Dear IPC Members:

I hope all is well.

Environment, health, and safety (EHS) issues are top of mind this week here at IPC. On Wednesday, the European Commission released its long-awaited Chemicals Strategy for Sustainability, an action plan for the next four years that focuses on electronics among several “priority sectors.” Meanwhile, IPC’s EHS expert Kelly Scanlon penned a new blog on the U.S. EPA’s current deliberations on toxic chemicals and why your input is needed.

In Washington, the debate over a new economic relief package continues, with conversations between the White House and Congress failing to make progress in recent days. It is now expected we will not see a resolution until after the November elections. See TOP OF THE WEEK below.

Elsewhere in Europe, due diligence legislation is gaining momentum. Read the new blog by IPC’s Alison James for the latest developments and why your company should have a due diligence plan in place.

As always, our advocacy work is most successfully when you’re involved. Help us plan for 2021 by taking our five-question survey.

All the best and stay safe,

Chris Mitchell
Vice President, Global Government Relations

TOP NEWS OF THE WEEK

U.S. EPA Moving Toward Key Deliberations on Toxic Chemicals: The U.S. Environmental Protection Agency (EPA) is approaching a critical phase of deliberations under the Toxic Substances Control Act, and the next steps in the process will have major ramifications for electronics manufacturers. Currently, the EPA is nearing the completion of 10 risk evaluations, and is just beginning evaluations of an additional 20 high-priority chemical substances. The EPA is seeking input from IPC and our members, and our expertise will be critical in forging smart solutions that protect human health and the environment and enable our industry to thrive. If you have information that is relevant to these proceedings, we need to hear from you. Check out the latest IPC blog for more information. IPC Contact: Kelly Scanlon.

European Commission Adopts Chemicals Strategy: On October 14, the European Commission formally adopted the Chemical Strategy for Sustainability, an action plan for 2021-2024 with 70 measures to minimize usage of substances of concern. The commission, which highlighted electronics and ICT as “priority sectors,” is also planning to introduce information requirements as part of the Sustainable Product Policy Initiative. The chemicals strategy notably calls for the phasing out of per- and polyfluoroalkyl substances, unless their use is proven essential for society. IPC will continue to engage in the policy deliberations, and we invite member input. IPC Contact: Alison James.

Will We See a New U.S. Coronavirus Relief Package? Coronavirus relief discussions continued this week, but U.S. Treasury Secretary Steve Mnuchin said Wednesday that a deal is now unlikely before the November 3 elections. The main sticking points remain aid for state and local governments and the extension of federal unemployment benefits. It remains anyone’s guess as to where the talks will go next. IPC has called for a recovery package with pro-manufacturing provisions, and we will keep you updated as negotiations continue. IPC Contact: Chris Mitchell.

IPC ADVOCACY AND YOU

Join IPC’s Pledge to Stay Involved After the Election: The IPC Government Relations team is composed of experienced professionals working for you year-round. But our success depends on awareness and participation from IPC members like you. Please click here to pledge to stay involved in IPC advocacy after the election. Then, plan to join IPC on Nov. 4 for a post-election analysis and discussion. Our friends Charlie Black and Scott Pastrick of Prime Policy Group – experienced insiders from both sides of the aisle – will share their insights on which issues and leaders are likely to come to the fore in 2021. Register now! IPC Contact: Ken Schramko.

And Speaking of the 2020 Elections: The IPC Political Action Committee (IPC PAC) serves as the collective voice of the industry. The IPC PAC pools our campaign 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.

DFEENSE AND SECURITY

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 include bipartisan provisions to bolster the resiliency and security of the electronics manufacturing ecosystem by requiring printed circuit boards and PCB assemblies used in defense systems to be acquired from trusted sources. 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. High-level talks over the language occurred recently, and a resolution is expected shortly after the U.S. election. 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.

ENVIRONMENT, HEALTH AND SAFETY

EPA to Review Risks of D4 Under TSCA: The U.S. Environmental Protection Agency has granted a chemical manufacturer’s request to conduct a risk evaluation of octamethylcyclotetrasiloxane (D4), which may be used in the manufacturing of computer and electronic products, under the Toxic Substances Control Act. D4 joins two phthalates, di-isodecyl phthalate and diisononyl phthalate, as the third manufacturer-requested risk evaluation. If you have information about its use and its criticality to the manufacturing process, please let us know. IPC Contact: Kelly Scanlon.

No Delay in SCIP Implementation: On September 24, despite urging from IPC and others, the European Chemicals Agency (ECHA) announced that that the Substances of Concern in Products (SCIP) database will formally open during the last week of October as originally planned. At this point, the ECHA has ruled out the possibility of a deadline extension and encouraged companies to continue their preparations. 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 today. IPC recently joined with 40 other industry groups in requesting a delay in implementation and asking for a full impact assessment here. IPC’s advocacy on this issue will continue. IPC Contact: Alison James.

Soldering Flux Chemical Facing Regulation from ECHA: The European Chemicals Agency has proposed tetraethylene glycol dimethyl ether (CAS 143-24-8) be added to the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) Candidate List of substances of very high concern. The chemical is used in the manufacturing of soldering fluxes and solder pastes used in electronic equipment. The public comment period on the proposal runs until October 16. Let us know if you have any questions or input. IPC Contact: Kelly Scanlon.

EC Considering Extending REACH Requirements to Polymers: The newly released latest draft Chemicals Strategy for Sustainability confirms that the European Commission will consider 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. On September 11, an expert group advising the commission on this matter 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.

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.
 
Upcoming Chemical Regulations of Concern in Asia: There are a host of upcoming chemical regulations in Asia that have potential ramifications for the electronics industry. In South Korea:

• Effective October 22, a technical safety standard for plastic products will be implemented. Concentrations of lead, cadmium, benzyl butyl phthalate, dibutyl phthalate, and Di(ethylhexyl) phthalate in synthetic resin product will be limited.
• December 31, 2021 is the registration deadline for carcinogenic, mutagenic, or toxic to reproduction substances.

In Taiwan:

• On January 1, 2021, certain products containing mercury will be restricted from importation, in line with an international agreement which aims to gradually reduce global mercury pollution. Products restricted include switches, relays, high-pressure mercury lamps, and measuring devices such as barometers and thermometers.

Please contact us if you have any questions about these upcoming chemical regulations, and check out IPC’s white papers on evolving chemicals regulations in China, Japan, Singapore, South Korea, Taiwan, and Thailand. IPC Contact: Kelly Scanlon.

EUROPEAN UNION

German Council Presidency Affirms Support for Due Diligence Legislation: Germany reiterated its support for European Union-wide due diligence and sustainable corporate governance legislation at a high-level virtual conference held October 6-7. According to reporting from Mondaq, a key objective of the current German Presidency of the EU Council is to “push for greater protection of human rights in supply chains,” while Germany is expected to release its own national supply chain law next year. Meanwhile, the European Commission is expected to publish a public consultation on its due diligence proposal in Q1 of 2021. IPC will work with its government relations committees to contribute to the consultation and engage with the European Commission. Does your company have a robust due diligence system in place? Check out a new IPC blog for more details, and let us know if you have any questions. IPC Contact: Alison James.
 
“Policy Going Forward Will be Viewed Through the Lens of Recovery”: Interested in what’s happening in IPC Europe? The IPC Blog staff recently chatted with Alison James, IPC’s senior director for Europe, about the bloc’s response to the coronavirus pandemic, as well as other issues facing our industry, from the “Green Deal” to chemicals regulation to supply chain resiliency. Read the full blog post here, and reach out to Alison if you have any questions. IPC Contact: Alison James.

EU Leaders Affirm Importance of Bloc’s Strategic Autonomy: European Union leaders affirmed the bloc’s belief that “achieving strategic autonomy while preserving an open economy is a key objective of the Union,” at the recent European Council summit held October 1-2. Leaders noted that the “EU must pursue an ambitious European industrial policy to make its industry more sustainable, more green, more competitive globally and more resilient,” and called on the European Commission to diversify production and supply chains, “especially for microprocessors,” and foster production and investment in Europe. The council plans to further address these issues during its March 2021 summit. Check out a new IPC blog for more information here. IPC Contact: Alison James.
 
French Recovery Plan Includes Electronics Manufacturing Among Strategic Industries: On September 3, France unveiled a €100 billion ($118 billion) recovery plan aiming to fuel investments in the reshoring and strengthening of key industrial sectors, including electronics manufacturing. To help accomplish this, on August 31, France announced a call for specific investment proposals. Projects aimed at strengthening the capacity of electronic manufacturing companies to respond to crisis situations will be given priority. Companies can submit applications until November 17. Read the new IPC blog for more information, and let us know your thoughts. IPC Contact: Alison James.

TRADE AND SUPPLY CHAIN

Parliament Confirms New Heads of Trade and Financial Services: On October 10, the European Parliament confirmed Valdis Dombrovskis and Mairead McGuinness as the European commissioners of Trade and Financial Services, respectively. Dombrovskis stated his intention to present a new roadmap for EU trade policy in line with the bloc’s wider plan for a sustainable and digital recovery, and also announced the launch of a World Trade Organization Trade and Climate Initiative focusing on green goods and services. McGuiness said she would focus on advancing the banking and capital markets unions, sustainable finance, and improved consumer protection. The reshuffling comes amid the resignation of former trade commissioner Phil Hogan at the end of August. IPC Contact: Alison James.

UPCOMING EVENTS

The 2020 U.S. Election Outcome — What Does It Mean for Your Business? Virtual, November 4. Join IPC on Wednesday, November 4, the day after Election Day, for a post-election analysis and discussion with our friends Charlie Black and Scott Pastrick of Prime Policy Group. Register now! IPC Contact: Ken Schramko.

IPC IMPACT Europe: Virtual, By Invitation, Members-Only Event, November 18-19. IPC IMPACT Europe is our opportunity to connect with EU policy makers, learn about current policy priorities, and discuss how these changes may impact our industry. IPC Contact: Alison James.

IPC APEX EXPO Moved to March: With safety in mind and facing new considerations around conferences and travel, IPC decided to move IPC APEX EXPO 2021 to March 6-11. Just as your companies are innovating to overcome the challenges of this pandemic, we are adapting as well. Mark your calendars and watch for more details coming soon.

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