IPC Global Advocacy Report
6/18/2021

Dear IPC Members:

As it stands now, it looks to be a busy summer here in Washington, especially at the U.S. Environmental Protection Agency (EPA). Check out the news items below to know what should be on your radar going forward. Also, don’t miss the latest environmental news items from around the globe, including Europe and Asia-Pacific.

IPC is also engaging in the debate on how to best revitalize U.S. manufacturing and why electronics must be included. Check out our statement on the Biden administration's 100-day supply chain review and my interview with SupplyChainDive on how the U.S. should address manufacturing concerns.

And we want to hear from you! Send us a message if you have any input or questions on what governments should be doing to support the industry’s long-term growth and evolution. We’ll answer your most interesting questions in future editions of IPC Global Advocacy Report.

All the best,

Chris Mitchell
Vice President, Global Government Relations


TOP NEWS OF THE WEEK

U.S. and EU Suspend Long-Running Aircraft Trade Dispute: On June 15, the United States and the European Union agreed to suspend tariffs for five years related to Airbus and Boeing subsidies, ending a 17-year-long trade dispute. The agreement came as U.S. President Joe Biden met with top European leaders at a joint summit aimed at renewing the trans-Atlantic partnership. The summit also saw the establishment of the U.S.-EU Trade & Technology Council, aimed at boosting bilateral trade and investment while countering China’s rising influence. IPC welcomes efforts to rekindle the U.S. and EU partnership and continues to engage with policymakers to ensure that the electronics value chain is recognized as central to economies on both sides of the Atlantic. IPC Contact: Alison James.

New EPA Rule to Require Reporting on PFAS: On June 10, the U.S. Environmental Protection Agency (EPA) announced the pre-publication of a proposed rule requiring all manufacturers and importers of per- and polyfluoroalkyl substances (PFAS) to report information about goods containing the chemical substance. PFAS has a history of use in electronics, and IPC plans to engage with the electronics industry to review the proposed rule and provide comments during the expected 60-day comment period. Please let us know if you have any questions and how this might affect your business. IPC Contact: Kelly Scanlon.

 

QUOTE OF THE WEEK

"To the degree that we can take this opportunity now, on the heels of this pandemic, on the heels of significant geopolitical tension, and make a renewed commitment to electronics manufacturing, we believe that's in the best ... strategic interests of the United States.”
– I discussed IPC’s support of the Biden administration’s efforts to bolster the U.S. electronics supply chain in a recent interview with SupplyChainDive.

 

DEFENSE AND SECURITY

DoD Should Consider CMMC Compliance’s Impact on SMEs: The U.S. Defense Department's (DoD) Cybersecurity Maturity Model Certification (CMMC) aims to enhance national security, but its costs and burdens are officially underestimated and could force more electronics manufacturers out of the DoD’s supply chain. Just 32% of IPC survey respondents said they expect to be ready to undergo a CMMC assessment in one to two years. Learn more in this IPC report by Leslie Weinstein of the IPC Thought Leaders Program and in this new article in the EE Times. IPC Contact: Chris Mitchell.

 

ENVIRONMENT & HEALTH

EPA’s PBT Rule Planned for September: According to the recently released Office and Management and Budget (OMB) regulatory agenda, the U.S. Environmental Protection Agency (EPA) plans to publish its interim final rule on persistent, bioaccumulative, and toxic (PBT) chemicals this September. This move follows the EPA’s final risk-management rules for phenol, isopropylated, phosphate (3:1) (PIP (3:1)), one of the five PBT chemicals, which IPC and other industry groups submitted comments on. IPC will continue to engage with the EPA to advocate for realistic risk management strategies. IPC Contact: Kelly Scanlon.

OSHA Releases Emergency Standard on COVID-19: On June 10, the U.S. Occupational Safety and Health Administration (OSHA) released regulatory language for the long-awaited Emergency Temporary Standard (ETS) for COVID-19. The rule – once published in the Federal Register -- will only apply to the healthcare industry and will not apply to manufacturing. In addition to the ETS, OSHA updated its guidance on preventing COVID in the workplace to provide recommendations on protecting unvaccinated workers. Your team should check this out, but the updated guidance is not a standard or regulation and creates no new legal obligations. Please let us know if you have any questions. IPC Contact: Kelly Scanlon.

IPC Provides Industry Input on Sustainable Products Initiative: IPC shared comments last week on the European Commission’s public consultation on its Sustainable Products Initiative, a key component of the European Union’s Circular Economy Action Plan. We believe that any sustainable product legislation should focus on final electronics products with the greatest environmental impacts and the greatest potential for circularity improvements. The initiative will revise and expand the Ecodesign Directive and will address the presence of harmful chemicals in electronics and ICT equipment, among other products. Read our full comments here. IPC Contact: Alison James.

Germany Adopts Due Diligence Law: On June 11, Germany passed a new supply chain law introducing binding human rights and environmental due diligence obligations for large companies. The legislation, known as the Supply Chain Act, had been delayed due to concerns over liability mechanisms and the economic impact on businesses because it would levy “fines of up to 2% of their annual global turnover if they violate the rules,” Reuters reports. IPC is continuing to engage with European Union policymakers to ensure that any upcoming due diligence legislation is feasible and minimizes the administrative burden for our member companies. Read more in an IPC blog here. IPC Contact: Alison James.

IPC Submits Feedback on Revisions to REACH Regulation: On June 1, IPC submitted comments to the European Commission on proposed revisions to the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) law. IPC urged the commission to consider revisions in context of ongoing updates to chemical policies, such as the Restriction of Hazardous Substances (RoHS) Directive, and to consider existing materials declarations standards to ensure efficient supply chain communications. Please let us know if you have any further questions or comments. IPC Contact: Kelly Scanlon.

Taiwan Moves to Delay Registration of Chemical Substances: On May 27, Taiwan’s Environmental Protection Agency (EPA) published a draft amendment to its chemical legislation, Regulations of New and Existing Chemical Substances Registration, which would notably delay the registration deadlines for chemical registrations. The amended chemical legislation is expected to come into force by the end of 2021. See the full list of changes here; please let us know if you have any question. IPC Contact: Kelly Scanlon.

IPC Updates Electronics on China’s MEE Order 12: On May 26, experts from IPC and Mayer Brown presented at a Chemical Watch webinar on the latest updates to China’s Ministry of Environment and Ecology (MEE) Order 12 regulation, its legal implications, and the potential impacts on the electronics industry. Heng Li, an attorney with Mayer Brown, indicated that we should expect to see more chemical legislation in China “in the near future.” Read IPC’s full recap of the webinar here. Also, check out IPC’s nine white papers on the history of chemical regulations, current regulatory systems, and upcoming trends in the Asia-Pacific region for more information. IPC Contact: Kelly Scanlon.

 

TRADE AND SUPPLY CHAIN

IPC Commends Biden Administration on Strategic Supply Chain Review: The Biden administration concluded its 100-day supply chain review last week, and IPC was pleased to see it address the importance of the electronics supply chain. IPC’s recommendations to the administration – many of which were reflected in the documents published by the administration – were summarized in a recent letter to U.S. Commerce Secretary Gina Raimondo signed by 57 industry leaders. We look forward to working with the Biden administration to revitalize U.S. electronics manufacturing. See our full statement here. IPC Contact: Chris Mitchell.

 

UPCOMING EVENTS

What are the Best Practices for Eco-design? Virtual, July 27. Join the International Electronics Manufacturing Initiative (iNEMI) for the final webinar in a three-part series on eco-design for a circular electronics economy. The series is your opportunity to learn from eco-design leaders about the best and most innovative practices used today. Register for the webinar here. IPC Contact: Kelly Scanlon.

Critical Environmental Requirements for Electronics Conference: Virtual, June 29. Join the world’s leading environmental regulatory experts at IPC and ITI’s upcoming conference on critical environmental requirements for electronics. Stay updated on the latest environmental requirements, like Restriction of Hazardous Substances (RoHS), Toxic Substances Control Act (TSCA), and more, that could impact your product’s design, manufacturing, supply chain management, and technology innovation. IPC Contact: Kelly Scanlon.      

 

KEEP IN TOUCH WITH US

Meet the IPC GR Team: Whether it’s engaging with policymakers in Washington, D.C., in the European Union or in China, the IPC Government Relations (GR) Team proactively seeks opportunities to educate, inform and influence policymakers on policies that spur innovation, growth and competition, while protecting human health and the environment. But our success depends on your support and engagement. Learn more and get involved in IPC advocacy today! IPC Contact: Chris Mitchell.

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