### Product Eco-responsibility Ordinance 《產品環保責任條例》

39. Registered supplier must submit annual audit report
(1) A registered supplier must, in accordance with the REE Regulation, submit an audit report to the Director every year in respect of the returns submitted by the supplier.
(2) The audit report must be prepared by a certified public accountant (practising) as defined by section 2(1) of the Accounting and Financial Reporting Council Ordinance (Cap. 588), who must not be an employee of the registered supplier. (Amended L.N. 66 of 2022)
(3) A person who contravenes subsection (1) commits an offence and is liable to a fine at level 5.

40. Recovering recycling levies by assessment notice
(1) This section applies if a person (relevant person

41. Seller must have endorsed removal service plan
(1) A seller must not distribute regulated electrical equipment to a consumer in the absence of a removal service plan that has been endorsed by the Director.
(2) Without limiting any other ground on which the Director may refuse to endorse a removal service plan, the Director must not endorse a plan unless the Director is satisfied that the plan meets the requirements specified in subsection (3).
(3) The requirements are—
(a) a collector undertakes to the seller in writing to provide an electrical equipment or electronic equipment removal service for distributing regulated electrical equipment by the seller to a consumer;
(b) a recycler undertakes to the seller in writing to provide a treatment, reprocessing or recycling service for the electrical equipment and electronic equipment removed by the collector; and
(c) the applicable requirements in the REE Regulation have been complied with.
(4) The collector mentioned in subsection (3)(a) must hold a business registration certificate issued under section 6 of the Business Registration Ordinance (Cap. 310).
(5) The recycler mentioned in subsection (3)(b) must hold a waste disposal licence within the meaning of the Waste Disposal Ordinance (Cap. 354) that authorizes the person to treat, reprocess or recycle e-waste within the meaning of that Ordinance.
(6) For the purposes of subsection (1), providing regulated electrical equipment to an owner or tenant of a residential property under an agreement for sale and purchase, tenancy agreement or renovation agreement for the property without charging specifically for the equipment does not constitute distributing the equipment.
(7) A person who contravenes subsection (1) commits an offence and is liable to a fine at level 6.

### Product Eco-responsibility Ordinance 《產品環保責任條例》

42. Seller must arrange for removal service
(1) In this section—

removal terms (除舊條款) means the terms—
(a) agreed between a consumer and a seller who distributes an item of regulated electrical equipment to the consumer; and
(b) the purpose of which is to provide for the removal, in accordance with subsection (2), of electrical equipment or electronic equipment of the same class as that item of equipment.

(2) If—
(a) a seller distributes an item of regulated electrical equipment (former

43. Proper disposal of electrical equipment or electronic equipment removed
(1) If a collector provides an electrical equipment or electronic equipment removal service for a seller in accordance with the seller’s removal service plan, the collector must ensure that the equipment—
(a) is transferred to a recycler specified in the plan within a reasonable time; and
(b) is accepted by the recycler.
(2) A person who contravenes subsection (1) commits an offence and is liable—
(a) on the first conviction, to a fine at level 6; and
(b) on a subsequent conviction, to a fine of $200,000.
(3) It is a defence to a charge under subsection (2) for the person charged to prove that the person exercised due diligence to avoid committing the offence.

44. Secretary may make regulations for Part 4
(1) The Secretary may, after consulting the Advisory Council on the Environment, make regulations in respect of all or any of the following matters—
(a) an application for registration under section 33 and the determination of the application;
(b) the cancellation of registration under section 34;
(c) the provision of recycling labels for each class of regulated electrical equipment by registered suppliers and sellers;
(d) the recycling levy for each class of regulated electrical equipment;
(e) the payment of recycling levies by registered suppliers;
(f) the submission of returns by registered suppliers;
(g) the information to be contained in the returns;
(h) the records and documents to be kept by registered suppliers;
(i) the submission of audit reports by registered suppliers;
(j) the prescribed wording for the purposes of section 35(2)(b);
(k) the requirements of the removal service plan;
(l) the removal service required by section 42.
(2) A regulation made under subsection (1) is subject to the approval of the Legislative Council.

45. Exemptions
The regulated electrical equipment set out in column 3 of Schedule 7 is exempted from the provisions set out opposite to it in column 2 of that Schedule.

### Product Eco-responsibility Ordinance 《產品環保責任條例》

46. Secretary may amend Schedules 6 and 7
(1) The Secretary may, after consulting the Advisory Council on the Environment, by notice published in the Gazette, amend Schedule 6 or 7.
(2) A notice made under subsection (1) is subject to the approval of the Legislative Council.

47. Interpretation of Part 5
In this Part—
consume (耗用), in relation to a regulated article, means—(a) open the container that constitutes the article for the first time after the container is sealed; or
(b) abandon the article;

container recycling levy (容器循環再造徵費) means the levy prescribed for this Part by the Regulated Articles Regulation;
distribute (分發), in relation to a regulated article, means—(a) sell the article;
(b) exchange or dispose of the article for consideration; or
(c) give the article to another person as a prize or gift,
but does not include any such act done with a view that the article is to be exported in the course of business;

registered supplier (登記供應商) means a supplier who is registered under section 49;
Regulated Articles Regulation (《受規管物品規例》) means regulations made under section 55;
return (申報) means a return submitted under section 52;
supplier (供應商), in relation to a regulated article, means—(a) a person who, in the course of the person’s business of manufacturing the article, undertakes in Hong Kong the process of sealing the container constituting part of the article; or
(b) a person who, in the course of the person’s business, imports the article into Hong Kong for distribution, but does not include a person who—
(i) does not own the article; and
(ii) only provides a service for transporting the article into Hong Kong for another person.

48. Prohibition of distributing regulated articles without registration
(1) A supplier commits an offence if, not being registered under section 49, the supplier distributes regulated articles.
(2) A person who is convicted of an offence under subsection (1) is liable to a fine at level 6.

49. Registration of suppliers
The Director must register a person as a registered supplier if—
(a) the person applies to be registered as a registered supplier in accordance with the Regulated Articles Regulation; and
(b) the Director is satisfied that the application complies with this Ordinance.

50. Cancellation of registration
If the Director is satisfied that a registered supplier is no longer a supplier, the Director must cancel the registration of the supplier.