While handling environmental compliances, suppliers and manufacturers from various industries face multiple challenges. After having provided successful compliance services to the all our Clients across geographies, we decided to compile our set of frequently asked questions pertaining to Conflict Minerals Compliance. Below is the set for your reference:
1. What if a company decides not to comply with Section 1502 or SEC filing?
If a company does not comply with the laws of SEC, it will not be able to raise new capital under the Exchange Act.
2. Is SEC filing applicable for private companies?
Private companies are not required to file annual reports under SEC but if their customers are publicly-traded on the US stock exchange and are liable to file conflict minerals report, then the company should also report under SEC on the Origin and mining procedures of the minerals.
3. Which framework can be suggested for due diligence process?
Due diligence process should be carried out by a nationally or internationally recognized framework. Currently the only recognized framework is OECD (Organization for Economic Cooperation & Development) which performs Due Diligence Guidance for Responsible Supply Chain of Minerals from Conflict-Affected and High-Risk Areas.
4. When will an issuer NOT be considered as “contract to manufacture”?
In the following cases the issuer cannot be considered as “contract to manufacture”
