Electronic Waste Recycling (eWaste) Fee - FAQ

Frequently Asked Questions: Warranties, Leases, Credits, Refunds, and Returns

  1. Does the fee apply to items replaced under warranty?
  2. Will a covered device already under lease on January 1, 2005 be subject to this fee?
  3. Will a lease renewal be subject to the fee?
  4. I lease new personal computers and monitors to a company in California. Am I required to collect the fee?
  5. At the end of the lease period, I intend to offer the lessee an option to purchase the PC they have been leasing. Does the fee apply to this sale?
  6. Do I return the fee to a customer when I refund the purchase price and sales tax for a returned CED?
  7. Will I be able to take a credit on my Electronic Waste Recycling Fee Return for fees I have refunded to customers on returned merchandise?
  8. Can I take a bad debt credit for fees I have paid when a customer later defaults on payments?
  9. Is credit allowed if the CED is moved out of California?
  10. Can a retailer who leases CEDs pay the fee directly to a vendor?

  1. Does the fee apply to items replaced under warranty?

    That depends on the type of warranty. In general, the replacement CED does not constitute a retail sale.

    Under a factory (mandatory) warranty, no fee would be due if a new or refurbished replacement CED was provided, unless the customer upgrades the CED.

    Under an optional warranty, the repairer is considered the consumer of the CED. The repairer should pay the fee on any new or refurbished replacement CEDs provided, either at the time of purchase or by reporting these CEDs as self-consumed on line 2 of their Electronic Waste Recycling Fee Return.

  2. Will a covered device already under lease on January 1, 2005 be subject to this fee?

    No. The fee is due on leases of new or refurbished CEDs that start on or after January 1, 2005.

  3. Will a lease renewal be subject to the fee?

    No, unless you provide a new or refurbished product at the time of renewal.

  4. I lease new personal computers and monitors to a company in California. Am I required to collect the fee?

    Yes. A lease is a "continuing sale." You must collect the fee from the lessee with the first lease payment.

  5. At the end of the lease period, I intend to offer the lessee an option to purchase the PC they have been leasing. Does the fee apply to this sale?

    No, because the customer is purchasing a used CED. The fee does not apply to the sale of used CEDs.

  6. Do I return the fee to a customer when I refund the purchase price and sales tax for a returned CED?

    Yes. If you collected the fee on the sale, you would return it to the customer. Please refer to Sales and Use Tax Regulation 1655, Returns, Defects and Replacements. The regulation describes the requirements for retailers to handle such transactions. We suggest that you handle returns, defects and replacement transactions for this program in the same way.

  7. Will I be able to take a credit on my Electronic Waste Recycling Fee Return for fees I have refunded to customers on returned merchandise?

    Yes, if you have paid the fee to us on an earlier return or if you gave the refund during the reporting period.

  8. Can I take a bad debt credit for fees I have paid when a customer later defaults on payments?

    No. There are no provisions in the law for bad debts.

  9. Is credit allowed if the CED is moved out of California?

    No.

  10. Can a retailer who leases CEDs pay the fee directly to a vendor?

    Under specific conditions, a retailer who leases electronic devices to consumers may choose to pay the electronic waste recycling fee to the vendor of those devices instead of collecting the fee from the consumers/lessees.

    For more information please see our Frequently Asked Questions under Fee Option for Retailers-Assembly Bill 575.

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