Understanding ROHS and WEEE Directives - A Guide to Environmental Requirements

1. ROHS and WEEE Directives -After the Deadline- September 2006Berri RemenickWashington Laboratories, Ltd.

2. Overview • Worldwide Product Based Environmental Requirements • ROHS Requirements and Issues • WEEE Requirements and Issues • FAQ

3. Background • As electronics have become more common throughout the world, concerns have developed as to what the effect is of filling landfills with electronics products. • Many of these electronic products contain hazardous substances. • Therefore, product based environmental regulations are becoming more common worldwide.

4. Background • Americans discard over 100 million computers, cell phones, and other electronic devices each year.* • An estimated 60 million PCs • have already been buried in • US landfills.* • Between 2004 and 2009, • 250 million computers will • become obsolete or • 136,000 computers a day!!! * • Electronic waste is accumulating almost 3 times faster than ordinary household trash.* • *E-Gad, Elizabeth Royte, Conformity Magazine, November 2005

5. Europe • RoHS DIRECTIVE (2002/95/EC): Restriction of Hazardous Substances • Limits use of Lead, Cadmium, Mercury, Hexavalent Chromium, PBB and PBDE in electronic products effectiveJuly 1, 2006. • WEEE DIRECTIVE (2002/96/EC): Waste Electrical & Electronic Equipment • Requires producers to manage post-consumer recycling and disposal of electronic products effective August 13, 2005. • EuP DIRECTIVE (2005/32/EC): Energy Using Products • Requires producers to design products to meet specific eco-design criteria over entire life cycle effective 2007 for certain specific products. Regulates products that have sales of over 200,000 units per year in the EU, have a significant environmental impact over their entire life cycle, and have a wide range of environmental performance between different units with equivalent functionality. • REACH DIRECTIVE: Registration, Evaluation and Authorization of Chemicals • Requires registration and risk assessment of chemical substances effective 2007.

6. USA • Nearly all states either already have some regulations for restricting substances or for electronics recycling requirements or they have some pending legislation. • A national system for electronics recycling has been proposed but is not near approval yet. • Website with a detailed list of requirements for each state: • http://www.newark.com/services/rohs/documents/Ewaste_Legislation.xls

7. USA • California: The current California ROHS covers displays greater than 4 inches and is effective 1/1/07. Pending Legislation for AB2202 is one step closer to the EU RoHS directive. AB2202, passed the California Assembly on May 31, 2006. Recently updated, the bill would expand the current restricted substance requirements to cover all products listed in Annex 1A of the WEEE directive. The scope of products covered was further clarified to harmonize with the EU RoHS Directive's Article 2. The enforcement deadline has been moved out to January 1, 2010 to provide manufacturers with a realistic amount of time to retool. • Washington State: Has enacted legislation that will establish an electronics recycling program requiring electronics manufacturers to pay for the collection, transportation and recycling of computers, monitors and televisions from consumers, small businesses, schools, small governments and charities.  Manufacturers required to register with the state by January 1, 2007, and the recycling program comes into effect as of January 1, 2009. • Rhode Island: Proposed legislation that would prohibit the manufacture and sale of products containing more than one-tenth of one percent of pentaBDE or octaBDE, and more than one percent of "deca" mixtures.

8. China • - Effective 3/1/07 • - Has requirements similar to RoHS and WEEE. • - Has new energy efficiency standards for certain products. • - Packaging must be non-toxic, biodegradable and • Recyclable. Packaging must be marked with material content. • - RoHS materials (Cd, Cr, Hg, Pb, PBB, PBDE) are banned from • January, 2006. • - Products must be labeled with: names, content levels, and recyclability of harmful materials; recyclability (fully, partially and non-recyclable); product safety periods (date range product is safe to use). • - Producers must contract with local recyclers to recover products after • safety period. • - Producers must finance recycling.

9. Korea • The South Korean government is reportedly moving to adopt RoHS/WEEE-like legislation that will take effect July 1, 2007. • The proposed “Act for Resource Recycling of Electrical/Electronic Products and Automobiles” includes virtually anything electrical or electronic within the scope of its requirements. While specifics on restricted materials are not yet available, the Korea Ministry of Environment has indicated that consistency with the provisions of the European Union’s RoHS Directive can be expected. • The proposed legislation does spell out penalties for non-compliance. For example, failure to provide data requested by government officials regarding material composition can result in a fine of up to $50,000 and a year in jail.

10. RoHS Directive • Scope • The directive covers all equipment dependent on electrical currents or electromagnetic fields in 8 categories: • - IT / Telecommunications • - Electrical and Electronic Tools • - Consumer Equipment • - Large Household Appliances • - Small Household Appliances • - Lighting Equipment • - Toys, Leisure and Sport • - Automatic Dispenser

11. RoHS Directive • Is a 95/EC Directive: Requirements are the same for all member states in the European Union (not the case for WEEE). • No product marking requirements. • Allows for Self Certification. • No harmonized standards or test methods currently (some in progress). • No specified compliance method (each manufacturer must decide on their own method). • Download RoHS Directive at: http://europa.eu.int/eur-lex/pri/en/oj/dat/2003/l_037/l_03720030213en00190023.pdf

12. RoHS Limits • Homogenous material can contain a maximum of: • 0.1% lead by weight. • 0.1% mercury by weight. • 0.01% cadmium by weight. • 0.1% hexavalent chromium by weight. • 0.1% polybrominated biphenyls by weight. • 0.1% polybrominated diphenyl ethers by weight. • Homogeneous material = materials of uniform composition which cannot be mechanically disjointed into different materials. For example, an IC has silicon chip, wires, solder, pins, casing.

13. RoHS Directive • Compliance Methods • Destructive vs non-destructive testing • Materials testing using X-Ray Flourescent screening (EDXF or XRF) • Detailed Materials testing using Gas Chromatography or Mass Spectroscopy • Rely on Suppliers Declaration of Conformity

14. RoHS Directive • Suppliers Declaration of Conformity (SDoC) • Many different formats out there • Without a standard format, there is confusion and extra work figuring out each of the multiple formats a supplier gets. • IPC1751/1752 Material and substance declaration form available. • If you can show you have taken all reasonable steps and exercised all due diligence you stand a better chance. • You need an extensive paper trail of information demanded from the supplier, steps taken to verify the information, and if there are any indications that the information should be disbelieved.

15. RoHS Directive • Who is responsible? • The Producer • Producer: any person who: • 1. manufactures and sells electrical and electronic equipment under his own brand; • 2. resells under his own brand equipment produced by other suppliers; or • 3. imports or exports electrical and electronic equipment on a professional basis into a member state.

16. RoHS - Exemptions • Mercury in lamps • Lead in the glass of cathode ray tubes (CRT's), electronic components, and fluorescent tubes • Lead in certain steel, aluminum, and copper alloys • Lead in high melting-temperature solders containing over 85% lead by weight • Lead in solders used for servers, storage, and storage array systems • Lead in solders used for network infrastructure equipment • Lead in electronic ceramic parts • Cadmium and cadmium compounds in electrical contacts and cadmium plating that isn't banned by Directive 76/769/EEC • Hexavalent chromium as an anti-corrosion agent in absorption refrigerators • Lead in compliant pin connector systems • Lead as a coating for the thermal conduction module c-ring • Lead and cadmium in optical and filter glass

17. RoHS - Exemptions • RoHS does not apply to batteries (see Directives 91/157/EEC and 98/101/EC). The Battery Directive permits lead-acid and nickel-cadmium batteries to be used in electrical and electronic equipment as long as they contain less than 0.0005% by weight of mercury. Button cells and batteries made from button cells are permitted to contain up to 2% mercury by weight. • RoHS does not apply to electrical and electronic equipment "intended specifically to protect national security and/or for military purposes“ • RoHS does not currently apply to medical equipment or laboratory equipment - being reviewed – this will be changed soon! • Process exists for applying for an exemption, several applications for exemption are currently under consideration. • Items would be given exemptions where substitute materials have not been discovered or adequately verified. • Exemptions are reviewed every 4 years. If no action is taken, the exemptions will stay in place.

18. Exemptions • Applying for an exemption: • - Submit request to the European Commission. • - Must be precise and refer to a specific application of the substances restricted. • - Must provide all technical evidence supporting the request. • - Article 5(1)(b) of the RoHS Directive is the only criteria to be followed for an argument. • - Once a number of requests deemed worthy are collected, the Commission summits the requests to a public stakeholder consultation for minimum of 8 weeks. • - The request is then assessed by an independent consultant. Report issued in about 3 months. • - If still considered possible, it is then presented to the Technical Adaptation Committee (TAC) for vote. • - If it passes, it comes legally into force on publication in the OJ.

19. RoHS - Enforcement • EC has published an enforcement guidance document • Enforcement authorities have been appointed. • Investigations based on:- Market intelligence - Random selection - Products known to contain materials of high concern - High volume products - Short life products - Consumer products unlikely to be recycled - Tips from external parties - Tips from other member states. Show due diligence!

20. ROHS - Enforcement • Penalties for non-compliance vary by country. • Examples: • UK: Max of $9500 • France: Max of $1900 • Ireland: Max of $19.2 Million

21. Solder Issues • Tin whiskers • are electrically conductive, hair-like strands of single tin crystals that sometimes grow from surfaces where tin is used as a final finish. Tin is only one of several metals that are known to be capable of growing whiskers. Other examples include zinc, cadmium, indium and antimony. Whisker sizes vary, and some have grown to lengths of several millimeters (mm) and in a few cases up to 10 mm. Two of the more common finishes that are being considered are nickel/palladium/gold (NiPdAu) and some composition involving tin (Sn). Of these two materials, NiPdAu does not grow tin whiskers, while tin in both its pure and composition forms have shown tin whisker growth.

22. Solder Issues • Solder temperatures • - For lead free solder temperatures are higher than traditional solder. • - It is not completely clear what the effect is going to be in the long term using lead-free solder, the effect certainly should be considered in the product design. • - In transitioning to lead-free wave soldering, alloy selection will be the primary choice that will impact solder joint quality, reliability and production yields. • - Most assemblers are choosing tin-silver-copper alloys (SAC) for leaded solder replacement. On a global basis Sn96.5 Ag3.0 Cu0.5 has been the favored solder recipe. This alloy also known as SAC305 has melting range of 217-220 C; the traditional alloy 63/37 has a melting point of 183 C. These alloys have higher melting temperatures but also have higher surface tensions.

23. Solder Issues • Lead Solder Replacements • - Some manufacturers are choosing Sn/Cu alloys such as 99.3 tin/ 0.7 lead, some with small additions of nickel, silver, bismuth, germanium, and other elements. • - Due to the lack of silver in these alloys, costs are substantially less than processes using SAC alloys. • - Sn/Cu alloys melt at 227 C but may require longer contact times at the wave solder to achieve hole-fill. The melting temperature being higher will also require slightly hotter pot temperatures. • SAC alloys can be run at 255- 260 C • Sn/Cu will require 260-270 C. • - In some cases some assemblers are using as high as 275 C for Tin-Copper based solders. These higher temperatures may put a strain on both board and bottom-side component reliability.

24. Solder Issues • Lead-free Wave Soldering • - Has been done in a large scale in Asia for some time • - Equipment upgrade may be required because the tin may cause the leaching of iron and could required replacement of the solder pot, impeller, and ducts. • - Alloy selection will impact quality and reliability • - Flux selection critical. Fluxes used for leaded solder will not give adequate hole-fill without increasing flux volumes or longer contact times. • - Fluxes with higher activity and higher solid content perform better with lead-free solders. • - The use of VOC-free fluxes in conjunction with lead-free solders offer a “green” wave solder operation. • - Board and component finish also impacts reliability. Matte tin finish gives the best soldering results. Gold over nickel finishes and immersion silver also solder well. • - Bare copper boards are difficult to solder with lead-free solder.

25. Solder Issues • Summary of possible issues • - Tin whiskers • - Thermal fatigue of solder joints • - Delamination of multi-layer boards • - Damage to plated through holes • - PCB warping • - Damaging heat sensitive components • - More difficult repair or rework

26. WEEE Directive • Scope • The directive covers all equipment dependent on electrical currents or electromagnetic fields in 10 categories: • - IT / Telecommunications • - Electrical and Electronic Tools • - Consumer Equipment • - Large Household Appliances • - Small Household Appliances • - Lighting Equipment • - Toys, Leisure and Sport • - Automatic Dispenser • - Medical Devices • - Monitoring and Control Equipment

27. WEEE Directive • Requires the producer, within one year of putting any electrical/ electronic equipment on the European market, to provide reuse centers, treatment facilities, and recycling facilities with: • Lists of components and materials it contains. • Locations of dangerous substances. • Encourages producers to design electrical and electronic equipment: • For repair. • For possible upgrading. • For reuse. • For disassembly. • For recycling. • To integrate recycled material into new equipment. • Download WEEE Directive at: http://europa.eu.int/eur-lex/pri/en/oj/dat/2003/l_037/l_03720030213en00240038.pdf

28. WEEE Directive • Is not a single market directive (not a new approach directive). • Member states set their own requirements for registration and compliance. • Requirements are different for each member state in the European Union! • Each member state has its own agency for registration and collection. • The Producer is responsible.

29. WEEE Directive • Requires each country in the European Union to set up facilities for the separate collection of waste electrical and electronic equipment. • Came into effect August 13, 2005 (implementation is behind schedule) • December 31, 2006 is date to meet recovery and recycling targets. • The actual processing may be done by the company itself, or by participating in a producers' compliance scheme. • The producer must provide financial guarantees that they will pay for the handling of their waste equipment, by participating in a collective group for this financing, recycling insurance, or a blocked bank account.

30. WEEE Marking • Wheelie Bin Symbol required to be marked on product (or the instructions and warranty or the packaging) per EN50419:2005 • Date of shipment to Europe or the black line required. • Manufacturers name or trademark required on product.

31. WEEE Directive • Household WEEE • Producers pay according the their market share. • Non-household WEEE • Producers must collect, treat, and recycle one equivalent item when they supply a new product. Any additional WEEE is the responsibility of the last user.

32. WEEE Directive Actions required • Register with the appropriate agency in each member state (where possible) & pay the required fees. • Provide sales data by weight to authorities. • Provide information required by recyclers • Provide financial guarantees for products that will be household WEEE.

33. WEEE Directive • Exclusions: • - Equipment part of a larger product (i.e. electronics installed in a train) • - Military Equipment • - Equipment used a integral parts of large-scale stationary industrial tools

34. WEEE - Latest status • WEEE registration authorities have been setup in most Countries. • New WEEE legislation in the works due to difficulty implementing programs and since 3 countries still have not adopted any laws regarding WEEE. • Compliance schemes available – companies that will handle all the registrations and reporting for you.

35. FAQ on RoHS and WEEE • Q: What is the difference between exemption and exclusion? • A: The WEEE has no exemptions; only exclusions. This means that certain types of equipment are out of the scope of WEEE entirely. The RoHS takes its scope from the WEEE except for Categories 8 & 9. These are "excluded" from the scope of RoHS. So if your equipment is covered by WEEE, it is covered by RoHS, unless it is a medical device or a monitoring and control instrument. The "exemptions" are a series of applications of banned substances that are exempted from some of the RoHS requirements. The legislation allows the EU to add or remove exemptions based on technological progress.

36. FAQ on RoHS and WEEE • Q: What are my chances of getting a RoHS exemption? • A: A good proportion of industry exemption requests get thrown out. • - Understand the two criteria that the EU is allowed to take into account Technical feasibility (Substitution is not possible, or is possible under such conditions as to be unfeasible in practice) and Environmental impact (The negative environmental impact of not allowing the exemption would outweigh the positive environmental impact of the ban. This might be because of increased waste resulting from predictably higher failures, or because the substitutes are as toxic as the banned substances, etc). • - Cost or cost/benefit is not a vaild argument. The EU legislation does not permit cost to be taken into account in making a decision on exemptions. This does not mean that you cannot refer to the costs; indeed many EU regulators will be interested. It’s just not a valid legal reason for exempting. • - Need more time is not a valid argument. Unless you can relate it to industry-wide problems, EU authorities are likely to take a dim view of this line of argument, since the legislation was being discussed as long as ten years ago and was adopted in 2002. • - Supply chain would need to be changed is not a valid argument. This is ground-breaking EU environmental legislation that aims to change the world. They are very proud of that, and expect it to cause pain. • - Refer to existing exemptions that follow similar logic or have similar characteristics.

37. FAQ on RoHS and WEEE • Q: Can my distributors continue to sell non-RoHS compliant products I shipped to Europe before July 1, 2006? • A: Technically yes. If they are on the European market prior to July 1 they can be freely sold in Europe. However, many member states will not allow the products into their states if not RoHS compliant (from one member state to another). Some distributors are refusing to sell non-RoHS products even if they were there prior to July 1.

38. FAQ on RoHS and WEEE • Q: I sell systems not discrete products – Am I affected by WEEE? • A: Yes. WEEE applies to any product in the ten categories. It makes little distinction between products put on a retail shelf and products custom made for an end customer. Many systems fall under the IT category.

39. FAQ on RoHS and WEEE • Q: Do I have to register for WEEE if I have no legal presence in Europe? • A: Your legal obligations are not defined by reference to whether you have a legal presence in the EU or in any particular EU country, but by whether you are the “producer” of equipment put on the EU market. However in practice, in many EU countries the WEEE registration systems are new and have not been set up in such a way as to allow foreign companies to register. There are some notable exceptions, including Germany and Portugal.

40. FAQ on RoHS and WEEE • Q: What if I sell via distributors or direct to businesses or direct to consumers? • A: Generally the manufacturer is the producer and must register. In countries where US businesses are not allowed to register, then the distributor can register. If you sell direct to business customers, they can register for you. • The WEEE applies to products put on the market in Europe. If you sell directly to consumers via a US website or mail order the directive most likely does not apply.

41. FAQ on RoHS and WEEE • Q: How do I register for WEEE? • A: Use a compliance scheme company or contact the registration authorities in each country. Contact info can be found at: http://www.buyusa.gov/europeanunion/weee.html • Q: My product is bolted down in use, is it a fixed installation? • A: No. The intention for the fixed installation exclusion is that the product becomes part of the building and likely to be left in place. Lights, electric doors, gates are fixed installations. Kitchen appliances, large fixed equipment, cctv camera systems are not. • Q: Are servers and network infrastructure exempt from RoHS? • A: No. The exemptions for servers and network equipment are only for lead in the solder, the rest of the product still must comply with RoHS.

42. FAQ on RoHS and WEEE • Q: Are RFID chips and tags required to meet • RoHS. • A: Yes. These are considered products in themselves. • Q: Can I import for my own company use. • A: No. That is still placing on the market. • Q: Should the wheelie bin symbol be placed on a PCB? • A: No. PCB’s are considered components and there is no legal requirement to label components.

43. FAQ on RoHS and WEEE • Q: Are cables included in the RoHS scope. • A: Yes. The present view is that cables both included with equipment and sold separately fall with RoHS. • Q: Does packaging need to comply with RoHS? • A: Packaging discarded is not. Packaging or cases that may remain with the product and may be disposed of with the product may have to comply. • Q: Are GPS units required to meet RoHS? • A: They would most likely be considered part of a radio network system under the IT category and therefore must comply.

44. FAQ on RoHS and WEEE • Q: I manufacture a device that is built into equipment and has someone else’s logo, who is responsible for the recycling? • A: The brand owner. • Q: Who takes the producer liability when a piece of equipment is refurbished? • A: It is refurbished but otherwise unchanged, the original producer remains responsible for recycling at the end of life. • Q: Are the different RoHS type legislations (Europe, China, Korea, California, etc) all the same? • A: The limitation requirements are similar. The main differences are in product categories, reporting and proof of compliance.

45. FAQ on RoHS and WEEE • Q: What about spare parts? • A: You can place spare parts that don’t comply with RoHS on the market if they are for equipment placed on the market prior to July 1, 2006. Spare parts for equipment placed on the market after July 1, 2006 must comply. • Q: What is the difference between lead-free and RoHS compliant? A. While lead (Pb) is the most widely used toxic substance in electrical and electronic equipment (EEE), the term "lead-free" is often wrongly adopted to refer to all of the substances specified in the RoHS Directive. However, RoHS restricts a total of six substances. To be truly compliant with this legislation, the presence of each of these substances must be reduced below their proposed maximum concentration values (MCV).

46. Washington Laboratories, Ltd. • ROHS\WEEE Compliance Assessment Program (R\W CAP) • Performed on-site at your facility • Includes: • Orientation training for RoHS and WEEE Directives • Assisting you in determining the applicability of • the RoHS/WEEE requirements • Assisting you in reviewing products for • compliance • Assisting you in registering with EU member • countries for WEEE • Assisting you in developing a ROHS compliance program

47. Washington Laboratories, Ltd. • Give us a call or send us info about your product - we’re here to help! • www.wll.com • Berri Remenick, N.C.E. • Product Safety Manager • Phone: 301-473-1255 • Fax: 301-473-1257 • E-mail: berrir@wll.com