE (under preparation) EU: EuP (2007) Korea: RoHS/WEEE (Jan 1, 08) EU: REACH (2007) • Japan: • Recycling Law (2001) • RoHS labeling (2006) California: Recycling (2005) with RoHS (2007)

  7. “Administration on the Control of Pollution Caused by Electronic Information Products” 《電子信息產品污染控制管理辦法》: Effective March 1, 2007 Apply to products manufactured in, sold in or imported into China (export products not applied) Same 6 substances as in European RoHS For Details: http://www.mii.gov.cn/art/2005/12/17/art_525_1786.html China RoHS 

  8. Executed by 7 Government Departments • Ministry of Information Industry • National Development and Reform Commission • Ministry of Commerce • General Administration of Customs • General Administration of Industry and Commerce • General Administration of Quality Supervision, Inspection and Quarantine • State Environmental Protection Administration

  9. Computer Telecommunication Household Electronic Special Electronics Apparatus Radar & Broadcast Electronic Measuring Components and Materials Application Products Product Coverage Following Electronic Information Products (EIP) & their accessories: Over 1,800 items, for details: http://www.mii.gov.cn/art/2006/03/16/art_1221_8441.html

  10. Labeling / Marking Hazardous substances and contents Environmentally friendly use period* Packaging materials Restrictions on 6 hazardous substances: Same as European RoHs Compulsory pre-market certification - China Compulsory Certification (CCC) - tested by one of the gov’t-approved Chinese laboratories Major Requirements * Environmentally friendly use period = # of year from manufacturing date in which no hazardous substance is released to the environment

  11. Phase 1: Labeling / Marking for Products Phase 2: Products listed in “Key Product Catalogue” need to comply with requirements: Hazardous substances limits Certification (CCC) Chinese Government is drafting the “Key Product Catalogue” (not yet available - expected end 2007 / early 2008) Two Phases of Implementation

  12. Established in Oct 2004, with 5 sub-working units: Certification & marking Maximum concentration limits & testing Lead-free soldering Standard system study Environmentally Friendly Use Period ~120 members, SMT is one of them Consultation and voting rights China RoHS Working Group

  13. Enforcement by 7 Departments - complicated Penalties and fines More rules No details yet Consequences of Non Compliance

  14. Pay attention to China RoHS details & developments (e.g. Key Product Catalogue 重點管理目錄) Consult relevant departments regarding testing & certification Prepare labels, and Chinese translations for documents (substance disclosure table, operating parameters for Environmentally Friendly Use Period) Important Notes

  15. Korea RoHS - titled “Act for Resource Recycling of Electrical and Electronic Equipment and Vehicle” Includes key regulatory actions of the EU directives RoHS, WEEE and ELV Effective January 1, 2008 Regulations in Korea

  16. I. Target products & restricted substances: 10 target product items (e.g. TVs, refrigerators) 6 restricted substances (same as EU RoHS) II. Design for recyclability and recycling information: All manufacturers and importers to provide their Electronic and Vehicle Recycle information (product name, year of production, disassembly procedure...) Vehicle's ratio of recyclable contents will be over 85% in 2009, over 95% after 2010 Korean Requirements

  17. III. End-of-life recycling system: 4 hazardous substances will be banned in vehicles (same as EU ELV) Korean Requirements

  18. A non profit making organization supported by manufacturing and trade associations Alliance formed Dec 2004 Founding Honourary Chairman: Prof. KB Chan Secretariat: Federation of Hong Kong Industries Steering committee – holds regular meeting Government support HK Industry’s Response: Hong Kong Green Manufacturing Alliance (HKGMA)

  19. Founding Members 7 Trade Associations related to Electronics, Electrical, Toys and Watches Industries Advisors Hong Kong Productivity Council Hong Kong Trade Development Council 6 universities in Hong Kong Observer Innovation and Technology Commission, HK Government

  20. Mission • To facilitate the transformation of HK manufacturing industry into “Green” Activities (2005 - Oct 2007) – on RoHs WEEE • Raise awareness:seminars, promotions • Provide guidelines for compliance: workshops • Technology advancement: R&D, database • Industry representation: liaise with government • Platform for networking: domestic and international  Organized ~40 events > 5,000 participants

  21. Activities 2007 onwards • Apply same action of promotion & awareness on China RoHs EuP REACH – full funding programs from HK Government • Promote Green Q-Mark for FHKI Recognition of enterprise with Green Manufacturing practice

  22. World electronics industry is growing at a steady pace, China taking a dominant position China is trying to improve its economic condition, with focuses on R&D, high tech and environment (target industries: e.g. electronics, automotive) Meanwhile, environmental laws around the world are greatly affecting the electronics & other industries (many technical issues still unsolved) Drafting standard industry guidelines for RoHS based on EU laws (agreed in WEF/APEC Seminar - June 2007) is a good start Summary

  23. Let’s Join Together for a Better Electronics Industry! Thank You!

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