Sweden Reduces Exposure to Hazardous Chemicals in Electronics with New Tax

Sweden has introduced a new tax on certain chemicals in EE products. The new law aims to reduce exposure to hazardous chemicals. End Quote

(1888PressRelease) April 06, 2017 - Sweden has enacted a new law, 2016:1067, to levy tax on certain chemicals in electrical and electronic products (EE). The new tax is designed to reduce the general public's exposure to the hazardous substances contained within electronics.

The new law affects several domestic items, including:
1. Refrigerators and Freezers
2. Dishwashers
3. Washing machines
4. Drying machines
5. Computers
6. Vacuum cleaners
7. Cookers, including microwave ovens
8. Telephones and relevant data apparatus, excluding base stations
9. Audio equipment, including telephone answering machines
10. Video equipment
11. Radios
12. Monitors, including televisions
13. Gaming consoles

The new law introduces two levels of taxation, depending upon the type of product. From the list above, categories 1-4, 6 and 7 will be taxed at SEK 8 per kilogram of the net weight of the taxable good, to a maximum of SEK320 per taxable good. The remaining categories, 5 and 8-13, will be taxed at SEK 120 per kilogram of the net weight of the taxable good but will not exceed SEK 320 per taxable good. Stakeholders should be aware that tax will be calculated by rounding down the net weight of the good to the nearest full gram.

The new electronics law also contains two options for reducing tax liability by either 50% or 90%, depending upon the proportion and type of substance. Products containing flame retardants with bromine or chlorine compounds at levels below 0.1 weight percent of the homogenous material, will receive a 50% reduction in tax. To reduce the tax by 90%, the homogenous material must contain less than 0.1 weight percent of bromine, chlorine, or phosphorus compounds in flame retardants and less than 0.1 weight percent of bromine or chlorine compounds in reactive flame retardants. Within the application of this act, these compounds will be considered incorporated either by physical mixing or chemical reaction, unless the stakeholder can demonstrate to the tax authorities that they are incorporated in another way.

The law also contains an exemption for EE products sold directly to a Swedish customer from a foreign seller. In these cases, Swedish Customs will decide upon the tax liability using Customs Act 2016:253.

The new law 2016:1067 came into force on April 1, 2017, and tax liability will become applicable on July 1, 2017. This Swedish tax on chemicals should be seen as complimenting EU regulations, with an aim of reducing exposure to hazardous chemicals for Swedish citizens.

Stakeholders should be aware that it is the intention of the Swedish Government to widen the scope of the law to include a greater range of consumer products and hazardous substances.

SGS Household Appliance Services
SGS supports manufacturers, distributers and retailers of household electrical products through the entire supply chain - from design to shipment. Their tailored services help companies stay abreast of technological, regulatory and market developments and can help stakeholders achieve compliance with Electrical & Electronics regulations covering product safety, EMC, hazardous substances (RoHS, REACH, SVHC etc), energy efficiency, Ecodesign, ErP, Performance and Reliability, as well as with many other consumer product related requirements. Learn more about SGS's Household Appliance Services. (www.sgs.com/en/consumer-goods-retail/electrical-and-electronics/audio-video-and-household-appliances)

SGS SafeGuardS keep you up to date with the latest news and developments in the consumer goods industry. Read the full Sweden Introduces Tax on Certain Chemicals in Electronics Law, 2016:1067 SafeGuardS. (www.sgs.com/en/news/2017/03/safeguards-04417-sweden-introduces-tax-on-certain-chemicals-in-electronics-law)

Subscribe here, www.sgs.com/subscribesg, to receive SGS SafeGuardS direct to your inbox.

For further information contact:
Jason Xuan
Technical Supervisor, EET RSTS
Tel: +86 21 61402660
Email: cts.media ( @ ) sgs dot com
Website: www.sgs.com/ee

About SGS
SGS is the world's leading inspection, verification, testing and certification company. SGS is recognized as the global benchmark for quality and integrity. With more than 90,000 employees, SGS operates a network of over 2,000 offices and laboratories around the world.

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