Dear IPC Members:

With the coronavirus pandemic resurging in the United States, Mexico, Brazil and India, as well as in pockets all over the world, we want to reiterate that the health and safety of everyone in our industry is a top priority for IPC. We are continuing to monitor the situation and providing you with relevant, actionable industry information here.
 
In some good news, last week, the U.S. Government released its employment data for June, and IPC estimates the electronics manufacturing industry actually gained 20,000 jobs last month. The data suggest electronics manufacturers are adapting to the new environment by instituting worker health practices that are allowing them to operate at near-normal levels. The gains nearly make up for a workforce shrinkage of 23,000 in April and May.

If your company is interested in the U.S. Paycheck Protection Program (PPP), please be aware that Congress recently voted — and the President agreed — to keep the program alive until August 8. To date, more than 4.8 million small businesses have tapped more than $520 billion in potentially forgivable loans through the program, but as CNN reported, interest in the program “dried up in recent weeks” amid shifting rules and uncertainties about the program’s future. 
 
If you haven’t visited our IPC Advocacy Team page lately, check it out and follow the links to:

• Tell us which government policies rile you up the most; 
• Share the IPC video, “Our Lives Depend on Electronics;”
• Share IPC’s U.S. economic impacts report with your elected officials; and 
• Tell your elected officials about IPC’s Roadmap to Economic Recovery.

Let’s all redouble our efforts to keep our workplaces and communities safe and get this pandemic under control! Please let us know if you have any questions or suggestions about our work.

Chris Mitchell
Vice President, Global Government Relations

TOP OF THE WEEK

USMCA Officially Implemented on July 1: The new United States-Mexico-Canada Agreement (USMCA) officially went into effect last week, ending 26 years of the North American Free Trade Agreement (NAFTA). Although much of the trilateral trade structure remains the same under USMCA, it does make significant changes regarding incentives to manufacture in North America; new guidelines for digital trade; and stronger labor protections for Mexican workers. Check out IPC Chief Economist Shawn DuBravac’s new blog on the future of manufacturing under USMCA. Also, if you haven’t already seen it, check out IPC President John Mitchell’s recent op-ed on how COVID-19 illustrates the need for a North American manufacturing initiative. IPC Contact: Chris Mitchell.
  
IPC Actively Participates in Global EHS Conferences: Last week, IPC was an active participant in two virtual conferences, which addressed the European Chemicals Agency’s (ECHA) upcoming Substances of Concern in Products (SCIP) database, the current state of chemicals management and restrictions in electronics, and much more. The ECHA SCIP Database Cross-sector Conference was held on July 3 and featured government officials, industry representatives, and other experts who shared their advice, experiences, and best practices regarding the SCIP database and the current state of chemical policy in Europe. IPC presented on the evolution of standards to achieve materials declaration requirements. Meanwhile, the Chemicals Management for Electronics Europe 2020 conference was held July 7-8, where IPC presented on the Restriction of Hazardous Substances Directive (RoHS); standards as solutions for chemical content management; and Asia-Pacific happenings on chemical regulations affecting electronics. We also hosted a virtual workshop highlighting IPC’s advocacy role in Europe and how we track the chemical policy landscape. IPC will continue to share our industry expertise with decision-makers and will remain proactive in our approach towards a safer circular economy in Europe while we navigate current regulatory obligations. IPC Contact: Kelly Scanlon.

DEFENSE

Defense Authorization Measure Moving to U.S. House Floor Next: Last week, the U.S. House Armed Services Committee (HASC) passed its version of the National Defense Authorization Act (NDAA), with a goal of sending a bill to the House floor when Congress returns next week from the July 4 recess. The HASC followed the Senate’s lead in creating a Pacific Deterrence Initiative (PDI), a $3.6 billion fund to boost the U.S. presence in the Indo-Pacific region. Meanwhile, the full Senate began debate on their version of the NDAA and are set to vote on a number of contentious amendments when they return from the July recess, including renaming Confederate-named military bases and a 10 percent cut from the $740 billion budget to fund healthcare, education, and housing programs. President Donald Trump has indicated he will veto the NDAA if it includes the renaming of military bases. Both the House and Senate versions have language regarding purchasing requirements for printed circuit boards (PCBs) and printed circuit board assemblies (PCBAs). IPC will continue to advocate for measures to shore up trusted supply chains for electronics related to essential governmental functions including defense. IPC Contact: Chris Mitchell.

Defense Appropriations Measure Advancing to U.S. House Floor Next Week: The U.S. House Appropriations Committee (HAC) Chair Rep. Nita Lowey (D-NY) said this week that the committee will approve the FY21 defense spending bill next Tuesday and will conclude work on the remaining annual spending bills next week as well. House Democratic leadership wants to pass all 12 spending bills by end of the month. Meanwhile, Senate appropriators have yet to begin work on their spending bills amid disagreements over coronavirus funding and other issues. In other news, Congress is likely to rely on a stopgap spending bill to keep the U.S. government in operation until after the election, at which point any legislative action will significantly hinge on the election results. IPC has enlisted the support of a cadre of congressional members to fight for funding for lead-free electronics research and development (R&D). Please let us know if you have any questions or would like more information. 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. 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 European Union are eyeing chemicals in the per- and polyfluoroalkyl substances (PFAS) class. Please let us know if you use PFAS in your electronics processes and products. IPC Contact: Kelly Scanlon.

New Substances Added to the SVHC Candidate List: On June 25, the European Chemicals Agency (ECHA) added four new substances to the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) Candidate List of substances of very high concern (SVHC). Substances on the candidate list may be placed on the Authorization List in the future, which means companies would need to apply for permission to continue using them. One in particular, 2-methylimidazole (CAS number 693-98-1), is used in electronics manufacturing as a hardener for epoxy resin systems for semiconductor potting compounds and soldering masks and as a component of numerous polymers including epoxy resin pastes. Beginning January 2021, companies will need to notify the ECHA’s upcoming Substances of Concern in Products (SCIP) database if they have products containing SVHCs. IPC urges companies to check their legal obligations relating to the safe use of these substances. IPC Contact: Kelly Scanlon.
 
Parliament Committee Approves Resolution on Chemicals Strategy: The European Parliament Committee on Environment, Public Health and Food Safety (ENVI) adopted a non-binding resolution on the chemicals strategy for sustainability, including new amendments affirming that the modernization and decarbonization of the chemicals industry is fundamental to achieving the objectives of the European Green Deal. The resolution, which also calls for the strategy to ensure “a high level of protection of human health and the environment, minimizing exposure to hazardous chemicals,” will be voted on in the upcoming plenary, currently scheduled July 8-10. The European Commission is expected to adopt a final communication on the chemicals strategy in September. 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.

Interested in Chemical and Product Regulations in Asia? Please check out these new white papers from IPC on Registration, Evaluation, Authorization and Restriction of Chemicals (REACH)- and Restriction of Hazardous Substances Directive (RoHS)-like regulations in China, Japan, and South Korea. These papers provide a detailed look at the history of the policies, recent regulatory updates, and the regulation trends for the future in the respective countries. IPC Contact: Kelly Scanlon.

EUROPEAN UNION

Germany Outlines Its Council Presidency Priorities: Fighting the spread of the coronavirus, supporting the European economy throughout the recovery process, and reinforcing social cohesion in Europe are some of the top priorities of Germany’s presidency of the Council of the European Union, which began on July 1. Specifically, Germany wants to conclude the negotiations on the EU’s seven-year budget (MFF) and on the COVID-19 recovery plan, while other goals include pursuing an open trade policy and strengthening the resilience and autonomy of European supply chains. On the sustainability side, Germany intends to prioritize the implementation of the European Green Deal, while ensuring small and medium-sized enterprises (SMEs) are not left behind in the process. The presidency’s responsibilities include steering the council’s political agenda and helping achieve compromises among EU institutions and EU Member States. IPC Contact: Alison James.

TRADE AND SUPPLY CHAIN

EU Seeks to Expand Retaliation Powers: On July 6, the European Parliament Committee on International Trade (INTA) voted to strengthen the deterrent effect of European Union countermeasures in trade disputes, including expanding the scope of EU retaliation powers to companies which export services and intellectual property (IP). Marie-Pierre Vedrenne, the committee rapporteur, said the vote “sends a signal to all trade partners, the U.S. but also China, to respect the rules of the game,” and that “we [the EU] cannot let a country hit us illegally and unilaterally without us being able to react immediately. We have to make sure that everyone adheres to the rules of international trade.” The draft report may be voted upon by the full parliament within days, after which parliament negotiators must reach an agreement with the European Council on a final version of the amended regulation. IPC Contact: Alison James.

EU Trade Commissioner Launches Trade Review; Discusses Trade Prospects in Post-COVID-19 Era: On June 16, European Union Trade Commissioner Phil Hogan 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 in light of new global challenges, including lessons learned from the coronavirus pandemic. The revision aims at creating global trade opportunities for businesses, especially small and medium-sized enterprises (SMEs), while addressing issues such as climate change and the digital transition. Want to submit your views on the trade review? Written comments can be submitted by September 15. Meanwhile, Hogan also stressed the need to strengthen the capacity of the EU to protect its businesses and consumers without resorting to protectionism during a virtual event on June 30. According to Hogan, the EU’s resilience depends on keeping trade open, free and fair, with predictable and enforceable rules. Hogan also affirmed the importance of supporting SMEs; reforming the World Trade Organization (WTO); and strengthening the transatlantic relationship. IPC continues to advocate for a free, fair, and predictable trade environment, which is necessary for the electronics industry to thrive. IPC Contact: Alison James.
 

UPCOMING EVENTS

CMMC Will Affect Your Business: What You Need to Do: Virtual event, July 23, 2020. Cybersecurity Maturity Model Certification (CMMC) will be a requirement for more than 350,000 vendors in the Department of Defense (DoD) supply chain. If you do business with the DoD — or if you do business with anyone who does — you will need to become CMMC-certified by passing an independent CMMC audit. Join our webinar on Thursday, July 23 at 2:00 pm EST to understand what you need to do and to start preparing now. IPC Contact: Chris Mitchell.

Interested in Emerging Policies on Flame Retardants in Electronics?: Virtual event, July 24, 2020. Please join IPC and Chemical Watch for a free webinar on the latest on flame retardants used in the electronics industry. During this one-hour webinar, speakers including IPC’s Kelly Scanlon, director of environment, health & safety (EHS) policy and research, will discuss the latest 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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