The Brazilian electronic products market is currently one of the largest in the world and shows no signs of slowing down. In this article we will look at how electronic waste is managed in Brazil.

According to recent data, the average Brazilian consumer spends more than USD 1000 a year on electronic products, the second highest sum in the world, only toppled by China. The electronics manufacturing sector revenue accounted for 3% of the country’s GDP in 2013 or BRL 156 billion.

With more Brazilian citizens having access to electronic products every year, it is most likely that Brazil will soon reach world-leading levels of electronic device consumption. While this might seem an auspicious prognostic for Brazil’s economy, one aspect of this scenario remains intriguing. Increased consumption of electronic devices means more products in the hands of the population and subsequently more waste material. In the same way that sales for technological devices rise continuously, the amount of electronic waste in the country grows steadily each year.

The dire consequences for huge amounts of technological waste littered on the environment are obvious, but so are the thriving economic opportunities of generating alternative paths for those unwanted objects. Material composition and refurbishing value of e-waste make the tons of silicon and plastic discarded by the population each day turn from a hassle to a environment-friendly money generating business waiting to be uncovered.

A recent surge of electronic waste management companies in Brazil shows that this is a market that is beginning to find its ground and very much capable of generating significant results in upcoming years.

Cultural aspects of e-waste treatment in Brazil

The Brazilian population handles e-waste in ways that may present challenges for a nation-wide management program to be established. Recent research by the Global Intelligence Alliance shows that more than a third of the e-waste produced is kept at home, while around 50% is either sold or donated with only about 7% being discarded.

Regulation for national manufacturers and importers also face the challenge that most of the electronic sectors are deeply influenced by grey-market products.

The Brazilian market for Electronic Waste

E-waste management in Brazil is handled in different ways, such as:

• Manufacturers and distributors that operate reverse logistics for their own products
• Repair shops and refurbishers that sell second-hand products
• E-waste recycling companies that dismantle products and material

The paths for discarded electronic products in Brazil are varied and end up in multiple steps of the production process, which make the total size of the market difficult to assess, just as the high number of unregulated companies operating on a local scale.

Some of the manufacturers with the largest reverse logistics operations for their products include:

• Philips: The electronic products manufacturer in conjunction with the recycling company Oxil, now owned by Estre, established a reverse logistics program in 2008 to recycle wasted Philips products across the country. The program also includes association with local service centers that gather malfunctioning electronics before shipping them to recycling plants. They also started to accept used batteries in 2010
• Dell: The computer manufacturer started a takeback program in 2006, which offers free recycling of all their products
• HP: The hardware giant receives its used ink cartridges in multiple associated stores and recycles them for free
• Itautec: The Brazilian hardware manufacturer recycles and repurposes e-waste sent to their recycling plant which also receives recyclable material like plastic packaging and cardboard
• Mobile operators: All major mobile phone operators in Brazil – Vivo, Claro, Tim and Oi – offer recycling programs for used cell phones free of charge

Players in the Electronic Waste market in Brazil

Refurbishers

There are an estimated 10,000 repair shops and refurbishers in Brazil. These are usually small businesses that feed products to the grey market and keep wasted products in circulation. The high number of unregistered shops makes the size of this market sector hard to estimate.

Some of the larger e-waste refurbishers and IT reverse logistics companies in Brazil include:

• IB-Remarketing: Refurbishers and recyclers of global IT components
• TEL-NT: Resellers of IT and Telecommunication equipment
• IT Recovery Value: Brazilian IT remarketing company founded in 2006
• Arrow: North American hardware distributor operates reverse supply chains

Recyclers

Recycling and reverse logistics companies in Brazil usually provide service to other companies that establish sustainability programs and to environmentally-aware customers. Some of the largest companies in Brazil are:

• Descarte Certo: Part of the Ambipar group, the company receives a range of electronic and electrical appliances ranging from refrigerators to cell phones. They are associated with supermarket chains, insurance companies and other institutions that collect recyclable material
• Estre: Waste treatment company that started building landfills and now operates multiple reverse logistics and recycling services
• Lorene: E-waste buyer and exporter, founded in Brazil in 1997 and now operates in multiple cities in and outside of Brazil
• Belmont Trading: North-American e-waste disassembly and management company that operates two locations in Brazil
• Coopermiti: Electronic waste management organization associated with the São Paulo city government. Started activity in 2010
• Vertas: Founded in 2009, electronic waste management solutions company operating in Mauá, São Paulo
• RecicloMetais: Electronic material dismantling company located in São Paulo. Processes many products such as television devices, computer monitors, lamps and cables
• Ativa Reciclagem de Materiais: Material purification and separation company specializing in lamps and monitors. Located in Guarulhos
• Recicladora Urbana: Waste management and reverse logistics services company based in Jacareí and associated with the North American asset manager TBS industries
• Ecobraz: E-waste collection.  Non-government organization that operates in São Paulo, Campinas and Sorocaba
• Indústria Fox: The first company in Latin America to offer recycling services for refrigerators and freezers. Currently specializing in theses services
• WN Recicla: Computer hardware, mobile phones and other electronic devices disassembling company. Has been active for more than 25 years
• Umicore: Global battery material supplier and recycling company
• SIR International Corp: Company focused on waste management and environmental solutions. Operating for more than 10 years
• San Lien: Recycler and reverse manufacturer based in São Paulo. Processes computer hardware, telecommunication devices and other electronic materials

A recent study by the Brazilian Industrial Development Agency lists 94 e-waste management companies in activity in Brazil. This number, however, may include multiple offices of the same company.

It is also important to note that most companies in Brazil do not present the capacity to process high-technology equipment, such as LCD displays and circuit boards and export this material to facilities abroad. In 2011, Brazil exported around 21,5 thousand tons of primary e-waste recycling material like iron and plastic derivatives.

Outlook and Estimated Growth for Electronic Waste in Brazil

The vast majority of the waste produced in Brazil is not treated and goes directly to landfills across the country, whilst a certain amount of material is directed to recycling. The Catadores, or scavengers, play an important role in the separation of recyclable material in Brazil by directing huge quantities of highly valuable material, such as aluminum, back into the supply chain.

E-waste in Brazil is mostly directed to recycling plants where house appliances, computers, cell phones and all kinds of unusable devices are reduced to basic industry materials like plastic and metals, then supplied to primary levels of industrial productions.

Brazil’s estimated production of electronic waste in 2012 was 1.4 million tons, while 2 million tons of new electronics were put into the market. Brazil is the largest producer of e-waste in Latin America.

Laws regulating Electronic Waste in Brazil

Brazil spent most of its recent years without a proper law regulating waste management, until a project was introduced in 1991 which spanned the treatment of garbage across the whole country. This law would not be approved until 2010, when it was put into action as the National Solid Waste Policy, or PNRS.

The multiple directives of PNRS included ceasing all open-air garbage dumps and the installation of landfills to receive all untreatable waste. All waste with applicable separation and recycling treatment, on the other hand, must be directed to the designated recycling facilities according to this law.

To achieve success in the massive operation of transportation and waste, the regulations of PNRS divide responsibilities between citizens, municipalities and private companies. Citizens must primarily initiate the waste treatment by separating different materials while municipalities are responsible for establishing the correct transportation and destination for them.

Product manufacturers and distributors, according to PNRS, are required to offer Reverse Logistics operations for their products. This has created a demand for a logistics chain that is able to collect end-of-life-cycle, unusable, and therefore necessarily recyclable products, and transport these products to the correct facilities.

Regulations for Manufacturers

PNRS regulation covers the products of many manufacturing sectors in Brazil, including agrochemical products, tires, fluorescent lamps, batteries, lubricant oil and electronic devices.

The electronic device sector is divided into four main color-divided guidelines:

• White: Large electrical home appliances, such as refrigerators, ovens, air-conditioners and washing machines
• Blue: Small home appliances, such as food mixers, microwave ovens and drillers
• Brown: Home audio and video equipment, such as TV’s, DVD players, PC monitors and cameras
• Green: Computer hardware and mobile devices, such as desktops, notebooks, cell phones and printers

PNRS establishes that all the manufacturing sectors must apply reverse logistics programs to their products or institute multilateral agreements with local governments to give the correct destination for their products.

There are currently no plans to put sector-wide reverse logistics plans into action, but proposals for each sector are being deliberated by the Brazilian Electro Electronic Industry Association, or ABINEE, and the National Electro Electronic Manufacturer Association, or Eletros.

PNRS also states that retailers and distributors must serve as collecting points for products and ship them to the manufacturers. The cost for the transportation, according to the law, must be the responsibility of each player in the process and not charged to the consumer.

Total costs for e-waste management in Brazil according to PNRS

The total cost for national operations of reverse logistics and recycling planned by PNRS will be funded by private citizens, local governments and companies. The costs for this operation are expected to rise significantly over the coming years according to the Brazilian Ministry of Development, Industry and Foreign Trade.

By 2017, the total costs for waste management operations are expected to reach around BRL 494 million. Predictions indicate that much of the total cost will come from the transportation of waste, around BRL 160 million, and processing, which is expected to account for BRL 156 million.

It is also important to note that around half of the estimated costs are related to compensation for  private companies operating directly with e-waste management.

E-waste Import and export regulation

International trade and disposal of hazardous wastes follows the guidelines of the Basel Convention. The agreement, which was put into action in 1992, was created to prevent the movement of large quantities of dangerous waste material to less developed countries and currently regulates international movement of e-waste and ship dismantling.

The Brazilian Environment and Natural Renewable Resources Institute, or IBAMA, regulates the entry and exit of all e-waste material for Brazil.

Import of Electronic Waste to Brazil

Waste material can be imported to Brazil only if it is destined for recycling, is not hazardous, and the country of origin is a member of the Basel Convention.

There are multiple steps for companies to acquire certification to import waste material, which are divided into three phases.

Phase I

Inclusion on the Federal Technical Registry, or CTF, on the IBAMA website. The company must register itself in the correct category of operation of waste material, which includes:

• Trading of Chemical and Hazardous Products
• Transportation of Hazardous Materials
• Storage of Chemical and Hazardous Materials

Companies must also hold an Operation License. This can be obtained at the end of a process that includes applying for a Previous License in the planning stages of the operation, which involves sending IBAMA an environmental impact analysis study and applying for an Installation License, you will also need to present a Basic Environmental Plan that describes the plan of action to minimize the environmental impact.

Additionally, companies must be on par with the payment of the Environment Control and Surveillance Tax, or TCFA and declare the Annual Potentially Polluting and Environment Resources Consuming Report, or RAPP.

Companies should receive a Certificate of Registration with CTF at the end of this process.

Phase II

National agencies from exporting companies’ countries must send completed copies of the Notification and Movement Documents found on the Basel Convention website. These documents detail the nature of the transported material, its correct handling and details its destination.

An Analytical Laboratory Residue Opinion must also be provided. This document describes the lab testing of materials following regulations set by the Brazilian Technical Standards Association, or ABNT, which specifies specific testing for multiple types of materials and substances.

Phase III

Once these documents have been provided, companies can proceed to import material following the normal import process with an Importing Licence emitted by the Foreign Trade Integrated System, or Siscomex, from the Brazilian Ministry of Development, Industry and Foreign Trade. The process is explained in greater detail in the article, How to import anything into Brazil.

Export of Electronic Waste from Brazil

Any material can be exported from Brazil, provided there are no legal restrictions in the importing country. Hazardous materials must comply to the Basel Convention directives and follow a two-step process established by IBAMA which includes many of the same steps of registering and documentation as the importing process.

Phase I

Inclusion on IBAMA’s CTF and registration in one of the following categories:

• Trading of Chemical and Hazardous Products
• Transportation of Hazardous Materials
• Storage of Chemical and Hazardous Materials

Companies must also hold an Operation License, be on par with the payment of TCFA and have declared RAPP to be granted a CTF Certificate of Registration.

Phase II

The Basel Convention Notification and Movement Documents must be signed and sent to IBAMA alongwith:

• A contract with the destination company
• Insurance
• Financial Warranty, if required by receiving country

Phase III

An Exporting License from the Brazilian Ministry of Development, Industry and Foreign Trade’s Siscomex must also be emitted and a copy delivered to IBAMA. This process is explained in more detail in the article How to export from Brazil.