A
manufacturer/importer who markets a new type of electrical or electronic
appliance must provide information on request about its constituent parts that
are reusable as a product or material.
This product information includes details of the appliance’s parts and materials. The manufacturer must also include instructions with the product stating that hazardous substances or preparations must be removed from end-of-life equipment by the end user before this is handed in.
The obligation to provide information is summarised below.
Financial
aspect
Information obligations
- Every manufacturer who markets a new type of electrical or electronic appliance has two obligations to provide information
- The first obligation is to provide a general reference that shows whether the appliance is suitable for reuse as a product or material. The reference is for use by establishments that repair, maintain or recycle the appliance.
- The second obligation is for the manufacturer to provide details of the appliance's constituent parts and materials and the places where hazardous substances and preparations occur, if a repairer, servicer or recycler needs such details.
- The information may be provided in the form of manuals (like directions for use) or electronic media (such as a website or CD-ROM).
- For recyclers, the second obligation is embodied in the NVMP membership agreement; recyclers do not need to provide the information until requested by NVMP
- The information must be provided within one year of the equipment being marketed for the first time.
Disposal levy
The collective system for disposing of electrical and electronic equipment is
financed by a disposal levy payable for designated products or product groups.
A company that joins the system (“member company”) is required to remit the
levies to NVMP Foundation every two months.
The member company must charge on the disposal levy to its customers pursuant
to a Communication by the Minister of Housing, Spatial Planning and the
Environment and, insofar as applicable, decisions by the Director General of
the Netherlands Competition Authority (“NMa”). A customer who resells the
product through the supply chain is required to charge on the disposal levy to
its customer in the same way. The disposal levy must be charged visibly when
products are sold to consumers. VAT is payable on disposal levies.
The disposal levy is not a component of the selling price and must not be included in sales figures. The levy must be remitted in full to NVMP Foundation. Therefore, we advise you to inform your customers that discounts for cash payments and any bonuses can be calculated only over the net amounts payable for the products.
Delivery address
To be able to charge the disposal levy to your customers, they must have a
delivery address in the Netherlands.
The law applies to the first party to make a product available to another party
in the Netherlands.
Physical delivery of the product - not
the invoicing address - is the decisive factor.
Special conditions of delivery
A business that purchases appliances through a company registered in the Netherlands
under the FOB (Free on Board) condition of the Incoterms will be regarded as an
importer for the purposes of the Regulations and, as such, must register as a
member of the collective system.
FOB (Free on Board) under Incoterms
Incoterms are standard trade definitions of terms commonly used in
international contracts. The definitions avoid different interpretations in
different countries. The International Chamber of Commerce (ICC) lays down the
Incoterms.
FOB (Free on Board) applies to transport by sea and inland waterways. The seller is deemed to deliver as soon as the products pass the ship's rail at the named port of shipment. From that moment onwards, the buyer bears all the costs and risks of loss or damage of the products. The seller must clear the products through Customs.
If, for example, a Dutch company purchases from another Dutch company refrigerators made in China and the parties agree FOB, the seller must ensure that the goods are cleared through Customs at the port of shipment in China. At his expense and risk, the seller must obtain an export licence and fulfil all Customs formalities required for exportation of the products. At his expense and risk, the buyer must obtain an import licence and fulfil all Customs formalities for importation.
Importing through FOB transactions
Under Article 1, paragraph 3 e of the Decree, a manufacturer is also "a
party that imports electrical and electronic equipment into the Netherlands in
the pursuit of its occupation or business".
The explanatory memorandum of the Minister of Housing, Spatial Planning and the Environment accompanying the Decree explains article 1 in the following way:
"A party that imports equipment is deemed to be equivalent to a manufacturer. In practice, it can be unclear who imports the equipment. The VAT details stated on the invoice can be used to determine whether a product has been imported. If a company possesses invoices with foreign VAT or the zero rate of VAT, there will be an ‘import’ situation and the company may be regarded as the manufacturer for the purposes of these regulations. The scope of this definition extends to parallel importers, so they too are regarded as manufacturers within the meaning of the Decree. They have the same obligations as other manufacturers".
This definition makes the buyer the importer of goods
delivered FOB, because the buyer possesses invoices with foreign VAT or zero
rate VAT.
The explanatory memorandum makes clear that the “importer” is the party who
puts the product into free circulation. When delivery occurs FOB, this party
will be the buyer of the product, because he provides the product with a VAT
indication. The buyer brings the product into the European Union at the port of
destination. Moreover, the Customs documents will name the buyer as the
"importer". A forwarder or transport company that handles importation
will not be regarded as the importer.
Conclusion
Under the definition in the Decree, the
buyer must be considered the importer when goods are delivered under the FOB
condition of Incoterms.
Warranty and replacement goods
Remitted disposal levies cannot be reclaimed from NVMP Foundation for warranty
or replacement goods. It makes no difference how long after the time of sale
the appliances are discarded. However, the discarded appliances may be tendered
and processed under the collective system.
Disposal levy and bankrupt customers
The seller bears the risk of a customer not paying the disposal levy owing to
bankruptcy, because the levy will be part of the invoice payable by the
customer.
Auditing
NVMP Foundation has the right to
commission audits to determine whether all owed disposal levies have been
remitted and whether export refunds were received legitimately. A member
company is required to co-operate in these audits. The member company will be
liable for any extra expenses it incurs because of the audit.
Auditor's report
A member company must provide an auditor’s report to substantiate the
completeness of disclosed disposal levies if its invoiced levies exceed €22,000
on an annual basis. The report must be issued by an accountant qualified to
undertake audits of this kind.
All requests for export refunds must be accompanied by an auditor's report,
regardless of the size of the refund.
The accountant must prepare the report by means of the audit procedure
prescribed by NVMP Foundation and in the standard format for auditors’ reports.
The costs of obtaining an auditor's report are payable by the member company.
