WEEE directive to hit business in the pocket

Guy Withey, business recovery manager at Baker Tilly, has called upon
practices to make sure that clients affected by the legislation are warned to
price the potential costs of the directive into their cost structures, or face
‘significant financial consequences’.

‘Accountants should find out if their clients are thinking about the
directive, in terms of building it into their pricing,’ Withey added.

Companies involved in the manufacture, sale, distribution and treatment of
electrical and electronic equipment are directly affected.

The directive, which will make businesses responsible for financing the
collection, treatment and disposal of waste electrical or electronic equipment
from private households or other users, will now come into effect for products
placed on the market after January 2006, moving back from the original start
date of August 2005.
Finance directors are expected to be heavily involved in managing the potential
costs of the directive.

The government has estimated these costs at between £200m to £450m per annum
in the UK.

‘It is important to determine pricing policies and establish optimum logistic
and recycling arrangements. It is also worth considering a WEEE compliance
scheme to manage recycling contracts, data collection and reporting to the
appropriate agency, thus sharing additional costs,’ said Withey.

The producers of electrical and electronic equipment will have to contribute
to costs regarding equipment collection in proportion to their respective share
of the market by type of equipment.

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