Business Mechanical

RoHS - The Challenges of Compliance in the Distribution Channel

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There are many resources for information about RoHS compliance on the Internet. It is sometimes difficult, however, to get to a clear and direct answer for some questions. On March 1, 2007, ‘China RoHS’ became effective, and with that came a flurry of conversation about compliance, who is compliant, what constitutes compliance, and how that compliance is being implemented. This can make for confusing situations for Distributors who ultimately rely on compliance and compliance certification from its OEM Suppliers.
When the EU-RoHS Directive (Restriction of Hazardous Substances) took effect in July 2006 the rollout was time consuming, but smooth. It currently appears that most manufacturers are compliant and all old stock has been removed. However, little, if any, attention has been paid to the ‘China RoHS’, “Law of the People’s Republic of China for the Promotion of Clean Production” and the “Law of the People’s Republic of China on the Prevention and Control of Environmental Pollution by Solid Wastes” and other related statutes. While there is crossover between the EU-RoHS Directive and the ‘China RoHS’ Laws they are not identical. Most importantly they require different labeling.
The current practice of most Manufacturers is to provide a letter to its Distributor claiming that products are compliant with China-RoHS. Most Manufacturers refuse to label the product according to the China directives. In these cases, the responsibility is passed on to the Distribution Channel to choose whether they want to be held accountable for marking the product on behalf of the supplier OEM and subsequently take the responsibility for the compliance of the product. Ultimately, it would seem that whoever marks the product would be the one taking responsibility for the compliance of the product.
In a recently issued whitepaper by Symphony Consulting, “Transition to RoHS: The Seven Common Pitfalls to Avoid”, the implication is that if a Distributor supplies the product and certifies it as compliant and it is later determined that it contains a banned chemical, the manufacturer whose logo appears on the product could be banned from that country. This could also include severe fines if the non-compliance event is due to negligence and/or willful misconduct.
These implications travel up and down the supply chain for the Distribution Channel. If we certify compliance based on a letter from the supplier OEM and label the product and if it’s found to be non-compliant, then our contracted relationship could be damaged with our supplier OEM. If we provide to our OEM customer a component product that is certified with a letter and marked by the Distributor but found to not be compliant, the implication is severe for the OEM customer.
The situation is precarious. Why was the EU-RoHS Directive carried out swiftly and effectively and the ‘China RoHS’ all but ignored? It will be interesting to see how the compliance is handled in the future for ‘China RoHS’ as demand increases.

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