Electronic Toy Recycling in ,

Presented by: Al Kaufman (TIA) on behalf of David Smith Senior Compliance Manager, LEGO Systems, Inc. Board Member, CBRSC www.CBRSC.ca 1 British Columbia Environmental Management Act Recycling Regulation - Electronic Toys Phase 5

All who place an electronic toy into BC are obligated to comply. Effective Date: 1 July 2012

• It is now provincial law to collect and recycle electronic toys • Producers of Electronic Toys are prohibited from selling products without an approved “Product Stewardship Plan” • The plan must comply with the requirements of the British Columbia Recycling Regulation • Producers can designate their obligation to a Stewardship Agency • All producers must either show membership in a recognized plan OR register a new plan with the BC Ministry of the Environment

www.env.gov.bc.ca/epd/recycling

2 British Columbia Environmental Management Act Recycling Regulation - Electronic Toys Phase 5

3 What’s Covered & Who’s Responsible?

The law makes “producers” responsible. Producer means: • The producer is typically the product manufacturer, distributor, or brand- owner. • The producer could also be an importer, broker, or retailer who sells the product directly to a consumer, including via catalogue or Internet sales.

www.CBRSC.ca 4 Current Status for Toys • CTA Environmental Committee created a new stewardship agency called the Canadian Brandowner Residual Stewardship Corporation (CBRSC) • CBRSC submitted a stewardship plan to the BC MoE in October 2011 • CBRSC’s plan was approved in early 2012 (ONLY plan for toys) • CBRSC formally began accepting member companies and selecting suppliers for collection, processing, and reporting • First reports were filed & fees paid by active members in July 2012 • Toy collection depots opened in 3Q2012 and are now actively receiving and processing electronic toys • Member companies agreed to self-fund for the first year to get the program operational – CBRSC is now undertaking a transition to consumer fees paid at in 2013. www.CBRSC.ca 5 The Canadian Brandowner Residual Stewardship Corporation (CBRSC) • The CBRSC stewardship plan crafted for BC is designed to be adapted with limited modification throughout Canada for toys and other products • Membership open to all toy producers and retailers at no cost to join CBRSC Member Companies (* Bold = CBRSC Board Member):

Bandai America Inc. Kroeger Inc Borgfeldt (Canada) Ltd LeapFrog Enterprises, Inc. Spin Master Ltd Corp. * LEGO Canada Inc. Stoneridge Cycle Ltd Wholesale Canada Ltd * Mattel Canada Inc. Supercom Canada Ltd Crayola Canada (a division of * McDonald’s Restaurants of Target Canada Co William E. Coutts Company, Ltd) Canada Ltd Tek Nek Toys * Hasbro Canada Corporation Mega Brands Inc. MGA Entertainment The Source (Bell) Electronics Inc. Hudson’s Bay Company Canada TJX Canada Indigo Books & Music Inc. On The Right Track Inc. Toys ‘R’ Us Canada Ltd Just Play LLC Product Care Association VTech Technologies Canada Ltd K’NEX Limited Partnership Group Sears Canada Inc. Wal-Mart Canada Corp.

6 How it works… • The per unit eco fees are as follows: – The standard electronic toy fee is $0.50 per unit. – The standard electronic ride-on toy fee is $1.00 per unit.

• To calculate your remittance: – Calculate annual e-toy sales in BC (actual or estimated) – Apply the fee(s) to your unit sales – Divide the total fee by 4 and remit quarterly payments

• Remitted fees are used by CBRSC to pay for collection, transportation, and processing costs, plus public education and advertising

www.CBRSC.ca 7 IMPORTANT TAKE-AWAYS • The law is already in force - effective July 2012

 If you are a brand owner or a retailer responsible for a brand of electronic toys in BC, you must be a member of the CBRSC or another approved program

• Currently the program is member funded

• Actions are in place to convert the program to a consumer funded model, with a target of Q3-2013

• Retailers may be responsible for e-toys in BC and will benefit from the consumer funded model

 If you are not a CBRSC member and have e-toys in the BC market, you will be responsible for fees dating to the program inception (1 July 2012)

www.CBRSC.ca 8 Contact for more info or to join CBRSC

www.CBRSC.ca

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