Ensuring Compliance with the RoHS Directive: What to Expect When Companies Fail to Comply

Restrictions of Hazardous Substances (RoHS) is an EU directive intended to restrict the use of some hazardous substances in electrical and electronic products. It is established to prevent any environmental or health problems related to such materials. The directive applies to products used or sold within the European Union after 2006 with certain exemptions. A 2013 update to the regulation includes other requirements such as more detailed technical information and the CE marking. 

Companies that manufacture or sell electronic or electric products, components, equipment, cables, spare parts, or subassemblies to EU countries must stay RoHS compliant. The directive affects all companies within the EU, no matter the country of manufacture. It specifies the levels of hazardous materials a product must contain. 

The Cost of Non-Compliance

Electronic or electrical products that contain even a battery pack or cabling must be compliant with the requirements of the EU directive. Non-compliance can result in the manufacturer facing financial or legal ramifications. In fact, it can cost the company’s future sales. Penalties can include compounded goods, fines, and losing the right to sell on the EU market. 

Moreover, the consequences of being non-compliant with the EU directive also impact not only the seller but also those within the supply chain. If suppliers fail to comply, the end seller can get levies for failing to manage their supply chain properly. Because of this, sellers need to be more careful about the companies they engage with to avoid levies. They need to request documentation that proves compliance including materials declarations and laboratory reports.

What to Expect When Substances are Discovered

The enforcement authority of every member state differs slightly in their processes when a restricted substance is discovered in a product. But below is the general guide:

• Notifying the manufacturer. The authority will inform the company that its product has violated the RoHS Directive and give steps on how it should proceed. At this time, technical documentation will be requested by the authority, establishing a timeline for delivery. 
• Physical inspections. Non-compliant products are discovered through market spot-checks. Enforcement authorities will buy a product and take it to a laboratory to determine the substance it contains. Although this initiates the process, there may be further testing to be done to identify how serious the breach is. 
• Market removal. Products that do not comply with the RoHS directive must be removed from market shelves. The enforcing authority may order voluntary recalls or forcefully remove non-compliant products.