PFAS REQUIREMENT

The Canadian Environmental Protection Act (CEPA)

Canada is actively assessing and managing per- and polyfluoroalkyl substances (PFAS) due to their long-term environmental impact and potential risks to human health. Under the Canadian Environmental Protection Act (CEPA), which empowers the government to regulate substances posing such risks, Environment and Climate Change Canada (ECCC) issued a notice on July 27, 2024. This notice mandates companies to report their PFAS manufacturing, importation, and usage for the 2023 calendar year by January 29, 2025, using a specific Excel template via the ECCC online reporting system.

Companies engaged in the following activities during 2023 must comply:

• Manufactured more than 1,000 grams of any substance listed in Schedule 1.
• More than 10 grams of a substance listed in Part 1 of Schedule 1 or more than 100 kilograms of substances listed in Parts 2 or 3 imported.
• Imported over 100 kilograms of any substance listed in Schedule 1 at a concentration of one part per million (ppm) or higher in a manufactured item.
• Used more than 10 grams of any substance listed in Schedule 1.

Exemptions from reporting include:

• Substances in transit through Canada.
• Substances for personal use.
• Substances held in laboratories for analysis, research, or as standards.
• Substances in hazardous waste or recyclable materials compliant with the Cross-border Movement of Hazardous Waste and Hazardous Recyclable Material Regulations.
• Substances registered under the Pest Control Products Act, Fertilizers Act, Feeds Act, or Seeds Act.
• Companies with fewer than five employees or annual gross revenues below $30,000.

PFAS are integral to the electronics industry due to their resistance to heat, water, and oil. They are critical in producing semiconductors, cable insulation, and printed circuit boards. Electronics manufacturers must diligently track and document PFAS usage to ensure compliance. While this may increase operational costs through enhanced tracking and reporting, it drives the industry toward safer alternatives and improved sustainability. For CEPA PFAS inquiries, contact your Jabil representative to explore our PFAS reporting services.

EUROPEAN CHEMICALS AGENCY (ECHA)

EU REACH SVHC Updated to 242, and the Upcoming Addition

On November 7, 2024, the European Chemicals Agency (ECHA) updated its Substances of Very High Concern (SVHC) candidate list, adding Triphenyl Phosphate (CAS #115-86-6), bringing the total to 242 substances. Triphenyl Phosphate, used as a flame retardant and plasticizer in polymers, adhesives, and sealants, is not expected to impact the electronics industry significantly. The next update is anticipated in January 2025.

In December 2024, the ECHA Member State Committee (MSC) will discuss six additional substances for potential SVHC designation:

• tris(4-nonylphenyl, branched) phosphite
• reaction mass of triphenylthiophosphate and tertiary butylated phenyl derivatives (CAS #: 192268-65-8)
• O, O,O-triphenyl phosphorothioate (CAS #: 597-82-0)
• 6-[(C10-C13)-alkyl-(branched, unsaturated)-2,5-dioxopyrrolidin-1-yl]hexanoic acid (CAS #: 2156592-54-8)
• Perfluamine (CAS #: 338-83-0)
• Octamethyltrisiloxane (CAS#: 107-51-7)

Two substances—perfluamine (used in heat transfer fluids and semiconductor thermal testing) and octamethyltrisiloxane (used in electronics and optical product manufacturing)—are particularly relevant to the electronics industry. Their potential SVHC listing may have a minor impact on the sector.

CHINA'S RESTRICTION OF HAZARDOUS SUBSTANCES (RoHS)

Updated to Add Four Phthalates

On June 29, 2024, China's State Administration for Market Regulation amended the China RoHS regulation (GB/T 26572-2011), adding four phthalates to the restricted substances list, increasing the total to ten. The new phthalates are:

• Dibutyl phthalate (DBP) (CAS #: 84-74-2)

• Benzyl butyl phthalate (BBP) (CAS #: 85-68-7)

• Bis(2-ethylhexyl) phthalate (BEHP) (CAS #: 117-81-7)

• Diisobutyl phthalate (DIBP) (CAS #: 84-69-5)

Each phthalate's concentration must not exceed 0.1% by mass, aligning with restrictions added to EU RoHS in 2015. These limits will take effect on January 1, 2026. Unlike EU RoHS, China RoHS mandates compliance for 12 product categories outlined in the Ministry of Industry and Information Technology's (MIIT) Standard Management Catalogue: refrigerators, air conditioners, washing machines, electric water heaters, printers, photocopiers, fax machines, televisions, monitors, microcomputers, mobile handheld devices, and cell phones.

Manufacturers of these products must demonstrate compliance via self-declaration or third-party certification (including testing, inspections, and validation) approved by a notified body. Additionally, all manufacturers must adhere to China RoHS labeling requirements:

• China RoHS Compliance Mark: Indicates whether the product complies with the substance restrictions (green label for full compliance, orange label if the product contains restricted substances within allowable limits).

• Environmentally Friendly Use Period (EFUP) Mark: Indicates the period during which the product can be safely used without causing harm due to the presence of hazardous substances.

• Hazardous Substances Table: Often called the "HJ/T 113 Table," this must appear in the product's user manual or other accompanying documentation.

DISCLOSURE OBLIGATIONS IN NORTH AMERICA

PFAS Disclosure Requirements in the Automotive Sector

In North America, the U.S. and Canada have implemented PFAS disclosure obligations, and the U.S. states of Maine and Minnesota have established reporting requirements for PFAS-containing products.

• The U.S. Environmental Protection Agency (EPA) requires manufacturers (including article importers) to report on PFAS-containing products from 2011 to 2022.

• Conversely, Canada's recently published mandatory notice requires reporting certain PFAS substances in products only for the calendar year 2023. Reporting requirements in Maine and Minnesota are set to begin in 2025 and 2026, respectively.

The Global Automotive Declarable Substance List (GADSL) was significantly updated in August 2022 to incorporate thousands of unique PFAS substances at very low reporting thresholds to meet these obligations. All automotive tiers must regularly reference the current GADSL version to ensure that IMDS data accurately reflects PFAS declarable substances.

In anticipation of the upcoming PFAS reporting obligations, the automotive industry must ensure that all PFAS used in its products are accurately reflected in IMDS. Considering the extensive GADSL updates and low reporting thresholds, including those PFAS substances declared as Jokers or Wildcards, the IMDS data must be revisited and updated by January 1, 2025.

With this update, we highly encourage customers to contact us to assess their products and ensure compliance with the PFAS reporting and recordkeeping requirements.

RESPONSIBLE MINERALS INITIATIVE (RMI)

Latest Addition to the Minerals Reporting Template Family

On October 4, 2024, the Responsible Minerals Initiative (RMI) released the Additional Minerals Reporting Template (AMRT), formerly the Pilot Reporting Template (PRT). The AMRT enables due diligence and pinch-point identification for minerals beyond the Conflict Minerals Reporting Template (CMRT) and Extended Minerals Reporting Template (EMRT). Its flexible scope, covering up to 10 user-defined minerals, supports transparency demands from legislation like the Uyghur Forced Labor Prevention Act and EU Battery Regulation. The AMRT streamlines data collection, reducing supplier burden compared to custom templates.

While not mandatory under RMI, customers may request the AMRT. Reported data may support outreach to smelters, refiners, processors, or mines. The RMI will periodically review and refine the AMRT's effectiveness.

TOXIC SUBSTANCES CONTROL ACT (TSCA)

TSCA Finalized Risk Evaluation of 1,4-dioxane

• The U.S. Environmental Protection Agency (EPA) has recently finalized its risk evaluation of 1,4-dioxane under the Toxic Substances Control Act (TSCA), determining that this chemical poses an unreasonable risk to human health, including potential cancer risks and liver and nasal tissue damage. Considering these findings, the EPA is exploring risk management options, including regulatory actions under the Safe Drinking Water Act (SDWA), and plans to propose a rule under TSCA Section 6.

• It's crucial to know the implications of 1,4-dioxane, a solvent commonly used in various applications, including producing electronic components, due to its role in cleaning and processing materials. This chemical can contribute to environmental contamination when washed down the drain.

• The EPA has identified significant health risks associated with 1,4-dioxane, affecting workers and vulnerable communities near industrial sites. As a result, stricter regulations may be on the horizon. If these regulations are implemented, you may need to explore alternative solvents or modify your manufacturing processes to ensure compliance with new safety standards.

We encourage companies to proactively evaluate their supply chain and product formulations to ensure compliance.