Sale of second-hand goods — Contribution to the transition to a Circular Economy

Sector: Wholesale, retail and trade
Description

The economic activity consists of selling a second-hand product that had been used for its intended purpose by a customer (physical person or legal person), potentially after its prior cleaning, repair, refurbishment or remanufacturing

Scope of Assets

The products components that are under the scope of this activity is as follows:

-Textiles, wearing apparel, leather and related products

-Wood, wood and cork products, furniture, straw and plaiting materials, clay building materials

-Rubber and plastic products and machinery, porcelain and ceramic products

-Metal and fabricated metal products, structural metal products, cutlery, tools, general hardware, tanks, reservoirs and containers of metal

-Computer, electronic and optical products and recorded media

-Electrical, transport, non-domestic ventilation and cooling equipment

-Lifting and handling equipment, office machinery and equipment, power driven hand tools

-Machinery for food and beverage processing except tobacco

-Machinery for textile, apparel, leather, paper and paperboard production

-Plastic and rubber machinery, air and spacecraft related machinery

-Motor vehicles, trailers and semi-trailers

-Other manufacturing also is included

PSIC/ISIC code

46XXX - Wholesale Trade, Except of Motor Vehicles and Motorcycles (ISIC 46XX)

47XXX - Retail trade, except of motor vehicles and motorcycles (ISIC 47XX)

Technical Screening Criteria

Substantial contribution criteria

The activity complies with all the following criteria:

  1. The sold product is covered by a sales contract where relevant and in accordance with national regulations1.
  2. If the product has been repaired, refurbished or remanufactured before reselling, the organization implements a waste management plan2 to ensure that components are reused, recycled or disposed of properly.
    • For remanufacturing, the waste management plan is publicly available.
  3. If the service involves delivery of the goods to a client, including when the activity is operated as an e-commerce, the primary and secondary packaging complies with one of the following criteria:
    • The package is made of at least 65% of recycled materials. The key criteria for the raw materials are as follows:
      • No coating with plastics/metals are used for packaging
      • Plastic packaging uses only mono-materials without adding coatings or halogen-containing polymers
      • If the packaging is made from paper or cardboard, the remaining primary raw material are certified by the Forest Stewardship Council (FSC), the Programme for the Endorsement of Forest Certification Schemes (PEFC International), or equivalent recognized schemes.
    • The packaging is designed to be reusable in a closed-loop or opened-loop system
Complementary measures and practices

Development and operation of mobile apps to integrate the sales to the online marketplace to promote wider sale and reuse of spare parts.

Exclusionary and ineligible practices
Do No Significant Harm (DNSH)
Minimum Social Safeguards (MSS)

Notes

  1. 1. - RA 7394 Consumer Act of the Philippines - RA 8792 Electronic Commerce Act of 2000
  2. 2. The relevant Philippines national legislations are: - RA 9003 Ecological Solid Waste Management Act of 2000 - DAO 2001-34 Implementing Rules and Regulations of RA 9003 - RA 11898 Extended Producer Responsibility Act of 2022 - DAO 2023-02 Implementing Rules and Regulations of RA 11898 - RA 6969 Toxic Substances and Hazardous and Nuclear Wastes Control Act of 1990 - DENR Administrative Order No. 2013‑22 - Revised Procedures and Standards for the Management of Hazardous Wastes - DENR Administrative Order No. 1994-28 - Interim guidelines for the importation of recyclable materials containing hazardous substances - Final Draft Guidelines on the Environmentally Sound Management (ESM) of Waste Electrical and Electronic Equipment (WEEE)