IPC Global Advocacy Report
6/19/2020

Dear IPC Members:

Last week, nearly 100 IPC members and friends participated in our online conference, “Critical Environmental Requirements for Electronics,” which covered the full array of current EHS issues in the Americas and Europe. Thank you to all who participated! Check out the brief recap below or the full IPC blog post to know what should be on your radar going forward. Also don’t miss the news items below on the latest EHS policy developments around the globe.

IPC is also engaging in the debate over global trade versus regionalization of supply chains, which we think is a false choice; smart governments will support both. Check out “Covid-19 Illustrates Need for North American Manufacturing Initiative,” by IPC President and CEO John Mitchell and “Why Free Trade Needs a Comeback” by IPC Chief Economist Shawn Dubravac. Let us know what you think about these issues.    

Meanwhile, need something to smile about? In just 90 seconds, this new IPC video illustrates the many ways that electronics are making people’s lives safer, healthier, more connected, secure, and fun. Please help us promote the video by sharing it on social media with the hashtag #OurLivesDependonElectronics; using this link to send it to your elected officials; and sending the YouTube link above to your workforce, business partners, families, and friends. We want to ensure everyone learns more about “the crucial industry that’s at the heart of the modern world.”

All the best and stay safe,

Chris Mitchell
Vice President, Global Government Relations


TOP OF THE WEEK

U.S. Senate Committee Advances Defense Bill with Electronics Provision: Last week, the U.S. Senate Armed Services Committee (SASC) approved its version of the annual National Defense Authorization Act (NDAA) on a bipartisan vote, including an amendment offered by Sen. Josh Hawley (R-MO) to increase the resiliency and security of the defense electronics supply chain. The legislation would impose new requirements for Defense Department purchases of commercial (non-ITAR) printed circuit boards (PCBs) and PCB assemblies. IPC believes all countries should take steps to shore up trusted supply chains for electronics related to essential governmental functions, including national security. IPC Contact: Chris Mitchell.

Did You Know? The U.S. electronics manufacturing sector is an important supplier of intermediary goods and capital equipment for critical industries including automotive, aerospace, and medical equipment. For example, the auto industry sources nearly $20 billion in intermediate goods from the electronics manufacturing sector! For more facts on our industry’s economic impacts, check out IPC’s recent economic impacts report; then take a minute to share the report with your elected officials. 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); changes related to byproducts, including exemptions; a phaseout of 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. To report using e-CDRweb, you must first register with the Chemical Data Exchange (CDX) system. The deadline for reporting has been extended to November 30. Let us know if you have any questions as your company goes through the reporting process. 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 recently 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.

ECHA Committees Support Restrictions of Microplastic Usage: The European Chemicals Agency’s (ECHA) Committee of Risk Assessment (RAC) adopted its final opinion in support of the ECHA proposal to restrict “the use of intentionally added microplastics while recommending more stringent criteria for biodegradable polymers.” ECHA’s Committee for Socio-Economic Analysis (SEAC) also agreed in its draft opinion on the costs and benefits of the ECHA’s proposal, as well as “the wide scope of the proposal and the transition periods for different product groups to give companies time to prepare.” A 60-day consultation on the SEAC’s draft opinion is slated to begin soon, and a consolidated opinion of the two committees is expected by the end of 2020. The final decision will be taken by the European Commission and must be agreed to by the European Parliament and European Council. IPC Contact: Alison James.
 
Traceability of Substances Study Published: A new study on substances of concern (SoCs) in products from supply chains to waste operators, mandated by the European’s Commission Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs (DG GROW), supported efforts to improve the interface between chemicals, products, and waste legislation. The study concluded that “improved sorting early in the waste chain may create considerable benefits at low cost,” and “more sophisticated approaches using databases allow information update after placing on the market...but are more costly.” Meanwhile, “a combination of material-based and product sector approaches to communicate on SoCs in products seems necessary to achieve a safe, more circular economy.” What are some of the ways your company can improve waste sorting? 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.

 

EUROPEAN UNION

Commission Considers Expansion of State Aid Framework: On June 12, the European Commission shared a draft proposal to European Union Member States on providing expanded financial support under the Temporary Framework to all micro, small, and start-up companies. Under the proposed expanded framework, the commission also seeks to provide incentives to encourage private investors to participate in coronavirus-related recapitalization initiatives. Member states will now have the opportunity to comment on the commission's draft proposal. IPC Contact: Alison James.

 

TRADE AND SUPPLY CHAIN

EU Launches Trade Policy Review: On June 16, European Union Trade Commissioner Phil Hogan formally launched a major review of the EU’s trade policy, including a public consultation seeking input from the European Parliament, EU Member States, stakeholders and civil society. The commission’s objective is to build a resilient and sustainable EU economy, considering new global challenges, including lessons learned from the coronavirus pandemic. The revision aims at creating global trade opportunities for businesses, in particular small and medium-sized enterprises (SMEs), while addressing issues such as climate change and the digital transition. More information is available in a newly-released consultation note. Want to submit your company’s views? Written comments on the consultation can be submitted by September 15. IPC Contact: Alison James.

U.K. Will Not Seek Extension of Brexit Transition Period: On June 12, the United Kingdom confirmed at the second meeting of the European Union-U.K. Joint Committee on implementing the Withdrawal Agreement that they will not be asking for an extension of the Brexit transition period beyond December 31. However, European Commission Vice President Maroš Šefčovič warned there is still “lots of work to do,” especially regarding Ireland and Northern Ireland. On June 15, the two sides agreed to intensify the pace of negotiations, which have made little progress to date. The two sides now plan to host weekly negotiations throughout July and August, focusing on fisheries, state aid, and checks on goods. Meanwhile, the U.K. also announced that its future customs controls would be implemented in stages from January to July 2021 “to give businesses affected by coronavirus more time to prepare.” IPC Contact: Alison James.

 

UPCOMING EVENTS

Rethinking Manufacturing Worker Safety: Integrating Technology

Employers are now faced with decisions around crafting policies and practices that maintain social distance between their employees. In a webinar on Monday, June 22, at 2:00 p.m. EDT, you can learn about ways to integrate technology to streamline processes and maximize investment in technologies. Senior-level executives from Accenture and Samsung will be on hand to explore the use of management systems, creative uses of existing tech and multi-use technology—all with the goal of keeping manufacturing employees safe. Register for NAM webinar.

 

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