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What’s Trending In Compliance In July 2023

Jul 24, 2023 What’s Trending In Compliance In July 2023

At Compliance & Risks we help manufacturers, retailers and their supply chain partners to monitor and manage global regulations via C2P, our compliance knowledge management platform.

These are some of the top trending compliance topics that generated the most interest globally for July 2023.

1. EU: Batteries and Waste Batteries Regulation, July 2023

On 10 July 2023, the EU Batteries and Waste Batteries Regulation was adopted. The Regulation strengthens sustainability rules for batteries and waste batteries and will regulate the entire life cycle of batteries to ensure their safety, sustainability and competitiveness. 

The Regulation will apply to all batteries, including all waste portable batteries, electric vehicle batteries, industrial batteries, starting, lightning and ignition (SLI) batteries and batteries for light means of transport (e.g. electric bikes, e-mopeds, e-scooters). 

The regulation prescribes end-of-life requirements, including extended producer responsibility, collection targets and obligations, as well as targets for the recovery of materials. 

Targets for producers to collect waste portable batteries are set at:

  • 63% by the end of 2027, and 
  • 73% by the end of 2030

Collection objective for waste batteries for light means of transport is set at:

  • 51% by the end of 2028, and 
  • 61% by the end of 2031

The target for lithium recovery from waste batteries is: 

  • 50% by the end of 2027, and 
  • 80% by the end of 2031 (can be amended through delegated acts depending on market and technological developments and the availability of lithium).

As per the Regulation, mandatory minimum levels of recycled content for industrial, SLI batteries and EV batteries are initially set at 16% for cobalt, 85% for lead, 6% for lithium and 6% for nickel. Batteries will require a recycled content documentation.

The Regulation also sets a recycling efficiency target for nickel-cadmium batteries at 80% by the end of 2025, for other waste batteries the target is set at 50% by the end 2025.

By 2027 portable batteries incorporated into appliances should be removable and replaceable by the end user. Light means of transport batteries will need to be replaceable by an independent professional.

The new Regulation introduces labeling and information requirements (applicable from 2026) and an electronic “battery passport” and a QR code (applicable from 2027).

Furthermore, the Regulation prescribes tight due diligence rules for operators who shall verify the source of raw materials used for batteries placed on the market. An exemption from the due diligence rules is provided for SMEs.

The Regulation will enter into force 20 days following its publication in the Official Journal of the European Union. 

2. EU: Machinery Regulation 2023/1230

The EU Machinery Regulation lays down health and safety requirements for the design and construction of machinery, related products and partly completed machinery to allow them to be made available on the market or put into service while ensuring a high level of protection of the health and safety of persons, as well as domestic animals and property, and, where applicable, of the environment. It also establishes rules on the free movement of products within the scope of the Regulation in the EU.

Compared to the Machinery Directive 2006/42/EC, the new Regulation provides more clarity on the products in scope and redefines the essential health and safety requirements for machinery, taking into account digital transition and risks arising from new technologies.

The Regulation applies to machinery and the following related products:

  • Interchangeable equipment;
  • Safety components;
  • Lifting accessories;
  • Chains, ropes and webbing;
  • Removable mechanical transmission devices.

The Regulation also applies to partly completed machinery.

The Regulation requires manufacturers, when placing machinery and related products on the market or putting them into service, to ensure that they have been designed and constructed in accordance with the essential health and safety requirements set out in Annex III of the Regulation. 

Third-party conformity assessments are mandatory for six categories of “high-risk” machinery.

The Regulation came into force on 19 July 2023 and will become applicable from 20 January 2027.

3. China: Compulsory Product Certification of Electronic Equipment and Safety Accessories, Implementation Rules CNCA-C09-01, 2023

On 30 June 2023, the Certification and Accreditation Administration of China (CNCA) published rules for the compulsory product certification of electronic products and safety accessories. 

The Rules apply to: 

  • TV set-top boxes; 
  • Microcomputers; 
  • Portable computers; 
  • Display devices for use with computers; 
  • Printers connected to computers; 
  • Multi-purpose printers and copiers; 
  • Scanners; 
  • Servers; 
  • Fax machines; 
  • Mobile user terminals; 
  • Power supply; 
  • Power banks; 
  • Lithium-ion batteries and battery packs. 

Applicable certification standards are listed in Article 2. For type I and II equipment, type testing and post-certification supervision are required to be conducted. The post-certification supervision comprises follow-up inspections, sample inspections at the production site and inspections of market sampling. 

The certification commissioner should attach the certification mark to the certified products in a conspicuous manner. For lithium-ion batteries constrained by size, it is permissible to print/mold the “CCC” abbreviation in a font size suitable for the external dimensions of the batteries. 

Product certification certificates covered by these rules are valid for a period of 5 years. 

The rules enter into force on 1 August 2023.

4. Indonesia: Energy Conservation, Regulation No. 33, 2023

On 16 June 2023, the Indonesian Ministry of Energy and Mineral Resources published a regulation on energy conservation. 

The regulation aims to create a systematic and integrated effort to preserve domestic energy resources and increase the efficiency of their utilization. The regulation is implemented at all stages of energy management which includes the upstream management and downstream management. The upstream management would be implemented by conserving energy resources based on the laws and regulations. Whereas downstream management is the energy management stage which includes energy supply and energy utilization activities. 

The energy utilization activities consist of the following sectors: 

  • Transport;
  • Industrial;
  • Household;
  • Building. 

The downstream management would be carried out through the following practices: 

  • Energy management; 
  • Energy performance standards and energy-saving signage labels; 
  • Energy conservation financing;
  • Development of energy conservation services; 
  • Raise awareness on energy conservation; 
  • Increase the capacity of human resources for the implementation of energy conservation; 
  • Research and development;
  • Compliance with energy conservation provisions.

In addition, the government would encourage the implementation of energy conservation by providing: 

  • Incentives, disincentives and provide access to appropriate facilities; 
  • Access data and information in the implementation of energy conservation; and 
  • Conduct training and guidance on supervision. 

The regulation entered into force on 16 June 2023 and at the same time, it repealed regulation No. 70 on the same matter. However, regulation No. 70 remains valid for the implementation of energy conservation for energy management until the end of the reporting period which is conducted once a year and the provisions of regulation No. 70 still apply as long as it does not conflict with the provisions of regulation No. 33.

5. China: Catalogue of Strictly Restricted Hazardous Chemical Substances (2023 Edition), Draft Announcement, June 2023

On 16 June 2023, the Chinese Ministry of Ecology and Environment proposed a draft announcement on the catalogue of strictly restricted hazardous chemical substances (2023 edition). The draft announcement proposes to revise the catalogue of the 2020 edition. 

Annex 1 to the proposed Announcement lists the strictly restricted chemical substances with their names, CAS numbers, custom numbers, control categories and permitted usage.

Importers and exporters are required to obtain a clearance notification for environmental management on the import and export of toxic chemicals before importing or exporting the listed chemical substances. The procedures and requirements for application for import and export are provided in Annexes 2 and 3. 

Annex 1 proposes to list 9 categories of substances: 

  1. Perfluorooctane sulfonic acid, its salts and perfluorooctane sulfonyl fluoride (PFOS category);
  2. Mercury;
  3. Tetramethyllead;
  4. Tetraethyllead;
  5. Polychlorinated terphenyls (PCT);
  6. Tributyltin compounds;
  7. Short-chain chlorinated paraffins (SCCPs);
  8. Decabromodiphenyl ether; and
  9. Perfluorooctanoic acid, its salts and related compounds (PFOA category). 

Annex 2 proposes to clarify the instructions for processing the notification of environmental management clearance for the import of toxic chemicals. 

Annex 3 proposes to specify the instructions for handling the notification of environmental management clearance for the export of toxic chemicals.

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This information is based on the most viewed regulations on C2P this month. If you would like to see C2P in action, join us for a bite-sized high-level demo to witness the true power behind C2P.

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