Dear IPC Members:

Here in Washington, time is running out before the end of the year, and the U.S. Congress is scrambling to fit four major bills into the three remaining legislative weeks on the 2021 calendar. The unfinished business includes funding the U.S. government beyond December 3; passing the annual defense policy bill; finishing a $1.75 trillion social spending bill; and increasing the debt ceiling — all of which will require substantial negotiations.

Meanwhile, in Europe, an oft-delayed EU due diligence proposal is on track to be unveiled in December. The legislation will affect all organizations that do business in Europe, and we are monitoring its potential administrative burdens closely.

As always, please do not hesitate to reach out to your IPC Government Relations (GR) team to get involved or ask any questions about IPC’s advocacy activities. And if you have not done so already, take our five-question survey to better direct our GR efforts in 2022.

All the best and stay safe,

Chris Mitchell
Vice President, Global Government Relations

TOP NEWS OF THE WEEK

DoD Updates to CMMC Will Benefits SMEs: On November 4, the U.S. Department of Defense (DoD) unveiled a much-anticipated update to its Cybersecurity Maturity Model Certification (CMMC) — called CMMC 2.0 — and electronics manufacturers will want to take note of the updates. According to the DoD, CMMC 2.0 aims to minimize compliance barriers by reducing costs, particularly for small businesses. Given the many concerns that were raised about CMMC 1.0, these common-sense changes are a big improvement. Read more in a new IPC blog, and register for a webinar with cybersecurity expert and IPC Thought Leader Leslie Weinstein on December 9. IPC Contact: Chris Mitchell.

U.S. House Passes Bipartisan Infrastructure Package: Late last week, the U.S. House passed a long-awaited $1.2 trillion bipartisan infrastructure bill, setting the scene for U.S. President Joe Biden’s signature. Of note to electronics manufacturers, the bill will support the expansion of smart manufacturing technologies and practices. IPC supported the bill and has welcomed the prospect of historic investments in America’s roads, ports, electric grids, and digital networks, in part because America’s infrastructure depends on reliable electronics. We also await a resolution on a yet-to-be passed Biden administration budget bill, which is set to fund a host of social safety net and climate issues. We will update you as more information is released. IPC Contact: Ken Schramko.

IPC ADVOCACY AND YOU

How Can Government Help or Hurt You in 2022? We’re Looking for Your Concerns and Stories: As we look towards 2022, we want to know what our members are worried about. What are the key challenges you are facing right now, and what about over the horizon? How can the IPC Government Relations team best advocate for you? Please click here to answer a 5-question survey, including one open-ended question where you can send as little as a few phrases or as much as a 100-word story that we can share with others to illustrate the challenges facing our industry. Thank you for your help! IPC Contact: Ken Schramko.

DEFENSE AND SECURITY

IPC and USPAE Warn USG of Weakened Electronics Ecosystem: IPC and the U.S. Partnership for Assured Electronics (USPAE) encouraged the U.S. Department of Commerce to conduct a holistic analysis of the ICT supply chain, including the electronics manufacturing ecosystem, in joint comments submitted last week. The comments also urged the U.S. government to implement Section 841 of the FY 2021 National Defense Authorization Act (NDAA), which would bolster supply chain security for printed circuit boards (PCBs) and printed circuit board assemblies (PCBAs), and to work with the U.S. Congress to establish tax credits to support the industry’s migration to factories of the future. IPC Contact: Ken Schramko.

ENVIRONMENT AND HEALTH

PIP (3:1) Compliance Deadline Extended to October 2024: After considering input from IPC and other stakeholders, the U.S. Environmental Protection Agency (EPA) announced a proposed rule to further extend compliance deadlines on the final risk-management rule for phenol, isopropylated phosphate (3:1) – PIP (3:1) – a chemical substance used as a flame retardant and plasticizer in electronics. The new compliance deadline would be October 31, 2024 – three years and seven months beyond the original deadline of March 8. The EPA will examine new requests for extensions beyond the 2024 date by evaluating documentation to support specific uses of PIP (3:1) in articles. IPC, alongside CTA and ITI, has organized a list of documentation that will be useful to prepare a response to the EPA. Please check out our blog to read more, and let us know if you have any questions. IPC Contact: Kelly Scanlon.

Biden Administration to Implement Vaccine Mandates: On November 4, the Biden administration announced that it will enforce a new mandate on vaccinations for U.S. companies with over 100 employees. The new U.S. Occupational Safety and Health Administration (OSHA) Emergency Temporary Standard (ETS) will require employers to ensure that their workers are either fully vaccinated against COVID-19 by January 5, 2022 or that they test for COVID-19 at least once a week. IPC supports industry vaccination efforts but is concerned about the lack of clarity associated with the mandates on federal contractors. If this issue is important to you, read this IPC blog and please let us know so we can integrate you into our advocacy efforts.

EPA Unveils Plan to Regulate PFAS by 2023: The U.S. Environmental Protection Agency (EPA) recently released a strategic roadmap to regulate per- and polyfluoroalkyl substances (PFAS). The roadmap signaled that companies should be prepared to provide data and information about the usage of PFAS in their products and processes. IPC recently submitted comments to the EPA on a separate proposed rule that would require all manufacturers and importers of PFAS to report information regarding uses of thousands of PFAS. Check out a recent IPC blog for our full comments. IPC Contact: Kelly Scanlon.

China Releases Draft Action Plan Targeting “New Pollutants”: In October, China’s Ministry of Ecology and Environment (MEE) published a draft action plan aiming to strengthen new pollutant management and treatment. The plan established an environmental risk management system for chemicals, including hazardous chemical substances, and also designated 28 substances for priority management measures. Read more on the MEE site here or see our unofficial translation here. IPC Contact: Kelly Scanlon.

Interested in Chemical and Product Regulations in Asia? To help our members, IPC has created nine white papers highlighting the history of chemical regulations, current regulatory systems, recent regulatory updates, and anticipated trends in the Asia-Pacific region. Each white paper has recently undergone an updated deep dive by our environmental and health experts. You can find our refreshed white papers here; let us know if you have any questions or concerns. IPC Contact: Kelly Scanlon.

EUROPEAN UNION

NGOs Outline Demands for EU Due Diligence Proposal: A group of non-governmental organizations (NGO) recently sent a letter urging the European Commission to include a customs-based import ban on products made through forced labor as part of its Sustainable Corporate Governance (SCG) proposal. The proposal, which will introduce mandatory environmental and human rights due diligence rules for companies operating within the European Union, remains on track to be presented on December 8. IPC is continuing to engage with EU policymakers to ensure that the legislation is workable for industry while protecting human rights and the environment. Let us know if you have any questions. IPC Contact: Alison James.

TAX, TRADE, AND SUPPLY CHAIN

IPC’s Latest Economic Trends Report: In this month’s economic report, both current conditions and the long run outlook remain fractured. While sales remain strong, the forecast for electronics manufacturing has deteriorated because of supply chain disruptions. The United States is not alone in seeing weaker growth, with China and Europe also feeling the effects. Check out IPC Chief Economist Shawn DuBravac’s Monthly Economic Outlook Report, and let us know if you have any questions. IPC Contact: Shawn DuBravac.

Electronics Manufacturing Outlook Continues to Be Murky: The six-month outlook for electronics manufacturing grows has grown murkier due to ongoing supply chain crisis, according to data from IPC’s latest Global Sentiment Survey. Manufacturers continued to report strong sales, but have been weighted down by rising material costs, rising labor costs, and supply chain shortages. Meanwhile, manufacturers also cited ongoing difficulty in finding qualified talent. Read the full report here, check out additional coverage of the labor shortage in Slate, and stay tuned for next month’s report. IPC Contact: Ken Schramko.

UPCOMING EVENTS

CMMC 2.0 is Here – An Update on the DoD’s Cybersecurity Requirements: Virtual, December 9. Do you do business with the U.S. Department of Defense (DoD)? Have you heard about the latest update to the Cybersecurity Maturity Model Certification (CMMC)? Join cybersecurity expert Leslie Weinstein, who will help IPC member companies cut through the noise and confusion surrounding the CMMC. You will leave with an understanding of the changes introduced by CMMC 2.0 and be better equipped to navigate the evolving landscape. IPC Contact: Chris Mitchell.

HELP US SPREAD THE WORD ON SOCIAL MEDIA

“We are heartened to see that compliance burdens will be lessened for some of the most at-risk SMEs working within the DIB,” Leslie Weinstein, Deloitte, member of IPC Thought Leaders program, explains the Pentagon’s updates to the CMMC.		Do you manufacture or use PIP (3:1) containing articles that are components of electronics? We need your feedback to identify PIP (3:1) in the supply chain to prepare a response to the U.S. Environmental Protection Agency (EPA). Details can be found in the IPC Blog.

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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