Dear IPC Members:

As states across the United States begin to lift stay-at-home restrictions and some of you head back to work, protecting each other on the job is more important than ever. Currently, there are no requirements or specifications regarding the use of medical mask products in non-medical workplaces, and you may have questions regarding whether to wear face coverings or surgical masks while at the workplace. IPC offers this framework to use in your decision-making process. As always, check out IPC’s regularly updated COVID-19 Resources page for additional resources and let us know if we can assist you as you safely ramp back up operations.

With a new COVID-19 relief package in the works, now is a good time, if you haven't already, to share IPC’s Roadmap for Economic Recovery with your elected officials. Help us ensure that the electronics manufacturing industry’s voice is heard loud and clear in the legislative process. For more information on how to get involved, please visit our Advocacy Center!
 
Please enjoy this week’s snapshot of the top issues we’re working on for you all over the world, and let us know if you have questions and suggestions.

All the best,

Chris Mitchell
Vice President, Global Government Relations

TOP OF THE WEEK

U.S. House Democrats Planning new COVID-19 Relief Package: U.S. House Democrats are currently planning CARES 2, the next coronavirus relief package, and are aiming to unveil the full package by the week’s end. CARES 2 is expected to include extensive funding for states and localities; an increase of unemployment funding; a more robust employee retention tax credit; and hazard pay for frontline workers. Republicans have said liability protection for businesses and a payroll tax cut are their priorities in the next relief package. IPC will keep you updated as this legislation progresses through Congress. IPC Contact: Chris Mitchell.
 

DEFENSE AND SECURITY

NDAA Timeline Remains Uncertain, New October Goal: U.S. Senate Armed Services Committee Chairman Jim Inhofe (R-OK) and U.S. House Armed Services Committee Chairman Adam Smith (D-WA) have said they hope to have a final National Defense Authorization Act (NDAA) in place by October 1. However, the coronavirus pandemic, the November presidential election, and U.S. President Trump’s proposed border wall all complicate the timeline, which could possibly result in a final bill until after the presidential election. The bill is considered a must-pass for the defense industrial base. 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

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.

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.

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.

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.

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.

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.

EUROPEAN UNION

Industry Groups ask Commission to Delay Implementation of Energy-Saving Requirements: An increasing number of industry stakeholders are asking the European Commission to reconsider the timing of certain upcoming energy-saving product requirements due to the coronavirus pandemic. DigitalEurope, representing the digital technology industry, urged the commission to delay “new ICT product compliance,” while Home Appliance Europe (APPLiA) raised concerns over the implementation of the Ecodesign requirements and the European Union target for the collection of electronic waste. Meanwhile, the Consumer Technology Association (CTA) and the Information Technology Industry Council (ITI) also expressed concern about the deadline for “compliance with new requirements for external power supplies.” IPC Contact: Alison James.
 
EU Leaders Insist on Delivering Sustainability and Circularity Goals: The Croatian Presidency of the Council of the European Union has released its draft conclusions on the European Commission's communication on shaping Europe’s digital future. Notably, the latest text calls for improvements to energy efficiency and circularity of electronic devices, which would be achieved through improving longevity; repairability and recyclability of products as proposed in the Circular Economy Action Plan; and by informing consumers about the carbon footprint of the devices. IPC Contact: Alison James.
 
EU Adopts Measures to Help Businesses Amid COVID-19: On April 28, the European Commission adopted a banking package to help facilitate bank lending to households and businesses throughout the European Union. The package aims to ensure that banks can continue to lend money to support the economy and help mitigate the economic impact of the coronavirus. On April 29, the commission adopted a package of measures to provide relief to the transport sector by removing administrative burdens and increasing flexibility. This package includes measures to support the aviation, rail, maritime, inland navigation, and road sectors, ensuring that no single player is hit harder than another and goods keep moving across Europe. IPC Contact: Alison James.

MEP Calls for Mandatory Supply Chain Regulation: On April 27, Bernd Lange, Chair of the European Parliament Committee on International Trade (INTA), called for binding rules to make international production chains more robust and sustainable. Lange also called for a new mandatory supply chain regulation to “oblige companies to duly check human rights, environmental risks and the vulnerability to crisis, and to take appropriate measures to avoid such risks.” IPC Contact: Alison James.

TRADE AND SUPPLY CHAIN

ITC Releases New Study on Medical Product Tariffs: On May 5, the U.S. International Trade Commission (ITC) released a report detailing recommended tariff levels for medical supplies needed to combat the coronavirus. As a result of the report, U.S. House Ways and Means Committee Chairman Rep. Richard Neal (D-MA) called for a 90-day suspension of all tariffs on the products listed. The report identifies 114 products, including those vital to COVID-19 testing kits, personal protection equipment, and medical imaging equipment. Meanwhile, the Trump administration has given no indication that they will take action to reduce tariffs on the identified products. IPC supports suspending Section 301 tariffs on imports related to healthcare and other vital supplies necessary to combat COVID-19.IPC contact: Chris Mitchell.

Trade Talks Between U.S. and U.K. Begin This Week: The United States and the United Kingdom formally launched talks toward a free-trade agreement on May 5. In a joint statement, the two governments said a trade deal “would contribute to the long-term health of our economies, which is vitally important as we recover from the challenges posed by COVID-19.” Meanwhile, U.K. International Trade Secretary Liz Truss pledged to drive a “hard bargain” with Washington and insisted a deal was “essential” to ease the economic burden of COVID-19. The first round of talks, which will cover trade in goods and services, digital trade, two-way investment, and support for small and medium-sized businesses, is set to take two weeks, with further rounds planned every six weeks. IPC Contact: Alison James.

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.

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 last 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

Is Your Company Looking to Source Inputs from New Countries? Over the last year, electronics manufacturers have been adjusting their supply chains due to COVID-19, trade tensions, and the worry that higher tariffs may become permanent. 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

The U.S. Economic Outlook in a Post-Pandemic World: Webinar, May 21, 2020. The sudden stop of so much economic activity has pushed the United States and the global economy into recession. Uncertainty continues to build as demand wanes, output drops, and unemployment rises. While all sectors of the economy have been impacted, some are feeling the downturn more acutely than others. IPC Chief Economist Shawn DuBravac will examine the impacts COVID-19 is having on the U.S. economy and the prospects for an economic recovery in the coming months. We'll explore possible recovery scenarios and what they mean for the electronics manufacturing industry, and take a deep dive into the latest economic data, trends, and risks. We'll also explore IPC's current economic outlook and provide a near-term forecast. IPC Contact: Chris Mitchell.
  
Critical Environmental Requirements for Electronics: Virtual event, 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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