Help for suppliers responding to ITW’s conflict minerals request

Background Information

War in the Democratic Republic of the Congo (DRC)

At many sites in the Democratic Republic of the Congo (“DRC”) and the nine adjoining countries sharing an internationally recognized border with the DRC, including Angola, Burundi, Central African Republic, the Republic of the Congo, Rwanda, South Sudan, Tanzania, Uganda and Zambia (also known as the “Covered Countries”), armed groups illegally tax, extort, and coerce civilians to work.  Miners, including children, work up to 48-hour shifts amidst deadly mudslides and tunnel collapses. Rebel groups use rape and violence to control the local population and use proceeds from mining operations to continue financing regional conflict.

The US Government response to the humanitarian situation in the DRC

On July 21, 2010, the President signed the Dodd-Frank Wall Street Reform and Consumer Protection Act into law, its primary focus being financial regulatory reform. §1502 of the Act specifically required the U.S. Securities and Exchange Commission (“SEC”) to adopt rules requiring public companies with tin, tantalum, tungsten and/or gold, also known together as “3TG” in their products to conduct an inquiry (a “reasonable country of origin inquiry”, or RCOI) to determine the country of origin of their 3TG. As a result, on August 22, 2012, the SEC adopted the rule mandated by the Dodd-Frank Act, which requires public companies to:

  • File a report once a year with the SEC describing their RCOI process; and
  • If the origin of any 3TG is the DRC or an adjoining country (“Covered Countries”), file a more detailed Conflict Minerals Report and have their process audited.

As a public filer, ITW and its businesses, including those outside of the U.S., must comply with the 3TG disclosure rules adopted by the SEC.   If you are a supplier of product that may contain tin, tantalum, tungsten and/or gold to one of ITW’s businesses, you are a part of ITW’s supply chain and therefore are subject to report on the 3TG that may be found within the ITW business’ end product. ITW’s Conflict Minerals Policy Statement, Supplier Code of Conduct and Supplier Terms and Conditions each provide further guidance with respect to our expectations for our suppliers.

How to satisfy our request.

First, determine whether there is tin, tantalum, tungsten and/or gold in the product you sell to us.

If you don’t know whether or not your product contains 3TG, read #1-3 carefully to help you determine whether or not your product contains tin, tantalum, tungsten or gold:

  1. Review the SEC Rule.
    If 3TG is necessary to the functionality or production of a product manufactured (or contracted to be manufactured) by the Company, the Company must comply with the conflict minerals rule designed to determine whether the 3TG originated in the Covered Countries.Tin, tantalum, tungsten and gold are the only minerals covered by the rule at this time.
  1. Seek guidance from those at your company who know your product to determine whether any 3TG is contained in your product.  Is any tin, tantalum, tungsten and/or gold contained in products that you supply to an ITW business?
    Ask people in your organization who would have relevant knowledge (for example: engineering, manufacturing, environmental, chemical product safety, purchasing, quality control, etc.) whether any of your products contain tin, tantalum, tungsten or gold. The following information may help with their determination:

    What “Typical” Products Contain 3TG?
    Derivative Metals Cassiterite Columbite-Tantalite Wolframite Gold
    Minerals Tin
    Often used to coat other metals for corrosion prevention and to create alloyscassiterite
    Tantalum
    Stores electricity and is used in alloys for its strengthcolumbite-tantalite
    Tungsten
    Commonly used in tools, cell phones, and high-temperature situations, also used in alloys
    for its strengthwolframite
    Gold
    Malleable, not highly corrosive, and highly conducive to electricity and heatgold
    Examples of products/applications
    • Alloys (Bronze, brass, pewter)
    • Anodes (electric flows)
    • Automotive/car parts (including but not limited to): fuel tank, sealants, wiring, radiator, seat cushions, engine parts, gears, pumps, joints, windshields, etc.
    • Batteries
    • Biocides: fungicide, bactericide, insecticide (AW 75-D, Bio-Met TBTO, Biomet, Biomet 75, BTO, Butinox, C-SN-9, Hexabutyldi stannoxane, Hexabutylditin, etc)
    • Brass
    • Bronze (tin + copper)
    • Capacitors
    • Containers (tin coats other metals for protection)
    • Corrosion resistant coatings
    • Dielectrics (electrical insulator)
    • Electrical Conductors
    • Electronics (including but not limited to): portable electronics & high speed processng devices (mobile/cell phones, computers, digital cameras, video game consoles), calculators, GPS devices, televisions, etc.
    • Flame retardants or anti-microbial treatments applied to various materials
    • Food/drink product packaging
    • Gas tanks/radiator heater tanks
    • Glass (as an additive for durability)
    • Glass coatings (to prevent fissures)
    • Heating elements
    • High performance paint manufacture
    • Inks
    • Kitchen utensils, clips, pins, metal signs
    • Paint, oil, polish, cleaners, etc.
    • Pewter
    • Polyester
    • Preservatives for wood, textiles, paper and electrical equipment
    • PVC (as an intermediate)
    • PVC and plastics (as heat stabilizer) – in electric cables, vinyl, composite or “faux” wood, clear plastics
    • Resistors
    • Roofing, weather insulator
    • Solar panels
    • Solder (tin + lead) – used for joining pipes, for seams on products & packaging and for Printed Circuit Board Assemblies (PCBAs);
    • solderable coatings
    • Stannic chloride (stabilizer in perfume)
    • Stannic oxide (catalyst/steel polishing powder)
    • Steel plating
    • Urethane coatings and polyurethane foam protection
    • Water purifier
    • Wire & cable coating
    • Alloys
    • Automotive/car parts (including but not limited to): audio equipment, climate control, sensors, wiper system, seatbelts, fuel pump
    • Camera lenses
    • Capacitors & high power resistors
    • Communication systems
    • Contacts and connectors found in electronics
    • Electronics (including but not limited to): portable electronics & high speed processing devices (mobile/cell phones, computers, digital cameras, video game consoles), calculators, GPS devices, televisions, etc.
    • High-speed machine tools
    • Laboratory Equipment
    • LED lights
    • Plating
    • Printed Circuit Board Assemblies (PCBAs)
    • Wire (IC wire bonding)
    • Automotive/car parts: (including but not limited to): circuits, gear teeth, bearing components.
    • Capacitors
    • Carbide, carbide tools
    • Coatings
    • Compact fluorescents (CFLs) (in their emitter coils)
    • Counterweights
    • Drills
    • Electrodes
    • Electronics (including but not limited to): portable electronics & high speed processing devices (mobile/cell phones, computers, digital cameras, video game consoles), calculators, GPS devices, televisions, etc.
    • Filaments in older-style (not energy saving) electric bulbs
    • Halogen tungsten lamps (energy saving)
    • Hardware such as nails, screws, hooks, mounting equipment
    • Heating elements
    • Heating elements
    • High refractive index glass
    • High temperature alloys
    • High temperature lubricants (tungsten disulfide)
    • High-speed cutting tools
    • Joints
    • Lighting
    • Magnetrons for microwave ovens
    • Metal wires
    • Power resistors
    • Printed Circuit Board Assemblies (PCBAs)
    • Tools (often when alloyed with steel)
    • Weights
    • Welding tools
    • Aerospace equipment
    • Automotive/car parts (including but not limited to): on board electronics, fuel cells.
    • Capacitors
    • Coatings/bonding layers
    • Communications equipment
    • Connecting wires & connection strips
    • Connectors – including edge connectors (used with microprocessor and memory chips, motherboards) & plug-and-socket connectors used to attach cables
    • Contacts, switch and relay
    • Control systems
    • Electrodes
    • Electronics (including but not limited to): portable electronics & high speed processing devices (mobile/cell phones, computers,
    • digital cameras, video game consoles), calculators, GPS devices, televisions, etc.
    • High temperature allocations
    • Joints (in solder)
    • Metal wire
    • Plating
    • Radiation shielding

    Other Necessary Considerations:

    • Packaging. If 3TG is contained in the packaging but not in the product, it is not subject to the rule.  However, if the product you sell is the packaging itself, it is subject to the rule.
    • Embellishments and decorations not subject to the rule. If 3TG is used in a tool or piece of equipment that is used in production, or as an embellishment or decoration to the product, the rules do not apply to them.
    • If not intended to be in product, not subject to the rule. If 3TG is present only as a contaminant or naturally occurring by-product, the rule would not apply to it.
    • Prototypes and demonstration devices not subject to the rule. Once any of these are offered for sale, however, they will be subject to the rule.
    • Catalysts.  If 3TG is used as a catalyst or in a similar manner in another process that is necessary to produce the product but is not contained in the product, it is considered not “necessary to the production” of a product and as such, is not covered by the 3TG rules.
    • Recycled and scrap metals. If all of your 3TG is from recycled or scrap sources, it is considered conflict free but must still be included in the reporting templates.
    • Click the picture below to access the Automotive Industry Action Group’s (“AIAG”) webpage containing their microsite (available in English and Chinese) and additional helpful background information about 3TG. Please note this link takes you to a site outside of ITW.com.
      aiag
  1. IS any 3TG contained in products that your business contracts to manufacture and sells to an ITW business?
    A business contracts to manufacture a product if the business has any influence regarding the manufacture of the product. Contracting to purchase a product for resale without incorporating it into your own product, and without influencing the manufacture of the ordered product, would not subject a business to the rule. A business does not “contract to manufacture” a product if it does no more than: (1) specifies or negotiates contractual terms that do not directly relate to the manufacturing of the product, (2) affixes its brand, mark, logo or label to a generic product manufactured by a third party, or (3) services, maintains, or repairs a product manufactured by a third party. However, if a contract specifies that the manufacturer use tin, tantalum, tungsten and/or gold, that would be viewed as contracting to manufacture even if no influence is exerted on the overall manufacturing process.

My product does not contain 3TG.

If your answers to 2 and 3 above are both NO, we nonetheless need you to submit a Conflict Minerals Reporting Template (CMRT) that indicates your product does not contain 3TG.  ITW businesses require you to submit your CMRT using iPoint.

To submit your CMRT, please follow the steps below:

  1. Register for a free Basic iPCMP account (if you already have an account, please go to #2) by clicking on the “iPoint Conflict Minerals Platform Registration” link in the letter you received from our business.
  2. If you already have an iPCMP account, use it to respond to the letter our business sent to you by first logging into your account and selecting “Preferences”.  Next, under “Match Request to your Company”, enter the email address of the person the invitation was sent to, then the invitation key found in the letter from our business.
  3. Click here for free video training that iPoint offers for its Basic License users.  These short videos cover the registration process, managing customer requests, creating reports, master data and preferences and matching requests.
  4. When you log into your iPCMP account, click on the request from ITW and click “Respond to Request”.
  5. Select a method for responding to ITW by clicking “Create Report Manually” and click “Next”
  6. When you complete a report manually the next step will be to confirm the Declaration Scope requested by ITW, which will be Company Level. Click “Next”.
  7. Next you will select the Declaration Scope that your company is reporting and click “Next”.
  8. Next you will verify your Organization and contact information and click “Next”.
  9. Select your answers to Questions 1 and 2 (No), and click “Next”.  Since you have determined that the products you supply to ITW contain no 3TG, answer “No” for all parts of Questions 1 and 2, click “Next”.
  10. On Questions 3 and 4 click “Next” (since you answered “No” to Questions 1 and 2, you do not need to answer these questions).
  11. On Questions 5 and 6 click “Next” (since you answered “No” to Questions 1 and 2, you do not need to answer these questions).
  12. On Questions 7 click “Next” (since you answered “No” to Questions 1 and 2, you do not need to answer these questions).
    image-9
  13. For Questions A through E, since you answered “No” to the Questions 1 and 2, you do not need to answer these questions – click “Next”.
    image-11
  14. For Questions F through J, since you answered “No” to Questions 1 and 2, you do not need to answer these questions – click “Next”.
    image-11
  15. On the “All Smelters included in this roll up” page since you have indicated there is no 3TG in your products, there is no need to provide smelter data – click “Next”.
  16. Click “Finish” to submit your report to ITW.
    image-13

Please send iPCMP related questions to cm-support@ipoint-systems.com and general questions to either your ITW business contact (the person who sent you the letter) or to conflictminerals@itw.com.

My product contains 3TG.

If your answer to 2 or 3 above (under “How to Satisfy our Request”) is YES and any tin, tantalum, tungsten and/or gold are contained in the product you sell to us, we need you to begin your due diligence by performing a Reasonable Country of Origin Inquiry (RCOI) using iPoint. This means we need you to send inquiries to your suppliers requesting they fill out a CMRT for you.  You should send inquiries to all suppliers you believe sell you product that contains tin, tantalum, tungsten or gold.  IF YOU ARE UNSURE whether or not a supplier’s product contains 3TG, include the supplier in your inquiries to ensure your response is as complete as possible.

You can choose the method that best suits your business for collecting declarations from your supply base, but ITW is requesting data in the form of a Conflict Minerals Reporting Template (CMRT) generated in iPCMP for our purposes.  iPoint has license offerings that you may choose to leverage in collecting your supplier information.

For more information with respect to iPoint’s license offerings, click here.

  1. Review or put together your Supplier List.
    Include all suppliers who provide product containing 3TG to you.  You will use their responses to complete your response to ITW.
  2. Send Requests to your Suppliers.
    Log into iPCMP and send your supplier requests.  Keep in mind that the ITW business you sell to has been asked to collect their responses no later than October 19, 2016 so you will need to build in enough time to take a closer look at your responses before sending your final CMRT to the ITW business that you sell to.This can be done by first clicking “Preferences”, then “Invitation Emails” (under “Templates” in the left side menu).  Scroll down to this part of the supplier letter and make your edits, then click “Preview” to review your change, then”Ok,” then “Save.”
  3. Follow up on supplier “bounced” email.
    Your email address should be set up as the email sender (bottom of graphic below).This means that when you send your invitation letters, they will be coming from your email address.  As a result, you may receive bounceback messages from your suppliers.  Examples of bounceback messages include out of office email or notification that the email address you used is no longer valid.  If you receive a message that indicates your supplier’s email address is incorrect, contact your supplier to request the name of the person handling such information requests.To update your private supplier list in iPCMP go to “Master Data” -> “Suppliers”.  Click on the supplier you would like to edit (so that it is highlighted), then “Edit Supplier”.To send a new request to your suppliers, go to the “Requests to Suppliers” part of the home screen and select “New Request to Suppliers”. You will then need to select a “Due Date”, “Request Tag”, and add the suppliers by clicking on “Select Suppliers”:

Please send iPCMP related questions to cm-support@ipoint-systems.com and general questions to either your ITW business contact (the person who sent you the letter) or to conflictminerals@itw.com.