Q1. What are "conflict minerals" or "3TGs?"
A1. Conflict minerals are:
Q2. What makes them "conflict" minerals?
A2. These minerals are called out in The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), Section 1502. "Conflict" refers to the fact that these minerals, sourced in the Democratic Republic of the Congo (DRC) or an adjoining country, may be financing conflict and related human rights abuses in those regions. In addition to the DRC, the "covered countries" include: Angola, Burundi, Central African Republic, and the Republic of the Congo, Rwanda, South Sudan, Tanzania, Uganda, and Zambia.
--> The term "Conflict Minerals" applies to Tin, Tungsten, Tantalum and Gold regardless of where the actually originate. Tin from Peru or Gold from Canada are still considered to be conflict minerals.
Q3. What is The Dodd-Frank Act?
A3. The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) was signed into U.S. federal law in July 2010, and deals with major financial reforms, increasing liability among companies and aimed at preventing adverse financial events due to unethical business practices. Conflict Minerals is called out in Section 1502 of this Act.
Q4. Who must comply with the Dodd-Frank Act, Section 1502?
A4. Publicly-traded companies on the U.S. stock exchange are affected. Registrants are required to file a Special Disclosure (SD) related to Conflict Minerals and potentially provide a Conflict Minerals Report with this SD filing. Data for this filing must be gathered by suppliers and provided to these companies through a Reasonable Country of Origin Inquiry (RCOI) process. Companies must file annually by the end of May for the previous year's activities (e.g., May 2016 for 2015 reporting year).
Q5. What is a Reasonable Country of Origin Inquiry (RCOI)?
A5. It is the process by which a company surveys its suppliers regarding the source of conflict minerals in materials/products the suppliers have provided. The RCOI starts with the Conflict Minerals survey. Refer to "How is data collected from suppliers?"
Q6. How does this Conflict Minerals reporting requirement apply to private companies?
A6. Although a private company is not required to report about 3TGs on its own behalf, if it is a supplier to a publicly-traded company required to comply with the regulation and file the disclosure and report, then that private company should provide their sourcing information as requested by the publicly-traded company.
Q7. What does customer expect from its suppliers?
A7. customer expects suppliers to comply with its conflict minerals survey request and provide information on the survey form. (See "About the CMRT Survey Form" below.) As a condition of doing business with customer, suppliers are required to provide information as per terms described in customer's P.O. Terms and Conditions, its Supplier Code of Conduct, as well as in specific language in contracts or agreements.
Q8. How is data collected from suppliers?
A8. Data is collected through surveying suppliers, who in turn must survey their suppliers, and so on.
Customer has engaged with a service provider to assist with the surveying process. This service provider is SENSITEL. All survey-related requests are done through the email domain "customer.sensitel.com". A letter authorizing Sensitel to request information from Customer's suppliers on its behalf is included in the survey request emails.
Q9. What is a "CMRT"?
A9. The most-commonly used survey form is the "CMRT" (Conflict Minerals Reporting Template), which you have received with customer's survey request. It is formulated and maintained by the CFSI (Conflict Free Sourcing Initiative), an organization founded by the EICC (Electronic Industry Citizenship Coalition) and GeSI (Global e-Sustainability Initiative). Reference CFSI: http://www.conflictfreesourcing.org/about/. This survey is considered the industry standard and is used by most surveying companies.
Q10. Can a previous year's CMRT be resubmitted to customer?
A10. No, only the current version(s) of the CMRT is acceptable. We attach a current version (defined as the version for the year's reporting) in our requests for you to fill out. However, any current year's version is acceptable. The CFSI may release several versions during the year, but the versions are usually revisions to lists or correction of functionality. Any current year version is acceptable: for the 2015 reporting year, these would be CMRT versions beginning with "4" (e.g., 4.0, 4.01, etc.).
Q11. What are the requirements for the CMRT to be acceptable to customer?
A11. The requirements for the CMRT are that it
Q12. Is the CMRT available in languages other than English?
A12. The CMRT defaults to English, however, it is available in 8 additional languages. On the "Declaration" tab, refer to the top box that says "English". A pull-down arrow on the lower right will allow the supplier to choose from the following languages:
Chinese ,French ,Spanish ,Japanese ,Portuguese ,Italian ,Korean ,German
Once a language is chosen, the following tabs are translated:
Q13. Is there a list of conflict-free smelters?
A13. Yes. There is a list for each mineral. These lists are managed and updated by the CFSI and can be found on their website at: http://www.conflictfreesourcing.org/conflict-free-smelter- refiner-lists/
These lists may be updated as often as monthly.
Q14. What parts of the CMRT need to be filled out?
A14. Suppliers are encouraged to review the Instructions tab of the CMRT. In short, the requirements are:
Q15. What is the "Checker" tab on the CMRT?
A15. Suppliers are encouraged to review the Instructions tab of the CMRT. In short, the The Checker tab shows what information on the Declaration tab is missing. It is a good idea to review the Checker tab prior to finalizing the CMRT and sending it to customer.
The results of the Checker are in two places on the CMRT:
Q16. Is a "non-CMRT" document acceptable?
A16. Suppliers are encouraged to review the Instructions tab of the CMRT. In short, the No, only the CMRT survey meeting the requirements is acceptable. See in Q10, Q11 and Q12. Do not send ROHS, REACH or Tax Forms as these do not apply to conflict minerals.
The results of the Checker are in two places on the CMRT:
Q17. If no 3TGs are used, is the supplier still required to complete the CMRT?
A17. Yes, this "no 3TG" information will be captured using the CMRT as well as ensure your status is defined as "responded" versus "no response". A response fulfills your obligation to customer as per PO Ts&Cs and Supplier Code of Conduct.
If no 3TGs are used, the following sections of the CMRT Declaration should be filled in:
Q18. Do Questions A through J need to be answered?
A18. Yes, if you provide materials to customer that contain the minerals. If you are declaring no 3TG: as per Q17 above, you do not need to answer these questions.
Q19. Where should the CMRT form be sent?
A19. All documents or communications should be sent back to the requesting email address firstname.lastname@example.org.
|Term||What it means|
|3T&G,3Ts&G,3TG||Tin,Tungsten,Tantalum & Gold(The Conflict Minerals)|
|CFSI||Conflict Free Sourcing Initiative: joint initiative of the EICC (Electronic Industry Citizenship Coalition) & GeSI (Global e-Sustainability); the flagship organization behind the conflict minerals RCOI process and smelter audits|
|CFSP||Conflict-Free Smelter Program: CFSI's smelter audit and certification program|
|CMRT||Conflict Minerals Reporting Template: refers to the survey document, actually an Excel workbook, and the only acceptable response format|
|ConMIn||Abbreviated term for "conflict minerals"|
|Covered Contries||Inclusive terms for the countries covered under conflict minerals rule|
|DRC||Democratic Republic of the Congo (the largest of the covered countries); also used to inclusively refer to the covered countries|
|RCOI||Resonable Country Of Origin Inquiry; The CMRT is the survey RCOI document|
|SOR's||Smelters Or Refiners|