RoHS
EU regulation restricting hazardous substances in EEE
SOX
U.S. regulation for internal controls over financial reporting
Quick Verdict
RoHS restricts hazardous substances in electronics for EU market access, while SOX mandates financial controls for U.S. public firms. Companies adopt RoHS for global sales compliance; SOX ensures investor-trusted reporting and governance.
RoHS
Directive 2011/65/EU (RoHS 2) as amended
Key Features
- Homogeneous material thresholds at 0.1% for 10 substances
- Open scope: all EEE unless specifically excluded
- Time-limited exemptions in Annexes III and IV
- Requires technical file and EU Declaration of Conformity
- Tiered testing via IEC 62321 screening and confirmation
SOX
Sarbanes-Oxley Act of 2002
Key Features
- Mandates ICFR assessment and auditor attestation (Section 404)
- Requires CEO/CFO personal certifications (Section 302)
- Establishes PCAOB for audit firm oversight
- Enforces strict auditor independence rules (Title II)
- Provides whistleblower protections (Section 806)
Detailed Analysis
A comprehensive look at the specific requirements, scope, and impact of each standard.
RoHS Details
What It Is
RoHS (Directive 2011/65/EU, known as RoHS 2, as amended) is an EU regulation restricting hazardous substances in electrical and electronic equipment (EEE). It aims to protect health and environment by limiting substances during waste management, complementing WEEE Directive. Scope is open: all EEE unless excluded. Key approach: homogeneous material thresholds (0.1% w/w most substances, 0.01% cadmium).
Key Components
- Restricts 10 substances: Pb, Hg, Cd, Cr(VI), PBB, PBDE, DEHP, BBP, DBP, DIBP.
- Annexes III/IV for time-limited exemptions.
- Built on New Legislative Framework with CE marking.
- Compliance via technical documentation, EU Declaration of Conformity (DoC), no mandatory certification.
Why Organizations Use It
Mandated for EU market access; prevents fines, recalls. Drives supply chain governance, recyclability, ESG benefits. Reduces e-waste risks, ensures level playing field.
Implementation Overview
Risk-based: gap analysis, supplier declarations, tiered testing (IEC 62321), technical files (EN IEC 63000). Applies to manufacturers/importers of EEE globally selling to EU; 6-18 months typical, audits by Member States.
SOX Details
What It Is
Sarbanes-Oxley Act of 2002 (SOX) is a U.S. federal statute mandating corporate accountability. It focuses on improving financial disclosure accuracy and internal control reliability for public companies. SOX employs a risk-based approach via SEC rules and PCAOB standards.
Key Components
- **Three pillarsPCAOB oversight (Title I), auditor independence (Title II), executive accountability (Titles III-XI).
- Key sections: §302 (CEO/CFO certifications), §404 (ICFR assessment), §409 (real-time disclosures).
- Built on COSO framework; no fixed controls, emphasizes key controls.
- Compliance model: annual management assessment, auditor attestation for most filers.
Why Organizations Use It
- Legal mandate for U.S. public issuers.
- Enhances investor trust, reduces restatements, lowers capital costs.
- Mitigates fraud risk, improves governance.
- Boosts M&A/IPO readiness, operational efficiency.
Implementation Overview
- **Phased, risk-basedscoping, documentation, testing, monitoring.
- Applies to public companies; exemptions for smaller filers.
- Requires PCAOB-audited attestation; ongoing annual cycles.
Key Differences
| Aspect | RoHS | SOX |
|---|---|---|
| Scope | Hazardous substances in EEE materials | Internal controls over financial reporting |
| Industry | Electronics manufacturers, global | U.S. public companies, all sectors |
| Nature | EU product restriction directive, mandatory | U.S. federal corporate governance law |
| Testing | XRF screening, lab analysis of materials | Annual ICFR control testing and audits |
| Penalties | Fines, product recalls by Member States | Criminal penalties, fines up to $5M |
Scope
Industry
Nature
Testing
Penalties
Frequently Asked Questions
Common questions about RoHS and SOX
RoHS FAQ
SOX FAQ
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