Senior executives from across the European electronics manufacturing value chain gathered virtually last week to meet European Commission officials and advocate for policies to ensure our sector’s competitiveness in a dynamic regulatory landscape.

IPC’s IMPACT EUROPE 2020 came at an important time, as the EU is ramping up consideration of new policies affecting international trade, industrial strategy, environmental policy, and corporate conduct. On top of an already ambitious 2021 agenda aimed at accelerating the region’s green and digital transitions, the EU’s COVID-recovery plans and new emphasis on “open strategic autonomy” bring new focus to global supply chains, how we manage our interdependencies, and how the region can build back sustainably. The meetings covered a range of key areas that are under review and/or set to launch.

Day 1 kicked off with Peter Kovacs with the European Commission’s Directorate-General for Trade (DG Trade), who provided context for the current EU trade review, to which IPC has submitted a written contribution. Kovacs acknowledged the importance of “openness” in the EU’s trade stance, and he reiterated that Europe champions “free and fair trade” as a defender of the multilateral trading system. However, he also noted the EU’s imperative to learn from the COVID crisis and reduce supply chain dependencies. On China, Kovacs said the EU aims to improve market access as part of negotiations on investment rules, and for this, China “needs to move significantly.”

The next session focused on the EU’s industrial strategy. Szabolcs Szekacs from the European Commission’s DG GROW provided an update on developments post-COVID which are leading to new analysis of industrial ecosystems in Europe and how these can be further stimulated to ensure growth.

In the ensuing discussion, IPC emphasised that electronics manufacturing is not only a strategic ecosystem in its own right, but also a horizontal industry that supports many others. Thus, we urged the European Commission to gather input from our sector via a strategic forum that is being launched soon to work on industrial competitiveness in Europe.

To further highlight the strategic role of the electronics manufacturing industry in European competitiveness, we heard a presentation by Olivier Coulon from Decision, a consultancy contracted by IPC to provide a report on our industry in Europe, the interdependencies in the ecosystem, and our contributions to growth. The full report will be shared with IPC members and the European Commission once finalised.

In moving forward, members emphasised the need to balance support for global supply chains with robust initiatives to strengthen regional electronics manufacturing and develop networks of trusted trading partners.

Day 2 kicked off with a presentation by William Neale, advisor to the Commission’s DG Environment, on the move to a circular economy and making sustainable products “the norm rather than the exception” in Europe. Neale covered the Sustainable Product Policy and spoke about plans for the introduction of “digital product passports.” In the exchange that followed, IPC members shared thoughts and concerns about the information requirements.

Next, IPC’s Director of EHS Policy and Research, Kelly Scanlon, made a presentation on her environmental and safety-related research program, in the context of all the policy drivers that are reshaping how we purchase, use, and dispose of the chemicals used in electronics.

The theme of challenging new information requirements continued in the final session, in which Maija Laurila, Head of Unit with DG Justice, spoke to us about pending rules to introduce mandatory human rights and environmental due diligence reporting obligations as part of a broader framework on sustainable corporate governance. The European Commission is considering the form and scope of the initiative through early February, with legislative proposals expected to follow.  

During the discussion of the due diligence initiative, IPC outlined the elements of its intended response. While recognising the importance of the intent, IPC seeks to ensure that the proposal is both effective in meeting its aims and workable for the companies involved. One IPC member company executive highlighted actions already taken by electronics manufacturers and emphasised the role of existing industry schemes and partnerships, including the European Partnership for Responsible Minerals (EPRM), of which IPC is a member.

In the day’s concluding session, IPC members emphasised their concerns about costs and administrative burdens related to new regulatory requirements. The industry needs to insist on thorough impact assessments throughout the value chain. Given the global nature of electronics manufacturing, IPC’s European members want to ensure that they are not placed at a competitive disadvantage in the world market.

To all who participated, thank you for your active engagement and for helping to make this event a success! We will be in touch with follow-up activities.

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 at AlisonJames@ipc.org. Opportunities exist to become involved in IPC’s European Government Relations Committee and various related activities.

Also, senior executives from throughout the region are invited to participate in IPC’s new European Executive Forum, hosted by IPC President and CEO John Mitchell. If interested, please contact Alison James or watch for the invitation from IPC.  

Earlier in November, the European Chemicals Agency clarified the date from which information should be communicated to ECHA via the SCIP database.  According to this support site, information on articles containing SVHCs on the Candidate List in a concentration above 0.1% w/w placed on the EU market needs to be notified to ECHA from January 5, 2021 onwards. They state that Member States should ensure national rules are in place to oblige all suppliers to provide information to ECHA “as from” January 5, 2021 and not “as of” January 5, 2021.

On October 28, the European Chemicals Agency (ECHA) formally launched the Substances of Concern in Products (SCIP) database. Any company importing, producing, or supplying products on the EU market that contain substances of very high concern will have to comply with the database reporting requirements. Specifically, if your company places on the market any articles with SVHCs on the REACH Candidate List above 0.1% weight by weight then the company must submit information on these articles to the SCIP database as of January 5, 2021.

Despite urgings from IPC and other associations, the European Commission rejected the possibility of an ex-post impact assessment. Under the current timeline, the regulatory obligations regarding the database are set to come into effect on January 5, 2021, just 10 weeks after the database was unveiled for the first time. However, industry advocacy will continue, and IPC recently signed a cross-industry letter to the German Presidency of the European Union and heads of the European Council and European Parliament, reiterating the need for a more workable solution.  IPC will continue advocacy efforts and stresses the need for companies to increase their awareness about this regulatory requirement.

ECHA has tools available to help you to meet reporting obligations and be sure to tune into the ECHA’s November 19 webinar if you have any questions about the notification process, and let us know if we can help you. 

Even as officials around the country are finalizing the results of the 2020 U.S. elections, members of Congress are preparing to return to Washington, where a busy legislative agenda awaits them. Very little time is left before the end of the year, and Congress has a slew of unfinished business.

Here is a rundown of what we at IPC are pressing members of Congress to prioritize in the waning days of 2020.

• COVID-19 Recovery – Congressional leaders now concur that a fourth COVID recovery package is critical. IPC agrees. Enacting a COVID-recovery package will help sustain and revive affected communities, not to mention the wider economy, which the electronics industry is helping to drive. Significant differences remain over the size of the bill and its policy priorities. IPC has and will continue to fight for extension of the Paycheck Protection Program, business tax deductions, reasonable liability relief, modified unemployment benefits, and state and local government aid. We also have pushed for federal assistance to support compliance with Section 889 and infrastructure improvements.

• National Defense Authorization Act (NDAA) – Congress is late in finalizing the annual defense authorization bill, which sets priorities and policies for the U.S. Department of Defense (DoD). Enacting this legislation into law is a top November/December priority for Congress and the electronics industry. The FY 2021 NDAA is likely to include new trusted supplier requirements and sourcing restrictions on printed circuit boards and assemblies used in sensitive defense and COTS technologies purchased by DoD. This provision arguably is the industry’s most significant legislative achievement ever and cements the idea that every nation should have access to secure and resilient supply chains for electronics.          

• Appropriations – More than a month into FY 2021, Congress has yet to enact a single spending bill. The government is currently operating on a “continuing resolution” through December 11, by which date Congress will need to act to avert a government shutdown. Given their many months of work to date, appropriators should be able to negotiate a final package relatively quickly once congressional leaders agree on topline spending levels. Congress may need to pass another short-term CR, but we expect an omnibus package on the President’s desk this year.  

IPC backs funding for a variety of U.S. federal programs that support the innovation, resiliency, and security of U.S. electronics manufacturing. IPC also is championing a “plus up” in the defense spending bill to launch a new five-year, $40 million research effort related to lead-free electronics. Congress appropriated the project $5 million last year, and for FY 2021, the House has allocated $10 million. The Senate has yet to act, but we will stay laser-focused on this important priority.       

We are optimistic that, with the elections behind us, Congressional leaders are in a better place to complete these legislative measures. To that end, we, at IPC, will continue to provide opportunities to you and your peers to communicate your support of these bills at the appropriate time. Please stay tuned!

As always, please do not hesitate to reach out to your IPC Government Relations team to get involved or ask any questions about IPC’s advocacy activities.