EU Conflict Minerals Regulation – Step 1: Check Your Customs Declarations
While many companies are working to complete their due diligence and prepare conflict minerals disclosure for their SEC filings due May 31, others are considering whether they will be subject to the EU conflict minerals regulation when its due diligence and disclosure obligations take effect on 1 January 2021.
When companies had to determine whether they were covered by the US rule, SEC reporting companies had to examine the rule closely, determine whether products they manufactured or contracted with others to manufacture contained any 3TGs, and decide how to deal with the existence of compounds. In contrast, the EU regulation makes it easy for companies to determine whether they are covered by it. Companies need only review their EU Customs Declarations against Annex I of the EU Regulation. If they import the listed minerals or metals in amounts above the thresholds specified in Annex I, they must comply with the due diligence and disclosure obligations with respect to those minerals or metals imported.
So, step 1 is – check your Customs Declarations.
And, watch for our EU conflict minerals regulation flowchart to be released next week. Like our US conflict minerals rule flowchart, the EU conflict minerals regulation flowchart will allow conflict minerals teams to work through the concepts of the regulation to make quick references to relevant provisions of the regulation.