IPC Global Advocacy Report
6/5/2020

Dear IPC Members:

The second quarter is usually one of the busiest times of year for IPC advocacy, and this year is no different, but with some obvious twists in the story.

Across all regions where IPC has an advocacy presence, the policy debate is still dominated by the need to beat COVID-19 and climb out of the economic crisis. See the news items below about the pandemic-recovery plans being debated in the United States and Europe, and how they may affect our industry. IPC’s COVID-19 resources page is here, and our Roadmap to Economic Recovery is here, including a mechanism for you to send it to your elected officials with a few clicks. 

Another hot topic in world capitals is environmental regulation. Check out the nine EHS news items below; and if you need help staying on top of it all, join IPC and the Information Technology Industry Council (ITI) for a virtual seminar on Tuesday, June 9, called Critical Environmental Requirements for Electronics. We’ve lined up experts to brief you and answer your questions on the Restriction of Hazardous Substances Directive (RoHS), Toxic Substances Control Act (TSCA), eco-design, European Green Deal, and more.

In the U.S., there is also a growing effort to address supply chain strength and resiliency in critical industries including defense. See the DEFENSE AND SECURITY news item below.

If you need something to smile about, check out a new 90-second video from IPC, which shows the many ways that electronics are making people’s lives safer, healthier, more connected, secure, and fun. The video is designed to help you and IPC explain the importance of electronics to non-technical audiences such as policymakers and educators, so please do share it on social media with the hashtag #OurLivesDependonElectronics, or send a link by email to your workforce, business partners, elected officials, families and friends.

Please check it out and share it on your social media networks

What do you think the government should be doing to support the industry’s long-term growth? Your IPC Government Relations team is here to listen and advocate for you.

All the best and stay safe,

Chris Mitchell
Vice President, Global Government Relations


TOP OF THE WEEK

COVID-19 Recovery Bills Thrashing Through Congress: Discussions are ongoing in the U.S. Congress on a fourth COVID-19 recovery bill. The U.S. House is pushing a $3 trillion package that includes many provisions, while Senate leaders are developing a more streamlined package. IPC last week joined a broad-based business coalition in calling on Congress to enact “temporary and targeted liability relief legislation;” keep an eye out for an IPC action alert. Meanwhile, this week Congress passed a Paycheck Protection Program (PPP) reform bill, which will extend the time to use PPP loans from eight weeks to 24 weeks; requires 60 percent of the loan to be used for payroll (instead of the current 75 percent); and extend repayment terms for loans that aren’t forgiven to five years. Will this provide relief for you? Let us know. IPC Contact: Ken Schramko.

European Stakeholders Welcome Commission’s COVID-19 Recovery Plan: The European Commission’s €750 billion ($826.5 billion) recovery package, called the "Next Generation" fund, and a revised long-term budget (MFF) proposal were applauded by institutional and industry stakeholders. In the European Parliament, all major political groups broadly welcomed the proposals, while on the industry side, IndustriAll Europe said the recovery plan will help small and mid-size enterprises (SMEs) recover from the crisis and promote the upskilling of workers. Other industry actors, including Huawei and Eurometaux, welcomed the focus on improving the bloc’s strategic autonomy in key areas such as materials and minerals, which are needed for Europe's digital and environmental transitions. The European Council and Parliament will discuss the proposals on June 19 with the goal of reaching a final agreement by July. IPC contact: Alison James.

Did You Know? The U.S. electronics manufacturing industry directly employs over 1.3 million people who earn $165.7 billion in labor income, resulting in average labor income of nearly $127,000 per worker. 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. IPC Contact: Chris Mitchell.

 

DEFENSE AND SECURITY

IPC Advocating for Defense Supply Chain Resiliency: With key committees in the U.S. Congress getting started on the annual National Defense Authorization Act (NDAA), IPC is advocating for provisions to increase the strength and resiliency of the defense industrial supply chain. The Senate Armed Services Committee announced last week that the NDAA will come before the full committee on June 10, with the House expected to follow suit in late June or July. IPC recently held productive discussions with key staff members of the Armed Services Committees on both sides of the Capitol, and we are urging the adoption of pro-electronics provisions in this bill, which shapes the future of the defense electronics industrial base. Let us know about the defense and security programs most important to you. IPC Contact: Chris Mitchell.

Industry Groups Object to New U.S. Export Controls: Last week, 19 industry groups including IPC and the National Association of Manufacturers sent a letter to the U.S. Department of Commerce’s Bureau of Industry and Security, objecting to two new export control rules affecting U.S. dealings with “countries of national security concern,” including China, Russia and Venezuela. The groups said, “We share the Administration’s goal of controlling technology exports to military end users and military end uses” in these countries. But the bureau defined these terms “with such breadth and ambiguity that they appear to extend beyond the intended goal and into commercial, mass market products and sales to end-users with indirect or limited connection to the military,” the groups said. The new rules – EAR § 744.21 and EAR § 740.5 – will go into effect on June 29. Please let us know if they will affect your company. IPC contact: Chris Mitchell.

 

ENVIRONMENT, HEALTH AND SAFETY

U.S. Chemical Data Reporting – Now Open! June 1 marked the opening of the U.S. Environmental Protection Agency’s Chemical Data Reporting (CDR) submission period. The CDR rule requires manufacturers and importers of certain chemical substances listed under the Toxic Substances Control Act (TSCA) Chemical Substance Inventory to report data to the EPA every four years. There are several new reporting requirements you should be aware of, including requirements for making confidentiality claims (CBI); reporting refinements related to byproducts, including exemptions; phasing out certain processing and use of data codes; and an improved process for reporting co-manufacturing. Meanwhile, in a separate rulemaking, the EPA also updated definitions for small manufacturers that are exempt from reporting. Also, to report using e-CDRweb, you must first register with the Chemical Data Exchange (CDX) system. In response to the coronavirus pandemic, the EPA has extended the deadline for reporting to November 30. Let us know if you have any questions as your company goes through the reporting process! IPC Contact: Kelly Scanlon.

New Reporting Deadline for TSCA Self-Reporting: The U.S. Environmental Protection Agency (EPA) extended 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 is 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 details in an IPC blog post here. IPC Contact: Kelly Scanlon.

Does Your Company Use PFAS to Make Electronics? Regulators in the United States and Europe are eyeing chemicals in the per- and polyfluoroalkyl substances (PFAS) class. The U.S. Environmental Protection Agency (EPA) has codified a list of 172 PFAS that are subject to reporting through the Toxics Release Inventory (TRI) program, and 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. A top official of the European Commission’s DG Environment said this week that his office is aiming to strengthen the legal framework surrounding PFAS. And the European Commission is already asking for feedback on limit values for 10 different substances under the Persistent Organic Pollutants (POPs) Regulation, including some PFAS. The POPs impact assessment will be open for feedback until August 7.  Please let us know if you use PFAS in your electronics processes and products. IPC U.S. Contact: Kelly Scanlon. IPC Europe Contact: Alison James.

Delaying of SCIP Deadline Unlikely, According to Commission: Following calls from several European trade associations, the European Commission confirmed that companies should continue their preparations to comply with the January 2021 deadline to submit notifications to the Substances of Concern in Products (SCIP) database. The commission also reminded companies that the obligation to submit information is set in the revised Waste Framework Directive, and the date can’t be modified by them. The SCIP database will be further discussed at the Competent Authorities for REACH and CLP (CARACAL) meeting on July 9. IPC will attend the meeting to follow up on previous advocacy regarding the possible impact of new reporting obligations. IPC Contact: Alison James.

Commission Asks for Feedback on Impact of REACH Registration Deadline: The European Commission launched a survey to gain a better understanding of the impact of the final Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) registration deadline on businesses. The survey seeks feedback on the costs and benefits of the registration exercise, which began in 2018. The questions are intended for businesses who registered chemical substances and stakeholders with experience in the process. The survey will close on August 10. 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; simplify and strengthen European Union rules on chemicals; and “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.

China Revises Regulations on Ozone-Depleting Substances: On May 19, China’s Ministry of Ecology and Environment (MEE) published the draft revision to the Regulations on Administration of Ozone-Depleting Substances(ODS). Notably, the updated regulations will incorporate hydrofluorocarbons (HFCs) into the regulatory framework. The decision was made in order to keep in pace with international conventions. IPC Contact: Kelly Scanlon.

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.

 

TRADE AND SUPPLY CHAIN

Fourth Round of Post-Brexit Trade Talks Commence This Week: On June 2, the European Union and the United Kingdom commenced the fourth round of week-long talks regarding a post-Brexit trade deal and other aspects of their future relations. This week’s meeting will be the last before a high-level summit planned for the end of June where the two sides must decide whether to extend the Brexit transition period, currently set to end December 31. U.K. Prime Minister Boris Johnson has promised not to extend this period, “despite a lack of progress in talks that have been overshadowed by the coronavirus crisis.” IPC contact: Alison James.

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.

 

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.