Compliance Update

Posted on 7th November, 2014

Following on from the recent introduction of the WEEE2 Regulations, these are what some might regard as the final two pieces of the jigsaw.

New Compliance Fees to be announced next February

The new Compliance Fees will provide producer compliance schemes, who have not collected enough WEEE, an alternative means of meeting their members’ obligations. Some may see it as a penalty charge for failing to obtain sufficient evidence within the year. Either way, with most schemes already being net buyers of evidence under the old rules, it is likely that many registered producers are facing uncertain costs for both the 2014 and 2015 compliance periods.

Compliance fee administration proposals submitted to BIS

WEEE-circuit-boardsProposals for the administration of the WEEE compliance system were outlined last week by the Department for Business showing that the Environment Exchange (T2E), the online marketplace, or accountants Mazars are likely to take a leading role.

Two of the three proposed methodologies for the calculation of a compliance fee under the WEEE regulations propose that T2E, which has run a PRN service since 1998, oversees the administration of compliance fees for WEEE schemes. A third recommends the use of Mazars, the UK’s eighth largest accountancy firm.

The proposals were submitted by the industry. Each of them incorporates a sliding scale which increases the fee the further from their collection targets a scheme has ended up.

The idea of a fee is intended to discourage compliance schemes who have under collected WEEE and have chosen to pay the fee instead of buying evidence.

Under the WEEE rules, producer compliance schemes are liable to pay the fee if they fail to meet their members’ recycling obligations through buying sufficient recycling evidence in 2014 and similarly in subsequent years. The Department for Business has asked for views on each of the proposals to be submitted by Friday November 28.

Following the consultation, BIS will announce its decision as to which methodology will apply from February 2015. Any schemes which fall short of their collection targets in 2014 will be liable to pay the fee in accordance with the chosen method from that date.

Members of schemes that have not fulfilled their obligation by the end of this year face uncertain costs. It is therefore important for members to obtain fixed obligation costs for both 2014 and 2015. As a major recycler of WEEE, WeeeCare are in a fortunate place to be able to fully support all their members’ requirements, giving guaranteed compliance costs in all categories for the foreseeable future.

WeeeCarePLCStewart Price, WeeeCare’s Producer Compliance Director confirmed: “We will keep our members fully informed during the remainder of this process. Although our members are insulated from any cost implications for 2014, we need to make sure the market is not further distorted. Everyone seeks certainty and a level playing field.

“We now need to wait until February to see if there is a new game in town.”