RMI (Formerly CFSI) Publishes CMRT Version 5.10

On December 1, the Responsible Minerals Initiative (RMI), formerly the Conflict Free Sourcing Initiative (CFSI), released the newest version (v. 5.10) of the Conflict Minerals Reporting Template, CMRT. This is the 18th new release, the third release at version 5, and the most recent update since CMRT v.5.01, released on June 21, 2017.
The major updates to the CMRT include corrections to all bugs and errors, enhancements in accordance with IPC-1755, updated ISO short names for countries, states, and provinces, updates to the “Smelter Reference List” and “Standard Smelter List,” and a change to .xlsx format.
Updated smelter lists and smelter details (along with the latest version of the CMRT) may be found at http://www.conflictfreesourcing.org. The next update to the CMRT is anticipated for May 2018.
The new CMRT provides an opportunity for corporations and individuals collecting CMRT data as part of their due diligence surrounding a reasonable country of origin inquiry (RCOI) for SEC Reporting. Q Point adopts the stance that data provided from the latest version of the CMRT indicates updated information. That is to say, a CMRT v. 4.01(b) contains older, and perhaps out of date, information when compared to a current CMRT (v. 5.10).
Corporations and individuals may use the new CMRT as a mechanism for gathering updated conflict minerals data and improving overall data collection from their suppliers. Alerting suppliers to the new CMRT may lead to a discussion that sets expectations for routine updates and the use of the latest CMRT version. Exclusive use of the new CMRT will produce Form SD filings with the SEC that will show data received in the current year after December 1, 2017. This will demonstrate the necessary due diligence that is a hallmark of reasonable country of origin inquiry (RCOI). Also, any effort in communicating a requirement and expectations to a supplier can be similarly used in the Form SD.

Advertisements

CFSI Publishes CMRT Version 5.01

On June 21, the Conflict Free Sourcing Initiative, CFSI, released the newest version (v. 5.01) of the Conflict Minerals Reporting Template, CMRT. This is the 17th new release, the second release at version 5, and the first update since CMRT v.5.0, released on May 12, 2017.
The major update to the CMRT is the correction of bugs and errors on the Checker tab.
Updated smelter lists and smelter details (along with the latest version of the CMRT) may be found at http://www.conflictfreesourcing.org. The next update to the CMRT is anticipated for November 2017.
The new CMRT provides an opportunity for corporations and individuals collecting CMRT data as part of their due diligence surrounding a reasonable country of origin inquiry (RCOI) for SEC Reporting. Q Point adopts the stance that data provided from the latest version of the CMRT indicates updated information. That is to say, a CMRT v. 4.01(b) contains older, and perhaps out of date, information when compared to a current CMRT (v. 5.01).
Corporations and individuals may use the new CMRT as a mechanism for gathering updated conflict minerals data and improving overall data collection from their suppliers. Alerting suppliers to the new CMRT may lead to a discussion that sets expectations for routine updates and the use of the latest CMRT version. Exclusive use of the new CMRT will produce Form SD filings with the SEC that will show data received in the current year after June 21, 2017. This will demonstrate the necessary due diligence that is a hallmark of reasonable country of origin inquiry (RCOI). Also, any effort in communicating a requirement and expectations to a supplier can be similarly used in the Form SD.

CFSI Publishes CMRT Version 5.0

On May 12, the Conflict Free Sourcing Initiative, CFSI, released the newest version (v. 5.0) of the Conflict Minerals Reporting Template, CMRT. This is the 16th new release, the first release at version 5, and the first update since CMRT v.4.20, released on November 30, 2016.

Updates to CMRT v.5.0 include corrections to bugs and errors, conformance to IPC 1755 in the question wording, removal of company level question G (“Do you request smelter names from your suppliers?”), the addition of ISO country codes and state/province codes on the smelter list tab, renaming the “Smelter Reference List” as the “Smelter Look-up,” and updates and revisions to the Standard Smelter List and Smelter Look-up List.

Updated smelter lists and smelter details (along with the latest version of the CMRT) may be found at http://www.conflictfreesourcing.org. The next update to the CMRT is anticipated for November 2017.
The new CMRT provides an opportunity for corporations and individuals collecting CMRT data as part of their due diligence surrounding a reasonable country of origin inquiry (RCOI) for SEC Reporting. Q Point adopts the stance that data provided from the latest version of the CMRT indicates updated information. That is to say, a CMRT v. 4.01(b) contains older, and perhaps out of date, information when compared to a current CMRT (v. 5.0).

Corporations and individuals may use the new CMRT as a mechanism for gathering updated conflict minerals data and improving overall data collection from their suppliers. Alerting suppliers to the new CMRT may lead to a discussion that sets expectations for routine updates and the use of the latest CMRT version. Exclusive use of the new CMRT will produce Form SD filings with the SEC that will show data received in the current year after May 12, 2017. This will demonstrate the necessary due diligence that is a hallmark of reasonable country of origin inquiry (RCOI). Also, any effort in communicating a requirement and expectations to a supplier can be similarly used in the Form SD.

European Union Releases Details on EU Conflict Minerals Regulation

On November 22, The EU agreed on a Conflict Mineral Regulation framework. The regulation seeks to inhibit import and sale of minerals and ores that are used to fund armed conflict and infringe upon basic human rights.

Importers of Tin, Tantalum, Tungsten, and Gold (3TG) will be required to review and conduct due diligence upon their supply chain beginning in 2021. Also beholden to the regulation are smelters and refiners of 3TG.

Exempted from the regulation is the import of finished products that may contain 3TG.

Major differences between the EU and US version of the Conflict Minerals regulations include the exemption of imported finished goods by the EU version and an increased scope of where the minerals may have been obtained. EU Conflict Minerals requires all 3TG whereas US Conflict Minerals Act addresses 3TG from the Democratic Republic of Congo and its nine neighboring countries.

As the phase-in period begins for EU Conflict Minerals, please check back with this blog for any and all pertinent updates and changes.

CFSI Publishes CMRT Version 4.20

On November 30, the Conflict Free Sourcing Initiative, CFSI, released the newest version (v. 4.20) of the Conflict Minerals Reporting Template, CMRT. This is the 15th new release, the sixth release at version 4, and the first update since CMRT v.4.10, released on April 29, 2016.

Updates to CMRT v.4.20 include corrections to bugs and errors, updated smelter lists, IPC 1755 compatible enhancements to the instructions page and an update to ISO short names for countries, and finally translational improvements for all updated instructions and definitions.

Updated smelter lists and smelter details (along with the latest version of the CMRT) may be found at http://www.conflictfreesourcing.org. The next update to the CMRT is anticipated for April 2017.

The new CMRT provides a unique opportunity for corporations and individuals collecting CMRT data as part of their due diligence surrounding a reasonable country of origin inquiry (RCOI) for SEC Reporting. Q Point adopts the stance that data provided from the latest version of the CMRT indicates updated information. That is to say, a CMRT v. 4.01(b) contains older, and perhaps out of date, information when compared to a current CMRT (v. 4.20).

Corporations and individuals may use the new CMRT as a mechanism for gathering updated conflict minerals data and improving overall data collection from their suppliers. Alerting suppliers to the new CMRT may lead to a discussion that sets expectations for routine updates and the use of the latest CMRT version. Exclusive use of the new CMRT will produce Form SD filings with the SEC that will show data received in the current year after November 30, 2016. This will demonstrate the necessary due diligence that is a hallmark of reasonable country of origin inquiry (RCOI). Also, any effort in communicating a requirement and expectations to a supplier can be similarly used in the Form SD.

Declaring Conflict Minerals for 2016

As we proceed through Q4 and the rest of 2016, with planning, spend, and sourcing all accounted for, it is time to review, renew, and update the Conflict Minerals Reporting Template (CMRT) to the latest version.

Per earlier postings on this site, the latest CMRT is version 4.10 (found here: http://www.conflictfreesourcing.org/conflict-minerals-reporting-template/). Noteworthy on this update is the updated smelter list and re-introduction of “smelter not yet identified” as an option. As part of your own due diligence, be sure to source for CMRT version 4.10. This version will indicate your effort to gather data for 2016 as it was only released in April of this year.

Please note that Green Data Exchange (GDX) automates many of the efforts described below. Identification of “in-scope suppliers” and CMRT response review are readily managed in GDX’s dedicated CMRT workspace and custom conflict minerals reports. While the below identifies the actions and efforts needed for any Conflict Minerals program, GDX automatically handles many of the manual efforts described.

 

Sourcing – Identifying “In-scope” Suppliers

Review of all suppliers is encouraged. However, not all suppliers will need to submit a CMRT. A few guiding questions for your review and determination on whether you require a CMRT from a supplier are listed below.

  • Does the supplier manufacturer a component for your product?
  • Does the supplier potentially use tin, tantalum, tungsten, or gold in their product?
  • Did you source for a CMRT from this supplier last year?
  • Are you buying the same or new products from the supplier?
  • Is the supplier still valid? If not, was there a replacement vendor?

Answers to the above will help you to determine the list of suppliers for which you will require a version 4.10 CMRT. Development of this list of suppliers will be an important feature to include in your Form SD filing to the SEC for Conflict Minerals, if you are a publically traded company.

 

Reviewing Data

There are key elements to review as a completed CMRT is returned to you from your suppliers. Does the CMRT cover all parts you receive from the supplier? Like its predecessors, the version 4.10 CMRT allows the supplier to select the scope of their declaration. Corporate level declarations will automatically cover you. However, family series, specific parts, and custom declaration scopes may leave some of the parts outside of the CMRT.

Fundamental to the accuracy of your CMRT and Form SD is the validation of smelters. Over the past few years, smelting operations for tin, tantalum, tungsten, and gold have moved, closed, opened, and changed. As such, you will want to identify whether the smelters listed by your suppliers are valid. The validity of a smelter can be determined be its inclusion on the CMRT, itself. Entries added by the supplier that were not included on the smelter dropdown list require further scrutiny. Furthermore, you may want to determine if the smelters on your list are conflict-free, depending on your corporate policy or for internal risk assessment. The list of conflict-free smelters, and smelters participating in conflict-free auditing programs are found here: http://www.conflictfreesourcing.org/conflict-free-smelter-refiner-lists/.

 

Addressing Gaps & Discrepancies

There are mainly two types of issues that may arise from the review of the CMRT data submitted by your suppliers. There are data gaps and data discrepancies.. Gaps can be due to an out of date CMRT, a version older that 4.10, or dues to a complete or partial lack of response. Complete lack of response is no CMRT, whereas partial would be a CMRT(s) that do not cover all parts from the supplier by the scope of the CMRT. Discrepancies would be a contradiction within the actual declaration. For example, a supplier of tantalum caps indicates that there is no use of tantalum, or an indication of 100% of a mineral coming from a scrap or recycled source, but active smelting locations sourcing from mining are listed for the same mineral.

In either case, the supplier should be notified as to the nature of the error. In many cases, there may be an updated CMRT that was created after the discrepancy or gap was discovered. Note that the review and approval process of your Conflict Minerals data is also an important feature to include in your Form SD filing.

As 2016 sourcing for CMRT data progresses, please be sure to visit this blog. We will be continually posting articles that are aimed at helping customers and suppliers alike, including lessons learned and any new update to regulations. Please remember that Green Data Exchange can help you meet your compliance obligations. Learn more by visiting our website at www.qpointtech.com.

CMRT 4.10 Released – Changes and Strategy

On April 29, the Conflict Free Sourcing Initiative, CFSI, released the newest version (v. 4.10) of the Conflict Minerals Reporting Template, CMRT. This is the 14th new release, the fifth release at version 4, and the first update since CMRT v.4.01b, released on November 16, 2015.

Updates to CMRT v.4.10 include corrections to bugs and errors, updated smelter lists including the re-introduction of “smelter not yet identified” and automated population of columns B-J on the “Smelter List” tab, enhanced instructions and directions, ASCII character sett alignment, and language enhancements including the addition of Turkish.

The smelter list used in this version dates from March 23, 2016. As always, updated smelter lists and smelter details (along with the latest version of the CMRT) may be found at www.conflictfreesourcing.org.

The new CMRT provides a unique opportunity for corporations and individuals collecting CMRT data as part of their due diligence surrounding a reasonable country of origin inquiry (RCOI) for SEC Reporting. Q Point adopts the stance that data provided from the latest version of the CMRT indicates updated information. That is to say, a CMRT v. 4.01a contains older, and perhaps out of date, information when compared to a current CMRT.

As a result of the value of current data and the release of the new CMRT, corporations and individuals may use the new CMRT as a mechanism for updated conflict minerals data and overall improved data collection from their suppliers. Alerting suppliers to the new CMRT can also lead to a discussion that sets expectations for an annual update and the use of the latest CMRT version. Exclusive use of the new CMRT will produce Form SD filings with the SEC that will show data received in the current year after April 29, 2016. This will demonstrate the necessary due diligence that is a component of the RCOI. Also, any effort in communicating requirement and expectations to a supplier can be similarly used in the Form SD.