Dear IPC Members:

This week’s IPC Global Advocacy Report is dominated by news about a variety of environmental policy actions in the European Union, the United States, and China. If your company is affected by the rising tide of environmental regulation, please plan to join IPC on June 9 for an educational session on Critical Environmental Requirements for Electronics, and/or contact IPC’s Kelly Scanlon, Director of EHS Policy and Research.

ALSO: In case you missed it, last week IPC released a landmark report documenting electronics manufacturers’ contributions to the U.S. economy, with a special focus on the industry’s top 16 states. If you want to impress someone, share this fact: Electronics manufacturers supported over 5.3 million U.S. jobs and contributed almost 4 percent of U.S. GDP ($714 billion) before COVID-19 struck. While we don’t yet have a complete picture of the epidemic’s impacts on our industry, companies like yours are critical to the economic recovery and long-term prosperity of the United States. We’re proud of the work you do and contributions you make to keep the economy running.

If you haven’t done so already, please share IPC’s economic impacts report with your elected officials so that they will be aware of your role, too!

All the best and stay safe,

Chris Mitchell
Vice President, Global Government Relations

TOP OF THE WEEK

The Economic Outlook in a Post-Pandemic World: IPC has several new resources available to help you understand how the COVID-19 pandemic is affecting our industry. Check out this IPC webinar for the latest data and insights from our Chief Economist Shawn DuBravac, or this I-Connect007 podcast, also featuring Shawn, in which he describes how COVID-19 is accelerating industry shifts that were already underway. Finally, in this I-Connect007 article, IPC President and CEO John Mitchell interviews our Chief Technologist Matt Kelly on “separating hype from reality” in what’s next for electronics manufacturing. IPC Contact: Chris Mitchell.
 
Partisan Standoff Arises on Next COVID-19 Relief Bill: The U.S. House of Representatives last Friday passed CARES 2, a $3 trillion pandemic-relief package, despite opposition from the Trump administration and Senate Republicans. The bill is thus a starting point for upcoming bipartisan negotiations. CARES 2, also known as the Heroes Act, includes aid for state and local governments; direct cash payments to individuals; hazard pay for frontline workers; expanded unemployment insurance; and a nationwide testing and contact-tracing system. As Congress debates further relief measures, IPC will continue to urge U.S. government officials to adopt measures in IPC’s Roadmap to Economic Recovery. Let us know how we can best advocate for your company. IPC Contact: Chris Mitchell.

DEFENSE AND SECURITY

IPC Urging U.S. Government Support for Electronics Supply Chain: Earlier this week, IPC had productive discussions with key staff members of the U.S. Senate Armed Services Committee and the House Armed Services Committees about the importance of electronics manufacturing to the U.S. economy and national security, and how the federal government can support the electronics manufacturing supply chain. Let us know about the defense and security programs most important to you. IPC Contact: Chris Mitchell.

ENVIRONMENT, HEALTH AND SAFETY

Do you use PFAS to Make Electronics? The U.S. Environmental Protection Agency (EPA) has codified a list of 172 chemicals in the per- and polyfluoroalkyl substances (PFAS) class that are subject to reporting through the Toxics Release Inventory (TRI) program. In June, the U.S. EPA is expected to issue a significant new use rule (SNUR) for long-chain perfluoroalkyl carboxylate (LCPFAC). Meanwhile, five European countries are calling for evidence and information on PFAS usage as they prepare a joint proposal under the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) program. Please let us know if you use PFAS in your electronics processes and products. IPC Contact: Kelly Scanlon.

ECHA Makes Progress in Mapping of “Chemical Universe”: On May 13, the European Chemicals Agency (ECHA) published a report on its Integrated Regulatory Strategy, highlighting progress made and next steps needed in addressing the “chemical universe” of regulatory concern. According to the report, in 2019 ECHA “reviewed around 220 substances registered above 100 tons” and found that 56 percent were in the category of requiring more data to determine any risk management; 22 percent required no further action; and 7 percent were high priorities for risk management. “This confirms last year’s assumption that a significant number of the substances in the ‘not yet assigned’ pool will require further data generation through compliance checks or substance evaluation in the coming years,” the report says. IPC contact: Alison James.

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.

China Launches Online Safety Information System for Hazardous Chemicals: The National Registration Center for Chemicals (NRCC) launched an online platform allowing companies to search hazardous chemicals information such as identification; safety label elements; physical characteristics; hazard information; emergent measures; and inventories. The system also serves as a database for all current hazardous chemical regulations; chemical inventories; and chemical registration information. 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.
 
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.

EUROPEAN UNION

Germany and France Propose $543 Billion COVID-19 Recovery Fund: On May 18, German Chancellor Angela Merkel and French President Emmanuel Macron announced a $543 billion coronavirus economic recovery fund. The fund would be fully financed by European Union-backed bonds and would be distributed as grants through the EU’s budget. The agreement on European bonds for EU expenditures is considered a major breakthrough, with Germany having long resisted calls for common debt instruments. European Commission President Ursula von der Leyen praised the plan, saying it was going “in the direction of the proposal the European Commission is working on,” which is due to be presented on May 27 along with a revised proposal for the EU’s seven-year budgetary framework. IPC Contact: Alison James.

TRADE AND SUPPLY CHAIN

U.K. Releases Global Tariff Plan: As the United Kingdom continues to plan their exit from the European Union, they released their U.K. Global Tariff (UKGT) plan detailing tariffs that will now be levied on products coming into the U.K. The UKGT will replace the European Union's external tariff on January 1 and will see tariffs eliminated on 62 billion pounds ($76 billion) of imports. The publication of this tool allows for businesses to plan for tariff rates in the new year, although the United States and U.K. are conducting negotiations for a separate trade agreement and tariffs are subject to change. IPC contact: Alison James.

Anti-China Sentiment on the Rise: According to a new POLITICO/Morning Consult poll, anti-China sentiment is on the rise in the United States. The percentage of Americans who view China as an "ally" or "friend" has fallen nine points to a combined 23 percent; and the number who view China as an "enemy" has risen 11 percentage points to 31 percent. Despite the rise in anti-China sentiment, voters, by a 28-point margin, favor working with China to "respond to the coronavirus instead of confronting the country aggressively." IPC Contact: Chris Mitchell.

ITC Study Shines Spotlight 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. U.S. House Ways and Means Committee Chairman Rep. Richard Neal (D-MA) has called for a 90-day suspension of all tariffs on the products listed, but the Trump administration has given no sign they will do so. The report identifies 114 products, including those vital to COVID-19 testing kits, personal protection equipment, and medical imaging equipment. IPC supports suspending Section 301 tariffs on imports related to healthcare and other vital supplies necessary to combat COVID-19. IPC contact: Chris Mitchell.

U.S. Issues New Export Control Rules on China, Other Nations: The U.S. Department of Commerce recently 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. Please let us know if they will affect your company. 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

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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