Conflict Minerals Identification will impact entire supply shain.September 23, 2010 -
According to chairman of IPC Government Relations Committee Mikel Williams, new reporting requirements on the use of conflict minerals being drafted by U.S. SEC "could have a significant impact on the entire electronics industry supply chain." Fern Abrams, IPC director of government relations and environmental policy, explained IPC is working to modify IPC-1752A, Materials Declaration Management, to address supply chain's need to exchange data on metals derived from conflict minerals.
New Requirements to Identify Conflict Minerals will Impact Entire Electronics Industry Supply Chain
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Press release date: September 20, 2010
IPC Webinar to Explain Impact on Electronics Industry
BANNOCKBURN, Ill., USA - The U.S. Securities and Exchange Commission (SEC) is drafting new reporting requirements on the use of conflict minerals. "These new reporting requirements could have a significant impact on the entire electronics industry supply chain, much like the lead-free requirements of RoHS," according to Mikel Williams, chairman of the IPC Government Relations Committee and president and CEO of DDi Corp.
Within the Dodd-Frank Wall Street Reform and Consumer Protection Act, signed into law by President Obama on July 21, 2010, are new requirements for manufacturers of products containing tin, tantalum, gold, tungsten, or any other "conflict metals." Specifically, section 1502 of the new law imposes direct SEC reporting requirements on any publicly traded companies whose products contain metals derived from conflict minerals. Conflict minerals are mined in areas such as the Democratic Republic of Congo (DRC) which provide revenue to groups committing violence in the DRC. Companies will be required to submit a due diligence plan with their annual SEC report. The SEC has 270 days to finalize the regulations and implement the requirements.
"If the electronics industry thinks that the SEC regulations will only impact publicly traded companies, they need to think again," said Williams. The regulations, Williams explained, will flow down from the publicly traded companies through the entire supply chain from the OEMs to the solder manufacturers and everyone in between. Ultimately, while this is targeted to reporting, it will undoubtedly impact the selection of suppliers throughout the supply chain, as public companies now will be responsible for detailed knowledge about the location of source materials affected by the new regulations. Today, companies have no mechanism through which to comply with this requirement.
"These are serious requirements with significant repercussions," said Fern Abrams, IPC director of government relations and environmental policy. She explained that the association is gathering comments from industry leadership to submit to the SEC. In addition, IPC is working to modify the IPC-1752A, Materials Declaration Management, standard to address the supply chain's need to exchange data on metals derived from conflict minerals.
Finally, IPC Solder Products Value Council has issued a position statement which "supports governments, non-governmental organizations and industry groups in their efforts to eliminate trade of 'conflict metals,' especially mined tin from the Democratic Republic of the Congo.
"The IPC SPVC believes that based on solder manufacturers' position in the value chain, smelters and mines are in the best position to develop and implement a system to ensure mineral traceability from the exporter back to the mine site and to develop chain of custody data. Furthermore, the IPC SPVC supports ITRI's (formerly known as the International Tin Research Institute) efforts to achieve that goal."
For more information, visit ipc.org/conflict-metals-activities. In addition, IPC will host a webinar, "Future Regulations on Conflict Metals: It Can and Will Impact the Electronics Industry," on Friday, October 8, 2010, 10:00 am-11:00 am Central time. To register, visit ipc.org/conflict-metals.
To provide input or to be kept up-to-date on regulatory developments, contact Abrams at FernAbrams@ipc.org or +1 703-522-0225.
About IPC IPC (www.IPC.org) is a global trade association based in Bannockburn, Ill., dedicated to the competitive excellence and financial success of its 2,700 member companies which represent all facets of the electronics industry, including design, printed board manufacturing, electronics assembly and test. As a member-driven organization and leading source for industry standards, training, market research and public policy advocacy, IPC supports programs to meet the needs of an estimated $1.7 trillion global electronics industry. IPC maintains additional offices in Taos, N.M.; Arlington, Va.; Garden Grove, Calif.; Stockholm, Sweden; Moscow, Russia; Bangalore, India; and Shanghai, Shenzhen and Beijing, China.