PFAs

• PFAS (per and poly-fluoroalkyl substances) are a group of man-made chemicals used in a wide variety of consumer products and industrial processes due to their water and stain-resistant properties. However, PFAS’ continued use has raised concerns due to their persistence in the environment and potential adverse health effects.
• PFAS regulations and associated inquiries continue to increase, not only from customers but also from general liability and product liability insurers. Most insurers are taking a very serious tone and approach on the topic of PFAS, including termination and non-renewal for some policyholders.
• Within the United States, the mid-year focus will be on California Law AB 652 and Hawaii’s HB1644. California Law AB 652 aims to ban the sale and distribution of new children’s products containing PFAS. The law requires manufacturers to use the least toxic alternative when replacing PFAS chemicals in their products.
• However, the law excludes electronic products and internal components of any products that would not encounter a child’s skin or mouth.
• Starting from July 2024, Hawaii’s HB1644 will ban the manufacture, sales, and distribution of specific types of food packaging, including wraps, liners, plates, food boats, and pizza boxes that contain PFAS.
• Additionally, the law sets the same deadline for prohibiting class B firefighting foams that contain PFAS. These foams are commonly used to extinguish fires involving substances such as gasoline, oil, and jet fuel.
• In Europe, the EU is also taking action to restrict the use of PFAS to protect human health and the environment. A new restriction proposal was published by the European Chemicals Agency (ECHA) on February 7th, 2023.
• A six-month consultation on the restriction proposal, starting on 22 March and ending on 25 September 2023, gives all stakeholders the opportunity to submit information on their PFAS uses to the dossier submitters and the availability of alternatives. The restriction proposal has an impact on the electronics and semiconductors industry such as using PFAS in Photo-acid generators (PAGs) and fluoroelastomers in sealing.
• Other than the US state and EU restrictions on PFAS, automotive industry associations are committed to partnering with key stakeholders on pragmatic and effective solutions to PFAS challenges.
• These include collaboration on deep and full identification of materials and parts containing PFAS, alternative assessments, as well as effective treatment and disposal technologies. To achieve the objectives, the Global Automotive Declarable Substance List (GADSL) was updated with hundreds of new PFAS including their reporting thresholds.
• Suppliers should report all PFAS used in their products through the International Material Data System (IMDS) and under consideration of the very low GADSL reporting thresholds. Furthermore, existing IMDS data needs to be revisited and updated promptly.
• Regardless of your position within the supply chain, it is critical that you evaluate your products and operations for the use of PFAS substances/chemicals, identifying and removing them from your operations as quickly as possible.

ROHs

• EU Commission regularly reviews the list of restricted substances to keep up with technical progress, protect human health and the environment, and improve waste management. In May 2022 EU Commission launched an initiative that proposes adding tetrabromobisphenol A (TBBP-A) and medium-chain chlorinated paraffins (MCCPs) to the list of restricted substances.
• In the Rohs Expert Group’s meeting on 26th Oct 2022, significant decisions were made with respect to the addition of these two substances to the restricted substance list. 
• According to the published meeting’s minutes, it was decided that the restriction of MCCPs should be continued under the REACH Regulation, followed by an action under the Stockholm Convention and the EU POPs Regulation.
• For the second substance, tetrabromobisphenol-A (TBBP-A), proposed to be added to the Annex II of the RoHS Directive, the Commission communicated that it is envisaged to prepare a delegated directive for adoption in 2023. It was said that the use of TBBP-A in electrical and electronic equipment (EEE) can be divided between its use as a reactive component in epoxy resins and as additive flame retardants, which present rarer use. The latter should be addressed in a potential restriction. 
• Although it is expected that some form of the implementation period will be provided, customers are advised to start investigating the usage of these two substances in their products and commence looking for suitable replacements.

Microplastics

• Microplastics are solid plastic particles composed of mixtures of polymers and functional additives. In consumer products, microplastic particles are best known for being abrasives such as exfoliating and polishing agents in cosmetics, known as microbeads.
• Due to the extensive use of microplastics, it is estimated that each year around 42 000 tons of microplastics end up in the environment when products containing them are used. In recent years, microplastics have been found in marine, freshwater, and terrestrial ecosystems as well as in food and drinking water.
• Their continued release contributes to the permanent pollution of our ecosystems and food chains. Exposure to microplastics in laboratory studies has been linked to a range of negative ecotoxic and physical effects on living organisms.
• Prompted by concerns for the environment and people's health, several EU member states have already enacted or proposed national bans on the intentional uses of microplastics in consumer products. The bans concern mainly the uses of microbeads in cosmetics that are rinsed off after use. We do not anticipate this will have a major impact on the electronics industry.
• In January 2019, ECHA submitted a dossier on wide-ranging restrictions on microplastics in products placed on the EU/EEA market to avoid or reduce their release to the environment.
• The Commission then prepared its draft regulation according to ECHA’s report and the committees’ combined opinion. The first draft was published in August 2022. In April 2023, the Member States voted in favor of the Commission's proposal to ban on the intentional use of microplastics in consumer products. This restriction is currently pending final approval from European Parliament.

TSCA

• Recent US TSCA requirements have put the electronics industry on high alert with new rules that include restrictions on the substances present in articles, meaning that electronics manufacturers will have to comply with TSCA.
• The new rules restrict five Persistent, Bioaccumulative, and Toxic (PBT) substances, including PIP (3:1), which is widely used as a flame-retardant plasticizer for PVC in the electronics industry.
• Starting October 31, 2024, articles manufactured or sold in the US may no longer contain any amount of PIP (3:1).
• Following the further extended compliance deadline for PIP (3:1), in May 2023, EPA announced its intention to address the compliance deadlines for the processing and distribution of decaBDE-containing wire and cable insulation for nuclear power generation facilities rulemaking. The proposal is expected in fall 2023. EPA has issued a temporary “Enforcement Statement” as a bridge to the final rule.
• In 2021, EPA announced its plans to initiate a new rulemaking for PBT chemicals that are the subject of final risk management rules under TSCA section 6(h) in the fall of 2023.
• While EPA is working on expediting the effort in the new rulemaking, the current provisions of the final risk management rules remain in effect.
• It is important for manufacturers and importers in the electronics industry to stay informed and ensure compliance with these regulations to avoid civil and criminal penalties.
• Jabil offers our customers solutions for identifying PBT substances in their products to help them fulfill compliance with the new rules.

UFLPA

• CBP has published details of its UFLPA enforcement actions. According to the statistics on its website, CBP has issued notices on a total of 3588 shipments.
• To date, electronics top the list with 1753 shipments, followed by apparel, footwear, and textiles.
• We are expecting the enforcement of automotive products to pick up over the next few quarters although we still have not seen significant enforcement to date.
• The top three countries of origin of these shipments are Malaysia, Vietnam, and China. This shows the CBP is focused on potential trans-shipment in its enforcement strategy.
• As of now, 1,323 shipments have been released and 490 shipments have been denied entry. It is critical that all levels of the supply chain begin to gather and document their efforts to comply with this regulation to have all the evidence required by CBP should an enforcement action be brought on products or materials at the time of import.
• Not doing so risks import holds on products, fines, and reputational harm.