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Jan 31: D-Day for Conflict Minerals Compliance

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Bolaji Ojo
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Compliance Monitoring
Bolaji Ojo   1/30/2013 5:25:41 PM
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Paul, The data is almost here and what's I've heard from the industry each time a new deadline comes up is that everyone is ready. They may be right but regulators have the final say. Is the industry really ready or is there a grace period?

Bolaji Ojo
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Re: Is it that big?
Bolaji Ojo   1/31/2013 3:40:25 AM
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All companies that sell to the United States are similarly impacted.

prabhakar_deosthali
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prabhakar_deosthali   1/31/2013 6:53:05 AM
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This enforcement in US means, after January 31st, these conflict materials will find their way to other countries.

Is the EU and the Asian countries passing similar restrictions?

Bolaji Ojo
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Bolaji Ojo   1/31/2013 8:14:24 AM
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The EU is leading efforts to exclude conflict minerals from the supply chain. The rest of the world are following (including the U.S., by the way.) I am not aware of similar legislation in China (doubt it) but two other big players in the electronics supply chain (Japan and South Korea) are probably involved.

Hospice_Houngbo
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Re: Is it that big?
Hospice_Houngbo   1/31/2013 3:25:44 PM
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China is not ready to enforce that regulation, Could there be a pressure from the World Trade Organization (WTO) to make everyone comply?

Hospice_Houngbo
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Hospice_Houngbo   1/31/2013 3:29:54 PM
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@prabhakar,

"Is the EU and the Asian countries passing similar restrictions?"

It is important that EU and the US lead that effort, hopefully they will impact other nations a well.

TaimoorZ
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TaimoorZ   1/31/2013 4:28:16 PM
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@Bolaji: Any idea about the economic impact of this? How much will countries lose out on if they go with this. Who would pay for the extra cost?

TaimoorZ
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Re: Compliance Monitoring
TaimoorZ   1/31/2013 4:31:58 PM
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@Bolaji: I think the companies would never be ready. It's in their interest to delay it as much as possible. I think if the regulations are imposed and a fine is imposed along side, that will serve to motivate the companies more to take quick actions.

Bolaji Ojo
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Bolaji Ojo   1/31/2013 4:52:07 PM
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TaimoorZ, Some of the costs will be borne by companies and some by consumers if manufacturers are able to pass these on to their clients. It's not easy to tabulate the cost of compliance, though.

paulmartyn
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Re: Compliance Monitoring
paulmartyn   1/31/2013 5:11:24 PM
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Yes, but we have exhausted the 'grace period', the rule went into effect on 1 Jan and companies had until 31 Jan to conduct a review of their suppliers.

The first reporting period will be from January 1, 2013 to December 31, 2013, and the first disclosure report must be filed on or before May 31, 2014. 
With 'out of supply network' conflict minerals exempted prior to Jan 31, 2013.

You can download the SEC Ruling here: http://www.sec.gov/rules/final/2012/34-67716.pdf

 

 

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