Dear IPC Members:

I hope this finds you and yours staying healthy and sane during this unprecedented coronavirus crisis.

Earlier this week, IPC sent a letter to many U.S. Governors, the National Association of Governors (NGA), U.S. Conference of Mayors, and National Association of Counties (NACo), calling on them to exempt from COVID-19 restrictions any electronics manufacturers that serve the healthcare, defense, infrastructure and government communities. We also urged them to consider a broader industry exemption, given that it is nearly impossible to distinguish manufacturing for these specific sectors from all electronics manufacturing. We will continue to press forward on this effort and keep you posted.

Last Friday, IPC released the results of a second-round IPC survey on the impacts of the COVID-19 pandemic on electronics manufacturers, revealing growing concerns about supply chain disruptions. In this blog post, IPC Chief Economist Shawn DuBravac and Chief Technologist Matt Kelly note that restrictions on travel and meetings are likely to result in fewer new product introductions (NPIs) in 2020.

On Monday, March 23, IPC will host a webinar on the coronavirus’s economic impact on the electronics manufacturing industry, featuring Shawn Dubravac and his guest Joe Brusuelas, one of the world’s top experts on middle-market companies. If you can’t attend this webinar, please let us know how the pandemic is affecting your operations.

Below please find additional news items about what your IPC Government Relations team is working on in the areas of environmental regulation, trade, and industrial policy. As always, please let us know if you have any questions or suggestions for IPC advocacy!

All the best,

Chris Mitchell
Vice President, Global Government Relations

DEFENSE AND SECURITY

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. Going forward, IPC is requesting another $25 million in FY 2021. We believe that a five-year, $40 million investment in a public-private R&D program would close the knowledge gap concerning the reliability of Pb-free alternatives in aerospace and defense electronics; yield more than $100 million in U.S. defense savings per year; and improve military readiness and overall electronics 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

ECHA Considers Seven New Hazardous Substances for REACH Authorization: The European Chemicals Agency (ECHA) recently launched a 90-day public consultation on seven substances it is considering regulating under the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) program. Most notably, the latest draft recommendation does not include lead metal, although due to the high volumes of lead traded on the European Union market, it may be considered again next year. The public consultation remains open until June 5, after which the ECHA Member State Committee (MSC) will prepare an opinion on the draft recommendation. Based on that feedback, the European Commission will decide in early 2021 which substances should be included in the Authorization List (REACH Annex XIV). Please let us know if you have information on uses of the proposed substances. IPC Contact: Alison James.

Does Your Company Face New TSCA Fee Obligations? If you manufacture or import chemical substances designated as High-Priority Substances under the U.S. Toxic Substances Control Act (TSCA), you may be subject to new fee obligations to the U.S. EPA. Many companies may be unaware of these potential fees, so it is critical to perform due diligence. This week, the EPA announced a 60-day extension for self-reporting, now ending on May 27. IPC will continue to fight for our members to ensure the EPA actively addresses our concerns about the burdens of these fee obligations. Read IPC’s recent blog post for more information, and let us know your questions and concerns. IPC Contact: Kelly Scanlon.

Changes to TSCA CDR Requirements: On March 17, the U.S. EPA issued a prepublication notice of its final rule amending the Toxic Substances Control Act (TSCA) Chemical Data Reporting (CDR) requirements. The CDR rule requires manufacturers and importers of certain chemical substances listed under the TSCA Chemical Substance Inventory to report data to the EPA every four years. In a separate prepublication notice, the EPA also announced they would be extending the CDR submission period, scheduled to begin June 1, to end on November 30 instead of September 30. The extension will allow companies more time to familiarize themselves with the changes to the CDR reporting requirements. The EPA also will provide data reporters with the opportunity to test and comment on the updated e-CDR web reporting tool prior to the submission period. For access to the prepublication version of the CDR Revisions, please visit the Federal Register Notice, and keep an eye out for an IPC mention on page 16, where the EPA highlighted how their site visit to TTM Technologies, Inc. was useful to the development of the final rule! IPC Contact: Kelly Scanlon.

Does Your Company Use PFAS? The U.S. EPA and various European Union Member States are exploring how best to manage a variety of per- and polyfluoroalkyl substances (PFAS) across their life cycles. Please let us know how you use PFAS in your electronics processes and products. IPC is tracking policy developments and will keep you updated. IPC Contact: Kelly Scanlon.

BSEF Sues Commission Over Flame Retardants Ban: The International Bromine Council (BSEF) has filed a legal challenge against the European Commission's ban on the use of halogenated flame retardants (HFRs) in electronic displays under the European Union’s Ecodesign Directive. The regulation, adopted in October, will prohibit “the use of HFRs in the enclosures and stands of electronic displays” beginning in March 2021. BSEF wants the restriction to be annulled and is contesting the commission's decision on seven grounds, including, it failed to take relevant information into account; it did not conduct a proper impact assessment (the class of substances did not undergo scrutiny under the EU’s REACH and RoHS directives; and it breached the principles of legal certainty, proportionality and equal treatment. IPC Contact: Alison James.

EUROPEAN UNION

Electronics and ICT at Core of EU's Circular Economy Action Plan: Last week, the European Commission unveiled its Circular Economy Action Plan, which includes initiatives to promote efficient use of materials; encourage sustainable production and consumption; and cut waste. Notably, the action plan proposes a Circular Electronics Initiative, which will extend the current ecodesign directive to electronics and information and communications technology (ICT), aiming to ensure that mobile phones, tablets and laptops will last longer and be more repairable. Under the plan, the commission will also consider establishing sustainability principles and will review the rules on restrictions of hazardous substances in electrical and electronic equipment. Specific proposals for the various initiatives are expected to be released by 2021. IPC Contact: Alison James.
 
EU Member States Welcome the Commission’s Industrial Strategy: Following the release of the European Commission’s new Industrial Strategy on March 10, ten EU Member States issued a joint statement welcoming the strategy and saying it would “strengthen the competitiveness of its industry and master the ongoing industrial transition.” The statement highlighted the commission's commitment to dedicating additional European funds to strategic value chains, key technologies and breakthrough innovation, noting the member states’ desire to focus on strategic value chains through Important Projects of Common European Interest (IPCEI) and other instruments. IPC Contact: Alison James.

TRADE AND SUPPLY CHAIN

COVID-19 Is Another Reason to Ease U.S.-China Tariffs: As supply chain disruptions continue due to the COVID-19 pandemic, there is a bipartisan push in Congress to convince the Trump administration to suspend tariff increases, especially on goods coming from China. So far, it does not appear that the efforts are gaining traction with the administration. We will continue to monitor the situation and provide updates. IPC contact: Chris Mitchell.

Canada Approves USMCA; Now When Will It Go into Effect? Last Friday, the Canadian House and Senate both approved the U.S.-Mexico-Canada (USMCA) trade pact, fast-tracking it due to COVID-19. The bill was then signed into law by the Canadian Governor-General that same day. USMCA could now enter into force as early as June 1, and the Trump administration has indicated that that is their intention. However, some business groups and members of Congress, including Senate Finance Committee Chairman Chuck Grassley (R-IA) and Ranking Democrat Ron Wyden (D-OR) have expressed skepticism that it will be possible given the global pandemic. We will continue to monitor the situation and provide updates. IPC contact: Chris Mitchell.

Is Your Company Looking to Source Inputs from New Countries? 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 if your company is thinking about sourcing from new countries, we would be interested in hearing from you as part of our research and monitoring efforts. IPC Contact: Shawn DuBravac.

UPCOMING EVENTS

CANCELLED: Chemicals Management for Electronics Europe 2020: IPC has confirmed that the Chemical Watch conference scheduled for March 23-24 in Amsterdam, Netherlands has been postponed due to the coronavirus until the fall. We will update our members as more details arise. IPC Contact: Kelly Scanlon.

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