IT-Silkroad

[Requirements and Manual of Procedures]

- Focusing on EU Ecolabel-

■ Overview

ㅇ The Eco Label in EU is an indication of environmental excellence awarded to products and services that meet high environmental standards throughout the process, from raw material extraction to production, distribution and disposal and has been implemented since September 24, 2000.

ㅇ The EU Eco Label or "Flower Logo" is the European Union's official mark given to products with the lowest environmental impact in the product range. It is the purpose of this mark to support and encourage customers to identify products that contribute significantly to improvements in terms of key environmental aspects.

ㅇ The EU Eco Label promotes the cyclical economy by encouraging producers to produce less waste and CO2 during production. The EU Eco Label criteria also encourages companies to develop products that are durable and easy to repair and recycle.

ㅇ EU Eco-label criteria provide strict guidance to companies seeking to reduce environmental impact and ensure the efficiency of environmental activities through third-party controls. Many companies also use EU eco-label criteria as guidelines for eco-friendly best practices when developing product lines.

ㅇ The company voluntarily decides whether to participate in the EU Ecolabel scheme. This means that the product can be sold in the EU market without the flower logo, and it is an arbitrary certification system that does not require the application of the eco label.

Object of certification, criteria, conditions and labeling of eco labels will be focused on in the followings.

■ Related Institutions and Relevant Statutory Provisions

☉ Related Institutions

ㅇ EUEB; European Union Eco-labelling Board

☉ Relevant Statutory Provisions

ㅇ Regulation (EC) No.1980 / 2000 of the European Parliament and the regulations related to eco labeling (OJ L-237 of 21/09/2000) of the Community Committee on July 17, 2000.

ㅇ European Parliament and Council Regulation (EC) No.66/2010 (OJ L-27 30/01/2010) (CELEX 32010R0066) of EU Ecolabel on 25 November 2009

■ Certification Implementation and Object

ㅇ EU ECO label has certification criteria for refrigerator, washing machine, TV, PC, detergent, clothing, furniture, light, paper, hotel and so on and there are 855 products of 375 companies in 28 countries using EU Flower certification

ㅇ It is a system to compare the environmental impact of other products in the same product group to achieve environmental impact reduction of products and to provide scientific and accurate information of products to consumers.

ㅇ It applies to manufacturers, importers, and service providers. Wholesalers and retailers are also possible, but they can apply for products with their own brand name.

ㅇ The ECO labeling system in the EU is not a mandatory certification system but an arbitrary certification system. The scope of certification is the products and services for which the standards are established by the EU Eco Label Committee, such as cleaning products, electronic products, paper products, household products and clothing.

■ Applicable Objects and Criteria

ㅇ The EU ECO label applies to products and services for which the criteria are established by the EUEB (European Union Eco-labeling Board), such as cleaning products, electronics, paper products, home and garden, clothing, etc.

ㅇ Eco-labeling is permitted only for products for which the criteria are established and does not apply to products produced by processes that are harmful to food, beverages, pharmaceuticals, medical devices, humans and the environment.

ㅇ The eco labeling criteria are set by the EU Eco Label Working Group (EUEB), which includes all stakeholders related to the products for label standard, including producers, consumers, environmental groups, importers, distributors and government agencies.

ㅇ The EU Eco Label Committee (EUEB) is reviewing additional criteria for office buildings, sanitary products, and video equipment in order to expand the scope of Eco Label applications.

■ Conditions of Eco Label Certification

ㅇ General criteria for receiving eco-label certification

- Popular products mass-produced   

- should not have a significant impact on the environment during production or use   

- Manufacture in an environmentally friendly manner

ㅇ It is based on the environmental impact of the product and determined by scientific criteria considered throughout all process of the products.

- Specific environmental impacts such as climate change, natural and biodiversity, energy and resource consumption, waste generation, substances released into the environment, pollutants resulting from physical effects, use and release of hazardous substances

- Substitution of harmful substances

   - Potential to reduce environmental impact

   - environmental benefits including human health and safety aspects and net environmental balance in environmental burden

   - Social and ethical aspects through the establishment of international criteria such as ILO standards

   - Criteria established for other environmental labels

   - Criteria for reducing the performing animal experiments

■ Eco-Labeling

ㅇ The following labels are attached only to products that comply with EU Eco-label criteria.

<EU Ecoflower＞

ㅇ Attaching optional label

- According to the choice of the obligor, it is possible to attach an optional label with the three main environmental characteristics of the product as shown in the figure below, and fill in "text specified in with criteria" as an additional matter.

ㅇ Attaching EU Eco-label registration number (example)

ㅇ Validity date of Eco label certification

- Generally 5 years but applied differently depending on the product

■ Follow-up of Eco Label

ㅇ After receiving eco-label certification, investigate compliance with certification standards of eco-label certified product to secure consumer confidence in certified products using eco labels

ㅇ Environmental of environment mark certified products and whether to maintain certification standards for quality

ㅇ Whether the indication of the environment mark or the content of the advertisement is proper and compliance with design labeling regulations

ㅇ Investigate unauthorized use of environment mark

ㅇ In case of distributing products attaching an environment mark without the environmental mark certification

ㅇ In case of distributing products attaching an environment mark which is expired

■ Eco Label Certification Authorities

ㅇ Companies wishing to apply for an EU Ecolabel certification may be able to advise competent certification authorities in their Member States on questions related to the application of the EU Ecolabel. Prospective applicants must contact the jurisdiction of the Member State in which they manufacture and sell the product or the country where your service is located. It is a good idea to choose a certification authority that belongs to the EU member states in which the products of the exporter are placed on the market.

■ Eco Label Certification Procedure

To apply for an EU Ecolabel, you usually go through the following seven steps:

ㅇ Step 0: Advance Application: Understanding EU Ecolabel

ㅇ Step 1:Apply to a certification authority in the manufacturing or distribution area.

ㅇ Step 2: Register products and services for the EU Ecolabel catalog, ECAT

ㅇ Step 3: Test products and services for application service documentation

ㅇ Step 4: Application and pay fee

ㅇ Step 5: Evaluation

ㅇ Step 6: Application approval and license bonus

ㅇ Step 7: Communicate your EU Ecolabel products and services

■ Application Fee for Eco Label Certification

ㅇ Application fee

- The certification Authority estimates the fee incurred by performing the eco-label certification of the product.

- Basic certification fee is estimated at EUR 200 ~ 2,000

- Estimate EUR 200 to 600 for SMEs in developing countries

- Estimate EUR 200 to 350 for micro enterprise

- 30% discount for companies certified by EMAS

- 15% discount for companies certified to ISO 14001

ㅇ Annual fee, EURO Dollar

- The certification authority shall not exceed 0.15% of EU sales per year for the use of the label for products with the label attached

- Up to 18,750 ~ 25,000

- 25% discount for developing countries and small businesses

- The annual cost calculation is starting from the time the label is affixed to the product.

■ Customs Clearance

☉ Customs Clearance for Eco-abel Certified Products

ㅇ Ecolabel certification is an arbitrary certification system unlike mandatory certification system. It is an arbitrary certification system for EU consumers to provide information on eco-friendly products and encourage the consumption of eco-friendly consumer products and separate procedures are not required, such as submitting a certificate for import clearance.

☉ Procedures of Customs Clearance

ㅇ The process of import customs clearance in the EU basically pass through the following procedure according to the logistics flow.

① Submitting Pre-Import Declaration (ENS):

ENS (pre-import declaration) must be submitted 24 hours before shipment of marine transport and 4 hours before arrival of air transport and 1 hour before arrival of road transport through the entry management system (ICS) of the customs office at the first port of entry

② Arrival of Imported Goods:

The customs authorities examining the contents of the ENS (pre-import declaration) will issue an Arrival Notice if it is determined that there is no risk of cargo, and if it is determined to be a high risk item, a prohibition against shipping also can be taken.

③ Apparatus / Customs Presentation of Goods:

When the imported goods arrive at the port, they must be temporarily placed under customs control and presented to customs.

④ Import Declaration (Standard Declaration and Simple Declaration):

Standard import declaration must be made to the competent customs office using the Single Administrative Form (SDA) within 3 hours after the cargo arrives.

⑤ Inspection of Document/Articles and Confirming Import Requirements:

The Customs shall check the accuracy of the import declaration contents including the quantity, amount, HS classification, and proof of origin of the goods and whether the import requirements of each item are fulfilled and request additional documents, inspect documents and carry out spot inspection if necessary.

⑥ Payment of Customs Duties:

The customs duty is paid to the customs office of the first port of entry where the import declaration is made, and the value added tax (VAT) is paid to the destination country.

⑦ Taking Out for Free Distribution:

If payment of duties, etc. and all other import requirements are met, the goods can be taken out for free distribution.