Dear IPC Members:

Your IPC Government Relations team is continuing to advocate for you and the broader industry, with an immediate focus on the COVID-19 crisis and a longer-term focus on our ongoing government policy issues.

On Wednesday, IPC sent a letter to U.S. President Trump, Mexican President López Obrador and Canadian Prime Minister Trudeau, urging them to launch a trilateral initiative to mobilize industrial base support for the medical response to COVID-19, which will also help spur economic recovery in the months ahead. Our members tell us that conflicting restrictions in each country, cross-border delays, and unclear demand signals are hindering production.

On Monday, IPC released its latest Real-time Update on Electronics Manufacturing and COVID-19, which shows, among other things, that electronics manufacturers and suppliers are concerned about disruptions in Mexico. Please check out the new report and let us know how the pandemic is affecting your operations. We need to hear your concerns and experiences to be the best possible advocates for you.

Meanwhile, in China’s Hubei province, where the COVID-19 outbreak began, most factories are open again, according to an IPC survey of member companies in China. Learn more about the situation in China from IPC President and CEO John Mitchell here.

If you haven't already, please check out IPC’s Roadmap for Economic Recovery and visit our Advocacy Center to send the roadmap to your elected officials.

Also consider joining a free, IPC-members-only webinar on “Best Practices for Electronics Industry Worker Health” on Tuesday, April 21.

Chris Mitchell
Vice President, Global Government Relations

IPC ADVOCACY AND YOU

2020 Election: Despite the COVID-19 crisis, there’s still a major election coming up in the United States, and the IPC Political Action Committee (PAC) serves as the collective voice of the industry. The IPC PAC pools contributions and supports pro-manufacturing federal candidates in both major parties. IPC invites you to learn more by visiting the IPC PAC website and filling out a prior authorization form. This form does not obligate you or your employees to support the IPC PAC; it simply enables us to provide more information. Please note that a company can only authorize one association PAC per year; and the form must be signed by someone with the authority to do so, generally the CEO or another C-level executive. IPC Contact: Ken Schramko.

ENVIRONMENT, HEALTH AND SAFETY

COVID-19 Best Practices for Electronics Industry Worker Health: IPC has gathered public health and safety experts for a free, members-only webinar on Tuesday, April 21 on best practices for electronics industry worker health. Topics will include best practices for reducing transmission, for maintaining business operations, and for maintaining a healthy work environment. IPC Contact: Kelly Scanlon.

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

Eurozone Finance Ministers Agree on €540 Billion COVID-19 Package: On April 9, European Union finance ministers agreed to a €540 billion package to support EU Member States, companies, and workers affected by the coronavirus crisis. The package establishes a safety net for member states through the European Stability Mechanism (EMS); for companies through the European Investment Bank (EIB); and for workers through the European Commission’s new instrument, Support to Mitigate Unemployment Risks in an Emergency (SURE). Meanwhile, the EU institutions continue to work on a broader roadmap and action plan to support the recovery of the European economy “through high-quality job creation and reforms to strengthen resilience and competitiveness.” IPC Contact: Alison James.

Sustainable Consumption and Product Longevity in Europe’s Spotlight: The European Parliament’s Internal Market and Consumer Committee released two studies that will feed into a draft report on Europe’s path towards a more sustainable single market for consumers and businesses. The first study analyzes how current EU policies can promote product durability and tackle planned obsolescence, among other objectives. The latter study, focusing on sustainable consumption, recommends revising the Ecodesign Directive so that it better aligns with the objectives of the Circular Economy Action Plan. It also encourages the development of standards to address materials efficiency aspects such as durability, repairability, and resource efficiency. IPC Contact: Alison James.
 
Member States Urge EU to Link Recovery Plans to Green Deal Objectives: Ten European Union Member States have encouraged the European Commission to use the European Green Deal Investment Plan (EGDIP) as a “roadmap to make the right choices in responding to the economic crisis while transforming Europe into a sustainable and climate-neutral economy.” Meanwhile, the commission echoed the member states’ sentiments and confirmed that the EU’s response to COVID-19 “will integrate the strategic objectives the EU has set itself as regards the environment and climate,” and that any policy and investment decisions should reflect those principles. IPC Contact: Alison James.

TRADE AND SUPPLY CHAIN

Changes to U.S. Export Controls: The U.S. government has reportedly agreed to changes to export control regulations to prevent China from obtaining advanced U.S. technology for commercial purposes and diverting it to military use. The proposed changes that are under consideration have the potential to result in significant impacts to the electronics manufacturing industry and its global supply chain. Last week, IPC sent a letter to U.S. Commerce Secretary Wilbur Ross requesting that any changes to U.S. export controls that apply to printed circuit boards (PCB), printed circuit board assemblies (PCBAs), and electronic components be made through a proposed rule allowing for public comment before becoming effective. The opportunity for public comment is critical to ensure that the rule is appropriately designed to achieve the U.S. government’s national security objectives without imposing unintended consequences on the U.S. electronics manufacturing industry. IPC Contact: Ken Schramko.

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

COVID-19 Best Practices for Electronics Industry Worker Health: Online, April 21, 2020. IPC Contact: Kelly Scanlon.

Critical Environmental Requirements for Electronics: June 9, 2020. 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. IPC Contact: Kelly Scanlon.

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