EU Conflict Minerals Regulations will apply across the EU on 1st Jan 2021
It is on 17 May 2017 the EU Parliament and EU Council had laid down new import regulation on ‘Conflict Minerals’ under Regulation 2017/821. The importers of Tin, Tantalum, Tungsten and Gold (3TG) into European Union are required to carry out due diligence on their supply chain. Before importing, they are entitled to confirm whether the 3TG minerals and metals they import have been mined and processed as accepted norms in regulation. The regulation is introduced to make sure the 3TG minerals traded are not funding security forces or armed groups in areas of conflict. The EU conflict minerals regulation will ensure That EU importers of 3TG are responsible for sourcing standards set by the Organisation for Economic Co-operation and Development (OECD) That global and EU smelters and refiners of 3TG are sourced responsibly To help break the link between conflict and exploitation of minerals illegally; and To help and support local government to put an end to the exploitation and abuse of local communities, including mine workers. The raw materials such as tin, tantalum and tungsten, their ores, and gold are covered under the EU ‘Conflict Minerals’ Regulation, companies importing these minerals used in producing medical devices, mobile phones, technology, automotive products, as well as jewellery, will have to be compliant with standards defined as per the regulation. These regulations imposes a five step framework for importers, which the Organisation for Economic Co-operation and Development (OECD) has defined in a document called ‘Due Diligence Guidance for Responsible Supply Chains from Conflict-Affected and High-Risk Areas’ (OECD Guidance). The Importer needs to establish an internal management system; There should be no leniency in Identifying and assessing the risks in the supply chain; Implement a strategy to respond to identified risks; Under OECD Guidance, importers are required to carry out an independent third-party audit of supply chain due diligence; Importers have to report supply chain due diligence on an annual basis. The EU Member States can choose to enforce this regulations, ex-post checks of how union importers comply with the Conflict Minerals Regulations. This includes audits of records as well as on-the-spot inspections.
CRT 2.0 A New Update: Everything About RMI’s New Version of the Cobalt Reporting Template
RMI(Responsible Mineral Initiatives) has released revised version of Cobalt Reporting Template CRT 2.2 on 28th October 2020. The first version of the CRT was launched on December 21, 2018. CRT is developed by RMI to identify choke points and collect due diligence information in the cobalt supply chain. It is a standardized template and can be downloaded from the RMI website. The last version of the CRT 2.1 was released on May 2020 Below are the major changes incorporated in CRT v. 2.2 Updates to the Smelter Reference List Corrections to reported bugs on “Smelter List” tab Updates to the Smelter Look-up List and Standard Smelter List Updated ISO codes The next version of the CRT is expected to be released during September- October 2021
Mica Reporting Template – Learn More About the New Update for MRT 1.0
RMI (Responsible Mineral Initiatives) has released a new reporting template MICA REPORTING TEMPLATE (MRT 1.0) on 28th October 2020. This is the third reporting template released by RMI, the other two are CMRT and CRT. Mica is widely used in automotive and industrial coatings, paints and plastics as pigments. It also used in cosmetics and food industries. Since Mica is a good insulator and has good heat resistant property it used in electronic components and automotive products. India and Madagascar are the major mica producing countries in the world. Mica supply chains rely heavily on artisanal and small-scale extraction as well as manual processing. RMI has released the MRT 1.0 to enable a responsible mica supply chain that can be sustained without the use of child labour, illegal operations and unsafe health and safety conditions in mica production and processing. The Mica Reporting Template is a standardized reporting template developed by the RMI to identify choke points and collect due diligence information in the mica supply chain. It is a free template and you can down it here MRT provides the information about mica supply chain regarding country of origin and processors being utilized and it is designed for downstream suppliers to gather and disclose information about their mica supply chains. Currently there is no legal obligation or regulatory compliance requirements for reporting about mica supply chan. However, as a good practice MRT can be provided to your customers and may be posted in your website. The next version of MRT is expected be released during September- October 2021
CMRT & CRT Update
New Version of Conflict Mineral Reporting Template CMRT v 6.01 and Cobalt Reporting Template CRT v 2.11 is released by RMI. CMRT v 6.01 (Conflict Mineral Reporting Template) RMI has released the new version of CMRT on 19th May 2020, which will replace the current version of CMRT v 5.12. The CMRT v 6.01 must be used for the next reporting year. For the current reporting year, all organization can use the CMRT v 5.1 or higher. The major changes that you will see in CMRT v 6.01 include: Corrections of all bugs and errors Updated ISO country, state and province lists Conformance to IPC-1755, which incorporated EU Conflict Minerals Regulation in the wordings of the following questions: Q 4 (newly added), Q H (formerly Q I), removal of former question C Updates to the Smelter Reference List and Standard Smelter List The next version of the CMRT is expected to be released during March-April 2021 CRT v 2.11 (Cobalt Reporting Template) RMI also updated the CRT (Cobalt Reporting Template) to CRT v 2.11 on 19th May 2020, which will replace the current CRT v 2.0 released on 30th October 2019. The Cobalt Reporting Template is a free, standardized reporting template developed by the Responsible Minerals Initiative to identify choke points and collect due diligence information in the cobalt supply chain. The template was formally launched on December 21, 2018. The major changes to the CRT v 2.11 are updates to the Smelter Reference List, which includes Cobalt Crude refiners that are designated Eligible in the Smelter Database. The next version of the CRT is expected to be released during September-October 2020 Talk to our global compliance expert to get help with your Conflict Minerals and Cobalt Compliance programs, that covers supplier training, CMRT / CRT collection and a robust supplier engagement platform or write us at [email protected]
RMI has released Cobalt Reporting Template Version 2.0 (CRT 2.0)
The Cobalt Reporting Template is developed by the Responsible Minerals Initiative (RMI) to identify choke points and collect due diligence information in the cobalt supply chain. This is a free standardised template and was launched on December 21, 2018. RMI has revised the CRT with effect from 30th October 2019 and the new version is CRT 2.0. The major changes compared to the earlier version are mentioned below: All bugs and errors were corrected Modified to conform as per IPC-1755 amendment dated May 2019 More clarity is given on the instructions and definitions Smelter Look-up tab and Instructions are aligned to CMRT in language and format The Smelter Look-up List and the Standard Smelter List are updated The next version of the CRT is expected to be released during September-November of next year, 2020. ComplianceXL has the new version of the Cobalt reporting Template and has been using it since, keeping in mind the best interest of their clients. Once the newer version is released, they will make sure to update you with the news. CRT 2.0 is available for download here. List of currently identified cobalt refineries can be found in the below link: CRT EXPORT
New Conflict Mineral Reporting template has released – Revisionv5.12
CMRT 5.12 was released on 26th April 2019 and is available on the RMI (Responsible Minerals Initiative) website. The new CMRT comes up with a few minor changes when compared to 5.11. CMRT is a free standard template that helps the manufacturers and smelters, to get the current detailed information on sourced minerals/3TG in supply chain and improve their compliance. CMRT is a free standard template that helps the manufacturers and smelters, to get the current detailed information on sourced minerals/3TG in supply chain and improve their compliance. Corrections to all bugs and errors. Enhancements which do not conflict with IPC-1755 (Updates to ISO short names to countries, states/provinces). Updates to the Smelter Reference List and Standard Smelter List (Changes to the smelter list as reflected in the standard smelter list as of February 27,2019. This 20th version of CMRT, can be downloaded from below RMI website The next revision of CMRT is expected to be released in 2020 with revisions that will reflect changes to the IPC-1755 standard. Talk to global compliance experts at ComplianceXL, to get more insights on the new CMRT requirements and its effect on your day to day business.
Conflict Minerals Compliance: FREQUENTLY ASKED QUESTIONS
While handling environmental compliances, suppliers and manufacturers from various industries face multiple challenges. After having provided successful compliance services to all our Clients across geographies, we decided to compile our set of frequently asked questions about Conflict Minerals Compliance. Below is the set for your reference: 1. What if a company decides not to comply with Section 1502 or SEC filing? If a company does not comply with the laws of the SEC, it will not be able to raise new capital under the Exchange Act. 2. Is SEC filing applicable for private companies? Private companies are not required to file annual reports under the SEC but if their customers are publicly traded on the US stock exchange and are liable to file a conflict minerals report, then the company should also report under SEC on the Origin and mining procedures of the minerals. 3. Which framework can be suggested for due diligence process? The due diligence process should be carried out by a nationally or internationally recognized framework. Currently, the only recognized framework is the OECD (Organization for Economic Cooperation & Development) which performs Due Diligence Guidance for a Responsible Supply Chain of Minerals from Conflict-Affected and High-Risk Areas. 4. When will an issuer NOT be considered as “contract to manufacture”? In the following cases the issuer cannot be considered as “contract to manufacture” If the issuer is involved in Specifying or negotiating contractual terms with the manufacturer Affixing brand, logo, marks or label to a generic product Services, maintenance or repair activity If the issuer is not directly or indirectly involved in the manufacturing process 5. What do you mean by “DRC conflict-free”? “DRC conflict free” means the product manufactured does not contain any of the 4 conflict minerals (Tantalum, Tin, Gold and Tungsten) that have been identified to directly or indirectly benefiting militants in the DRC- Democratic Republic of Congo, countries. 6. When can an issuer describe the products as “DRC conflict undeterminable”? If the issuer is not able to determine that the conflict minerals mined from DRC countries, are benefiting armed groups even after due diligence process then the products are considered to be “DRC conflict undeterminable”. The undeterminable status of the product would be based on the due diligence process (conducted by OECD). 7. Can a company provide Conflict minerals policy stating that “we are conflict free”? No, in most cases, a comprehensive Conflict Minerals Compliance process is required. However, if a company provides full due diligence documentation and supporting data through the Conflict Minerals Reporting Template (CMRT) to verify its products are conflict-free, a policy statement may be accepted. Compliance with due diligence requirements is mandatory and cannot be bypassed. 8. Which CMRT should be used for 2016 filings? We recommend to use the latest CMRT v4.01a which has been released after examining the errors in the prior versions. Moreover, the most updated Standard smelter list is included in CMRT v4.01a.