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filling the gap in standards: china's industry standard for valuation and evaluation rules for waste home appliance recycling is open for comments

2024-09-16

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original title: filling the gap in standards: my country's industry standards for valuation and evaluation rules for recycling of used household appliances are open for comments, covering tvs, refrigerators, washing machines, air conditioners, computers

it home reported on september 16 that according to the relevant industry standard project plan of the ministry of commerce, the china material recycling association completed the compilation of the "valuation evaluation rules for waste household appliances recycling televisions, refrigerators, washing machines, air conditioners, microcomputers (draft for comments)" industry standard on september 13, and is now soliciting public opinions.

china is the world's largest producer and exporter of home appliances and has a huge home appliance consumer market. according to the national bureau of statistics, the production of major categories of home appliances such as televisions, refrigerators, washing machines, air conditioners, and microcomputers (hereinafter referred to as "four machines and one computer") showed an overall upward trend from 2019 to 2021, reaching 1.046 billion units in 2021. the total production of home appliances has declined in the past two years, reaching 970 million units in 2023.

it is estimated that the number of "four machines and one computer" recycled in my country in 2023 will be about 190 million units (compared with 188 million units in 2022), a year-on-year increase of 1.06%, and the recycled weight will be about 4.2 million tons (compared with 4.15 million tons in 2022), a year-on-year increase of 1.2%.

this document stipulates the general principles, evaluation indicators, evaluation methods and evaluation applications for the valuation of waste home appliance recycling. the document is applicable to the value assessment of the recycling process of home appliances such as "four machines and one computer" in the consumer field, and other home appliances can be implemented as a reference. the document is not applicable to the value assessment of the recycling process of collectible home appliances.

the document states that the types, functions and appearances of used household appliances vary. when conducting recycling valuation evaluation, it is necessary to combine the actual situation, collect information on the status of used household appliances as comprehensively as possible, and objectively evaluate the recycling value of used household appliances. the evaluation process should take into account the direct use value and resource value of the material composition of used household appliances, and comprehensively consider multiple factors such as the type, functional status, and purchase age of used household appliances. the selection of evaluation indicators and the setting of evaluation methods are based on the principle of facilitating the use of used household appliance sellers and recycling companies.

image source: pexels

the evaluation index section of the document provides the recycling valuation evaluation indexes for used televisions, used refrigerators, used washing machines, used air conditioners and used microcomputers. the evaluation indexes are determined based on:

(1) the subsidy standard for the “four machines and one computer” treatment fund in the “notice on adjusting the subsidy standard for the treatment fund for waste electrical and electronic products” (finance and taxation [2021] no. 10).

(2) the recycling valuation practices of various players in the industry chain, such as the valuation links for used home appliances on jd.com, zhuanzhuan.com, and xianyu.com.

(3) the safe service life of the “four machines and one computer” products is 10 years for household refrigerators, 10 years for room air conditioners, and 8 years for household washing machines.

in the evaluation method section, the document provides the valuation and evaluation methods for old and waste appliances. the valuation and evaluation of old appliances adopts the depreciation method. drawing on the relevant research results of the china household electrical appliances association's "calculation of china's waste appliance recycling and treatment costs and charging standards", the valuation and evaluation of waste appliances adopts the cost analysis method. based on the actual recycling of waste appliance recycling and treatment enterprises, the judgment conditions for waste appliances are given.

the document states that in china, waste electrical and electronic products are valuable resources, and recyclers will pay a certain fee to recycle waste home appliances from sellers. the valuation and evaluation rules and standards for waste home appliance recycling are suitable for china's national conditions and fill the gaps in relevant fields in my country.

it home's evaluation method is as follows:

1. valuation and evaluation method of old household appliances

the valuation of old home appliances is evaluated using the depreciation method, which is calculated by multiplying the average market price of new home appliances with similar functions by a certain depreciation rate. the estimated recovery price is calculated using the following formula.

v1 —— estimated recycling price of old home appliances, in yuan;

v new—— the average market price of new household appliances of the same model or with similar functions in the assessment year, in yuan;

i —— the valuation evaluation index of the i-th impact reuse;

n —— the total number of valuation evaluation indicators that affect reuse;

ai —— the weight of the valuation evaluation index affecting reuse, unit: %;

fi —— the value loss rate of the i-th valuation evaluation indicator affecting reuse, in %.

for example, for an old refrigerator purchased two years ago, suppose the weight a1 of the functional condition that affects its reuse is 70%, and the weight a2 of the purchase period is 30%; if the function is normal/accessories are complete, suppose its value loss rate f1 is 80%; and the value loss rate f2 of the purchase period is 38%, then the depreciation rate calculated comprehensively is 0.326.

2. valuation and evaluation method of waste household appliances

the valuation of waste household appliances adopts the cost analysis method. the estimated recycling price increases with the increase of total income and decreases with the increase of recycling and processing costs. the estimated recycling price of waste household appliances is calculated according to the following formula:

v2 —— estimated recycling price of waste household appliances, in yuan;

m income - the total income from processing waste household appliances (sales income of dismantling products, relevant policy subsidy funds, etc.), in yuan;

m recycling - the cost of recycling waste household appliances (transportation, storage, personnel, etc.), in yuan;

m treatment - the cost of treatment of waste household appliances (depreciation of fixed assets, disposal of hazardous waste, personnel, etc.), in yuan.

for example, the larger the specifications and volume of a waste refrigerator, the higher the sales revenue of its dismantling products such as scrap steel, scrap aluminum, scrap copper, and scrap plastic, and the higher the total revenue; if the recycling and processing costs increase slightly, the estimated recycling price of the waste refrigerator will be higher.