Dear IPC Members:

I hope this newsletter finds you and yours well.

In our top news this week, I’m pleased to report that after advocacy by IPC and others, the Government of Mexico announced it will work with the United States and Canada to coordinate their operational restrictions and other economic policies in response to COVID-19. See “TOP OF THE WEEK” below. 

Speaking of COVID, IPC’s latest Real-Time Update on Electronics Manufacturing and COVID-19 shows many companies expect remote work to end in June; electronics companies have begun receiving PPP funding; and companies are now preparing for the “new normal,” including what health-protection measures will be necessary going forward. Check out IPC’s regularly updated COVID-19 Resources page and watch for more intelligence coming soon on how to protect your employees and ramp back up safely in the weeks ahead.

If you haven't done so already, please check out IPC’s Roadmap for Economic Recovery and visit our Advocacy Center now to share it with your elected officials. Your participation in our advocacy efforts does pay dividends! Let’s ensure the electronics manufacturing industry’s voice continues to be heard!

In other news, environmental regulators are busy on several fronts in the United States, Europe, and Asia. See “ENVIRONMENT, HEALTH AND SAFETY” below.

Please let us know if you have any questions or suggestions for IPC advocacy. We are here to support you, now more than ever.

All the best,

Chris Mitchell
Vice President, Global Government Relations

TOP OF THE WEEK

Mexico to Coordinate with US and Canada on COVID-19 Manufacturing Response: Responding to advocacy by IPC, the National Association of Manufacturers (NAM), and others, on April 24, the government of Mexico announced they will work with the United States and Canada to coordinate COVID-19 policies affecting essential manufacturing, while addressing the longer-term economic recovery. IPC believes this crisis is an opportunity to think more broadly about how to come out of this downturn stronger and with a heightened appreciation for regional sourcing. IPC Contact: Chris Mitchell.

ENVIRONMENT, HEALTH AND SAFETY

New Electronics Sector Snapshot: The U.S. EPA’s Smart Sectors Program released a new web-based tool for environmental and economic performance in the electronic products and semiconductor manufacturing sector. The Smart Sectors Program provides a platform for EPA to collaborate with regulated sectors and develop sensible approaches that better protect the environment and public health. IPC is committed to environmental stewardship, recognizing that proactive efforts to protect human health and the environment can reduce business risks and the need for compliance-driven activity. We were pleased to participate in the development of the EPA snapshot for our sector. Let us know what you think! IPC Contact: Kelly Scanlon.

Is Your Company Affected by EPA Action on High-Priority Substances? The U.S. Environmental Protection Agency (EPA) has released all 20 “scoping documents” for its upcoming reviews of high-priority chemical substances under the Toxic Substances Control Act (TSCA). The comment period is currently open, and IPC needs your input to ensure a thorough, accurate review. Delve into the full details in an IPC blog post here. IPC Contact: Kelly Scanlon.

U.S. EPA to Ease TSCA Fees: 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. 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 here. The deadline to certify is May 27. IPC Contact: Kelly Scanlon.

Do You Have a Stormwater Permit for Your Facility? The U.S. EPA is seeking public comment on a proposed 2020 National Pollutant Discharge Elimination System (NPDES) Multi-Sector General Permit (MSGP) for stormwater discharges from industrial activity. This proposed permit would replace the 2015 MSGP upon finalization and would cover stormwater discharges from industrial facilities in areas where the EPA is the NPDES permitting authority. Check out this EPA presentation as well as this IPC blog post for more information, and let us know if the proposed changes apply to your facility. The comment period ends on May 31. IPC Contact: Kelly Scanlon.

RoHS “Seven Substance Assessment” is Near Completion: On April 27, the European Commission’s Directorate-General for the Environment (DG Environment) hosted a stakeholder meeting to present the final dossiers for a review of certain substances known as “Pack 15” or the “seven substance assessment.” Two of the seven substances relevant to our industry are being recommended to be added to the list of restricted substances per RoHS Annex II: Tetrabromobisphenol A (TBBPA), a flame retardant used in FR4 boards, and Medium-chain chlorinated paraffins (MCCPs), a secondary plasticizer and flame retardant. IPC will continue to track RoHS happenings; you can read IPC’s full update from of the meeting here. 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 COVID-19 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. IPC Contact: Alison James.
 
Taiwan Begins Annual Reporting of Registered New and Existing Chemicals: Beginning on April 1, Taiwan instituted a policy of mandatory reporting of new and existing chemical substances. Under the Regulations of New and Existing Chemical Registration, registrants should report their manufactured or imported new or existing chemical substances from the previous year. All reports are due by September 30. IPC Contact: Kelly Scanlon.

Vietnam Releases Draft of National Chemical Inventory: On April 4, Vietnam’s Department of Chemicals under the Ministry of Industry and Trade (MOIT) issued a notice seeking additional information on chemicals to supplement the draft National Chemical Inventory (NCI). Companies currently importing or manufacturing chemicals in Vietnam which are not yet on the draft NCI are required to submit the data for substance nomination by May 30. IPC Contact: Kelly Scanlon.

EUROPEAN UNION

EU Leaders Ask Commission to Draft an Economic Recovery Fund for Europe: On April 23, European Union leaders tasked the European Commission to draft a proposal for an multi-trillion euro economic recovery fund that would “be of sufficient magnitude, targeted towards the sectors and geographical parts of Europe most affected.” The leaders also welcomed the European Council’s Joint  European Roadmap for Recovery, and endorsed a €540 billion relief package that is set to go into effect by June 1. Meanwhile, the commission is expected to propose its Multiannual Financial Framework (MFF) — the EU's regular, seven-year budget — on May 6, which should be “clearly linked to the recovery fund," according to EC President Ursula von der Leyen. IPC Contact: Alison James.
 
Second Round of Post-Brexit Talks Yields Little Progress: The second round of talks on post-Brexit relations between the United Kingdom and the European Union produced no progress, officials said. Over the last week, negotiators were unable to make tangible progress on the most sensitive issues including “level playing field” stipulations; criminal and security partnerships; and fisheries. According to a statement from the EU chief negotiator, Michel Barnier, "genuine progress" and a decision on whether to extend the transition period, set to end on December 31, are needed from the next round of negotiations, due to take place in early June. IPC Contact: Alison James.

TRADE AND SUPPLY CHAIN

USMCA to Take Effect on July 1 After U.S. Takes Final Procedural Steps: On April 24, the Trump administration notified the U.S. Congress that Canada and Mexico have taken all measures necessary to comply with their commitments under the new United States-Mexico-Canada Agreement (USMCA), and thus the pact will enter into force on July 1. The notification to Congress was the final step necessary for the USMCA to enter into force. "The crisis and recovery from the COVID-19 pandemic demonstrates that now, more than ever, the United States should strive to increase manufacturing capacity and investment in North America,“ said U.S. Trade Representative Robert Lighthizer. “The USMCA’s entry into force is a landmark achievement in that effort." IPC contact: Chris Mitchell.

U.S. Issues New Export Control Rules on China, Other Nations: The U.S. Department of Commerce this week issued two new export control rules affecting U.S. dealings with “countries of national security concern,” including China. One rule, EAR § 744.21, expands licensing requirements on exports, reexports, and transfers (in-country) of items intended for military end uses in China, Russia, or Venezuela. The rule also expands the definition of "military end use;” expands the list of items that fall under licensing requirements; and imposes filing requirements for de minimis shipments. The other rule, EAR § 740.5, will tighten licensing requirements for national-security-controlled items exported to Country Group D:1, which includes China, Iraq, Libya, Russia, and Ukraine. Both rules are final and will go into effect on June 29, setting aside requests from IPC and other industry groups to go through the usual rulemaking process, including public comments and changes before becoming effective. Will this change affect your business? Stay tuned for more information. IPC contact: Chris Mitchell.

UPCOMING EVENTS

Critical Environmental Requirements for Electronics: Online, 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.

KEEP IN TOUCH WITH US

Subscribe to IPC Global Advocacy Report: If you’re a member of IPC, manage your e-mail preferences and opt in to receive “Advocacy” updates. If you are not an IPC member – or you’re not sure – please send a note to friends@ipc.org, and our staff will add you to the list.

Follow us on Twitter.

Contact one of us if you have any questions or insights to contribute.

Tell us how government policies affect your business.

See prior editions of Global Advocacy Report.

Explore our IPC Government Relations information online.