IPC Global Advocacy Report
7/24/2020

Dear IPC Members:

July is winding down, but in the U.S. Congress, legislative action is in full swing. This week brought significant action on the annual defense authorization measure as well as fresh but so far fruitless discussions surrounding a fourth COVID-19 stimulus package. Meanwhile, in Europe, leaders agreed to their own historic COVID-19 recovery package.

If you’re looking for signs of hope, join IPC Chief Economist Shawn DuBravac on Tuesday, July 28, for a discussion of the latest economic data, trends, and risks, and what they mean for the electronics manufacturing industry. Register here.

If you’re looking for inspiration, watch this video message from IPC President and CEO John Mitchell, who encourages industry leaders to be optimistic in responding to the COVID crisis. “We are being tested as leaders, but we are also given a unique opportunity to change our processes, to not go back to the way things have always been,” he says. 

IPC’s coronavirus page offers information on worker safety and support; IPC virtual events; government policy developments; and IPC member success stories.

All the best and stay safe,

Chris Mitchell
Vice President, Global Government Relations


TOP OF THE WEEK

House and Senate Pass Pro-Electronics Measures in Defense Bills: The U.S. House and Senate this week passed their separate versions of the annual National Defense Authorization Act (NDAA), and both bills include provisions of significant interest to our industry: 

  • New requirements for bare and assembled PCBs and PCBAs used in sensitive defense systems to be purchased from trusted U.S. or allied sources;
  • An IPC-backed measure requiring the Defense Department to analyze certain materials and technology sectors – including PCBs and other electronics components – for possible action to address sourcing and industrial capacity risks;
  • Funding and tax credits to strengthen domestic semiconductor production; and 
  • Funding for a Centers for Disease Control and Prevention study on per- and polyfluoroalkyl substances (PFAS).

House and Senate leaders are now set to begin hammering out the differences in their competing bills. IPC will continue to engage on this legislation and advocate for measures to shore up supply chains for electronics related to essential governmental functions including defense. IPC Contact: Chris Mitchell.

Senate Republicans Near Unveiling of COVID-19 Stimulus Package: U.S. Senate Majority Leader Mitch McConnell (R-KY) plans to unveil a $1 trillion coronavirus stimulus package early next week, with the Trump administration’s support reportedly in tow. The bill will likely prioritize funding for schools, liability protections for business, direct payments for individuals and families, changes in unemployment insurance, another round of forgivable Paycheck Protection Program loans, and incentives for companies to hire and retain workers, CNN reports. As Congress debates further relief measures, IPC will continue to urge U.S. government officials to adopt measures in IPC’s Roadmap to Economic Recovery. IPC Contact: Chris Mitchell.

 

ENVIRONMENT, HEALTH AND SAFETY

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. In the latest development, the U.S. Congress voted this week to launch a CDC study of their health effects. Please let us know if you use PFAS in your electronics processes and products. IPC Contact: Kelly Scanlon.
 
U.S. Chemical Data Reporting – Still Open! The U.S. Environmental Protection Agency’s Chemical Data Reporting (CDR) submission period remains open through November 30. 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. Let us know if you have any questions as your company goes through the reporting process. IPC Contact: Kelly Scanlon.

EU Body Proposes Extensive Changes to Chemicals Strategy: According to a leaked document, the draft Chemicals Strategy for Sustainability is being significantly re-drafted by the Commission’s DG GROW (Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs). DG GROW says the initial draft written by DG ENV (Directorate-General for Environment) has “a significant imbalance in presenting the benefits of chemicals vs. their negative effects as well as the results achieved so far through the EU regulatory framework.” Key concepts such as “toxic-free hierarchy” and “non-essential use” are also being questioned. Altogether, DG GROW is asking for more “assessing and exploring” rather than “committing,” indicating a softer approach to the Strategy. IPC Contact: Alison James.

Chemical Regulation Spurs Substitutes for Toxics, ECHA Says: A report from the European Chemicals Agency (ECHA) says the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) directive has been the most powerful force pushing companies to replace harmful chemicals with safer alternatives. Customer demand, corporate sustainability policies, and corporate image have also had a notable impact on companies’ substitution efforts. However, companies face many challenges in such efforts, especially those of a “technical nature.” To overcome these barriers and facilitate the substitution process, the ECHA suggests trade associations and regulators establish collaborative networks across supply chains and organize events where companies can share experiences and best practices. 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.

Thailand Publishes Online Existing Chemical Inventory: Thailand’s Department of Industrial Works (DIW) recently published a new inventory of existing chemicals. While further details of obligations for the listed chemicals are yet to be confirmed, it is likely the inventory will be associated with the upcoming Chemical Substances Act, which has been proposed to replace Thailand’s current Hazardous Substances Act. Chemical regulation in Thailand is currently transitioning from “hazard-based to risk-based," and “the development of a national chemical inventory is an essential step needed in the country’s establishment of its new chemical law.” IPC Contact: Kelly Scanlon.
 
Interested in Chemical and Product Regulations in Asia? Please check out these new white papers from IPC on evolving chemicals regulations in China, Japan, and South Korea. These papers provide a detailed look at the history of the policies, recent regulatory updates, and the regulatory trends in the respective countries. IPC Contact: Kelly Scanlon.  

 

EUROPEAN UNION

EU Leaders Agree on COVID-19 Recovery Plan: After four days of intense negotiations, European leaders reached an agreement on a €750 billion ($857 billion) coronavirus recovery package on July 21. The EU’s new recovery fund, “Next Generation EU,” will be composed of €390 billion ($450 billion) in grants and €360 billion ($416 billion) in loans and will be attached to the new €1.1 trillion ($1.3 billion) Multiannual Financial Framework -- the EU's regular, seven-year budget -- bringing the total financial package to €1.8 trillion ($2 trillion). "It is an ambitious and comprehensive package combining the classical [budget] with an extraordinary recovery effort destined to tackle the effects of an unprecedented crisis in the best interest of the EU," the EU leaders said in a joint declaration. The package will now go to the European Parliament for ratification. 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.