Dear IPC Members:

It’s been a busy week here in Washington, where a host of competing deadlines are coming to a head in the U.S. Congress.

On Thursday, Congress passed a bill to fund the government through December and avoid a government shutdown. Still up in the air, however, is the fate of a bipartisan infrastructure deal, the “Build Back Better” spending package, and a debt ceiling increase by the October 18 deadline. We will update you on relevant provisions to our industry as negotiations progress; stay tuned for what is sure to be a frenetic month!

As always, please remain engaged with your legislators! If you need guidance on how to start, or want to see the latest opportunities, head over to the IPC Advocacy Team web page.

All the best,

Chris Mitchell
Vice President, Global Government Relations

TOP NEWS OF THE WEEK

IPC Foresees Industry Burdens from EPA PFAS Reporting Obligations: On September 27, IPC submitted comments on a proposed rule from the U.S. Environmental Protection Agency (EPA) that would require all manufacturers and importers of per- and polyfluoroalkyl substances (PFAS) to report information regarding the “uses, production volumes, disposal, exposures, and hazards” of the chemical substance. PFAS has a history of use in electronics, and IPC warned that the reporting requirements would disproportionately burden electronics manufacturers and recommended that electronics article manufacturers and importers be excluded from the proposed rule. Check out a new IPC blog for our full comments. Please let us know if you have any questions or thoughts about how this rule could affect your business. IPC Contact: Kelly Scanlon.

U.S. and EU Trade and Technology Council Hold Inaugural Meeting: The inaugural meeting of the U.S.-EU Trade and Technology Council (TTC) was held this week, tackling issues including global trade, supply chain concerns, export controls, and emerging technologies. Notably, both sides pledged to address the global shortage of semiconductors, maintain and enforce investment screening, identify shared areas for export control cooperation, and address non-market, trade-distortive policies. IPC welcomes efforts to rekindle the U.S-EU partnership and continues to engage with policymakers to ensure the electronics value chain is recognized as central to economies on both sides of the Atlantic. IPC Contact: Alison James.

DEFENSE AND SECURITY

PCB Restrictions Included in House Defense Authorization Measure: The U.S. House of Representatives passed its version of the annual defense policy bill late last week. Among its many provisions, the House’s $778 billion National Defense Authorization Act (NDAA) would impose restrictions on acquisitions of printed circuit boards (PCBs) susceptible to interference by the Chinese government and would also require the Department of Defense (DoD) to undertake a federally funded research and development center (FFRDC) study on the subject. Please let us know if you have any questions. IPC Contact: Chris Mitchell.

USPAE Recipient of $8.9 Million Award for Lead-Free R&D: The U.S. Partnership for Assured Electronics (USPAE) was the recent recipient of a $8.9 million award from the Department of Defense (DoD) to grow the Defense Electronics Consortium (DEC) and expand its work on the Lead-Free Defense Electronics Project. The DEC was created to help the U.S. government identify and address potential risks in the electronics supply chain. Contact USPAE if you have any questions and would like to learn more.

ENVIRONMENT & HEALTH

PIP (3:1) Compliance Deadline Extended to March 2022: After considering IPC’s comments and other stakeholder feedback, the U.S. Environmental Protection Agency (EPA) announced an extension of compliance deadlines on the final risk-management rules for phenol, isopropylated phosphate (3:1) – PIP (3:1) – a chemical substance used as a flame retardant and plasticizer in electronics. The new compliance deadline is March 8, 2022, but the EPA also intends to issue a new notice of proposed rulemaking, which could extend the deadline beyond 2022. Please read this updated IPC blog for more information, and let us know if you have any questions. IPC Contact: Kelly Scanlon.

Do the EPA’s CDR Regulations Affect You? The U.S. Environmental Protection Agency (EPA) recently opened the comment period on a petition process applicable to the Chemical Data Reporting (CDR) regulations. The petition process allows affected stakeholders to submit requests for full exemptions of byproduct substances that are recycled and partial exemptions of chemicals that are determined to be of “low current interest” by the EPA. The CDR rule requires manufacturers and importers of certain chemical substances listed under the Toxic Substances Control Act (TSCA) Chemical Substance Inventory to report data to the EPA every four years. The public comment period is open until December 21. Please let us know if the petition process is applicable to you. IPC Contact: Kelly Scanlon.
 
ECHA Publishes Long-Awaited SCIP Database Data: The European Chemicals Agency (ECHA) recently published the long-awaited results of the Substances of Concern in Products (SCIP) database. Notably, electronic equipment and its parts were among the most commonly notified product categories in the database, which included over four million entries. Check out this IPC SCIP Database resource page for more information, and let us know if you have any questions. IPC Contact: Kelly Scanlon.

EUROPEAN UNION

IPC Concerned over EEE Criteria in EU Sustainability Regulation: On September 27, IPC submitted comments expressing concern over a draft report that calls for deeming manufacturing of electric and electronic equipment (EEE) as “durable” and “circular” under the EU Taxonomy regulation. The EU Taxonomy, which is a classification system for sustainable economic activities, aims to provide guidance to direct investments towards sustainable activities and help reach the objectives of climate and energy targets under the European Green Deal. It also introduces reporting obligations for companies falling under the Corporate Sustainability Reporting Directive (CSRD), which IPC wrote about here. Please let us know if you have any questions or concerns, and read more in a new IPC blog.  IPC Contact: Kelly Scanlon.

TAX, TRADE, AND SUPPLY CHAIN

Supply Shortages Result in Production Delays and Higher Costs: IPC recently released the results of its first-ever Global Sentiment Survey, outlining the current state of the global electronics industry amid COVID-19. According to the report, the electronics industry anticipates no immediate end to shortage woes, with 58% of respondents expecting the problem to linger until at least late 2022. Check out further coverage in Reuters, PCMag, and read the full report here. IPC Contact: Shawn DuBravac.

Commerce Department Seeks Input on ICT and Semiconductor Supply Chain Risks: The U.S. Department of Commerce recently issued two requests for public comment on key supply chain risks. The first notice seeks comments on risks in ICT supply chain, and the second notice seeks input on semiconductor vulnerabilities. Both requests are pursuant to President Joe Biden’s Executive Order (EO) 14017, “America's Supply Chains,” issued earlier this year. IPC will prepare and submit comments for both requests by November 4 and November 8, respectively. Earlier this year, IPC and the U.S. Partnership for Assured Electronics (USPAE) submitted comments on risks in the semiconductor manufacturing and advanced packaging supply chains, a process that was also pursuant to the EO. A subsequent White House report, “Building Resilient Supply Chains, Revitalizing American Manufacturing, and Fostering Broad-Based Growth,” reflected IPC’s input but focused on semiconductor supply chain vulnerabilities. The new semiconductor-related request is designed to address questions raised in the White House report. IPC Contact: Ken Schramko.

U.S. May Investigate Chinese Subsidies to Domestic Companies: The Biden administration, as part of its review of the U.S. relationship with China, is considering launching a new Section 301 investigation into subsidies paid by the Chinese government. The probe is likely to cast a wide net, and findings of unfair subsidies could lead to additional tariffs or trade restrictions against China. IPC will continue to monitor potential U.S. trade actions that could impact our members and will provide updates as we have them. For more information, check out this IPC blog. IPC Contact: Ken Schramko.

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Meet the IPC GR Team: Whether it’s engaging with policymakers in Washington, D.C., in the European Union or in China, the IPC Government Relations (GR) Team proactively seeks opportunities to educate, inform and influence policymakers on policies that spur innovation, growth and competition, while protecting human health and the environment. But our success depends on your support and engagement. Learn more and get involved in IPC advocacy today! IPC Contact: Chris Mitchell.

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