Appliance recycling new regulations increase production costs

From January 1, five types of products, including TV sets, air conditioners, refrigerators, washing machines, and microcomputers, became the first batch of products to be recycled and dismantled according to national standards.

It is reported that from this year onwards, the country will set up a special fund for the collection and recycling of electrical and electronic products that are included in the standardized management catalog. Producers and import agents of related products will bear the fund's payment obligations. This means that part of the funds recovered from home appliances will have to be "purchased by the manufacturer."

At present, the details of the specific methods for handling funds have not yet been introduced. According to the “Principle and Level of Levy of Waste Electrical and Electronic Product Handling Funds” issued by the National Development and Reform Commission, the standard for recycling processing costs will be the highest for computers, which is 13-15 yuan per unit; refrigerators and televisions are closely followed by 10- 12 yuan / Taiwan; air conditioning, washing machine is 5-7 yuan / Taiwan.

The cost of processing is borne by the manufacturer and an additional cost will be incurred in the manufacturing cost. Whether this part of the cost will be passed on to consumers or not, will the implementation of the “Regulations” lead to “higher prices”?

Although the cost increase is a foregone conclusion, in the interview, local home appliance manufacturers mostly stated that the recovered money will not be added to the retail price.

A person in charge of an electrical appliance manufacturer in the Wuhan Development Zone said: "The price war has become more intense. We are reducing costs and retail prices through technological innovations, and will not pass on the recycling costs to consumers."

The reporter learned from some home appliance stores in Wuhan that New Year's Day stores are scrambling to do promotions. The store side stated that from the New Year's Day to the Spring Festival period, home appliances will not raise prices.

The industry generally believes that the processing fee does not account for a large proportion in the price of home appliances, and the competition in the household appliance market is very fierce, and manufacturers must raise prices, and I am afraid that we must “measure the quantity”.