Under the Import and Exports (Restrictions) Act, two charges were laid against SMT Ltd and two charges against its director Alex Hong (also known as Steven Ansley) for attempted export of hazardous waste from New Zealand without the required permit.

In addition, Alex Hong is personally charged with ten offences under the Crimes Act of fraudulently using a document to gain pecuniary advantage.

The Crimes Act charges relate to documents provided to the Ministry of Economic Development by Mr Hong. These would have allowed used electronic goods to leave New Zealand without a permit, on the basis that they were intended for re-use, rather than recycling. Electronic goods exported for recycling or disposal are classed as hazardous and require permits for export, while electronic goods exported for re-use do not.

The Ministry began investigating the exports in September after receiving information that hazardous electronic waste, including that collected at eDay 2009, may be exported without the correct permits.

A court date has been set for 15 March 2010. The Ministry will be making no further comment while the case is before the Court.

The Ministry reminds all exporters of electronic waste that they may require a permit from MED, depending on the nature of the waste and export destination.

International rules on the transport of hazardous waste are set under the Basel Convention, to which New Zealand is a signatory.

BACKGROUND

The defendant Alex Hong is also known as Steven Ansley.

The charges The charges were laid in the Auckland District Court on Tuesday.

Two charges against SMT Ltd under section 4(1)(ab) of the Import and Exports (Restrictions) Act 1988, for exporting hazardous waste without the required permits.

Two charges against Alex Hong under section 4(1)(ab) of the Import and Exports (Restrictions) Act 1988, for exporting hazardous waste without the required permits.

Ten charges against Alex Hong under the Crimes Act 1961, for the dishonest use of documents to obtain percuniary advantage.

What are the penalties for these charges? Under the Import and Export (Restrictions) Act 1988, the penalties are fines up to $5,000 for individuals and up to $25,0000 for a body corporate or, in either case, an amount equal to three times the value of the goods to which the offence relates, whichever is greater.

Under the Crimes Act, the penalties are a maximum of seven years imprisonment of each charge.

How should hazardous waste be exported? All hazardous waste exported from New Zealand for disposal or recycling must have consent from both the importing country and the Ministry of Economic Development (MED). Whether a consent is required will depend on what the waste is, where it is going, and what will happen to it at its final destination.

Why is this waste hazardous? Most used electronic equipment will contains hazardous components such as lead, cadmium, mercury, selenium, antimony, beryllium, brominated flame retardants and polychlorinated biphenyl which will be harmful to human health and the environment unless properly handled.

What electronic waste needs a permit? Exporters of electronic waste may require a permit from MED, depending on the nature of the waste and export destination.

Electronic items considered hazardous waste include (but are not limited to):

Computer monitors; Mobile telephones; Photocopying equipment; Television sets; Printed circuit boards; Equipment containing cadmium, mercury or lead batteries. Electronic wastes not included above may also require a permit if the country of destination defines them as hazardous waste and requires consent prior to any movement.

What is the Basel Convention? The Import and Export (Restrictions) Act 1988 enacts in New Zealand the provisions of the Basel Convention, to which New Zealand is a signatory.

The Basel Convention controls the international movements of hazardous wastes and their disposal or recycling by requiring certain documentation and information requirements to be met before exports takes place. The overriding objective is that hazardous waste is transported and recycled or disposed of in an environmentally sound and efficient manner and that human health and the environment are protected from the harmful effects of the hazardous waste.

How does the permitting system work? MED has a booklet that explains the process: http://www.med.govt.nz/templates/StandardSummary____304.aspx

MED considers applications for consent of exports and imports of hazardous wastes under the Imports and Exports (Restrictions) Prohibition Order (No 2) 2004.

Applications must meet five requirements. The five requirements are:

• A suitable explanation of why the waste should be exported.
• A completed standardised 'notification form'.
• Suitable contract(s) between the exporter and the end facility in the destination country.
• Third party insurance that contains a 'pollution' clause.
• Suitable information about the end facility in the destination country.

When an application meets the requirements, it will be sent by MED to the destination country for its consent. If the destination country consents, MED will then decide if it will also give consent.

Each permit application is reviewed on a case by case basis on its own merits. The overriding objective is that hazardous waste is transported, recycled or disposed of in an environmentally sound and efficient manner and that human health and the environment are protected from the harmful effects of the hazardous waste. All consents from MED contain conditions that must be met.

How the permitting system operates is prescribed by the Basel Convention and contained in the Imports and Exports (Restrictions) Prohibition Order (No 2) 2004 (which implements the Basel Convention and the Waigani Convention).

Exporters must provide documentation to show that any exports made under the consent from MED did in fact arrive at the prescribed destination facility and were recycled or disposed of in an environmentally sound and efficient manner.