Dear IPC Members:

I hope you and yours are holding up well amid this crisis.

This past Monday, IPC released its latest Real-time Update on Electronics Manufacturing and COVID-19, which shows, among other things, that slowing demand is beginning to slow manufacturing output; supply-chain problems are piling up; hardship and retention bonuses are appearing; and success stories are emerging. Medical equipment production is ramping up, and we commend all those who are stepping up to answer the call during this time. Please check out the report and let us know how the pandemic is affecting your operations.

ICYMI, please check out IPC’s Roadmap for Economic Recovery – a package of government policy measures that we’re advocating for, including a $10 billion Electronics Manufacturing Initiative to help the industry weather the storm and drive the recovery. We understand this is a difficult time for many of you, and the effects of COVID-19 will be long-lasting, which is why we urge you to visit our Advocacy Center to send the roadmap to your elected officials. Electronics is at the heart of the economy and will be at the heart of the economic recovery, with your help.

We’re also looking into the possibilities of adding electronics-relevant provisions to possible “Phase 4” legislation in the U.S.; looking into the government policy situations in Mexico, Canada, and other countries; and developing fresh IPC resources to help you understand all the new government actions and programs. 

Please keep an eye on IPC’s COVID-19 Update web page, which is being updated regularly, and as always, please let us know if you have any government-related questions or concerns.

Chris Mitchell
Vice President, Global Government Relations

DEFENSE AND SECURITY

NDAA Process Continues Amid COVID-19: Last week, U.S. House Armed Services Committee Chairman Adam Smith (D-WA) and Ranking Member Mac Thornberry (R-TX) announced that they are planning on having a draft of the Fiscal 2021 U.S. National Defense Authorization Act (NDAA) ready for committee debate by May 1. This bill affects the future of many government programs of interest to IPC members, and IPC is advocating for measures to improve reliability, security and resiliency in the electronics supply chain. Smith also confirmed that a top priority for this year’s bill will include ramping up the production of materials related to coronavirus. Stay tuned for further developments regarding defense industrial base issues and let us know about the U.S. defense programs of greatest interest to you. IPC Contact: Chris Mitchell.

ENVIRONMENT, HEALTH AND SAFETY

How Is Your Company Affected by EPA Action on High-Priority Substances? On April 6, the U.S. Environmental Protection Agency (EPA) released 13 “scoping documents” for its upcoming reviews of certain high-priority chemical substances under the Toxic Substances Control Act (TSCA), and seven more are expected to be released within the next two weeks. Several of the substances are relevant to electronics manufacturing – flame retardants, phthalates, solvents, and formaldehyde – and IPC needs your input to ensure a thorough review of the draft scoping documents. The current comment period runs through June. Read IPC’s blog post here. IPC Contact: Kelly Scanlon.

U.S. EPA to Ease TSCA Fees: As advocated for by IPC, on March 25, the U.S. EPA confirmed it is exploring potential exemptions to the Toxic Substances Control Act (TSCA) Fees Rule to ease the implementation burden. The agency plans to consider exemptions for manufacturers that import articles containing high-priority substances or those who produce them as impurities or byproducts. The EPA is also providing a “no action assurance” for such manufacturers, meaning it will not pursue enforcement action regarding violations of the self-identification obligations. However, companies that were already identified by the EPA on their preliminary list of fee payers should still plan to certify in the EPA’s Chemical Data Exchange (CDX) system. The EPA has modified the CDX to facilitate new responses; you can read the instructions for reporting here. The deadline to certify is May 27. IPC Contact: Kelly Scanlon.

EPA Implements Temporary Enforcement Discretion Due to COVID-19: On March 26, the U.S. EPA announced a new temporary enforcement discretion policy regarding civil violations during the coronavirus pandemic. While the EPA does not expect to seek penalties for noncompliance with routine monitoring and reporting obligations, it does expect regulated facilities to continue complying with regulatory requirements where reasonably practicable, and if not, to return to compliance as quickly as possible. Do not change your normal routine of meeting or exceeding regulatory requirements and using best practices. To be eligible for enforcement discretion, the policy requires facilities to document decisions made to prevent or mitigate noncompliance and demonstrate how the noncompliance was caused by the COVID-19 pandemic. IPC Contact: Kelly Scanlon.

EU Chemicals Strategy for Sustainability Likely to be Postponed: The European Commission was set to present a new chemicals strategy for sustainability this June; however, due to the coronavirus pandemic, the strategy may now be delayed until October. Meanwhile, the European Parliament’s Committee on Environment, Public Health and Food Safety has been working on a draft position on the proposed chemical strategy, requesting that the commission close all regulatory gaps in the current EU chemical legislation and pursue a “one substance-one hazard” approach, among other highlights. The resolution is expected to be voted upon at a plenary session in July, and we will update you if this date changes. IPC Contact: Alison James.

EUROPEAN UNION

Commission Secures €1 Billion for European SMEs: On April 6, the European Commission secured €1 billion from the European Fund for Strategic Investments (EFSI) that will serve as a guarantee to the European Investment Fund (EIF). This will allow the EIF to issue special guarantees to incentivize banks and other lenders to provide liquidity to at least 100,000 European small and medium-sized enterprises (SMEs) and small mid-cap companies affected by the coronavirus pandemic. The move will make available an estimated €8 billion in financing. IPC Contact: Alison James.
 
Commission Proposes €100 Billion Funding Plan: On April 2, European Commission President Ursula von der Leyen proposed to strengthen the European Union’s response to the coronavirus pandemic by setting up a €100 billion solidarity instrument to help businesses stay afloat. The initiative, called Support to Mitigate Unemployment Risks in an Emergency (SURE), would redirect all available structural funds to coronavirus response. Primarily, the SURE initiative will provide loans from the EU to EU Member States to “address sudden increases in public expenditure to preserve employment.” The initiative also includes an Emergency Support Instrument, which will mobilize €3 billion to help manage the public health crisis and secure vital equipment and supplies. IPC Contact: Alison James.

TRADE AND SUPPLY CHAIN

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

Critical Environmental Requirements for Electronics, Online, June 9: IPC and the Information Technology Industry Council (ITI) are teaming up for our annual event to help you stay ahead of current and emerging environmental requirements. Join us for a four-hour virtual event, complete with a stellar line-up of experts and professionals who will help you stay current on global environmental regulations and issues such as RoHS, TSCA, eco-design, European Green Deal, and more. Sponsorship opportunities are available. Save the date for now; details and registration are coming soon. IPC Contact: Kelly Scanlon.

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