Dear IPC Members:

I hope you had a restful holiday season and a safe start to 2021. Here’s a snapshot of how we are working to advance your success via IPC advocacy.

As anticipated, December was a busy month in Washington, and the last week of 2020 brought resolutions on several major legislative priorities, including coronavirus recovery, annual spending bills, and the National Defense Authorization Act (NDAA). Notably, IPC helped secure legislation that will bolster the security and resilience of defense electronics supply chains. Read more about our efforts in TOP NEWS OF THE WEEK below.

Please let me know if you have any questions and suggestions for IPC advocacy this year. Together, we can make it our most successful year yet. 

All the best,

Chris Mitchell
Vice President, Global Government Relations

TOP NEWS OF THE WEEK

Congress Approves $900B COVID-19 Aid Package: IPC applauds the U.S. Congress for approving more than $900 billion in aid to support recovery from the coronavirus pandemic. The package provides economic support in the form of unemployment aid, direct payments, and business loans, as well as funding for vaccines and testing. Check out a recent IPC blog for more details. IPC has been advocating for federal officials to take additional actions to support the electronics manufacturing sector and drive the nation’s economic recovery. IPC will keep an eye on the implementation of these provisions and continue to advocate for measures to increase business certainty and long-term recovery. IPC Contact: Chris Mitchell.

U.S. Government Bolsters Security and Resiliency of Defense Electronics Supply Chain: The U.S. Congress overrode President Donald Trump’s veto of the National Defense Authorization Act (NDAA), which included pro-electronics-industry language sought by IPC, namely new restrictions on the sourcing of printed circuit boards and assemblies for defense electronics. IPC commends Congress for keeping this vitally important legislation on track. Meanwhile, Trump also set aside his veto threat and signed the FY 2021 Consolidated Appropriations Act, which included $10 million for research into the issues surrounding lead-free electronics in mission-critical applications. IPC will look to build on these wins in 2021. IPC Contact: Chris Mitchell.

IPC’s December 2020 Economic Report: As we close the door on 2020, we look forward to 2021 with trepidation but also with a degree of optimism. IPC Chief Economist Shawn DuBravac provides the latest data in IPC’s December Economic Outlook Report, with information on U.S. and European economic growth, employment, manufacturer’s sentiment, and end markets for electronics. Please let me know if you have questions, and visit IPC’s COVID-19 web page for the latest on how to keep your business and workforce protected. IPC Contact: Shawn DuBravac.

If Your Company Makes or Import Chemicals, Heads Up! If your company manufactures or imports chemicals in the United States, then you need to review the pre-publication version of the proposed changes to the U.S. Environmental Protection Agency’s (EPA) Toxic Substances Control Act (TSCA) Fees Rule. Your initial feedback is needed by January 26. IPC has been communicating with the EPA and other federal policymakers to underscore the need for commonsense reforms to the 2018 rule, and we are pleased that the proposed rule appears to make important and positive changes. Check out a new IPC blog for what you need to know about the TSCA Fees Rules, and let us know if you have any questions. IPC Contact: Kelly Scanlon.

New Cybersecurity Standards Cause Concerns for Electronics Industry: The U.S. Department of Defense’s (DoD) new cybersecurity standards for defense contractors are creating significant costs and uncertainties for electronics manufacturers, but industry leaders are trying to make it work. Of concern is the DoD ’s Cybersecurity Maturity Model Certification (CMMC) program, which will require cybersecurity certification for all contractors doing business with the DoD. Read a new IPC blog on this issue here. IPC will continue to advocate for the industry ’s interests in the CMMC program and will help with industry compliance efforts, including providing new educational resources and webinars slated for later this quarter. Click here to access an IPC webinar featuring cybersecurity expert Leslie Weinstein, and do not hesitate to contact us if you have questions or suggestions. IPC Contact: Chris Mitchell. 

Deductible Business Expenses and PPP Loans: This week, the IRS issued guidance permitting the deductibility of business expenses paid with PPP funds — a victory for IPC and other industry association that urged Congress in the year-end, catchall stimulus legislation to reverse initial IRS guidance denying deductions for trade and business expenses — including payroll — associated with forgiven PPP loans. IPC Contact: Chris Mitchell. 

IPC ADVOCACY AND YOU

Registration for IPC APEX EXPO 2021 is Open: Registration for IPC APEX EXPO 2021 is now open! With safety in mind and facing restrictions around travel and in-person conferences, this year’s expo will feature an all-virtual format on March 8-12. To view the schedule and exhibitor list at a glance, visit www.ipcapexexpo.org. IPC Contact: Chris Mitchell.

COVID-19 Vaccine: How Does the Rollout Affect the Manufacturing Industry? Pfizer, Moderna, and other companies rushing to distribute coronavirus vaccines across the world, and here’s what we know now. First, the U.S. Centers for Disease Control and Prevention and federal agencies will continue to provide guidance on the allocation and administration of COVID-19 vaccines. IPC will work to keep you abreast of these regulatory notices and how they affect your workforce and operations. Second, while the federal government is helping to coordinate the distribution, governors will determine the allocation of vaccines within their own states. IPC is communicating with governors about the importance of prioritizing vaccinations for manufacturing workers. Although many questions remain, IPC will work with you plus federal and state authorities to keep our industry operating. For more information, please consult my latest IPC blog. IPC Contact: Chris Mitchell.

QUOTE OF THE WEEK

“The Pentagon’s reliance on a steady, dependable product has prevented it from reaping the benefits of innovation. … Specifically, the U.S. defense community’s continuing reliance on lead-based electronics puts the nation’s technological superiority and military readiness at risk.”
– IPC President and CEO John Mitchell in a recent op-ed featured in Defense News and Military Times.

ENVIRONMENT, HEALTH AND SAFETY

Does Your Company Produce, Import, or Supply Products to the EU? If so, Substances of Concern in Products (SCIP) database requirements may now apply to your company, effective January 5. Check out this IPC SCIP Database resource page for more information, and let us know if you have any questions. IPC Contact: Kelly Scanlon.

ECHA Calls for Evidence on Chemical Common to Plastics and Resins: The European Chemicals Agency (ECHA) has requested comments and evidence regarding a possible restriction on Bisphenol A (BPA) and structurally related bisphenols of similar concern for the environment. The deadline for providing input is February 15, 2021. Is BPA essential to your electronics-related processes? Do you have any data or information to submit to ECHA? Please us know. 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. Check out this IPC blog for more information, and if your company has information that is relevant to these proceedings, we need to hear from you. IPC Contact: Kelly Scanlon.

EPA Finalizes Rule to Limit Science Used in Regulations: The U.S. Environmental Protection Agency (EPA) finalized a regulation limiting what scientific research the agency can use to formulate regulations, the Washington Post reports. However, the rule is one of dozens of Trump administration actions likely to be overturned by the Biden administration. For more insight on how electronics will fare under a Biden administration, check out a recent IPC blog. IPC Contact: Kelly Scanlon.

Twenty Days to Go on U.S. Chemical Data Reporting: The U.S. Environmental Protection Agency (EPA)’s Chemical Data Reporting (CDR) period runs through January 29. 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. Let us know if you have any questions or comments as your company goes through the process. IPC Contact: Kelly Scanlon.

China Updates Inventory of Existing Chemical Substances: On December 21, China’s Ministry of Environment and Ecology (MEE) added an additional 238 chemical substances to the Inventory of Existing Chemical Substances (IECSC), bringing the list to over 46,000 chemical substances. As a reminder, if the substance is not listed in the IECSC your business must complete new substance registration before manufacturing or importing said chemicals. Chemicals that are not included in the IECSC are considered new chemicals and are managed under MEE Order 12, which took effect on January 1. IPC Contact: Kelly Scanlon.

EUROPEAN UNION

Portugal Outlines Its EU Presidency Priorities: Promoting Europe’s economic recovery and green and digital transitions will be a top priority of Portugal’s presidency of the Council of the European Union, which began on January 1 and runs until June 30. Portugal also will prioritize Europe’s strategic autonomy and a “dynamic industrial strategy that promotes European value chains and pays particular attention to strengthening small and medium-sized enterprises.” 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

U.K. and EU Reach Brexit Agreement: On December 24, the United Kingdom and the European Union reached a trade agreement regarding the terms of future trade between them, including the formation of two separate markets with distinct regulatory and legal spaces. The agreement, provisionally applied since January 1, will still allow for free trade in goods between the U.K. and the EU, and all U.K. goods entering the EU will still have to meet the EU’s regulatory standards. Additionally, both the U.K. and EU committed to maintaining the highest environmental standards, although the U.K. may seek to diverge in some areas such as chemicals legislation. Let us know if the new agreement, which currently awaits final ratification by the European Parliament and the Council of the EU, will impact your business. IPC Contact: Alison James.

U.S. Imposes Additional Tariffs on EU Imports: On December 30, the United States imposed additional tariffs on European Union products as the latest development in the World Trade Organization’s Airbus dispute. Notable products subject to the additional tariffs include aircraft manufacturing parts from France and Germany; you can see the full list here. The European Commission said it “regrets” the latest U.S. move and signaled that “prospects for a negotiated settlement now rest with the incoming administration of President-elect Joe Biden,” Bloomberg reports. We will continue to keep you informed. IPC Contact: Alison James.

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