Brazil Launches Public Consultation on Reverse Logistics System of Electro-Electronic Products

The Brazilian Ministry of Environment has launched a public consultation on a proposed sectoral agreement for the implementation of a reverse logistics system of electro-electronic products and their components.

The main objective of this draft agreement, signed between the Ministry and a number of industry associations, is to implement a reverse logistics system for domestic consumer electro-electronic products which are placed on the internal market.

Electro-electronic products are defined as household equipment the functioning of which depends on electrical currents with a nominal voltage not exceeding 240 volts. Annex VII of the Agreement contains an indicative list of the EEE covered and the related Mercosur Common Nomenclature (NCM).

The following products are excluded from the application of this agreement:

• Electro-electronic products and their components for non-domestic use;
• Electro-electronic products of origin, use and/or application in health services;
• Batteries and/or lamps not integrated or removable from the structure of the products, which are the subject to their specific reverse logistics systems;
• Individual electro-electronic components, not fixed to the electro-electronic products covered by this agreement; and
• Waste from large generators as per municipal and district legislation.

The implementation of the reverse logistics system requires companies to undertake a series of actions in compliance with the National Solid Waste Policy.

The structuring and implementation of the system will take place in two phases, as outlined in Section 3. Phase 1 will entail the creation of the competent bodies and mechanisms to ensure that monitoring, financial and reporting activities are carried out for the proper functioning of the system. Phase 2 will include the qualification of service providers who operate in the reverse logistics system, the elaboration of an environmental educational plan to publicize the implementation of the system and the installation of collection points in accordance with the schedule set out in Annex IX.

The operation of the system is described in Section 4 and Annex VIII and will consist of the following steps:

1. disposal of the product by consumer at the collections points;
2. collection and temporary storage of the discarded products at collection points;
3. transport of the products from collection points for their environmentally sound disposal;
4. environmentally appropriate final destination.

The main obligations of manufacturers and importers are listed in Section 9 and include the following:

• ensure an environmentally appropriate final destination, preferably recycling, of 100% of the EEE received through the reverse logistics system;
• report to the Performance Tracking Group - GAP the information on the amount of products discarded and marketed in accordance with the criteria set out in paragraph 16.6;
• participate in the implementation of the environmental communication and educational plan;
• report to the Ministry of Environment, when requested, to verify compliance with the agreement.

Furthermore, importers are required to:

• participate in a reverse logistics system as a compliance requirement for the import and marketing of their products;
• declare to the competent authorities, in the process of importation of electronic products, the person responsible for the implementation of the reverse logistics system of the importer.

Section 19 specifically regulates packaging of EEE and states that packaging must be received through the reverse logistics system provided for in this sectoral agreement at the collection points in which EEE is disposed of, without prejudice to the possibility of signing legal instruments with other packaging reverse logistic systems. Once received, the environmentally appropriate final destination of the packaging must be ensured.

Interested parties can submit their comments on the proposed agreement until 30 August 2019 at the following address: http://consultaspublicas.mma.gov.br/eletroeletronicos/

This agreement will enter into force on the date of publication of its extract in the Official Gazette.

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