IndustriesJewelry and Watches
The recently approved EU regulation on conflict minerals — Regulation (EU) 2017⁄821 — seeks to limit opportunities for armed groups and security forces in conflict-affected and high-risk areas to trade in tin, tantalum and tungsten, their ores, and gold (3TG).
The regulation, which comes into force on 1 January 2021, establishes an obligation for importers, smelters and refiners to implement supply chain Due Diligence practices, in line with the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.
The regulation establishes that no less than 95% of total import volume of 3TG into the EU is subject to the new regime.
The regulation also sets the framework that will review (a) the thresholds of minerals and metals handled by individual importers that will make them subject to the statute and (b) an indicative list of areas identified as conflict-affected and high-risk around the world every 3 years. Further guidance on thresholds is expected to be provided by the EU.
EU Regulation 2017⁄821 may affect your company if it imports the relevant volumes of minerals or metals from conflict-affected and high-risk areas in the EU market.
Companies must determine if their business is affected by the regulation, and if so, should start to address due diligence requirements before the regulation comes into effect.
For more information contact EMEALA.Jewellery@ul.com