Dear IPC Members:
The coronavirus epidemic is dominating the airwaves, and its impacts are beginning to be felt by IPC members. Earlier this week, IPC released the results of a member survey on the issue, revealing that an overwhelming majority are concerned and already eyeing strategies for coping. Check out the news item below and stay tuned to IPC for updates as the situation evolves.
This weekly newsletter provides a snapshot of the top government policy issues we’re working on for you all over the world. Please let us know if you have any questions or suggestions.
All the best,
Chris Mitchell
Vice President, Global Government Relations
TOP OF THE WEEK
Coronavirus Epidemic Affecting Electronics Manufacturers: Electronics manufacturers anticipate delays in shipments from suppliers due to the coronavirus epidemic, an IPC survey says. Production and shipping delays among affected countries and companies are triggering a wave of impacts across the supply chain. IPC will continue to perform regular surveys and research on this issue and keep member’s updated. Read IPC's full press release and the study, starting here. IPC Contact: Chris Mitchell.
IPC Needs You In Washington, March 25-26: IPC is calling on all member-company senior-level executives to participate in IPC’s signature advocacy event, IMPACT Washington, D.C. 2020, coming up on March 25-26 in Washington, D.C. Join with industry leaders in advocating for U.S. Government policies to support electronics manufacturing and reliability. One of our featured speakers will be Rep. Ro Khanna (D-CA), a member of the House Armed Services and Budget committees, and author of Entrepreneurial Nation: Why Manufacturing is Still Key to America’s Future. Key issues all week will include defense electronics, supply-chain resiliency, and environmental regulation. Policymakers want to hear from you, their constituents, about the decisions they make that affect your business, and the IPC Government Relations team will support you throughout the event. Contact Ken Schramko if you have questions, or click here to register!
DEFENSE
IPC Pursuing More Funding for Pb-free Electronics Research: Late last year, IPC was successful in securing federal funding in Fiscal 2020 for research into lead-free electronics in high-performance missions. As a result of advocacy by IPC and its partners, the U.S. Congress appropriated $5 million to restart Pb-free research under the auspices of the U.S. Department of Defense. The funding is a positive step, showing that the U.S. Government recognizes the need to close the knowledge gap concerning the reliability of Pb-free alternatives in aerospace and defense electronics. We believe that a five-year, $40 million investment in a public-private R&D program would yield more than $100 million in U.S. defense savings per year and improve military readiness and overall innovation. If your company would like to join the coalition that is working to secure funding for Pb-free R&D in Fiscal 2021, please contact Ken Schramko.
ENVIRONMENT, HEALTH AND SAFETY
Does Your Company Face New TSCA Fee Obligations? If you manufacture or import certain “high-priority substances” or items that contain them, you may be obligated to pay fees in 2020 to the U.S. EPA. Many companies may be unaware of these potential fees, so it is critical to perform due diligence prior to the end of the comment period, March 27. IPC is fighting to lengthen the comment period and to simplify a self-identification process that is too broad in scope and too blind to the burden it places on manufacturers. Read IPC’s latest blog post for more informationand let us know your questions and concerns. IPC Contact: Kelly Scanlon.
Changes to RoHS Regulation will Affect the Electronics Industry: At the Chemicals Management for Electronics conference on March 23-24 in Amsterdam, Kelly Scanlon, IPC director of environment, health and safety policy and research, will provide an overview on the electronics industry’s perspectives on the current RoHS General Review. Kelly’s presentation on March 23 will follow the keynote presentation from the European Commission’s policy officer on RoHS. This will be a special opportunity for participants to engage with a policy maker and to learn the latest on the general review initiatives in the context of the electronics industry’s needs and concerns.
Chemical Watch has extended a special offer to IPC members. When registering, simply use IPC15 to receive 15% off registration costs. IPC Contact: Kelly Scanlon.
Proposed Clarifications to Prop 65: The California Office of Environmental Health Hazard Assessment (OEHHA) proposed modifying the safe harbor warnings in Proposition 65 to make clarifying changes to specific sections of the law. The proposed action will facilitate compliance by providing clarifying changes to the regulations as they relate to specific consumer product exposure warnings for products sold over the internet or through a catalog. The Public Comment period is open through March 16. IPC Contact: Kelly Scanlon.
Do you use PFAS?: On February 20, the U.S. EPA proposed a supplemental Significant New Use Rule to ensure that the EPA is notified before anyone begins or resumes the import of long-chain per- and polyfluoroalkyl substances (PFAS) as part of surface coatings on articles. The EPA and various European Union Member States are also exploring how best to manage a variety of PFAS across their life cycles. Please let us know if you use PFAS in your electronics processes and products. IPC is tracking these developments and will keep you updated. IPC Contact: Kelly Scanlon.
Euro Trade Associations Fear Negative Impacts of RoHS Restriction on Plastic Recycling: According to comments submitted by the European Electronics Recyclers Association (EERA) and the Recycling Industries Confederation (EuRIC) to the European Commission’s review of Tetrabromobisphenol A (TBBPA) under the Restriction of Hazardous Substances (RoHS) Directive, a TBBPA restriction would negatively affect the sorting of plastics and potentially lead to the use of substitutes of similar concern. Germany’s Öko-Institut, the research institute overseeing the substance assessments on behalf of the commission, recommended new restrictions for TBBPA and medium-chain paraffins (MCCPs). The commission will wait for the study's conclusions, expected in May 2020, and will consider further steps then. IPC Contact: Alison James.
Learn More About ECHA’s SCIP Database: The European Chemicals Agency (ECHA) published a beta version of the Substances of Concern in Products (SCIP) database. Companies supplying articles containing certain hazardous materials above a threshold amount will be required to submit information on these articles to ECHA using the SCIP database beginning January 5, 2021. Companies will need to submit information to identify the article, name, concentration range, and location of the substance of concern in the article, and other information on its safe use. Please consider using IPC-175X standards to assist you in the identification of information useful to the SCIP database entry. Now is the time to get involved with reviewing and testing the burgeoning system and we encourage you to learn more about it at a Chemical Watch-sponsored webinar on March 5. IPC Contact: Kelly Scanlon.
Chinese Agency Approves New Rules on Chemical Substances: On February 17, the Chinese Ministry of Ecology and Environment (MEE) approved amendments affecting the management of new chemical substances. The amendments adjust the registration classification, while simplifying the new chemical registration process. While the official amendments have not been published, and the implementation date has yet to be confirmed, they are expected to come into effect later this year. IPC Contact: Kelly Scanlon.
South Korea MoE Launches Online Platform for K-REACH Registration: On January 31, the South Korean Ministry of Environment launched the online data support platform for K-REACH registration. The platform contains a large amount of information on chemical and physical properties, and human health and environmental hazard data on 1,515 existing chemicals, collected from other countries and international organizations. The data set includes data sources and test methods for each chemical, which can be taken as reference for K-REACH registration. Please see detailed information on the chemical list and platform guide in their latest notice. IPC Contact: Kelly Scanlon.
EUROPEAN UNION
EU Eyes Changes to CSR Reporting Obligation: On February 17, the European Commission launched a public consultation on its upcoming review of the Non-Financial Reporting Directive (NFRD). The NFRD requires certain large companies to include a non-financial statement – for example on environmental or social issues – as part of their annual public reporting obligations. The upcoming review is part of the new “European Green Deal,” which aims to strengthen sustainable investment in Europe, improve corporate transparency, and provide all stakeholders with more comparable and relevant information on sustainable business activities. The review may bring about changes affecting IPC members, such as a widening of the scope of companies captured by the NFRD. The public consultation is open for stakeholder feedback until April 28. IPC Contact: Alison James.
Commission Pushes for Circular Products: According to a recent communication and a draft of the upcoming Circular Economy Action Plan, which is due on March 10, the European Commission will present a “circular electronics initiative” that will aim to bring existing and new rules in line with the circular economy and sustainability policy principles. The legislation will ensure that devices “are designed for durability, maintenance, dismantling, reuse and recycling,” including “right to repair or upgrade to extend the lifecycle of electronic devices and to avoid premature obsolescence.” The final initiative is expected in 2021. IPC Contact: Alison James.
TRADE
Section 301 Tariff Exemptions for Two- and Four-Layer Printed Boards: Earlier this month, the US Trade Representative (USTR) published a notice in the Federal Register providing for additional exclusions to previously imposed Section 301 tariffs on imports from China. The list of exclusions includes “printed circuit boards, each with a base wholly of plastics impregnated glass, not flexible” with two- or four-layers of copper (HTSUS Codes 8534.00.0020 & 8534.00.0040 ). Exclusions for these products are retroactive to September 24, 2018 and will run until August 7, 2020. Importers that paid the tariffs are eligible for reimbursement. The USTR is continuing to consider exclusion requests; more notices are expected. IPC Contact: Chris Mitchell.
EU Agrees to Mandate for Post-Brexit Negotiations: European Union ambassadors officially reached an agreement this week on the revised draft negotiating mandate for trade talks with the United Kingdom. After much debate, EU countries were able to agree on the details of the “level playing field” stipulations, which were toughened in the latest revised draft. Brussels wants any deal granting the U.K. access to the single market to ensure “zero dumping,” which would avoid any under-cutting of EU businesses through lower U.K. social, environmental or competition standards. EU Trade Commissioner Phil Hogan also said the EU’s standard rules of origin should form the basis for talks on how to classify U.K. products. The U.K. published their own negotiating mandate Thursday, with post-Brexit trade talks officially set to begin on Monday. IPC Contact: Alison James.
Changes in the Global Supply Chain: Over the last year, electronics manufacturers have been adjusting their supply chains due to trade tensions, tariffs, and the belief that higher tariffs may become permanent. We’re seeing evidence of a “decoupling” between China and the United States and shifts to other sources of supply such as Mexico, Vietnam, Indonesia, Taiwan and India. Read a short blog on this issue by IPC Chief Economist Shawn Dubravac and let us know for our research purposes if your company is thinking of switching to new sources of inputs. IPC Contact: Shawn Dubravac.
UPCOMING EVENTS
IMPACT Washington, D.C.: March 25-26, 2020. This is IPC’s signature U.S. advocacy event, providing opportunities for members to educate policy makers on the issues that affect them most. Please learn more and plan on joining us in DC! IPC Contact: Chris Mitchell.
Chemicals Management for Electronics Europe 2020: March 23-24, 2020, Amsterdam, Netherlands. Kelly Scanlon, IPC director of environment, health and safety policy and research, will provide an overview on the electronics industry’s perspectives on the current RoHS General Review. This will be a special opportunity for participants to engage with a policy maker and to learn the latest on the general review initiatives in the context of the electronics industry’s needs and concerns. IPC Contact: Kelly Scanlon.
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