The decrease in value of the dollar improves sales to Europe. But things are about to change drastically during the next year for manufacturers shipping equipment to Europe for sale. The first of two major initiatives aimed at reducing waste and contamination takes effect across the EU this August. Whether it's computer casings, audio components or appliances, those that don't adapt their products to meet these standards will be locked out.

Across the globe, governments are starting to take steps to limit the amount of waste and pollution generated by electronic equipment and other materials.

The first test of this new type of legislation will be the WEEE (Waste of Electrical & Electronic Equipment) and RoHS (Restriction of Hazardous Substances) initiatives going into effect in late 2005 and 2006 in the European Union. For manufacturers wishing to export their products for sale or use in one of the EU member countries, it will be mandatory to comply with these initiatives. Those that don't will be shut out of one of the largest markets on the planet.

"While both initiatives have been in the works for many years, most manufacturers still lag behind in adapting their products to meet the directives before they go into effect," says Geoffrey Bock, an engineer with TUV Rheinland of North America (Newtown, CT), which helps North American manufacturers certify their materials for the upcoming standards.

"There is still lots of confusion about what WEEE and RoHS mean, who will be responsible for the costs, and how it will affect exports," explains Bock. "WEEE goes into action this August 13. RoHS takes effect on July 1, 2006. Manufacturers that haven't gotten their products in line with the regulations will find the doors to Europe shut at that time. This could be catastrophic, considering that the weakness of the dollar is causing many manufacturers to look toward the EU to increase profits."

WEEE aims to reduce the amount of land-filled waste -; estimated at 12 million tons by 2010 -; by mandating the recycling of electronic waste.

Items regulated by WEEE fall under ten broad-based product categories. They include things like stoves or microwaves, toasters and vacuums, computers and printers, radios and televisions, fluorescent lights, table saws and sewing machines, video games, cardiology testing machines, thermostats and ATM machines.

Virtually anything controlled by less than 1000-volts AC or 1500-volts DC -; that isn't an industrial tool or an implanted medical device -; falls on the list.

"When the time comes for the piece of equipment to be disposed, consumers will place the item in either a recycling bin, just like newspapers, or glass or return it to the store. It will then be hauled off to some kind of centralized recycling facility for sorting and distribution back to the original manufacturer," states Bock. "The tough news under WEEE is that the producers are held responsible for the recycling costs. This means either the component manufacturer, or manufacturer of the item made up by the components, must state what needs to happen to their product when it is returned by the consumer."

For example, if a computer needs to be recycled, there are two ways that the item will be broken up once it makes it to the recycling sorting facility.

One way is the manufacturer of the computer takes responsibility for recycling the product. Under this plan, the computer builder takes the entire system back and sorts it out for recycling and disposal.

The other way to handle the recycling is the computer is broken down into components, such as the CPU, the power supply and cables. Each manufacturer of these pieces is then held responsible for recycling.

This all depends upon the agreements worked out between the computer manufacturer and the component suppliers -; an important consideration for component manufacturers to remember when negotiating deals for products to sell within the EU.

"The biggest challenge for any manufacturer is to develop a plan that meets the requirements of WEEE. The plan must detail the life cycle of its products. Then the products and plan must be registered with the EU," adds Bock. "To meet WEEE requirements, the manufacturer must state what needs to happen to its products upon arrival at the recycling site. These instructions must be either posted on the product, in the original paperwork, or online. This is a major undertaking for both the EU and for manufacturers."

The RoHS requirements piggyback on the WEEE initiative. Since many of the materials mandated for recycling under WEEE are significant contributors to pollution from lead, mercury and other materials, recycling helps take these substances out of the waste stream.

RoHS goes a step further, requiring all products falling under the ten categories of WEEE to be certified as not exceeding levels of six known pollutants: lead, mercury, cadmium, hexavalent chromium, polybrominated biphenyl (PBB), and polybrominated diphenyl ether (PBDE). "The RoHS standards, like WEEE, have certain exceptions. But on the whole, manufacturers making products containing these types of heavy metals must make changes or risk being shut out of the European market," says Bock.

"Even those not having these substances must now show certifications that their products are free of these pollutants. There are many ways to conduct the tests, but the EU wants a mechanical sample of a homogenous part, meaning a unit that cannot be mechanically disjointed into single materials."

For example, if a company exported calculators to Europe several parts would have to be tested and certified. The types of keys, the LCD display, the screws, the CPU, etc. Because of this, Bock says now is the time for manufacturers to start examining their supply chain to weed out any possible problems.

"RoHS compliance should be part of any purchase conditions your company has with suppliers. Your company should set up testing and certification at the earliest stage possible to avoid problems down the road," advises Bock.

In the future, Bock sees the WEEE and RoHS regulations becoming stricter and more far reaching. And other countries and states have begun to adopt similar legislation.

"Programs like Japan's Green Procurement plan, China's Agenda 21 scheme, and California's SB20 regulations. Manufacturers thinking that WEEE/RoHS is only a temporary problem are missing the boat," warns Bock. "Manufacturers must seriously start developing plans for recycling and reuse of their products and start eliminating certain hazardous substances from the supply stream."

Though there are short-term challenges presented by these environmental initiatives, there are long-term benefits for everyone involved. These regulations should spur improvements and innovations in manufacturing. Cost savings will result from the reuse of obsolete parts. The cost of waste collection for municipalities will eventually reduce due to the electronic pieces being diverted away from the landfills. Expect to see job increases in the recycling industry.

"Any company hoping to do business with Europe must start organizing now. Formulate a plan to finance the recycling and collection of WEEE, mark the equipment, provide instructions on what to do with the waste. Have systems in place to provide reports showing evidence of collection and recycling," recommends Bock. "This is a fundamental shift in the way manufacturers do business. Any that resist will be shut out of the market.

Chris Watts is a freelance writer and former editor for the Associated Press in Washington D.C., and news bureau chief for Metro Networks in Hartford, CT. He can be reached at 860-243-1447, 860-490-1253, or cwatts@aomc.com.