Sparky, The SEC doesn't need authority over private companies to impact them here. The companies that use the conflict minerals are the ones who will be doing most of the monitoring -- of their supply base. These companies need to confirm that their suppliers are not in violation of the law. It wouldn't matter whether your company is private or public; if you sell components to any of the companies overseen by the SEC you will be impacted.
Of course, you are right. The SEC does not have authority over private companies but it's a myth to think the SEC still doesn't get involved in their business. If they are big enough to get involved in any financial transactions managed by companies over which the SEC has authority then they get indirectly supervised.
Bolaji: All companies that sell to the United States are similarly impacted.
Sparky: Correction - Only PUBLICLY TRADED companies that sell to the United States are similary impacted.
At this writing I am not aware of the SEC having any authority over privately held companies in the U.S., much less globally. Please advise if you find otherwise.
"China is not ready to enforce that regulation,...."
It was just that possibility that made me wonder how effective this will be, although I understand and support the reason behind regulating conflict minerals (presuming that the display of justice is not intended to hide another motive underneath).
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.
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.
@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.
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.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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