Dear IPC Members:

I hope this week’s newsletter finds you and yours doing well. In the Washington, D.C., region, where I live, state and local governments are beginning to allow more movement and mingling for the first time in nearly three months. Compliance varies widely here, as it probably does in your area. If you haven’t already done so, you may want to check out IPC’s resources on worker safety and support; face coverings and masks in the workplace; and our industry's response to COVID-19 generally.

Meanwhile, with so many environmental regulations in flux in the Americas, Europe, and Asia, it is vital for your company to keep abreast of the ramifications. On Tuesday, June 9, IPC is hosting an educational session on Critical Environmental Requirements for Electronics to help you stay ahead of current and emerging issues. For further information, please follow the link or contact IPC’s Kelly Scanlon, director of EHS policy and research.

Which government policy issues rile you up or affect your company the most? Your IPC Government Relations team is here to listen and advocate for this industry.

Chris Mitchell
Vice President, Global Government Relations

IN CASE YOU MISSED IT

China Plans Huge Tech Sector Investments: Bloomberg reports that China plans to invest $1.4 trillion in its domestic tech sector over the next six years in an effort to reduce dependence on foreign technology companies. The plan is expected to be approved by China’s legislature this week. Chinese state-backed funds also recently announced a combined $2 billion investment in Semiconductor Manufacturing International Corp. (SMIC), following recently announced U.S. export controls that jeopardize China’s imports of chips. These latest commitments build on decades of Chinese government investment in the electronics manufacturing base. IPC does not support state-directed industrial policy or barriers to trade, but we believe all nations should do more to develop their industrial bases and supply chains to ensure their security and resiliency. IPC’s proposals – including a $10 billion U.S. Electronics Manufacturing Initiative – are captured in our Roadmap to Economic Recovery; click here to read and share it with your elected officials. IPC Contact: Chris Mitchell.

Did You Know the U.S. Electronics Manufacturing Industry Has a “Multiplier Effect?” That’s right: Every job in the U.S. electronics manufacturing industry supports more than three other jobs in the U.S. economy. Our industry also generates more than $1 trillion in final sales in the U.S. alone! For more facts on our industry’s economic impacts, please review our recent landmark economic impacts report; and if you haven’t done so already, please share the report with your elected officials. We’re proud of the work you do to keep the economy running, and you should be too! IPC Contact: Chris Mitchell.
 
The Economic Outlook in a Post-Pandemic World: IPC has several new resources available to help you understand how the coronavirus pandemic is affecting our industry. Check out last week’s IPC webinar for the latest economic 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” when it comes to the future of electronics manufacturing. IPC Contact: Chris Mitchell.

DEFENSE AND SECURITY

Progressive Democrats Seek Defense Cuts, COVID Increases: In a letter to the U.S. House Armed Services Committee, a group of 29 progressive Democrats demanded cuts to defense spending and said they had the votes to defeat the National Defense Authorization Act (NDAA) if Republicans also hold back support, which they did last year. "Right now, the coronavirus is our greatest adversary," they wrote. "We must remain focused on combating the coronavirus and not on increasing military spending that already outpaces the next 10 closest nations combined." House committee leaders have yet to introduce or schedule action on the NDAA, which shapes the future of the defense electronics industrial base. IPC Contact: Chris Mitchell.

IPC Urging U.S. Government Support for Electronics Supply Chain: Last week, IPC held productive discussions with key staff members of the U.S. Senate Armed Services 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

New Reporting Deadline for TSCA Self-Reporting:  The U.S. Environmental Protection Agency (EPA) is extending the comment and reporting period on the preliminary lists of manufacturers and importers subject to the Toxic Substances Control Act (TSCA) Fees Rule from May 27 to June 15. The new deadline will allow companies additional time to self-identify as a manufacturer potentially subject to the fees rule. The extension also will allow those who are incorrectly listed on the preliminary lists to use the Chemical Data Exchange (CDX) system to remove their company’s listing. Learn more about your company’s potential obligations under the Fees Rule here. 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 for 13 of the 20 substances has closed, but it is still open for seven chemicals through June 8.  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.

Does Your Company 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 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.

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.

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.

U.K. Seeks Continued Cooperation with EU on Chemical Strategy: The United Kingdom has recently published new Brexit policy documents, including outlining the U.K.’s plans on chemical regulation. Under Annex 5-E, which applies to the trade, regulation, import, and export of chemicals between the two countries, "the Parties agree to continue and strengthen their cooperation on chemicals regulation” in a way that would benefit consumers, business, and the environment. Meanwhile, despite delays in the EU-U.K. negotiations due to the coronavirus pandemic, the U.K. has ruled out any extension of the Brexit transition period, set to end December 31. The next round of talks is slated to begin on June 1. 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.

EUROPEAN UNION

Commission Unveils €750 Billion COVID-19 Recovery Package: On May 27, the European Commission presented a €750 billion ($826.5 billion) recovery package, called the "Next Generation" fund, as part of its new long-term budget and recovery plan. The "Next Generation" fund comprises a major component of the European Union’s updated long-term budget (MFF) proposal of €1.8 trillion ($2 trillion). Meanwhile, the commission also unveiled its revised 2020 Work Programme, confirming that Europe remains committed to delivering on “its flagship initiatives, the European Green Deal and the Digital Strategy, as they are key to relaunching the European economy and building a more resilient, sustainable, fair and prosperous Europe.” IPC contact: Alison James.

TRADE AND SUPPLY CHAIN

U.K. Releases Global Tariff Plan: As the United Kingdom continues to plan its exit from the European Union, the government released its 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 tariffs will be eliminated on £62 billion ($76 billion) of imports. The publication of this tool is intended to allow 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.

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 Restriction of Hazardous Substances Directive (RoHS), Toxic Substances Control Act (TSCA), eco-design, European Green Deal, and more. Sponsorship opportunities are available. IPC Contact: Kelly Scanlon.

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