Dear IPC Members:

Happy December!

To my colleagues in the United States, I hope everyone enjoyed a safe and happy Thanksgiving.

Today, I’m reminded of the quote, “Instruction does much, but encouragement everything.” It certainly has been a difficult year, but IPC is ready to finish 2020 on a high note, and I hope you are, too.

In late-breaking news, the final version of the U.S. National Defense Authorization Act (NDAA) was published yesterday, in advance of final votes in the House and Senate next week. As expected, and as called for by IPC, the bill would place new restrictions on the sourcing of printed circuit boards and assemblies for defense electronics. Watch your inbox on Monday for a more complete report and a “call to action” to voice your support to your Members of Congress.    

Meanwhile, time is quickly running out for the 116th Congress to complete its work before the the 117th Congress is sworn in on January 3. Several major legislative priorities, including coronavirus recovery, the NDAA, and appropriations bills, remain unresolved. Your voice may be needed on these issues as well, so please stay tuned.

All the best, and continue to stay safe,

Chris Mitchell
Vice President, Global Government Relations

TOP NEWS OF THE WEEK

IPC Members Gear Up for New Competitive Landscape at IMPACT Europe 2020: Senior executives from across the European electronics manufacturing value chain on November 18-19 met virtually with European Commission officials to advocate for pro-industry policies in a dynamic regulatory landscape. IPC’s IMPACT EUROPE 2020 came at a critical time, with the European Union ramping up consideration of new policies affecting international trade, industrial strategy, environmental policy, and corporate conduct. To all who participated, thank you for your active engagement and for helping to make this event a success! To those of you who missed this opportunity but would like to learn more or become involved, please contact Alison James, IPC’s Senior Director, Europe, and read a full recap of the event here.

Military Prowess Requires an Embrace of Lead-Free Electronics: The U.S. defense community’s continuing reliance on lead-based electronics – and the widening gap between the commercial and defense markets – puts the military’s technological superiority and readiness at risk, IPC President and CEO John Mitchell explains in a new op-ed featured in both Defense News and Military Times. IPC calls on the U.S. Congress to make a greater investment in research and development into lead-free electronics for the defense industry. Give the op-ed a read, and let us know what you think. IPC Contact: Chris Mitchell.

NDAA Moving Toward Final Votes and Possible Confrontation with Trump: As noted above, a final version of the U.S. National Defense Authorization Act (NDAA) – including pro-electronics-industry language sought by IPC – is expected to be voted upon next week. However, a new potential obstacle arose this week when President Donald Trump threatened to veto the legislation unless it includes a repeal of Section 230 of the Communications Act. IPC President and CEO John Mitchell objected in a statement, saying that tying an “unrelated, controversial” issue to the must-pass defense bill “creates an unnecessary game of political chicken.” IPC urges President Trump and the members of Congress to stay focused on the issues central to the nation’s defense with the goal of enacting the NDAA into law on schedule by next week. IPC Contact: Chris Mitchell.

House Passes Apprenticeship Legislation: Last week, the U.S. House of Representatives passed The National Apprenticeship Act of 2020, which would amend and expand the national apprenticeships system by authorizing nearly $4 billion in spending over the next five years on registered apprenticeships that are approved by the Department of Labor. Although expanding apprenticeships has bipartisan support, only 20 Republicans voted in favor of the bill as it did not include funding for President Donald Trump’s Industry-Recognized Apprenticeship Programs. Without limited time left on the legislative calendar and only weak Republican support, Senate action on the bill is considered unlikely. Please let us know if you have an interest in apprenticeship programs. IPC Contact: Ken Schramko.

PCB Manufacturers, Uncle Sam Wants to Hear from You: The U.S. Department of Defense Executive Agent for Printed Circuit Board and Interconnect Technology (PrCB EA) is undertaking a survey to determine the impacts of the coronavirus pandemic on the U.S. printed circuit board industry and assess the effectiveness of industry and government response measures. All individual responses to this survey will be anonymous, and the results of the survey will only be reported as aggregate industry results. IPC encourages you all to participate. All responses should be completed by December 11. IPC Contact: Chris Mitchell.

IPC ADVOCACY AND YOU

Which Government Policy Issues Are You Riled Up About? IPC has been conducting an ongoing member survey about the government policy issues that concern you most. We received a host of new responses amid Election 2020, and here are the updated survey results. When asking our members to identify their top areas of concern, a majority mentioned trade and tariffs (54 percent). A second tier of concerns are education and workforce skills (33 percent); incentives for research, development, and investment (33 percent); environmental regulations (31 percent); taxes (28 percent); and intellectual property protection (28 percent). Which government policy issues matter the most to you? Simply click here to take our five-question, five-minute survey.
 
Pledge to Stay Involved in IPC Advocacy in 2021: 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. With the November elections now behind us, our 2021 advocacy efforts are just beginning. Please click here to pledge to stay involved in IPC advocacy. IPC Contact: Ken Schramko.

QUOTE OF THE WEEK

“I want to make sure we're going to fight like hell by investing in America first. ... I'm not going to enter any new trade agreement with anybody until we have made major investments here at home and in our workers.”
– U.S. President-elect Joe Biden, in a wide-ranging interview with New York Times columnist Thomas L. Friedman. 

ENVIRONMENT, HEALTH AND SAFETY

What OSHA's Increasing COVID-19 Inspections Mean for You: As the coronavirus pandemic has persisted, the U.S. Occupational Safety and Health Administration (OSHA) has strengthened its worker health protections and increased the number of workplace inspections, resulting in an increase of citations for violating certain standards. This recent publication from OSHA provides all the latest information on the frequently cited standards related to COVID-19; we encourage you to use this information to benchmark company practices and protocols throughout the pandemic. Check out a new blog from IPC’s Kelly Scanlon for more information on how to navigate the latest workplace compliance obligations. The health and safety of our members remains a top priority for IPC, and as always, let us know any pandemic-related issues you may be struggling with. IPC Contact: Kelly Scanlon.

EPA Moves Forward on Risk Evaluations of DIDP and DINP: On November 27, the U.S. Environmental Protection Agency (EPA) announced the availability of the draft scope documents for Toxic Substances Control Act (TSCA) risk evaluations of diisodecyl phthalate (DIDP) and diisononyl phthalate (DINP). DIDP and DINP join 20 high-priority chemical substances under evaluation. However, these phthalates were added at the request of manufacturers as opposed to the agency’s TSCA prioritization process. Both DINP and DIDP phthalates may be used as a plasticizer in polyvinyl chloride in addition to other applications that may affect electronics manufacturing. The comment period on the draft scope documents is open until January 11, 2021. Let us know if you have any questions. IPC Contact: Kelly Scanlon.

EPA Takes Next Steps on TSCA Fees: Deliberations on the U.S. Environmental Protection Agency’s (EPA) Toxic Substances Control Act Fees Rule have continued, with the agency recently submitting a draft notice of proposed rulemaking (NPRM) to the Office of Management and Budget (OMB) and Office of Information and Regulatory Affairs (OIRA). IPC is staying engaged throughout the process and has recently met with both the EPA’s fees rule team and the OMB to share the electronics industry’s concerns regarding the existing fees rule. IPC expects the final NPRM to be released in December, with a new rule to be issued by fall of 2021. As always, we welcome your insights on fee obligations and what it would mean for your business. IPC Contact: Kelly Scanlon.

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 this IPC blog for more information. IPC Contact: Kelly Scanlon.

U.S. Chemical Data Reporting Deadline Extended through January: The U.S. Environmental Protection Agency (EPA) is extending the Chemical Data Reporting (CDR) submission period through January 29, 2021. The CDR rule requires manufacturers and importers of certain chemical substances listed under the Toxic Substances Control Act 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, 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.

Does Your Company Produce, Import, or Supply Products to the EU? If so, Substances of Concern in Products (SCIP) database requirements may apply to your company. The obligations require manufacturers across supply chains to disclose significant new information about chemicals used in their products, with a potentially sizable impact for manufacturers in the U.S. and around the world. As a reminder, under the current timeline, the database is set to come into effect on January 5, 2021, just 10 weeks after it was unveiled for the first time. For more information on the SCIP database and how it can impact your company, check out a newly updated IPC blog. Let us know if you have any questions about the notification process. IPC Contact: Alison James.

What Do EU Citizens Think About Nanomaterials? European Union citizens are demanding clear labelling of everyday products containing nanomaterials, according to the results of an EU Observatory for Nanomaterials (EUON)-commissioned survey. The survey also highlighted rising awareness about the risks and benefits of products containing nanomaterials, a trend that is expected to continue. Meanwhile, the European Commission has promised to further regulate nanomaterials in its chemicals strategy for sustainability and has committed to finalize the nanomaterials review by the end of 2021. IPC Contact: Alison James.

IPC Comments on Commission’s Sustainable Products Initiative: On November 16, IPC submitted industry input on the European Commission's Sustainable Products Policy Initiative, which aims to revise and expand the Ecodesign Directive and proposes legislative measures to make products, including electronics, more sustainable. IPC’s recommendations included defining the electronics and ICT key value chains; expanding the Ecodesign Directive; and elevating the voices of small and medium-sized enterprises. The commission is expected to present a legislative proposal by Q1 of 2021. IPC Contact: Alison James.

EUROPEAN UNION

Council Calls for Promotion of Human Rights in Global Supply Chains: The Council of the European Union recently adopted conclusions calling on EU member states and the European Commission to “promote human rights in global supply chains and decent work worldwide.” The Council noted that corporate due diligence, particularly on human rights, is key for responsible supply chain management and advocated for the launch an EU Action Plan focusing on “shaping global supply chains sustainably, promoting human rights, social and environmental due diligence standards and transparency by 2021.” IPC Contact: Alison James.
 
Parliament Seeks New Industrial Strategy to Deal With COVID-19: The European Parliament adopted a resolution on November 25 calling on the European Commission to revise its March proposal on the EU’s new industrial strategy to consider the impact of the coronavirus pandemic on European industries. The resolution calls for the new strategy to focus on diversifying strategic value chains to help strengthen European industries’ resilience and competitiveness, while also being better prepared to “face the digital and environmental transitions.” The commission is expected to present its revised industrial strategy in March 2021. IPC Contact: Alison James.

TRADE AND SUPPLY CHAIN

U.S.-China Trade Relations Remains Rocky: Following the breakdown in bilateral talks earlier this year, the United States and China continue to engage in a tit-for-tat trade dispute. In 2020 alone, the Trump administration has taken 159 policy actions aimed “countering China's growing power.” On November 12, Trump signed an executive order barring Americans from investing in Chinese companies that support China’s military, with Trump insiders signaling that there are more punitive actions against China to come. Meanwhile, the U.S. Department of State recently issued a new report asserting that China is seeking to displace U.S. leadership and is “a mounting challenge to free countries that adhere to the international, rules-based system.” IPC will continue to monitor all developments between the two nations, including the posture of the incoming Biden administration. IPC Contact: Chris Mitchell.

UPCOMING EVENTS

What Does a Biden Administration Mean for U.S. Manufacturing? Webinar, December 16. President-elect Joe Biden has spoken often about rebuilding the U.S. industrial base. But what do and the Congress have in mind? And what does that mean for electronics manufacturing? Join IPC Vice President of Global Government Relations Chris Mitchell for a conversation with Gilbert Kaplan, a former Undersecretary of Commerce for International Trade, on the outlook for U.S. manufacturing competitiveness and what we should expect from the Biden administration, from “Made in America” to investments in advanced technologies, taxes, trade, and regulation. Register for webinar. IPC Contact: Chris Mitchell.

What Manufacturers Need to Know About New Chemical Reporting Obligations: Webinar, December 17. IPC welcomes you to learn more about the Substances of Concern in Products (SCIP) database at a free webinar hosted by the National Association of Manufacturers (NAM). The webinar will feature expert speakers who have considerable experience on European Union chemical and product regulations, and will include a detailed presentation on the SCIP database and the key implications facing manufacturers. If you or a colleague would like to join this webinar, please register here, and let us know if you have any questions. IPC Contact: Kelly Scanlon.

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. IPC Contact: Chris Mitchell.

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