The Impact of the Basel Convention on the ITAD Industry

What is the Basel Convention?

The Basel Convention is an international treaty that regulates the transboundary movement of controlled waste, including electronic waste (e-waste). The treaty now includes the Swiss-Ghana Amendment, passed in 2022, which intends to protect human health and the environment. Still, it poses several challenges for ITAD companies when it goes into effect on Jan. 1, 2025. Handling and managing the responsible recycling and disposal of electronics is challenging in any capacity, but the Basel Convention’s regulations will complicate operations. ITAD companies’ critical issues due to the Basel Convention include complex regulations, increased costs, shipment delays, and more.

1. Complex and Inconsistent Regulations

The Basel Convention sets strict rules on the movement of waste, which includes e-waste. However, each country interprets and enforces these rules differently. This needs to be clarified for ITAD companies that operate globally, as they must navigate varied regulations in different regions. The inconsistency in these regulations adds to the administrative burden for companies, making compliance more difficult.

For instance, ITAD companies may need to handle different consent processes or follow country-specific protocols that are only sometimes aligned, slowing down the overall process.

2. Ambiguous Definitions of “Waste” vs. Reusable Electronics

One of the main frustrations for ITAD companies lies in the ambiguity of the Basel Convention’s definitions. Many ITAD businesses work with used electronics that have resale value or can be refurbished. However, under Basel’s rules, these items may still be classified as waste, limiting their ability to move across borders.

This strict classification hinders circular economy efforts, as collected electronics in unknown conditions may be categorized as waste, preventing them from being refurbished and reused.

3. Higher Compliance Costs

Complying with the Basel Convention comes with significant costs. ITAD companies must provide extensive documentation and meet country-specific consent processes, certifications, and proof of disposal methods. These processes increase administrative and operational expenses, including:

• • Legal fees for navigating complex regulations.

• • Staff training to stay compliant.

• • Managing supply chain audits to ensure proper documentation.

These extra compliance requirements make it harder for ITAD companies to maintain profitability, especially for smaller businesses in the industry.

4. Delays in Cross-Border Shipments

Shipping e-waste or used electronics across borders can become lengthy under the Basel Convention, primarily due to the Prior Informed Consent (PIC) procedure. This process requires ITAD companies to notify and obtain consent from exporting and importing countries before any transboundary waste movement can occur. ITAD companies must secure special permits or approvals from multiple governments before transporting any e-waste or electronics for recycling.

The PIC requirement often results in delays as it involves thorough documentation and time-consuming coordination with authorities in different countries. These delays can be particularly problematic when transporting electronics for recycling, as they impact the timeliness of shipments and can reduce customer satisfaction. Slow approval processes under PIC can also disrupt the recycling supply chain, making it difficult for ITAD companies to adhere to timelines for clients expecting quick turnaround times.

Delays in obtaining PIC approval for cross-border movement can significantly slow down electronics recycling, ultimately impacting the ITAD company’s ability to meet customer expectations and maintain operational efficiency.

5. Limited Export Options for U.S.-Based Companies

The Basel Convention has strict rules prohibiting the trade of waste material between parties and non-parties to the convention. Unfortunately, for U.S.-based e-waste processors the United States is one of five U.N. countries that are not parties to the convention (along with Haiti, South Sudan, East Timor, and Fiji). As a result, the new rules will become an effective trade ban for e-waste materials and almost all non-OECD countries (the OECD countries are proposing special regulations to allow continuing trade relations with the United States).

For ITAD companies based in the United States, this could result in substantial negative price pressure on commodity streams is generated by the downstream e-scrap processes.

6. Impact on Circular Economy Initiatives

Many ITAD companies support a circular economy by promoting the reuse and refurbishment of electronics. However, the Basel Convention could limit their ability to move reusable electronics across borders. Even when the equipment is still functional, it can be classified as waste, restricting exports.

This regulatory challenge could make it difficult for ITAD companies to keep electronics in circulation for extended periods. Consequently, the regulations encourage wasteful disposal methods instead of promoting sustainability through reuse.

7. Lack of Flexibility in Basel Regulations

Finally, many ITAD companies feel the Basel Convention must reflect modern technology and asset disposition nuances. For example, advanced recycling technologies allow the safe reuse of particular electronics, but the Convention often classifies these items as waste. Unfortunately, the current framework offers little flexibility for case-by-case assessments, limiting the potential for reuse.

The Need for Reform

In summary, while the Basel Convention is designed to protect the environment, it presents significant challenges for ITAD companies. Complex regulations, high compliance costs, and limited export options make it difficult for these companies to operate efficiently. Furthermore, the Basel Convention’s restrictive definitions hinder efforts to support a circular economy.

To help ITAD companies contribute to sustainability while remaining profitable, there is a need for more flexibility and clarity in Basel’s regulatory framework. Without reforms, ITAD businesses will continue to face frustration, higher costs, and challenges in promoting responsible e-waste management.