IPC Global Advocacy Report
6/26/2020

Dear IPC Members:

It’s been a busy week in Washington, D.C., where there has been a plethora of action taken with potential impacts for the electronics manufacturing industry. A new Executive Order from U.S. President Donald Trump will result in the suspension of H-1B visas for tech workers; while in the halls of Congress, there are efforts to help the semiconductor and electronics industries deal with current supply chain concerns, which IPC has addressed in this op-ed and elsewhere. See TOP OF THE WEEK below.

All of this comes amid darkening skies on the pandemic and the economy. In the United States, the number of new daily cases is surging again in many states, as governments and individual citizens zig and zag on safety requirements. New flare-ups are occurring on all continents. On the economic front, the International Monetary Fund said this week the global economy faces an even deeper downturn than it previously projected.

These trends will put more direct and indirect pressure on all economic sectors, including electronics manufacturing. That’s why IPC will continue to advocate for a bold policy agenda to help the electronics manufacturing sector weather the economic downturn and drive the economic recovery. If you haven’t already done so, please check out the IPC Roadmap for Economic Recovery and share it with your elected officials.

On a brighter note: In good times and bad, electronics manufacturing contributes strongly to the U.S. and global economy, and to the modern way of life. Please help us promote this new IPC video, which shows the value of electronics manufacturing in just 90 seconds, Share it on social media with the hashtag #OurLivesDependonElectronics; use this link to send it to your elected officials; and send the YouTube link above to your workforce, business partners, families, and friends. Let’s make sure we get as many eyes on it as possible!

All the best and stay safe,

Chris Mitchell
Vice President, Global Government Relations


TOP OF THE WEEK

U.S. Lawmakers Propose $25 Billion to Support Chip Industry: U.S. lawmakers recently introduced bipartisan legislation in Congress proposing $25 billion in funding and tax credits to strengthen domestic semiconductor production and counter rising competition from China. Notably, the legislation includes $10 billion for a federal grant program that would incentivize new domestic semiconductor manufacturing facilities and a refundable investment tax credit for the purchase of equipment. Meanwhile, IPC continues to advocate for the entire electronics supply chain, including provisions in the fiscal year 2021 appropriations bill and defense authorization bill affecting printed circuit boards (PCBs) and printed circuit board assemblies (PCBAs). Let us know if you have any questions or concerns about this issue. IPC Contact: Chris Mitchell.

Trump Signs Executive Order Suspending H-1B Visas: This week, U.S. President Donald Trump signed an Executive Order temporarily suspending new immigrant worker visas, including the H-1B visa used to hire non-citizen tech workers in specialty occupations. The executive order will be in effect through at least the end of the year. The order is opposed by many U.S. business leaders, who point to the chronic shortage of skilled U.S. workers, especially in cutting-edge fields. Access to talent is critical to the electronics and technology industries, including many IPC members, and IPC does not support the restriction of H-1B visas. IPC Contact: Ken Schramko.

Did You Know? The U.S. electronics manufacturing sector directly supports more than 1.3 million U.S. jobs, generating more than $165 billion in labor income, and resulting in average annual income of more than $126,000! 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.


DEFENSE

NDAA Progressing Smoothly in Congress: All of the U.S. House Armed Services subcommittees completed their reviews and approved their sections of the National Defense Authorization Act (NDAA) this week, setting the stage for a full House Armed Services Committee (HASC) review next week on July 1. The HASC is expected to follow the Senate’s lead in creating a Pacific Deterrence Initiative (PDI), a new military fund to boost the U.S. presence and deterrence against China in the Pacific region. As the NDAA process continues, IPC will continue to advocate for measures to shore up trusted supply chains for electronics related to essential governmental functions, including national security. 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 changes related to byproducts, including exemptions; 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 is 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. On June 22, the EPA issued a final significant new use rule (SNUR) for long-chain perfluoroalkyl carboxylate and perfluoroalkyl sulfonate (LCPFAC) chemical substances. Meanwhile, five European countries are calling for evidence 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.

NGOs Call for Grouping Approach on Chemicals: Amid ongoing work on the upcoming chemicals strategy for sustainability, some non-governmental organizations (NGOs) have warned that the proposed “one substance-one assessment” approach needs to consider grouping of similar chemicals. In a recent position paper, the European Environmental Bureau (EEB) argued that grouping of chemicals “should become the standard to speed-up regulation and promote safe substitution,” and hazardous chemicals should be regulated by grouping approaches instead of assessing single substances. Meanwhile, the European Parliament’s Committee on the Environment, Public Health and Food Safety (ENVI) is expected to call for the chemicals strategy to “ensure high levels of protection for people's health and the environment” in a vote this week. IPC 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), in its draft opinion, praised the costs and benefits of ECHA’s proposal, as well its wide scope and transition periods. 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.

Taiwan Releases Guidance for PECs Registration: On June 9, Taiwan finalized the Guidance on Existing Chemical Substances Standard Registration, which will help businesses navigate the priority existing chemical substances (PECs) registration process that formally began on January 1. There is a possibility that Taiwan will postpone the registration deadline for the 106 PECs currently listed for mandatory registration; stay tuned for updates. IPC Contact: Kelly Scanlon.

 

TRADE AND SUPPLY CHAIN

Barnier Warns U.K to Stop “Backtracking” on Brexit Commitments: Amid a stalemate in Brexit negotiations, the European Union’s chief negotiator, Michel Barnier, said the United Kingdom can still achieve a post-Brexit trade deal with the EU as long as the U.K. stops “backtracking” on its commitments. “It’s in the U.K.’s particular interest to avoid a no-deal,” Barnier added, saying that the EU was willing to “find a margin of flexibility on the sticking point of Britain’s fishing waters.” Negotiations are expected to intensify in the coming weeks, as the U.K. inches closer to its July 1 deadline for extending the transition period, which is due to expire on December 31. IPC Contact: Alison James.

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.

UPCOMING EVENTS

ECHA SCIP Database Cross-Sector Conference: Virtual event, July 3, 2020. This one-day virtual conference will provide the latest updates and advice on reporting requirements for the European Chemicals Agency (ECHA) Substances of Concern in Products (SCIP) Database. IPC will be presenting on the evolution of standards. If you have questions or concerns regarding the SCIP database and the current state of chemical policy in Europe, we recommend you attend this conference. Stay tuned for details regarding an IPC member discount. IPC Contact: Kelly Scanlon.
 
Chemicals Management for Electronics Europe 2020: Virtual event, July 7-8, 2020. This two-day virtual conference will offer the latest information and advice on chemical management and restrictions in electronics. IPC will be presenting on the Restriction of Hazardous Substances Directive (RoHS); standards as solutions for chemical content management; and Asia-Pacific happenings on chemical regulations affecting electronics. Stay tuned for details regarding an IPC member discount. IPC Contact: Kelly Scanlon.
 
Flame Retardants in Electronics: Virtual event, July 24, 2020. During this one-hour webinar, speakers, including IPC’s Kelly Scanlon, director of environment, health & safety (EHS) policy and research, will discuss the most important scientific and policy developments around flame retardants used in the electronics industry from a European and North American perspective. IPC Contact: Kelly Scanlon.

 

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