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ASSENTCOMPLIANCE
c u s T o m s o l u T i o n s f o r c o m p l i a n c e [ r e a c H | r o H s | c p s i a | r s l | p r o p 6 5 ]
SECTION 1502CONfLICT MINErALS
STEP 2 – RCOI and duE dIlIgEnCEassenT compliance
Krystal Noseworthy-BaKer613.882.1429
KrysTal.baKer@assenTcompliance.com
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c u s T o m s o l u T i o n s f o r c o m p l i a n c y [ r e a c H | r o H s | c p s i a | r s l | p r o p 6 5 ]
agenda•AssentComplianceCorporateOverview
•BriefrecapofDodd-FrankActSection1502
•AssentComplianceinvolvementwithDodd-FrankAct
•ReasonableCountryofOrigin
•WhatDoestheLawState?
• Implementation
•ApplicationofDueDiligence
•OECDDueDiligence
• Practicalsteps
•AssentComplianceServices
•Q&A
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ASSENTCOMPLIANCE
AbOuT ASSENTAssentCompliancedeliversSaaSEnvironmentalComplianceServices tocompanieswhomustcomplywithlocal,nationalandglobalenvironmentalregulations.Assentalsosupportsitssoftwaredivisionwithateamofhighlyexperienced industry consultants to provide our clients with turnkeycompliance solutions. Industry experts atTier 1 companies rankAssentComplianceamongst thetopenvironmentalcompliancesolutions intheworldandoneoftheonlyglobalsolutionproviderstoofferafullservicesolutionfromendtoend.
Our MISSIONIstohelpourclientscomplywithenvironmentalregulationsinthemostefficientandcosteffectivemannerpossible.Thisisachievedthrough SaaS automation of processes andworkingwith clientstobuildefficient internal complianceprograms thatmeetglobalcompliancerequirements.
c u s T o m s o l u T i o n s f o r c o m p l i a n c e [ r e a c H | r o H s | c p s i a | r s l | p r o p 6 5 ]
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ASSENTCOMPLIANCE
HOw THE ASSENT COMPLIANCE MANAgEMENT SySTEM wOrkS
inTegraTes wiTH major erp/plm
sysTems
builT-in crm for compliance TasKs, due diligence reporTing
and audiT Trails
modules To comply wiTH all major environmenTal
regulaTions
pulls bill of maTerial (bom) inTo a cenTralized compliance
daTa base or operaTes as a sTand-alone sysTem.
build ipc 1752-a forms. imporT/exporT via xml
allows inTernal sTaff To maKe engineering override
assessmenTs
communicaTes wiTH supply cHain in bi-direcTional fasHion
To procure environmenTal informaTion from suppliers
Homogenize proprieTary supplier doc formaTs in xml
acTs as a reposiTory for any compliance relaTed maTerial
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ASSENTCOMPLIANCE
ComplianceAssessmentServicesForEnvironmentalRegulations
InternalStandardOperatingProcedureConsulting
CompliancePlanDevelopment
ComplianceStrategyConsulting
ConflictMineralCompliance
ITSystemIntegration
CONSuLTINg SErvICES
c u s T o m s o l u T i o n s f o r c o m p l i a n c e [ r e a c H | r o H s | c p s i a | r s l | p r o p 6 5 ]
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OTTAwA, ONTArIO CAN-AdA (HQ)
NEw yOrk, NEw yOrk
TAIPEI, TAIwAN
MuNICH, gErMANyLONdON, uk
kENyA(CONfLICT MINErALS)
bANgALOrE, INdIA
Our OffICES
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SECTION 1502 – dOdd-frANk wALL STrEET rEfOrM ANd CONSuMEr PrOTECTION ACTTHe basics•The Conflict Minerals (3TGs)
•Tin(CassiteriteOre)
•Tungsten(Wolframite)
•Tantalum(ColtanOre)
•Gold
•The Countries
•DemocraticRepublicofCongo
•CentralAfricaRepublic
• Sudan
•Zambia
•Angola
•CongoRepublic
•Tanzania
•Burundi
•Rwanda
•Uganda
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•Conflict Minerals Definition:
•Minedinconditionsofarmedconflictandabusesofhumanrights
Asper17CFRParts229and249“TheConflictMinerals”Rule:
“It is the sense of the Congress that the exploitation and trade of conflict minerals originat-ing in the Democratic Republic of the Congo is helping to finance conflict characterized by extreme levels of violence in the eastern Democratic Republic of the Congo, particularly sexual – and gender-based violence, and contributing to an emergency humanitarian situ-ation therein”
•This situation attracts Media attention
•ChildSoldiers
• Sexualassaultonamassscale
• Intimidationandabuseoflocalpopulace
•Armedcontrolofmines,tradingroutes,andotherstrategicareas
More Media attention = More Consumer attention
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SECTION 1502 – dOdd-frANk wALL STrEET rEfOrM ANd CONSuMEr PrOTECTION ACTscope•CompaniesthatregisterwiththeSEC
• 10K(US)
• 20F(Foreign)
• 40F(Canadian)
LegalWording:Issuers that File Reports Under Sections 13(a) and 15(d) of the Exchange Act
•ConflictMinerals“necessarytothefunctionality or production”ofitsproductsmanufactured(orcontractedtobemanufactured)
• SupplierstoimpactedSECfilingcompaniesareaffectedbytheprocess,eveniftheyarenotanSECfilingcompanythemselves
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PrINCIPAL rEQuIrEMENTS (AS PArT Of ANNuAL rEPOrTINg TO SEC) – fINAL ruLES•ReasonableCountryofOriginInquiry
•Tracebackofall3TGstocountryoforigin
•Determineif3TGsarefromscraporrecycledsources
POSSIbLE SCENArIOS ANd rEQuIrEMENTS STEMMINg frOM THE rCOI:Scenario 1:• IftheIssuerknows all3TGsdidnotoriginateinDRCCountriesorarefromscraporrecycled
sources
OR
• IftheIssuer has no reason to believe thatthe3TGs may have originatedinthecoveredcoun-triesand may not be fromscraporrecycledsources.
Requirements:•DisclosureoftheRCOIonIssuerInternetwebsite
• FileFormSDwiththeSECaspartofannualfilings:
» Disclosethedetermination
» Disclosetheprocess
» DisclosetheinternetaddressofthesitewiththeRCOIInformation
•Maintainreviewablerecordsoftheinvestigationanddetermination
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PrINCIPAL rEQuIrEMENTS (AS PArT Of ANNuAL rEPOrTINg TO SEC) – fINAL ruLES CONT’dScenario 2:• IftheIssuerknows or has reason to believethatthe3TGsmay haveoriginatedinthecoveredcountries.
OR
• IftheIssuerknows or has reason to believethatthe3TGsmay notbefromscraporrecycledsources.
Requirements:•Alltheabovetasksplus
•CreateConflictMineralsReport
• FiledasexhibittotheFormSD
•MakereportavailableontheInternetwebsite
•Same as proposed –Alloftheabovemustbeauditedbya3rdparty
• 10K/20FauditedasapartofoverallSECfiling
•ConflictMineralsReport,ifrequired,mustbeauditedseparately
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fINAL ruLES fLOwCHArTdoes THe issuer file re-
porTs wiTH THe sec under secTions 13(a) or 15(d) of THe
excHange acT?
does THe issuer manufacTure or
conTracT To manufacTure producTs?
is iT less THan Two years afTer THe effecTiveness of THe rule (four years
for smaller reporTing companies)?
on a reasonable counTry of origin inquiry (rcoi), does THe issuer Know or Have reason To believe THaT THe conflicT minerals may Have originaTed in THe drc
or an adjoining counTry (THe covered counTries)?
exercise due diligence on THe source and cHain of cusTody of iTs conflicT minerals follow-ing a naTionally or inTernaTionally recognized due diligence frameworK, if sucH frameworK is available for a specific conflicT mineral.
in exercising THis due diligence does THe issuer deTermine THe conflicT minerals are noT from THe covered counTries or are from scrap or recycled.
file a form sd wiTH a conflicT minerals reporT as an exHibiT, wHicH includes a descripTion of THe measures THe issuer Has TaKen To exercise due diligence.
in exercising due diligence, was THe issuer able To deTermine wHeTHer THe conflicT minerals financed or benefiTTed armed groups?
THe conflicT minerals reporT musT also include and independenT privaTe secTor audiT reporT, wHicH expresses an opinion or conclusion as To wHeTHer THe design of THe issuer’s due diligence measures is in conformiTy wiTH THe criTeria seT forTH in THe due diligence frameworK and wHeTH-er THe descripTion of THe issuer’s due diligence measures is consisTenT wiTH THe process under-TaKen by THe issuer. also, include a descripTion of THe producTs THaT Have noT been found To be drc conflicT free, THe faciliTies used To process THe necessary conflicT minerals in THose prod-ucTs, THe counTry of origin of THe minerals and THe efforTs To deTermine THe mine or locaTion or
origin of THose minerals wiTH THe greaTesT possible specificiTy. END
were THe conflicT minerals ouTside THe sup-ply cHain prior To january 31, 2013?
file does noT apply.
END
file a form sd THaT discloses THe issuer’s deTerminaTion and briefly describes THe rcoi and THe resulTs of THe inquiry.
END
file a form sd THe discloses THe issuer’s deTerminaTion and briefly describes THe rcoi and due diligence measures TaKen
and THe resulTs THereof.
END
THe conflicT minerals reporT musT also include a descripTion of producTs THaT are “drc conflicT undeTerminable” and THe sTeps TaKen or THaT will
be TaKen, if any, since THe end of THe period covered in THe lasT conflicT minerals reporT To miTigaTe THe risK THaT THe necessary conflicT minerals benefiT armed groups, including any sTeps To improve due
diligence. no audiT is required. END
are conflicT minerals necessary To THe funcTionaliTy or producTion of THe producT
manufacTured or conTracTed To be manufacTured?
based on THe rcoi, does THe issuer Know or reasonably believe THaT THe conflicT minerals come from scrap or
recycled?
yes
yes
No
yes
No, if Newly miNed
No, if poteNtially scrap or recycled
No
yes
No
yes
No
No
No
No yes
yes
yes
yes
No
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SECTION 1502 – dOdd-frANk wALL STrEET rEfOrM ANd CONSuMEr PrOTECTION ACTassenT compliance’s involvemenT wiTH dodd-franK secTion 1502•MeetingwithSEC
•OverthecourseofMondayDecember12thandTuesdayDecember13th,AssentCompliancemetseparatelywithCommissionerParedes,CommissionerWalterandCommissionerAguilarfor1houreachtodiscussthefollowingitemsinrespecttoDoddFrankSection1502
» NAMandTulaneReports
» Compliancecosts
» Practicalcomplianceactivities
» Impactonindustry
» Impactonsupplychains
» Feedbackonproposedrules
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•OnWednesdayDecember14th,AssentComplianceparticipatedinConflictMineraldiscussionpanelwiththefollowingpanelists:
•GE
•AMD
•BrookingsInstitute
•RIM
•ClaiganEnvironmental
•KEMET
•Thepanel discussed various issues surroundingConflictMinerals andfielded questions fromtheaudience(whichwascomprisedofcongressstaff,journalists,industrygroupsandbusinessrepresentatives)
•Assent Compliance is included 4 times in the Final Rules from the SEC based on our input at the meeting and on a separate submitted letter we provided to the SEC.
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dEfININg THE rEASONAbLE COuNTry Of OrIgIN INQuIry (rCOI)First,let’sexaminekeypointsfromthefinalrulesregardinganissuer’sapproachtoanRCOI:
• “Thefinalruledoesnotspecifywhatstepsandoutcomesarenecessarytosatisfythereasonablecountryoforigininquiryrequirementbecause,asstatedintheProposingRelease,suchadeter-minationdependsoneachissuer’sparticularfactsandcircumstances.”(Pg.147)
• “..satisfythereasonablecountryoforigininquiryrequirement,anissuer’sreasonablecountryoforigininquirymust be reasonably designed to determine whether the issuer’s conflict miner-als did originate in the Covered Countries,ordidcomefromrecycledorscrapsources,anditmustbeperformedingoodfaith”(Pg.147-148)
“wedoviewan issuer as satisfying the reasonable countryoforigin inquiry standard if it seeksandobtainsreasonablyreliablerepresentationsindicatingthefacilityatwhichitsconflictmineralswereprocessedanddemonstratingthatthoseconflictmineralsdidnotoriginateintheCoveredCountriesorcamefromrecycledorscrapsources.”(Pg.147-148)
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WhilethereisnospecificationastothestepstobeundertakentosatisfytheRCOI,thegoalthatyourRCOImustbedesignedtoachieveisclear–Areasonabledeterminationofthewhetherornottheconflictmineralsusedyourproductswereprocessedatfacilitiesthatdonotuseconflictmineralsorthatyourconflictmineralscomefromrecycledorscrappedsources.
Toomanycompaniesareundertakinganapproachthatwillamounttosendingaspreadsheettoalloftheirdirectsuppliers,thenusingthoserepresentationsasthebasisforan“Undeterminable”status(IE:“Theydon’tknow,soIdon’tknow”).
Notonlywouldthisnotbeinlinewiththe2ndand3rdbulletsabove,ItwouldalsolikelynotpassanauditnottomentionleaveyourcompanyunpreparedforthedatewhenyourUndeterminablestatuswillexpire(2or4years)
dEfININg THE rEASONAbLE COuNTry Of OrIgIN INQuIry (rCOI) – CONTINuEd
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rEASON TO bELIEvE...OneofthekeychangestotheSECRegulationsisthetriggerforaConflictMineralsreport:
•Undertheproposedrules,anissuerwouldhavehadtoundertakeOECDDueDiligenceandproduceaConflictMineralsReportiftheycouldnotprovethattheir3TGsdidnotoriginatefromthecoveredcountriesorcomefromascrappedorrecycledsource.
Thiswouldhaverequiredissuerstoproveanegativeandhasbeenchangedinthefinalrules.
•ThetriggerforwhetherornotaConflictMineralsreportandapplicableDueDiligenceisrequiredunderthefinalrulesiswhetherornottheissuerhas“reasontobelieve”thatthe3TGsintheirproductsoriginatedfromoneofthecoveredcountries.
Hereiswhatthefinalrulessaysaboutthisrevisedapproach:
“This revised approach does not require an issuer to prove a negative to avoid moving to step three, but it also does not allow an issuer to ignore or be willfully blind to warning signs or other cir-cumstances indicating that its conflict minerals may have originated in the Covered Countries.” (Pg. 153)
Aswithmanyotherpartsof theConflictMineralsprovision, theSEChas leftwhatconstitutes“reasonable”uptotheissuer.IfyourRCOIis“reasonablydesigned”thenyoushouldbeabletomakeyourRCOIdeterminationtothe“reasonablenesslevel”prescribedinyourRCOIplan.
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HereistheactualtextfromtheFinalRules:
“Consistent with this approach, issuers may explicitly state that, if true, their reasonable country of origin inquiry was reasonably designed to determine whether the conflict minerals did originate in the Covered Countries or did not come from recycled or scrap sources and was performed in good faith, and the issuer’s conclusion that the conflict minerals did not originate in the Covered Countries or came from recycled or scrap sources was made at that reasonableness level.“
summary• YoumustdesignanRCOIthatwillhelpdeterminethecountryoforiginforyour3TGs
• SimplysendingtheEICCtemplatetoyourdirectsuppliersisnotsufficient.Youshouldalso:
» Analyzesuppliersubmissions
» Correctinsufficientresponse
» Mapsupplychainswheretheriskisgreater
•ThedeterminingfactorinyourRCOIiswhetherornotthereis“reasontobelieve”–makesureyourCompliancePlanoutlinesyourRCOImethodologyindetailsoyouthatyoucandemon-strateandverifyyour“reasonablenesslevel”
rEASON TO bELIEvE... CONTINuEd
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PrACTICAL APPrOACHES TO AN rCOIHerearesomestandardguidelinesandpracticestofollowforyourRCOI:
•Use a standard form
» EICCRev1or2isgoodtemplateandwilltypicallyreducetheburdenonyoursuppliersastheywilllikelyhaveonecompletedonhand
•Establish a supplier portal
» Inordertomakesurethatallresponsesarecentralizedinoneplace,setupapor-talthroughwhichyoursupplierscansubmitdeclarationsforConflictMineralscompliance
» Reduces time and effort on gathering, collecting and analyzing Declarationsinternally
» AllowsforgreatercontrolovertheComplianceProcess(apartofduediligence)
•Assign Risk Profiles to your suppliers
» Shouldbebasedonsize,materialsprovidedandpastexperiencewithrespecttomaterialdeclarations
» Allowsyoutodeterminewhoshouldandshouldnotbesubjecttocorrectactionsorsourcemapping
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duE dILIgENCEWhenexaminingDueDiligence,wewilllookat3majorsourcesforguidance:
•OECDGuidanceonDueDiligence
•Othermaterialregulations
• StandardIndustrypractices
oecd guidanceThereare5stepsbehindOECDDueDiligence:
1. Establishstrongcompanymanagementsystems
2. Identifyandassessrisksinthesupplychain
3. Designandimplementastrategytorespondtoidentifiedrisks
4. Carryout3rdpartyauditofsmelter/refiner’sduediligencepractices
5. Reportannuallyonsupplychainduediligence
#4doesnotapplytomostofyou,sowewillfocusontheother4.
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OECd guIdANCE ON duE dILIgENCE – STEP 11. esTablisH sTrong company managemenT sysTems
“OBJECTIVE: To ensure that existing due diligence and management systems within companies address risks associated with minerals from conflict affected or high-risk areas.”
Practical Interpretation/Implementation: Establish Strong Communication Systems•Developthoroughandcomprehensivedocumentation:
•DRC-FreeSupplyChainPolicy
» OECDDueDiligenceGuidanceAnnexIIasbasis
• StandardOperatingProcedure
» ConflictMineralsWorkFlowDocumentaspartofanoverallCompliancePlan
*
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Note: Final Rules eliminated documentation retention timelines HOWEVER OECD DueDiligenceGuidelinesstate(p.26):
“Maintain related records for a minimum of five years, preferably on a computerised database.”
•Buy-in,TrainingandCommunication
•Throughoutallaffectedareasofcompanyatalllevels:
» Managementisespeciallyessential
» Finance, Procurement, Engineering or Product Development/Design, QualityDepartments
•Throughoutthesupplychain:
» Don’tsurpriseyoursuppliersbysimplyaddingtoexistingcontractsandnothigh-lightingtheadditionsandnewcommitmentsyouareaskingfor
» TrainingonboththebasicsoftheFinalRulesANDtheDueDiligenceassociatedwillhelpsuppliershelpyou
OECd guIdANCE ON duE dILIgENCE – STEP 1CONTINuEd
continued...
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» Clearsimplecommunicationofexpectationsandtheabilitytoworkwiththemthroughthoseexpectations
•Whatyouwillbeaskingfor
•Whenyouwillbeaskingforit
•Howoftenyouwillbeaskingforit
•The“now”answerversuswhatyouultimatelyneed
» ImprovementPlans
» Contractrenewalandextension=Leverage
• SupplyChainMapping
•Transparencyisvital
» NAFTAalreadyrequiresCoOmarking–leverageexistingprocessesandexperiences
OECd guIdANCE ON duE dILIgENCE – STEP 1CONTINuEd
c u s T o m s o l u T i o n s f o r c o m p l i a n c e [ r e a c H | r o H s | c p s i a | r s l | p r o p 6 5 ]
i n f o @ a s s e n T c o m p l i a n c e . c o m w w w. a s s e n T c o m p l i a n c e . c o m T e l : 6 1 3 . 2 9 0 . 8 0 4 4
ASSENTCOMPLIANCE
OECd guIdANCE ON duE dILIgENCE – STEP 22. idenTify and assess risKs in THe supply cHain
“OBJECTIVE: To identify and assess risks on the circumstances of extraction, trading, handling and export of minerals from conflict-affected and high-risk areas.”
Practical Interpretation/Implementation: Collect Information, Map Supply Chain and Identify Risk.• SupplierDataGathering
• EICC-GeSIRev.2
» Notalegalrequirementbutisindustrystandard
•Allowsforstandardizationacrossdatacollection
• SimplifiesReporting
•CollateandAssessInformation
• Simplyworkingwithspreadsheetsisanarduous,difficulttask
» ContrarytoOECDGuidelinesrecommendedpracticeforrecordsmaintenanceandretention
• Software/ComputerizedDatabase
• SupplyChainMappingstemsfrominformationcollected
•CategorizationintoRiskProfilesbasedoninformationcollected
*
c u s T o m s o l u T i o n s f o r c o m p l i a n c e [ r e a c H | r o H s | c p s i a | r s l | p r o p 6 5 ]
i n f o @ a s s e n T c o m p l i a n c e . c o m w w w. a s s e n T c o m p l i a n c e . c o m T e l : 6 1 3 . 2 9 0 . 8 0 4 4
ASSENTCOMPLIANCE
• Step1doescontributetoandworkcoherentlywithStep2
•Clear expectations to suppliershelps gather themost informationpossible allowing forreductionofRiskor,attheveryleast,aclearidentificationofRisks
•CompliancePlanandSOPincludeRiskProfilesandtheworkflowtofollowdependingonwhichprofileasupplierfallsunder
• SupplyChainMappingshouldalreadyestablishissues/risksbasedonthe“where”
» IdentificationofSmelters/Refiners(tothebestofyourability)
» Identificationof“RedFlag”Locations/MoreSevereRiskProfile
• Step2and3arehighlyinterdependent
•ChronologicallyStep3precedesStep2
•RiskManagementCommitteeandRiskProfiles
» ClearRulesforclassification
» ClearStepstofollowaftersupplierisclassified
• I.e.:Whichquestionstoaskthesuppliernext?
•Havetheyfollowedallelementsofduediligence?
•Thisfeedsuptothesmelter/refiner.
• FurtherQualityControl
•Workingwithsuppliertomitigaterisk
• SpotChecks
c u s T o m s o l u T i o n s f o r c o m p l i a n c e [ r e a c H | r o H s | c p s i a | r s l | p r o p 6 5 ]
i n f o @ a s s e n T c o m p l i a n c e . c o m w w w. a s s e n T c o m p l i a n c e . c o m T e l : 6 1 3 . 2 9 0 . 8 0 4 4
ASSENTCOMPLIANCE
OECd guIdANCE ON duE dILIgENCE – STEP 33. design and implemenT a sTraTegy To respond To idenTified risKs
“OBJECTIVE: To evaluate and respond to identified risks in order to prevent or mitigate adverse impacts. Companies may cooperate to carry out the recommendations in this section through joint ini-tiatives. However, companies retain individual responsibility for their due diligence, and should ensure that all joint work duly takes into consideration circumstances specific to the individual company.”
Practical Interpretation/Implementation: Establish a Risk Management Committee, Risk Profiles for Suppliers, Work Flow based on Categorization.•DevelopmentofRiskManagementCommittee
•Clearresponsibilitiestoaspecificwell-informedgrouptoensuretheworkflowisfollowedandnecessarydecisionsaremadeonsuppliersbasedontheircategorization
•CreateRiskProfilesbasedonsupplierresponsesgiven
•DevelopSOPandCompliancePlan
» WorkFlowbasedonCategorizationunderdefinedRiskProfiles
•DevelopmentofRiskProfiles
•Clear“rules”tocategorizesuppliersefficiently=RiskIdentification
» OECDDueDiligenceAnnexII
» EICC-GeSIConflict-FreeSmelterProgram
*
c u s T o m s o l u T i o n s f o r c o m p l i a n c e [ r e a c H | r o H s | c p s i a | r s l | p r o p 6 5 ]
i n f o @ a s s e n T c o m p l i a n c e . c o m w w w. a s s e n T c o m p l i a n c e . c o m T e l : 6 1 3 . 2 9 0 . 8 0 4 4
ASSENTCOMPLIANCE
» ExistingAgreements
» OECDGuidelinesforMultinationalEnterprises, internationalhumanrightsandhu-manitarianlaw
» SizeofSupplier
» AretheyanSECIssuer?
• ImplementtheRiskManagementPlan
• FollowtheSOP/CompliancePlan
» Identifiesstepstoworkingwithsupplier
» Identifiesdecisionpoints
•Whentoidentifynewsuppliers
•Whentoendanexistingrelationship
• Clearworkflowandclearcommunicationwithsuppliers–optimizingtherelationshipandcooperation
» Progressiveperformanceimprovement
» ReasonableTimeframes
•Avoidendingrelationshipswhilemitigatingrisk
c u s T o m s o l u T i o n s f o r c o m p l i a n c e [ r e a c H | r o H s | c p s i a | r s l | p r o p 6 5 ]
i n f o @ a s s e n T c o m p l i a n c e . c o m w w w. a s s e n T c o m p l i a n c e . c o m T e l : 6 1 3 . 2 9 0 . 8 0 4 4
ASSENTCOMPLIANCE
OECd guIdANCE ON duE dILIgENCE – STEP 55. reporT annually on supply cHain due diligence
“OBJECTIVE: To publicly report on due diligence for responsible supply chains of minerals from conflict-affected and high-risk areas in order to generate public confidence in the measures companies are taking.”
Practical Interpretation/Implementation: Conflict Minerals Form SD and Conflict Minerals Report.• YearlyReportingisalreadyarequirementoftheConflictMineralsFinalRules
• FinancialReportingRequirementsunderFinalRules
» FormSD
» ConflictMineralsReport(Ifapplicable)
•Audit
» WebsitePublication
• SupplyChainDueDiligencePolicy,CompliancePlan,SOP
» Willalreadyaccountforreportingrequirements
•RCOI
• Process
•Determination/Status
• ImprovementsandEvolutioninProgram
*
c u s T o m s o l u T i o n s f o r c o m p l i a n c e [ r e a c H | r o H s | c p s i a | r s l | p r o p 6 5 ]
i n f o @ a s s e n T c o m p l i a n c e . c o m w w w. a s s e n T c o m p l i a n c e . c o m T e l : 6 1 3 . 2 9 0 . 8 0 4 4
ASSENTCOMPLIANCE
•Guidancealsosuggestsrollingitintoannualsustainabilityorcorporateresponsibilityreports
• SupplyChainDueDiligencePolicy
• SOPandCompliancePlan
» AtLeasttheRiskProfiles/RiskMitigationWorkFlows
•Audits
•Determination/Status
• ImprovementsandEvolutioninProgram
c u s T o m s o l u T i o n s f o r c o m p l i a n c e [ r e a c H | r o H s | c p s i a | r s l | p r o p 6 5 ]
i n f o @ a s s e n T c o m p l i a n c e . c o m w w w. a s s e n T c o m p l i a n c e . c o m T e l : 6 1 3 . 2 9 0 . 8 0 4 4
ASSENTCOMPLIANCE
duE dILIgENCE ANd TESTINgDetermination of Necessary Information
• Assesswhattypesofdocumentsarerequiredbasedonsubstancepresenceriskandsupplierrisk
•Technicaljudgementallowed
Collection of Information
•Typesofalloweddocumentation
» Supplierdeclarations
» MaterialDeclarations
» Analyticaltestresults
OTHEr MATErIAL rEguLATIONS - rOHS II
c u s T o m s o l u T i o n s f o r c o m p l i a n c e [ r e a c H | r o H s | c p s i a | r s l | p r o p 6 5 ]
i n f o @ a s s e n T c o m p l i a n c e . c o m w w w. a s s e n T c o m p l i a n c e . c o m T e l : 6 1 3 . 2 9 0 . 8 0 4 4
ASSENTCOMPLIANCE
duE dILIgENCE ANd TESTINgEvaluationofData
•Mandatory for Manufacturers
•Requirementsinclude:
• Establishproceduresforevaluatingcollectedinformation/documentation
•Evaluatewhether each part, component, ormaterialmeets thematerials restriction re-quirementsofRoHSRecast
• Evaluate whether the document is of sufficient quality to include in the technicaldocumentation
» Criteriamet=Included
» Criterianotmet=furthercorrectiveactionsoranalysis
EnsuringValidityofData•Requirements:
• periodicreviewofthedocumentscontainedinthetechnicaldocumentationtoensurethattheyarestillvalid;
• technicaldocumentationmustreflectanychangestomaterials,partsorsub-assemblies
c u s T o m s o l u T i o n s f o r c o m p l i a n c e [ r e a c H | r o H s | c p s i a | r s l | p r o p 6 5 ]
i n f o @ a s s e n T c o m p l i a n c e . c o m w w w. a s s e n T c o m p l i a n c e . c o m T e l : 6 1 3 . 2 9 0 . 8 0 4 4
ASSENTCOMPLIANCE
duE dILIgENCE ANd TESTINgSTANDARD PRACTICE:
•AnnualUpdates–withtheAnnualAudit!
• SignificantProductChanges=UpdateFile
•CompletenessintheTechnicalFile:
•Consumables
•OutofScopeParts
•NotpartoftheRoHSComplianceTHEREFOREnotrequiredtobeincluded
» Recommendedthattheoutofscopeandconsumablepartsarefootnoted
Technical Files – In Practice…
c u s T o m s o l u T i o n s f o r c o m p l i a n c e [ r e a c H | r o H s | c p s i a | r s l | p r o p 6 5 ]
i n f o @ a s s e n T c o m p l i a n c e . c o m w w w. a s s e n T c o m p l i a n c e . c o m T e l : 6 1 3 . 2 9 0 . 8 0 4 4
ASSENTCOMPLIANCE
duE dILIgENCE ANd TESTINg – EN 62321Electrotechnical products – Determination of levels of six regulated substances (lead, mercury, cadmium, hexavalent chromium, polybrominated biphenyls, and polybrominated diphenyl ethers)
• EUStandardforRoHStesting
•NotMandatory…HOWEVER:
» Mosteffectivemethodofriskmanagement
» Usually less costly than alternative (further/increased) supplier data gatheringand/orcorrectiveactionmethods
» Testingtoanestablishedstandardallowsyoutoquoteitinthefile=lendscredibility
• If you have done it right, others don’t have to!
•RecommendedtohaveatleastscantestingtoEN62321:2009intechnicalfile
» XRF
c u s T o m s o l u T i o n s f o r c o m p l i a n c e [ r e a c H | r o H s | c p s i a | r s l | p r o p 6 5 ]
i n f o @ a s s e n T c o m p l i a n c e . c o m w w w. a s s e n T c o m p l i a n c e . c o m T e l : 6 1 3 . 2 9 0 . 8 0 4 4
ASSENTCOMPLIANCE
MATERIAL DECLARATION SHEET
No. Construction Element Material Group Report Note
1 Element Ink + Ceramic B
2 Back plate 263 Copper alloy A
3 Back plate 220 Copper alloy A
4 Wire Copper Alloy A
5 Mold compound Various A
Note A: RoHS compliance. Note B: ROHS Compliant By Exemption 5 (lead in glass of electronic components)
Requirement:
Contain Pb Hg Cr+6 PBB and PBDE< 0.1 % (1000 ppm) by weight.Contain Cd < 0.01 % (100 ppm) by weight
BOURNS TRIMPOT ELECTRONICAS, LIMITADA *CE/2010/22946*
DEL CURCE A SAN ANTONIO DE BELEN AUTOPISTA CANAS-150 MTSAL OESTE HEREDIA, COSTA RICA.
Test Report No. : CE/2010/22946 Date : 2010/02/24 Page : 4 of 5
PBB/PBDE analytical FLOW CHART
First testing process
Optional screen process
Confirmation process
Sample
Screen analysis
Issue Report
Sample pretreatment
Sample extraction/Soxhlet method
Concentrate/DiluteExtracted solution
Analysis by GC/MS
Filter
1) Name of the person who made measurement: Roman Wong2) Name of the person in charge of measurement: Shinjyh Chen
SGS Taiwan Ltd.台灣檢驗科技股份有限公司 Chemical-Taipei 33 WuChyuan Road, Wuku Industrial Zone, Taipei County, Taiwan /台北縣五股工業區五權路33號 t + 886 (02)2299 3279 f + 886 (02)2299 3237 www.sgs.com
Member of the SGS Group (SGS SA)
Unless otherwise stated the results shown in this test report refer only to the sample(s) tested. This test report cannot be reproduced, except in full, without prior written permission of the Company.除非另有說明,此報告結果僅對測試之樣品負責。本報告未經本公司書面許可,不可部分複製。This Test Report is issued by the Company under its General Conditions of Service printed overleaf or available on request and accessible at http://www.sgs.com/terms_and_conditions.htm. Attention is drawn to the limitation of liability, indemnification and jurisdiction issues defined therein. Any holder of this Test Report is advised that information contained hereon reflects the Company’s findings at the time of its intervention only and within the limits of Client’s instructions, if any. The Company’s sole responsibility is to its Client and this document does not exonerate parties to a transaction from exercising all their rights and obligations under the transaction documents. Any unauthorized alteration, forgery or falsification of the content or appearance of this document is unlawful and offenders may be prosecuted to the fullest extent of the law.
DEL CURCE A SAN ANTONIO DE BELEN AUTOPISTA CANAS-150 MTSAL OESTE HEREDIA, COSTA RICA.
*CE/2010/22946*
Test Report No. : CE/2010/22946 Date : 2010/02/24 Page : 3 of 5
BOURNS TRIMPOT ELECTRONICAS, LIMITADA
1) These samples were dissolved totally by pre-conditioning method according to below flow chart.(Cr6+ test method excluded)
2) Name of the person who made measurement: Climbgreat Yang3) Name of the person in charge of measurement: Troy Chang
Cr6+
Sample Material Digestion Acid
Steel, copper, aluminum, solder Aqua regia, HNO3, HCl, HF, H2O2
Glass HNO3/HF
Gold, platinum, palladium, ceramic Aqua regia
Silver HNO3
Plastic H2SO4, H2O2, HNO3, HCl
Others Any acid to total digestion
Pb、Cd
Solution
ICP-AES
Acid digestion by suitable aciddepended on different samplematerial (as below table)
Filtration
Residue
1) Alkali Fusion2) HCl to dissolve
Sample Measurement
Cutting / Preparation
Microwave digestion with
HNO3/HCl/HF
Heat to appropriate
temperature to extract
Cool, filter digestate
through filter
Add diphenyl-carbazide for
color development
measure the absorbance
at 540 nm by UV-VIS
Add appropriate amount of
digestion reagent
Hg
SGS Taiwan Ltd.台灣檢驗科技股份有限公司 Chemical-Taipei 33 WuChyuan Road, Wuku Industrial Zone, Taipei County, Taiwan /台北縣五股工業區五權路33號 t + 886 (02)2299 3279 f + 886 (02)2299 3237 www.sgs.com
Member of the SGS Group (SGS SA)
Unless otherwise stated the results shown in this test report refer only to the sample(s) tested. This test report cannot be reproduced, except in full, without prior written permission of the Company.除非另有說明,此報告結果僅對測試之樣品負責。本報告未經本公司書面許可,不可部分複製。This Test Report is issued by the Company under its General Conditions of Service printed overleaf or available on request and accessible at http://www.sgs.com/terms_and_conditions.htm. Attention is drawn to the limitation of liability, indemnification and jurisdiction issues defined therein. Any holder of this Test Report is advised that information contained hereon reflects the Company’s findings at the time of its intervention only and within the limits of Client’s instructions, if any. The Company’s sole responsibility is to its Client and this document does not exonerate parties to a transaction from exercising all their rights and obligations under the transaction documents. Any unauthorized alteration, forgery or falsification of the content or appearance of this document is unlawful and offenders may be prosecuted to the fullest extent of the law.
Bourns Trimpot Electronicas, Limitada Del Cruce a San Antonio de Belen
Autopista Cañas - 150 Mts Al Oeste Heredia, Costa Rica
Power Resistor RoHS Test Report
MODEL: PWR263S
** End of Report **
BOURNS TRIMPOT ELECTRONICAS, LIMITADA *CE/2010/22946*
DEL CURCE A SAN ANTONIO DE BELEN AUTOPISTA CANAS-150 MTSAL OESTE HEREDIA, COSTA RICA.
Test Report No. : CE/2010/22946 Date : 2010/02/24 Page : 5 of 5
SGS Taiwan Ltd.台灣檢驗科技股份有限公司 Chemical-Taipei 33 WuChyuan Road, Wuku Industrial Zone, Taipei County, Taiwan /台北縣五股工業區五權路33號 t + 886 (02)2299 3279 f + 886 (02)2299 3237 www.sgs.com
Member of the SGS Group (SGS SA)
Unless otherwise stated the results shown in this test report refer only to the sample(s) tested. This test report cannot be reproduced, except in full, without prior written permission of the Company.除非另有說明,此報告結果僅對測試之樣品負責。本報告未經本公司書面許可,不可部分複製。This Test Report is issued by the Company under its General Conditions of Service printed overleaf or available on request and accessible at http://www.sgs.com/terms_and_conditions.htm. Attention is drawn to the limitation of liability, indemnification and jurisdiction issues defined therein. Any holder of this Test Report is advised that information contained hereon reflects the Company’s findings at the time of its intervention only and within the limits of Client’s instructions, if any. The Company’s sole responsibility is to its Client and this document does not exonerate parties to a transaction from exercising all their rights and obligations under the transaction documents. Any unauthorized alteration, forgery or falsification of the content or appearance of this document is unlawful and offenders may be prosecuted to the fullest extent of the law.
rOHS II duE dILIgENCE ANd TESTINg – EN 62321declaraTion and TesT reporT sample review
ResultNo.1n.d. 2
2520 2n.d. 2n.d. 2
n.d. -n.d. 5n.d. 5n.d. 5n.d. 5n.d. 5n.d. 5n.d. 5n.d. 5n.d. 5n.d. 5n.d. -n.d. 5n.d. 5n.d. 5n.d. 5n.d. 5n.d. 5n.d. 5n.d. 5n.d. 5n.d. 5
Hexavalent Chromium Cr(VI) byalkaline extractionSum of PBBs
Hexabromobiphenyl
Heptabromodiphenyl ether
Pentabromodiphenyl ether
NO.1 : MIXED ALL PARTS
Heptabromobiphenyl
(4)
Lead (Pb)Mercury (Hg) (3)
(2)
Monobromobiphenyl
Tribromobiphenyl
Octabromodiphenyl ether
Decabromobiphenyl
Pentabromobiphenyl
Tetrabromodiphenyl ether
Monobromodiphenyl ether
Tetrabromobiphenyl
Dibromodiphenyl ether
Nonabromobiphenyl
(1)Cadmium (Cd)
Dibromobiphenyl
Test Item (s): Method(Refer to)
MDL
Test Report No. : CE/2010/22946 Date : 2010/02/24 Page : 2 of 5
Octabromobiphenyl
2. n.d. = Not Detected
Tribromodiphenyl ether
Sum of PBDEs
Hexabromodiphenyl ether
TEST PART DESCRIPTION:
Decabromodiphenyl etherNonabromodiphenyl ether
(5)
4. "-" = Not Regulated
BOURNS TRIMPOT ELECTRONICAS, LIMITADA *CE/2010/22946*
Test results by chemical method (Unit: mg/kg)
DEL CURCE A SAN ANTONIO DE BELEN AUTOPISTA CANAS-150 MTSAL OESTE HEREDIA, COSTA RICA.
5. The sample(s) was/were analyzed on behalf of the applicant as mixing sample in one testing.The above result(s) was/were only given as the informality value.
3. MDL = Method Detection Limit
Note: 1. mg/kg = ppm; 0.1wt% = 1000ppm
SGS Taiwan Ltd.台灣檢驗科技股份有限公司 Chemical-Taipei 33 WuChyuan Road, Wuku Industrial Zone, Taipei County, Taiwan /台北縣五股工業區五權路33號 t + 886 (02)2299 3279 f + 886 (02)2299 3237 www.sgs.com
Member of the SGS Group (SGS SA)
Unless otherwise stated the results shown in this test report refer only to the sample(s) tested. This test report cannot be reproduced, except in full, without prior written permission of the Company.除非另有說明,此報告結果僅對測試之樣品負責。本報告未經本公司書面許可,不可部分複製。This Test Report is issued by the Company under its General Conditions of Service printed overleaf or available on request and accessible at http://www.sgs.com/terms_and_conditions.htm. Attention is drawn to the limitation of liability, indemnification and jurisdiction issues defined therein. Any holder of this Test Report is advised that information contained hereon reflects the Company’s findings at the time of its intervention only and within the limits of Client’s instructions, if any. The Company’s sole responsibility is to its Client and this document does not exonerate parties to a transaction from exercising all their rights and obligations under the transaction documents. Any unauthorized alteration, forgery or falsification of the content or appearance of this document is unlawful and offenders may be prosecuted to the fullest extent of the law.
Sample Description :Style/Item No. :Sample Receiving Date :Testing Period :
============================================================================================
Test Requested :
Test Method :
(1)(2)(3)(4)(5)
Test Result(s) :
Determination of Cadmium by ICP-AES.
Please refer to next page(s).
Determination of Lead by ICP-AES.Determination of Mercury by ICP-AES.Determination of Hexavalent Chromium by UV/Vis Spectrometry.Determination of PBB and PBDE by GC/MS.
2010/02/11 TO 2010/02/24
THICKFILM POWER RESISTORS/ELEMENT
In accordance with the RoHS Directive 2002/95/EC, and its amendmentdirectives.
With reference to IEC 62321: 2008Procedures for the Determination of Levels of Regulated Substances inElectrotechnical Products.
Test Report
2010/02/11
BOURNS MODELS PWR263, PWR163, PWR220T, PWR221T
*CE/2010/22946*
No. : CE/2010/22946 Date : 2010/02/24 Page : 1 of 5
BOURNS TRIMPOT ELECTRONICAS, LIMITADADEL CURCE A SAN ANTONIO DE BELEN AUTOPISTA CANAS-150 MTSAL OESTE HEREDIA, COSTA RICA.
The following sample(s) was/were submitted and identified by/on behalf of the client as :
SGS Taiwan Ltd.台灣檢驗科技股份有限公司 Chemical-Taipei 33 WuChyuan Road, Wuku Industrial Zone, Taipei County, Taiwan /台北縣五股工業區五權路33號 t + 886 (02)2299 3279 f + 886 (02)2299 3237 www.sgs.com
Member of the SGS Group (SGS SA)
Unless otherwise stated the results shown in this test report refer only to the sample(s) tested. This test report cannot be reproduced, except in full, without prior written permission of the Company.除非另有說明,此報告結果僅對測試之樣品負責。本報告未經本公司書面許可,不可部分複製。This Test Report is issued by the Company under its General Conditions of Service printed overleaf or available on request and accessible at http://www.sgs.com/terms_and_conditions.htm. Attention is drawn to the limitation of liability, indemnification and jurisdiction issues defined therein. Any holder of this Test Report is advised that information contained hereon reflects the Company’s findings at the time of its intervention only and within the limits of Client’s instructions, if any. The Company’s sole responsibility is to its Client and this document does not exonerate parties to a transaction from exercising all their rights and obligations under the transaction documents. Any unauthorized alteration, forgery or falsification of the content or appearance of this document is unlawful and offenders may be prosecuted to the fullest extent of the law.
• DirectiveStated• StandardStated• Dates• Signature• Thislabisfairlywellknown• ProductIdentificationisveryclear
review poinTs
c u s T o m s o l u T i o n s f o r c o m p l i a n c e [ r e a c H | r o H s | c p s i a | r s l | p r o p 6 5 ]
i n f o @ a s s e n T c o m p l i a n c e . c o m w w w. a s s e n T c o m p l i a n c e . c o m T e l : 6 1 3 . 2 9 0 . 8 0 4 4
ASSENTCOMPLIANCE
456 Seastrom St. Twin Falls, ID 83301
October 13, 2011 Certificate of ComplianceEuropean Union Directive 2002/95/EC
Restriction of Hazardous Substances
Any Seastrom part number, produced by Seastrom Manufacturing Co., Inc. that meets the following conditions is classified as compliant in accordance with European Union Directive 2002/95/EC (RoHS).
Material: Any of the materials listed below without a process/finish.
Non-Metals: Delrin (Acetal) Epoxy Glass
(Fiberglass) Fluorocarbon (Viton) Fluorosilicone Kapton KEL-F (PCTFE)
Mica Mylar Neoprene Nitrile (Buna-N) Nylatron Nylon Phenolic
Polyethylene PVC (Polyvinyl Chloride) Santoprene Silicone Teflon
Vulcanized Fibre
Metals: Brass Copper Beryllium Copper
Phosphorus Bronze Cold Rolled Steel Spring Steel
Stainless Steel Steel Titanium
The following base materials contain > 0.1% lead, but are exempt under note 6 of the Directive’s Annex: 12L14 Steel (0.35% of weight max) C - 360 Brass Rod (3.7% of weight max)
Process/Finish: Any Seastrom part number produced with a process/finish listed below is compliant under the Directive, unless the base material is Aluminum. (Contact Seastrom for Aluminum part status)
Compliant Process/Finish: Denoted @ end of part # as: Less Finish -LF Sulfuric Anodize, Type II -A2 Hard Anodize, Type III -A3 Black Oxide -BO Passivate -P Phosphate -PH Electrolytic Nickel Plate -N Silver Plate -S Tin Plate -T1 Tin Dip -T2 Zinc Plate, Type I (Blue) -Z1 Zinc Plate, Type III (Clear) -Z3 Designated Electroless Nickel Plate (RoHS Compliance must be requested by customer)
Sincerely,
Maegan Melton Brad Mohr Quality Engineer Process Engineer
456 Seastrom St. Twin Falls, ID 83301
October 13, 2011 Certificate of Non-Compliance
European Union Directive 2002/95/EC Restriction of Hazardous Substances
The following materials and processes used at Seastrom Manufacturing Co., Inc. have been classified as Non-Compliant in accordance with the European Union Directive 2002/95/EC (RoHS). This Directive, however, does not affect the use of parts in applications outside of the Directive’s specified countries.
Non-Compliant Process/Finish
Process/Finish: Denoted @ end of part # as: Chemical Film Finish -CF Hexavalent Chromium Finish -CHR Cadmium -C1, -C2 Chrome -CHR 60/40 Tin Lead Finish -TL1, -TL2 Zinc Plate, Type II (Yellow) -Z2 Chromatic Anodize, Type I -A1 Standard Electroless Nickel Plating (can be RoHS compliant if specified by customer on order)
Non-Compliant Materials: 2011 Aluminum Rod (primarily used in shoulder washers, spacers, and washers with thin side walls.) For Aluminum parts, please contact Seastrom at info@seastrom-mfg.com to see if Aluminum 2011 is used for a specified part. Sincerely,
Maegan Melton Brad Mohr Quality Engineer Process Engineer
Seastrom Manufacturing Co., Inc. is Certified ISO 9001:2000 and AS9100:2004
rOHS II duE dILIgENCE ANd TESTINg – EN 62321declaraTion and TesT reporT sample review
• DirectiveStated• Notethatthisisinaccordancewiththe“original”RoHSandnottherecasthowever
youwillalsonotethatmostoftheimportantelementsareincluded• Regulatorywordingmaybeslightlydifferentbutthedeclarationspeakstoit!
• Highlightsnon-compliantandcompliantparts/processes/finishes• Includespart#denotations
• Exemptions(asapplicable)• Dated• SignatureandFunction• Letterhead• Contactforfurtherinformation
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RoHS DIRECTIVE 2011/65/EU MATERIALDECLARATION CERTIFICATE
Linear Technology Corporation certifies the deliverable products, when ordered as lead-free meet the RoHS DIRECTIVE2011/65/EU.
• Restriction of the use of certain hazardous substances in electrical and electronic equipment (Recast) does not pertain toLinear Technology Corporation.
• Linear Technology Corporation also complies with: People’s Republic of China RoHS Directive EIS SJ/T11364-2006
RoHS Definitions:• Concentration limit of 0.1% by mass (1000 PPM) in homogeneous material for Lead (Pb), Mercury (Hg),
Hexavalent Chromium (Cr), Polybrominated Biphenyl (PBB), Polybrominated Diphenyl Ether (PBDE),Decabromodiphenyl Ether (Deca-BDE), Toluene, Trichlorobenzene, and Hexabromocyclododecane (HBCDD),Bis (2-ethylhexyl) phthalate (DEHP), Butyl benzyl phthalate (BBP), Dibutylphthalate (DBP)
• Concentration limit of 0.01% by mass (100 PPM) of homogeneous material for Cadmium (Cd)
• Concentration limit of 0.005% by mass (50 PPM) for Perfluorooctane Sulfonates (PFOS)
RoHS Exemption:• Products in the TO-220, DDPAK, SOT223 and TO247 packages are currently assembled with a Soft Solder Die Attach material
containing Lead (Pb). Article 4, Annex 7a (>85% Lead, Pb, in high melting point solders) exempts this material at this time.The Chinese RoHS EFUP Logo 2 applies when these packages are shipped to the People’s Republic of China.
• The micro modules products contain lead in the glass frit. Article 4, Annex 7(c)-1, (electronic components containing lead in aglass or ceramic other than dielectric ceramic in capacitors, e.g. piezoelectronic devices, or in a glass or ceramic matrix compound.The Chinese RoHS EFUP Logo 2 applies when these packages are shipped to the People’s Republic of China.
Substances of Concern:• Antimony Trioxide, Sb2O3 (CAS# 1309-64-4) and Bromine, Br (CAS# 10097-32-2) are used as a flame retardant in mold
compound in several products. Linear Technology Corporation is evaluating and qualifying new mold compounds that containno Sb2O3, or Br. Once qualified these products will be considered Halogen-Free.
• Polyvinyl Chloride (PVC) – in shipping tubes, CAS #9002-86-2. The tubes are reused 2 times then recycled.
• Linear Technology Corporation products do not contain or have termination finishes of Pure Lead or Pure Zinc.
Linear Technology Corporation’s Device Material Declaration concentrations are estimated and are derived from engineeringcalculations.
Linear Technology Corporation has a lifetime warranty on all our products, with Linear Technology Corporation standard liabilitylimited to the replacement of confirmed defective products. Linear Technology Corporation’s ongoing Environmental Program willhelp ensure we are in compliance with our customer’s environmental needs.
_____________________________________________________
Paul ChantalatVice President, Quality and ReliabilityLINEAR TECHNOLOGY CORPORATION ACCEPTS NO DUTY TO NOTIFY USERS OF THIS DECLARATION OFUPDATES OR CHANGES TO THIS DECLARATION.
LTC Revision 7 February 3, 2012CONTACT INFORMATION:Name: Bobbi Bennett Title: QA Specification Review Manager and Product Environmental Specialist Email: bdbennett@linear.com
Linear Technology Corporation, 1630 McCarthy Blvd, Milpitas, CA 95035-7417, 408-432-1900
1630 McCarthy BoulevardMilpitas, CA 95035-7417
rOHS II duE dILIgENCE ANd TESTINg – EN 62321declaraTion and TesT reporT sample review
• DirectiveStated• RoHSrecast
» Doesnotincludethespecificregulatorywording(asindicatedintheearlierslide)
• Confusingwording• CertifiesthatitmeetsthedirectiveHOWEVER
» Restriction of the use of certain hazardous substances in electrical and electronic equipment (Recast) does not pertain to Linear Technology Corporation.
• Exemptions(asapplicable)• Dated• SignatureandFunction• Letterhead• Contactforfurtherinformation• Thefinalstatementdoesnotprovideconfidenceinthelong-termcompliance
review poinTs
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rOHS II duE dILIgENCE ANd TESTINg – EN 62321declaraTion and TesT reporT sample review
• DirectiveStated• Notethatthisisinaccordancewiththe“original”RoHS
• Exemptionissimplystatedasexceptionwithnodetail• Dated• NoSignatureorFunction• Letterhead• Contactforfurtherinformation
review poinTs
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STANdArd INduSTry PrACTICESHerearesomestepswe’vetakenwithaclientandhowtheyhavebeenpracticallyappliedwithintheirConflictMineralsComplianceprogram:
1. Creating a DRC-Free Conflict Minerals Sourcing Policy
•AssentComplianceinstitutedaDRCConflictFreesourcingpolicyforourclient.
• PolicyislistedonitswebsiteandinitsT&C’s&POswithallsuppliers
•Ourclientsupportsitssuppliersinseekingamutuallysustainablesolutionforitsentiresupplychain,includingitsindirectsuppliersbyprovidingConflictMineralseducationalmaterials,guidanceandflow-downcontractclausesforusebyitssuppliers.
2. Creating Standard Operating Procedures for Conflict Minerals
•AssentCompliance created internal standardoperatingprocedures (SOPs) for all clientdepartmentsandbusinessunitsthatareaffectedbyConflictMinerals.
•TheseSOPsprovideastepbystepprocessthateachbusinessunit,departmentandem-ployeemustfollowinordertogenerateandmaintainthenecessaryinformationneededforourclient’scompliancewithDodd-FrankSection1502.
3. Risk Assessment & Risk Mitigation
•Aspartofourclient’sCompliancePlandesign,allproductsandsupplierswereassessedinordertoidentifyConflictMineralsscopeandrisk.
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» HighrisksuppliersandproductswereflaggedinAssentCompliance’sDatabaseforprioritizationofduediligenceandsupplychainsourcingactivities.
• Highrisksuppliersandproductsarerequiredtoprovideagreaterlevelofproof,inordertodemonstrateareasontobelievethattheirconflictmineralsdonotoriginateinthecov-eredcountries.
• Inaddition,withAssent’sassistance,ourclienthasestablishedaseparateRiskMitigationcommitteewhichwill specifically address high risk suppliers andproductswhodonotmeettheminimumrequirementsofourclient’sConflictMineralcomplianceprogram.
» Thiscommitteeisresponsibleforresolvingthesesupplychainissuesbyassistingthesupplier,mappingmineoforiginorchangingthesourceofthematerialsinquestion.
4. Supplier Corrective Actions
•WithAssent’sassistance,ourclienthascreatedalistofSupplierCorrectiveactionstobetakenwithvendorswhocannotprovide sufficientcompliance information.Thespecificsupplier corrective actionsdependon factors such as vendor size, risk level andvendorcapabilities.
• Supplierswhodonotimprovetheirresponsesinatimelyfashionareremovedfromourclient’ssupplychain.
•Onbehalfofourclient,Assentwillassistsupplierswiththeirsourcemappingeffortsandprovideflow-downcontractclauseswhereappropriateintheefforttosupportamutuallysustainableprogramforallofitssuppliers.
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5. Reasonable Country of Origin Methodology
•OurclientisusingAssentCompliance’sConflictMineralssoftwareandservicestoconductitsreasonablecountryoforigininquiry.
» ThiswillinvolvesendingtheEICC-GESIConflictMineralsReportingtemplatetoalldirectsuppliers.Thisformmustbecompletedandsignedbyanappropriatesuppliersignatory.
•All responsesarereviewedandsentbacktosupplier foranycorrectivemeasuresaspre-scribedintheConflictMineralscomplianceplan.
•HighriskresponsesaresenttotheriskmitigationcommitteeforreviewandfurtheractionaspertheConflictMineralscomplianceplanandSOPs.
6. Maintenance of Reviewable Business records
•UseofAssentCompliance’sdatabaseinordertomaintainreviewablebusinessrecords.Thisincludes,supplierresponses,suppliercorrectiveactionsandriskmitigationprocesses.
» Althoughno longerpartof themandatory requirementsunderfinal rules, thestorageofthesemetricsisanimportantpartofdemonstratingtransparencyandisinaccordancewithcompliancetorecommendedOECDduediligence.
•Demonstratesthelong-termevolutionandimprovementofitsprogramtoitsshareholders.
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duE dILIgENCE SuMMAryrisK assessmenT and miTigaTionThe focus of Due Diligence, especially under the OECD Due Diligence Guidelines and theConflictMineralsFinalRules,isRISK.
•Having a clear understanding of what risks exist, where they exist and their severity is absolutely essential
•Having a documented, clear plan to identify risk, assess risk and mitigate risk• Example–RoHS
» Companieswhocomplybutwhenaskedfortheirplanorsteps–nothingexists!
•RoHSII(CEMarkandTechnicalFile)forcesthatintoexistence
» ConflictMineralsruleisrequiringthatfromthestart
•Thepoliciesandplansdevelopedhandleandreduceriskofnon-compliance» CompanyPolicy–whateveryoneisworkingtowardsandfollowing
• Supplieragreements(Ts&Cs,POs,etc.)
» SOP/CompliancePlan–howeveryoneisworkingtowardsit
•Having resources established to handle risk•RiskManagementCommittee
• EducationResources
» Suppliers
» Staff
Essential Question: Haveyouestablishedallmeansneces-sary to understand your risk (under theConflictMineralsRegulation)andthentocontrolittothebestofyourabilityfollowinganinternationallyrecognizedstandard?
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HOw ASSENT CAN HELPAssent Compliance offers turnkey Conflict Mineral Compliance services including ConflictMineralsScopeAssessments, ConflictMineralsReasonableCountryofOriginInquiry, ConflictMineralsReports,and ConflictMineralsSoftware forreviewablebusinessrecords.
AssentComplianceperformsfullConflictMineralsScopeassessmentsforourcustomersinordertomakethefollowingdeterminations:
1. ProductsinscopeoftheConflictMineralprovision
2. Corporateobligations
3. ConflictMineralsCompliancePlan
OurConflictMineralsScopeAssessmenthelpscompaniesmeetthefollowingOECDguidelinesforDueDiligenceinConflictMineralsupplychains:
• EstablishStrongCompanyManagementSystems
• IdentifyandAssessRiskintheSupplyChain
•DesignandImplementaStrategytoRespondtoIdentifiedRisks
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HOw ASSENT CAN HELPconflicT minerals reasonable counTry of origin inquiryThisisaprocessthatinvolvesdeterminingthefollowingitems:
•Whichofyourproductscontainconflictmineralsthatarenecessarytotheirfunctionality?
•WhoSuppliestheseproductsandmaterialstoyou?
•HowtheReasonableCountryofOriginInquirywillbeconducted?
•Howandwherewillyoumaintaintherequired“Reviewablebusinessrecords”?
•Howfarupyoursupplyyouwillgoforinformation?
•Whowillberesponsibleforreviewingdata?
•WhatwillbethecorrectiveactionprocedureforSupplierswithmissingorincompletedata?
Assent Compliance can help you with your Reasonable Country of Origin Inquiry. Our ConflictMinerals servicescanprovideyouwitha turnkey solution forConflictMineralscompliance includ-ingConflictMineralsScopeAssessments,ConflictMineralsReasonableCountryofOrigin Inquiry,ConflictMineralsReports,andConflictMineralsSoftwareforreviewablebusinessrecords.
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QuESTIONS?PleasesubmityourquestionsinwritingusingtheQ&Atoolalongthetopmenutoolbar.
AnyquestionsnotaddressedduringtheQ&Aportionofthiswebinarwillbeaddressedinprivatecorrespondenceafterthewebinar.