IPC Global Advocacy Report
9/25/2020

Dear IPC Members:

Happy Autumn!

The seasons may be changing, but IPC’s commitment to advocating for the electronics manufacturing industry remains the same.

Here in the United States, the odds of a new coronavirus relief package remain slimmer than ever, as the U.S. Congress now gears up for a partisan fight to replace the late Supreme Court Justice Ruth Bader Ginsburg. We will update you if that changes.

Meanwhile, on Monday, IPC joined a diverse coalition of 40 organizations in calling on European Commission President Ursula von der Leyen to delay implementation of the Substances of Concern in Products (SCIP) database, which is simply not ready to be implemented by the January deadline. See the details in TOP OF THE WEEK below.

This week also brings the launch of “Just Ask John,” a column in I-Connect007 in which IPC President and CEO John Mitchell answers questions from readers. In this month’s column, John is asked about IPC’s position on globalization versus reshoring, and whether IPC’s policy positions are “dictated by politics.”

Keep in mind that election season is a good time to contact elected officials and candidates and tell them what you think. You’ll find tools and issues campaigns on the IPC Advocacy Team web page, and you can send us your questions and suggestions by clicking on our names throughout this report.

Our industry is stronger when we’re all active and engaged!

All the best and stay safe,

Chris Mitchell
Vice President, Global Government Relations


TOP NEWS OF THE WEEK

IPC Among 40 Organizations Urging EC to Postpone SCIP Database Deadline: On September 21, IPC joined almost 40 other industry organizations in calling on European Commission President Ursula von der Leyen to postpone implementation of the Substances of Concern in Products (SCIP) database. Under the current timeline, the database is set to come into effect on January 5, 2021 despite the absence of a usable, final SCIP database. Read the news release and see the full list of signatories here. IPC Contact: Alison James.

Are IPC’s Positions Dictated by Politics? This month, IPC President and CEO John Mitchell is taking part in I-Connect007's “Just Ask” series, and the short answer to that first question is: IPC’s positions are driven by our members and are responsive to the political debates occurring in Washington, Brussels, Beijing, and beyond. Championing sound public policies that empower our members to thrive has been a core tenet of IPC since its inception. For example, on the hot topic of globalization versus reshoring, IPC’s position has not changed, but what has changed is the global political climate and the growing view in Washington that the U.S. government has neglected its industrial base. Do you have any questions for John? Click here.

“Demand is Anything but Certain”: On September 22, IPC Chief Economist Shawn DuBravac released IPC's September Economic Outlook Report. The industry continues to appear to have weathered the pandemic rather favorably, with production up in recent months and positive on a year-over-year basis in both the United States and Europe. However, Dubravac cautioned that “economies are extremely fragile right now, and any policy blunders will stymie the recovery.” Please let us know if and how you use this research and what else you would like to see from IPC. IPC Contact: Shawn DuBravac.

U.S. Defense Bills Would Bring Greater Resiliency and Security to Electronics Supply Chains: The U.S. House and Senate versions of the annual National Defense Authorization Act (NDAA) both include provisions to bolster the resiliency and security of the electronics manufacturing ecosystem, including printed circuit board fabrication and printed circuit board assembly. Recently, several groups, including the U.S. Chamber of Commerce and Aerospace Industries Association, told Congress the measures would be overly restrictive and drive up costs. IPC responded to the opponents in this blog. A resolution is expected within the next several weeks, and IPC will continue to advocate for measures to shore up supply chains for electronics related to essential governmental functions including defense. IPC Contact: Chris Mitchell.

 

IPC ADVOCACY AND YOU

Interested in Policy and Politics? Get Involved with the IPC Advocacy Team! The IPC Government Relations team is composed of experienced professionals working for you year-round. However, the success of our work depends on the active participation of IPC members like you. Visit the IPC Advocacy Team website , register to receive advocacy alerts, and join our efforts in one of the following ways:

  • Be in contact with your elected representatives. Send emails, make phone calls, or say hello if you see them in person. IPC’s Government Relations team can help arrange meetings/calls and provide you with talking points and handouts. The IPC “A Team” platform can help you contact U.S. officials, and these next links can direct you to Members of the European Parliament and of the Canadian Parliament .
  • “Host” an elected official at one of your facilities. While in-person meetings may be restricted currently, you can still offer can offer a virtual tour, an online briefing, and a chance for them to speak to your employees. Learn more here and contact our staff for support.
  • “Meet” with officials in Washington or Brussels. Our IMPACT events give IPC member company execs a chance to meet with top government officials to discuss the issues we care about. We hope to be back to in-person meetings soon, but until then, we are meeting with government officials by video call. IMPACT Europe is coming up on November 18-19.
  • Make a plan to vote in any upcoming elections and encourage your colleagues and employees to do the same.

If you are interested in politics and policy, don’t sit on the sidelines; take action! IPC Contact: Ken Schramko .

Speaking of the 2020 Elections: The IPC Political Action Committee (IPC PAC) serves as the collective voice of the industry. The IPC PAC pools contributions and supports pro-manufacturing federal candidates in both major parties. IPC invites you to learn more by visiting the IPC PAC website and filling out a prior authorization form . This form does not obligate you or your employees to support the IPC PAC; it simply authorizes us to send you information. Please note that a company can only authorize one association PAC per year; and the form must be signed by someone with the authority to do so, generally the CEO or another C-level executive. IPC Contact: Ken Schramko .

 

ENVIRONMENT, HEALTH AND SAFETY

This Weeks #TrendingTopic is Data Exchange: This week, IPC participated in two events highlighting the need for data exchange of substance information in products through the supply chain. On September 23, IPC Director of Environment, Health, and Safety Policy and Research Kelly Scanlon presented at the International Aerospace Environmental Group’s fall meeting, citing IPC’s advocacy work on the U.S. Environmental Protection Agency’s risk evaluations of 20 high-priority substances under Toxic Substances Control Act and on the European Union’s Chemicals Strategy for Sustainability. Then, on September 24, IPC participated in a Chemical Watch-sponsored webinar on IPC-1754-AM2, a new industry standard that establishes the requirements for exchanging materials and substance data for products between suppliers and their customers. Check out a new IPC blog for more information on IPC’s latest activities surrounding data exchange. IPC Contact: Kelly Scanlon.

EC Launches Consultation on Sustainable Products Initiative: On September 14, the European Commission opened a consultation on its Sustainable Products Initiative, which “will establish minimum sustainability and information requirements for products sold in the European Union,” according to reporting from the National Law Review. Notably, the initiative, which will also revise the Ecodesign Directive, plans to address the presence of harmful chemicals in electronics and ICT equipment, among other products. The commission is expected to present a legislative proposal by Q4 of 2021. The feedback period will close on November 2. IPC Contact: Alison James.
  
EC Considering Extending REACH Requirements to Polymers: The latest draft Chemicals Strategy for Sustainability confirms that the European Commission is actively considering extending the registration requirements under Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) to polymers. According to a recent study, an estimated 33,000 polymers could be targeted. Meanwhile, on September 11, an expert group advising the commission on a possible proposal requiring the registration of polymers under REACH held its first meeting, discussing effective grouping, identification and registration of chemicals. The group’s proposal will likely be published by 2022. How would this potential move impact your business? IPC Contact: Alison James.

EPA Releases Final List of Companies Subject to Chemical Fee: On September 4, the U.S.  Environmental Protection Agency (EPA) released the final list of businesses subject to fees for the 20 high-priority substances listed under the Toxic Substances Control Act (TSCA) Fees Rule. Changes have been made since the preliminary list was released on January 27, which IPC wrote about in a February blog. Businesses identified on the final list must notify the EPA regarding their intention to form or join consortia to pay fees that defray the costs of risk evaluations. Fee payments are required 120 days after the final list is released, although the EPA may incorporate flexibility into the payment schedule. Let us know your questions, concerns, and suggestions about the TSCA fee obligations. IPC Contact: Kelly Scanlon.

EPA Takes Next Step on TSCA Risk Evaluations: On September 4, the U.S. Environmental Protection Agency (EPA) released the final scope documents for the risk evaluations of 20 high-priority substances under the Toxic Substances Control Act. These documents will outline a three-year process for determining unreasonable risk for various conditions of use of high-priority substances. IPC has already engaged with the EPA during the review period for the draft scope documents on Tetrabromobisphenol A (TBBPA) and formaldehyde, and we will be reviewing all of the final scope documents to determine their applicability to the electronics sector. We welcome your review and insights on the use of these chemicals. IPC Contact: Kelly Scanlon.

Interested in Chemical and Product Regulations in Asia? Asia is home to several of the world’s largest nations and most dynamic economies, and many governments in the region have established comprehensive environmental, health, and safety (EHS) policy frameworks. Please check out these new IPC white papers on evolving chemicals regulations in China, Japan, Singapore, South Korea, Taiwan, and Thailand. These papers provide a detailed look at the history of the policies, recent regulatory updates, and the regulatory trends in the respective countries. Let us know what you think! IPC Contact: Kelly Scanlon.


EUROPEAN UNION

EC President Promises Bold Action on Climate, COVID-19: On September 16, European Commission President Ursula von der Leyen presented her first State of the Union address, which outlined her vision of a Europe that is “green, digital and more resilient” and pledged a unified, well-funded response to the coronavirus pandemic. Perhaps most notably, Von der Leyen announced a new European Union-wide target of reducing emissions by at least 55 percent by 2030; and by next summer, the commission plans to revise the EU's climate and energy legislation to make it “fit for 55.” Meanwhile, von der Leyen also announced that the commission plans next year to update the EU’s Industrial Strategy and its competition framework. IPC Contact: Alison James.

EC Continues Work on Due Diligence Initiative: As part of its preparatory work on a mandatory due diligence legislative proposal, the European Commission recently released an “inception impact assessment” on the initiative, which seeks to help companies “better manage sustainability-related matters in their own operations and value chains in regards to social and human rights, climate change, and the environment.” You can share your feedback here. Meanwhile, the commission also conducted a study affirming that many companies face pressure to generate short-term shareholder value to the detriment of long-term investments, especially regarding sustainability. A formal legislative proposal is expected in early 2021. IPC will continue to advocate for the electronics industry throughout the process; we welcome your input and questions. IPC Contact: Alison James.

 

TRADE AND SUPPLY CHAIN

U.S. Senate Democrats Unveil $350 Billion Plan to Compete with China: Last week, U.S. Senate Democrats presented a wide-ranging, $350 billion plan to retain an edge over China, including investing $16 billion in the U.S. semiconductor industry. The plan “seeks to shore up the nation’s manufacturing capabilities and infrastructure in an attempt to unwind it from China’s economy and increase American firms’ competitiveness,” according to reporting from the New York Times. The legislation would also “require the president to submit a plan to Congress to use the Defense Production Act to increase domestic production capabilities for semiconductor devices and require domestic sourcing for those products.” IPC will be engaging on this matter and encouraging attention to the entire electronics ecosystem, not just one piece of it. IPC Contact: Chris Mitchell.

Rule Banning Chinese Telecommunications Equipment Now In Effect: On August 13, a new interim final rule took effect that will bar contractors from receiving federal contract awards if they use certain Chinese telecommunications and video surveillance equipment or services. The rule, which adopts the Section 889 ban, will impact new contracts and contract renewals and will cover all contractors, including electronic manufacturers. Companies in the electronics industry are advised to review purchase orders and documents to determine whether the equipment they have is from affected Chinese companies. While the public comment period has passed, any new submitted comments will still be evaluated. You can read more about the Section 889 Rule from our friends at Holland & Knight here and here. IPC Contact: Chris Mitchell.

“We Are to Blame for the U.S. Manufacturing Decline”: “For more than three decades, the United States government has prioritized globalization while deprioritizing the strength and resiliency of its industrial base,” writes IPC President and CEO John Mitchell in a new op-ed in The Hill. “U.S. electronics manufacturing is a case in point and has, in many ways, been hollowed out by our collective inaction and short-sighted decision making.” Policy makers need to “go beyond stimulus checks” and do more to “help American electronics manufacturers to compete on the global stage they once dominated.” IPC Contact: John Mitchell.

The World Needs U.S. Leadership in Setting Technological Standards: IPC President and CEO John Mitchell writes: The global dominance of U.S. industry is “weakening amid the rise of international competition hungry to take advantage of a distracted U.S., flat-footed and mired in partisan political infighting.” In contrast to the current trend, IPC believes “America should seize the mantle of leadership” and do more to “help shape the future of global technology standards.” Read the full op-ed in Nextgov. IPC Contact: Chris Mitchell.

 

UPCOMING EVENTS

IPC IMPACT Europe: Virtual Event, November 18-19. Details are coming soon on our annual advocacy event in the administrative capital of the European Union. Have any questions or suggestions? IPC Contact: Alison James.

 

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