11 Barriers for Remanufacturing Business in Southeast Asia …
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in ASEAN, supports this issue to open up trade of cores for refurbishment and
remanufacturing. Moreover, the 3R Action Plan adopted at the G8 summit in 2004
stipulated that it seeks “to reduce barriers to the international flow of goods and
materials for recycling and remanufacturing, recycled and remanufactured products,
and cleaner, more efficient technologies, consistent with existing environmental and
trade obligations and frameworks.”
Our interview revealed a host of technical and administrative complications in
ASEAN, including lack of clarity in the understanding and defining the nature of
remanufacturing, tariff and non-tariff measures, or intentional and unintentional trade
barriers. So-called ‘spaghetti bowl effect’ (Hew 2006) which may be a stumbling
block to ASEAN (Schwartz and Villinger 2004; Kojima 2017). According to an interviewee, the unclear definition of used versus remanufactured goods results in customs
authorities treat remanufactured goods sometimes as used products and as remanufactured products in other cases. Therefore, a common definition of remanufactured
goods in regional integration is urgently required.
11.4.2 Building Trusts in Remanufactured Products
Customers’ acceptance of remanufactured products is another key factor for remanufacturing to proliferate in the market (Matsumoto et al. 2018a, b). Several of the
companies interviewed, in particular, those remanufacturing auto parts and consumer
products such as ink toners and home electronics products, mentioned that customers’
unawareness about the quality of remanufactured products is obstacles for their
businesses.
In remanufacturing of OEMs, the remanufactured products are generally inspected
similarly as new products, and they are provided the same warranties as new products.
The major customers are aware of the inspection processes. On the other hand, in the
case of non-OEM remanufacturing, customers generally are larger concerned about
product quality.
Some non-OEM auto-parts remanufacturers stressed the importance of warranty.
For example, an auto-parts remanufacturer interviewed in Malaysia claimed to
provide 2-year warranties for products.
Many of the interviewed non-OEM remanufacturers rely on ISO 9001 accreditation to show that they have robust quality management systems as a fundamental requirement for producing high-quality products. Other relevant standards
included the IEC series that outlines the safety and performance requirements for
electrical apparatus. Malaysian government (MATRADE) supports remanufacturers
to understand the relevant import requirements that may affect their ability to trade.
Some interviewees stated that a few certifications by the government for remanufactured products are effective because credible quality certifications help in guaranteeing the product quality and help in mitigating customers’ perceived risks of
remanufactured products. Quality seals applicable to remanufacturing also exist. For
example, the EC mark and NOM mark certifying that a new product is compliant with
157
in ASEAN, supports this issue to open up trade of cores for refurbishment and
remanufacturing. Moreover, the 3R Action Plan adopted at the G8 summit in 2004
stipulated that it seeks “to reduce barriers to the international flow of goods and
materials for recycling and remanufacturing, recycled and remanufactured products,
and cleaner, more efficient technologies, consistent with existing environmental and
trade obligations and frameworks.”
Our interview revealed a host of technical and administrative complications in
ASEAN, including lack of clarity in the understanding and defining the nature of
remanufacturing, tariff and non-tariff measures, or intentional and unintentional trade
barriers. So-called ‘spaghetti bowl effect’ (Hew 2006) which may be a stumbling
block to ASEAN (Schwartz and Villinger 2004; Kojima 2017). According to an interviewee, the unclear definition of used versus remanufactured goods results in customs
authorities treat remanufactured goods sometimes as used products and as remanufactured products in other cases. Therefore, a common definition of remanufactured
goods in regional integration is urgently required.
11.4.2 Building Trusts in Remanufactured Products
Customers’ acceptance of remanufactured products is another key factor for remanufacturing to proliferate in the market (Matsumoto et al. 2018a, b). Several of the
companies interviewed, in particular, those remanufacturing auto parts and consumer
products such as ink toners and home electronics products, mentioned that customers’
unawareness about the quality of remanufactured products is obstacles for their
businesses.
In remanufacturing of OEMs, the remanufactured products are generally inspected
similarly as new products, and they are provided the same warranties as new products.
The major customers are aware of the inspection processes. On the other hand, in the
case of non-OEM remanufacturing, customers generally are larger concerned about
product quality.
Some non-OEM auto-parts remanufacturers stressed the importance of warranty.
For example, an auto-parts remanufacturer interviewed in Malaysia claimed to
provide 2-year warranties for products.
Many of the interviewed non-OEM remanufacturers rely on ISO 9001 accreditation to show that they have robust quality management systems as a fundamental requirement for producing high-quality products. Other relevant standards
included the IEC series that outlines the safety and performance requirements for
electrical apparatus. Malaysian government (MATRADE) supports remanufacturers
to understand the relevant import requirements that may affect their ability to trade.
Some interviewees stated that a few certifications by the government for remanufactured products are effective because credible quality certifications help in guaranteeing the product quality and help in mitigating customers’ perceived risks of
remanufactured products. Quality seals applicable to remanufacturing also exist. For
example, the EC mark and NOM mark certifying that a new product is compliant with