Dear IPC Members:

As you already know, electronics manufacturing contributes powerfully to the U.S. economy. This week, IPC released a landmark report which finds that our industry supported over 5.3 million U.S. jobs and contributed $714 billion (3.7 percent) to U.S. GDP in the months leading up to COVID-19. Sixteen states led by California and Texas account for about 75 percent of direct electronics manufacturing jobs, and the sector plays an outsize role in states you might not think of, including Oregon and Minnesota.

As the COVID-19 pandemic has made ever clearer, electronics are at the heart of thousands of products and services in the U.S., and the health of our industry is key to the overall success of the economy. Please check out the full report for further insights on our industry’s economic impacts and to share it with your elected officials.

You might also want to register for IPC’s May 21 online discussion, The U.S. Economic Outlook in a Post-Pandemic World, featuring our Chief Economist Shawn Dubravac.

Meanwhile, as we continue to monitor the lifting of stay-at-home restrictions, protecting each other on the job is more important than ever. If you haven’t already, we recommend you check out IPC’s framework on face coverings and masks in the workplace.

As always, check out IPC’s regularly updated COVID-19 Resources page for more resources, and let us know if we can assist you in any way.

For more information on how to get involved in advocating for policies to drive the economic recovery, please visit our Advocacy Center!

All the best,

Chris Mitchell
Vice President, Global Government Relations

TOP OF THE WEEK

U.S. House Democrats Unveil New COVID-19 Relief Package: U.S. House Democrats this week unveiled CARES 2, a $3 trillion coronavirus relief package, and they are planning to hold a vote by Friday, despite complaints from progressives that the bill doesn’t go far enough and from Senate Republicans, who question its contents and timing. CARES 2, also known as the Heroes Act, includes cash for state and local governments, rent and mortgage relief, hazard pay for frontline workers, and expanded mail-in voting programs. IPC will keep you updated as this legislation progresses through Congress. IPC Contact: Chris Mitchell.
 

DEFENSE AND SECURITY

New Legislative Details of U.S. Defense Bill Emerge: U.S. House Armed Services Ranking Republican Mac Thornberry (R-TX) said last week that the next National Defense Authorization Act (NDAA) will include restrictions on the Pentagon’s authority to move money around after President Trump last year redirected $3.8 billion of funds meant for weapons programs to help pay for a border wall. Thornberry also said that he is optimistic the NDAA will advance “relatively soon,” although the schedule has not been set. The bill is considered a must-pass for the defense industrial base. Stay tuned for further developments and let us know about the U.S. defense programs of greatest interest to you. IPC Contact: Chris Mitchell.

ENVIRONMENT, HEALTH AND SAFETY

China Publishes New Chemical Regulations: On April 29, China’s Ministry of Ecology and Environment (MEE) published the Measures of Environmental Management and Registration of New Chemical Substances (MEE Order 12), replacing the current new chemical regulation, Measures of Environmental Management of New Chemical Substances (MEP Order 7). MEE Order 12 “introduces substantial changes to the registration system for new chemical substances, and will likely have significant impacts on producers, importers, processors of the new chemical substances,” and will take effect on January 1, 2021. Let us know if you have any questions. 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.

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.

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 to protecting the environment and public health. IPC is committed to environmental stewardship, recognizing that proactive efforts 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 Trade Associations Ask Commission to Delay SCIP Deadline: As a January deadline approaches to submit notifications to the Substances of Concern in Products (SCIP) database, an increasing number of European trade associations are urging the European Commission to delay certain reporting obligations due to the coronavirus pandemic. IPC has organized a focus group and prepared feedback on the possible impact of the new reporting obligations. Please let us know if you would like to engage in the discussion with us. IPC Contact: Alison James.

Commission Seeks Feedback on EU Chemicals Strategy: The European Commission has opened the feedback period for their roadmap on the upcoming chemicals strategy for sustainability, which is expected later this year. The strategy will aim to reduce risks associated with producing and using chemicals; will simplify and strengthen European Union rules on chemicals; and will “review how EU agencies and scientific bodies can work together towards a process where substances are only reviewed by one agency.” The feedback period runs until June 20. IPC Contact: Alison James.

EU Parliament Committee Seeks Brexit Agreement Conditional on Environmental Provisions: Members of the European Parliament (MEPs) on the Committee on Environment, Public Health and Food Safety (ENVI) backed a draft opinion that would bind a future European Union and United Kingdom partnership to environmental, biodiversity, and climate change criteria. The opinion, prepared by committee chair Pascal Canfin, states that any agreement should be “fully conditional” on the U.K.’s commitment to the Paris Agreement. MEPs also stressed the importance of the U.K. remaining “aligned on pharmaceuticals, medical devices, and on chemicals safety legislation, including endocrine disrupting chemicals, and REACH, in particular.” The final report will be presented on May 25 and voted in plenary on June 17. IPC Contact: Alison James.

Thailand Releases Hazardous Substance Licensing Tool: On April 16, the Thailand Department of Industrial Works (DIW) launched the Hazardous Substance Single Submission (HSSS) tool to help companies that intend to manufacture or import type 2 and type 3 hazardous substances apply for hazardous chemical registration and licensing. Corporations or individuals who intend to use this platform can submit the application form with the company certificate of registration or identification of individuals to activate the HSSS account. IPC Contact: Kelly Scanlon.

EUROPEAN UNION

Commission Planning a Due Diligence Proposal: During a May 12 webinar, the European Union Commissioner for Justice, Didier Reynders, confirmed the European Commission is committed to implementing mandatory due diligence requirements for EU companies that import “products linked to human rights abuses and environmental damage.” The mechanism, which would be tied to the European Green Deal and the European COVID-19 recovery plan, would “identify, prevent, mitigate and account for human rights abuses and environmental damage linked to corporate operations, subsidiaries or value chains.” 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.

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 has called for a North American Manufacturing Initiative to focus on emerging from the 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 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. IPC contact: Chris Mitchell.

U.S. Issues New Export Control Rules on China, Other Nations: On April 28, the U.S. Department of Commerce 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. Will this change affect your business? Please let us know. 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 global economy into recession. In this online discussion, IPC Chief Economist Shawn DuBravac will examine the impacts COVID-19 is having on the U.S. economy; possible recovery scenarios and what they mean for the electronics manufacturing industry; and the latest 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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