Legal Eye: Automobile recycling

The new law, known as the Automotive Recycling Act ("Recycling Act"), requires each manufacturer who imports more than 1,000 automobiles in a given year to Poland to not only establish a network of collection points across Poland, but also to establish a collection point within 50 kilometers of each and every vehicle owner's residence or place of business. In lieu of establishing such a network, the importer or manufacturer may satisfy this requirement by paying a fee of zł.500 per automobile to the Environmental Preservation Fund. An importer or manufacturer that places less than 1,000 automobiles on the Polish market in a given year is not obligated to establish a network of collection points, but is required to pay the zł.500 fee to the Environmental Protection Fund. This obligation to pay the zł.500 fee applies to the import of used automobiles as well, including automobiles imported by individual owners.

Compliance

The manner in which a particular automotive importer or manufacturer satisfies the requirements imposed by the Recycling Act is at the option of the individual importer or manufacturer. From the perspective of the automotive sector, the creation of a country-wide network of collection points is not only cost prohibitive, but also impractical, especially when taking into account the need to locate a collection point within 50 kilometers of each automobile owner, which would in effect require the location of collection points in 50 kilometer intervals across the country. Relying on the existing network of dealerships to act as collection points would fall short of satisfying the Recycling Act, as the number and location of such dealerships are not sufficient. This leaves payment of the zł.500 fee as the only practical solution, the cost of which will almost certainly be passed on to the consumer.

Operator obligations

For those who actually decide to establish a network of collection points, the operator will be obligated to accept each vehicle presented for dropoff, provided that the vehicle has a valid vehicle identification number. Generally the operator may collect a fee from the automobile's owner in exchange for accepting the junked vehicle; however, no fee will be charged with respect to an automobile that operated in Poland prior to July 1, 2002, provided that the automobile was registered in Poland, free of contamination and at least 90 percent in tact.

Owner obligations

An owner of a junked vehicle is obligated to deliver the vehicle to a designated collection point. In order to remove a junked vehicle from the national vehicle register, an owner must show evidence that he or she has in fact delivered the vehicle to an authorized collection point, as confirmed by issuance of a recycling certificate by the operator of the collection point. Previously, an owner would not drop off a junked vehicle to a collection point in order not to pay a fee to the operator. Now, with adoption of the Recycling Act, it is hoped that the waiver of such a fee for automobiles placed in service prior to July 1, 2002 will motivate owners to turn in their junked vehicles at an authorized collection point. Even if manufacturers and importers elect to simply pay the fee of zł.500 per automobile instead of creating a network of collection points, enough collection points owned by individual persons already exist to accept the junked vehicles.

Paul Fogo is a senior attorney with Miller, Canfield, W Babicki & Partners