2009/SOM1/MAG/015
APEC Market Access Group
Conclusions from Remanufacturing Presentations & Discussions
Singapore – 21 February 2009
The APEC Market Access Group (“MAG”) received presentations today on remanufacturing
from representatives of Caterpillar, the Rochester Institute of Technology, GE Healthcare, Dell, and
the China Ministry of Industry and Information Technology. The presentations provided strong
evidence that there are environmental, labor, consumer, and government benefits from
remanufacturing, and that such benefits are enhanced when barriers to trade in remanufactured
goods are removed. Moreover, the presentations highlighted that existing trade barriers may limit
consumers’ choice to purchase remanufactured products or services provided by such products, and
therefore prevent consumers from taking advantage of the cost savings and associated social benefits
derived from these high-quality, warranty-backed goods. In addition to the presentations received,
MAG delegates listened to panel discussions from industry, academic, and government experts and
participated in a “Hands-on Remanufacturing Process Simulation” to further their understanding.
The presentations, discussions, and exercises described the characteristics of the
remanufacturing industry, the specific benefits of the industry and how APEC members might gain
from the industry:


















The remanufacturing industry creates great economic potential and benefits the environment,
consumers and workers, both in advanced and developing economies.
Remanufactured goods are "same as new" quality and are not used products.
Remanufacturing transforms end-of-life products into same-as-new components and products
typically used in industrial, medical, on-road, consumer, and other applications.
Remanufacturing is an environmentally friendly process and supports extended producer
responsibility and sustainable development.
Remanufactured transactions include the "take back" of an "end-of-life" core.
Presenters representing the global remanufacturing industry seek a level playing field for
trade in remanufactured goods.
Many APEC economies are the source for most of the new IT manufactured and refurbished
components. However, the refurbished products face import restrictions/prohibitions outside
of APEC economies. It is in the best interest of APEC economies to support efforts to
promote open market access for these refurbished components outside of their group.
The use of refurbished components to service warranty contracts is a global industry practice
that results in economic and environmental benefits to APEC economies, industry and
consumers worldwide.
Remanufactured products are marked differently in order to distinguish them from equivalent
new product and used products.
Remanufactured goods undergo comprehensive, consistent, and certified processes to
ensure product quality.
Medical device remanufacturing has enormous benefits for the environment -- elimination of
waste and pollution and reduction of energy and raw materials consumption.
Manufacturer-remanufactured medical devices are as safe and effective as when new and
are regulated by government entities accordingly.
Remanufactured medical devices cost 20-50% less than equivalent new devices and thus can
reduce healthcare system costs and increase access to modern, life-saving healthcare
technology.
Some consequences of remanufacturing prohibitions include ethical suppliers may be
blocked, non-compliant third parties could circumvent rules, patients may face quality and
safety risk, and access could be denied to millions of consumers.
Remanufacturing of a product does not provide a “life cycle extension” but rather an additional
“complete life cycle.”
Remanufacturing can match quality and reliability at a much lower cost.
A good definition of remanufacturing can help to promote product acceptance, ensure quality
control, and distinguish remanufactured products from used, as-is, secondhand, repaired, or
recycled products.
There are ongoing academic efforts to study and further technological advances in
remanufacturing. Universities, such as the Rochester Institute of Technology, maintain







remanufacturing departments that perform important research on every aspect of the process,
including design, disassembly, core analysis, reverse engineering, and testing.
Economies with low labor costs are particularly attractive for remanufacturing facilities, and
the remanufacturing industry tends to establish world-class facilities close to input supplies
and consumer markets.
Remanufacturing is a counter-cyclical industry. In times of an economic downturn,
economies can turn to the remanufacturing industry to provide consumers the choice to
purchase high quality goods at lower prices and to provide a source of employment because
of its labor intensive nature.
Remanufacturing could aid the development of many APEC economies through expanding
opportunities to purchase advanced products at reduced prices, facilitate investment,
increase employment, and transfer valuable technology and skills.
APEC economies could benefit from remanufacturing because scarce resources are used
more efficiently and the environmental impact of remanufacturing is substantially less than
new manufacturing processes.
Global growth in the remanufacturing industry has been slowed by outdated regulations in
some countries that do not distinguish between ‘used’ and ‘remanufactured’ goods.
The speakers requested APEC delegates to review their policies and update as necessary to
ensure that remanufactured products are treated the same as new goods for trade purposes.
The workshop speakers encouraged MAG delegates to promote remanufacturing as an area
that can contribute to the region’s sustainable development goals and with great potential for
economic opportunities, where APEC economies are particularly well suited to develop
domestic industries that are environmentally, consumer, and labor friendly.
2