Taiwan: Mandatory product take-backs

Recycling of non-PET containers, used tires, used cars and motorcycles, lubricant oils, batteries, televisions, air conditioners, refrigerators, washing machines, and computers and computer accessories in Taiwan is accomplished through a system of mandatory product take-backs.

As materials became subject to the recycling requirements, the relevant industries established separate recycling systems. The Waste Disposal Act, as implemented by TEPA, required all responsible businesses to join a third party recycling organization. As a result, industry

created numerous recycling organizations that had various organizational structures and were often unregulated by the government. Sometimes industry created multiple organizations responsible for the same materials. TEPA considered this system inefficient and ineffective and in 1997 divided the materials subject to mandatory recycling requirements into eight categories and established a quasi-governmental Resource Recycling and Management Fund and management council for each category. All producers and importers were required to submit bi-monthly reports containing actual sales data for the previous two months and pay processing fees to a designated fund. In July 1998 TEPA merged all the recycling funds into a single Resource Recycling and Management Fund, overseen by a newly created Recycling Fund Management Committee. The recycling fees for each product category are shown in Table 9.

Under the current system, independent auditing groups selected by TEPA set the recycling fees annually based on material value and the recycling rate in the previous year. Funds paid into the recycling fund are used as reimbursements of industry's costs for auditing certification and recycling. The remainder of the fund is transferred to the national government.

Consumers must drop off materials subject to the take-back requirements. Supermarkets and chain stores are required to establish collection points for waste containers that bear the official recycling logo (see further details in the Eco-labeling section below). Under Taiwan's take-back system for computers, TVs, refrigerators, washing machines, and air conditioners, retailers must accept these used items from customers, regardless of when the item was sold. 13

Taiwan is considering modifying its take-back system. TEPA has drafted the Resource Recycling and Reuse Act, which would replace the Waste Disposal Act. Under this proposed new law, the overall recycling system would remain similar to the current system, including fees for designated recyclables and use of a recycling fund. However, enterprises with their own take-back programs in place may choose to pursue recycling independently, and those with good recycling achievements may reduce or be exempt from recycling fees. 14

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