NOTICE: LG Electronics Environmental Handling Fee Credit Program

This notice applies to LG Electronics Canada Inc. distributors to/in British Columbia, Saskatchewan, and Nova Scotia who do not remit Environmental Handling Fees to Provincial Electronic Recycling Programs.

Dear LG Electronics Canada Inc Distributor,

Commencing August 1, 2009 the Environmental Handling Fees (EHF) for electronic products involved in Electronic Stewardship Association of British Columbia (ESABC), Saskatchewan’s Waste Electronic Equipment Program (SWEEP), and Nova Scotia’s Atlantic Canada Electronics Stewardship Association(ACES) have changed.

As a result of these EHF changes, inventory that you had on and including July 31, 2009 was subject to the old EHF fee structure. Commencing August 1, 2009 the new EHF fee structure took effect.

Distributors who do not remit EHF to Provincial electronic recycling programs (aka Pay on-Purchase (POP) distributors) and were holding inventory of obligated product on July 31, 2009 will have paid the remitter (LG Electronics Canada Inc.) a different rate than what the consumer can be charged at the time of sale.

The procedure for credit recovery by POPs recognizes the existing business relationship between POPs and their suppliers. To ensure that remitters reimburse POP distributors the difference between the EHF on unsold inventory and the new EHF can recover these amounts the following procedures have been put in place:

GUIDELINES FOR PAY-ON-PURCHASE (POP) CUSTOMERS
 REIMBURSEMENT FOR FEES PAID ON INVENTORY HELD AT JULY 31, 2009

As outlined in the notice of May 1, 2009 EHFs for Phase I products changed August 1, 2009. (See www.eStewardship.ca)

In order to remove the effect of the rate differential, the POP distributor will need to apply for the EHF credit on their inventory held on July 31, 2009 to the supplier (LG Electronics Canada Inc). LG Electronics Canada Inc will issue a credit to the POP and claim the credit back from the respective provincial electronic stewardship programs.

* Please note the spreadsheet has individual tabs to report by program (ESABC, SWEEP &  ACES).

LG Electronics Canada Inc will issue the POP distributors a credit based on the verified inventory report.

In order to receive credit on EHF fees from LGECI please complete the spreadsheet at http://ca.lge.com/enviro_fee/lg_ehf_credit_spreadsheet.xls and submit it to orders@lge.com. Please indicate in the email subject line LG Environmental Handling Fee Credit Program. 

If you have any questions concerning this notice please contact:
Mr. Bruce Rebel, Tel 905-568-6734, brebel@lge.com