145 Amendments of Seb DANCE related to 2014/0059(COD)
Amendment 13 #
Proposal for a regulation
Title
Title
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL setting up a Union system for supply chain due diligence self-certification of responsible importers of tin, tantalum and tungsten, their ores, and goldfor natural resources originating in conflict-affected and high- risk areas
Amendment 16 #
Proposal for a regulation
Recital 1
Recital 1
(1) Natural mineral resources in conflict- affected or high risk areas − although holding great potential for development – can be a cause of dispute where their revenues are fuelling the outbreak or continuation of violent conflict, undermining national endeavours towards development, good governance and the rule of law. In these areas, breaking the nexus between conflict and illegal exploitation of mineralnatural resources is critical to peace and stability.
Amendment 18 #
Proposal for a regulation
Recital 1 a (new)
Recital 1 a (new)
(1a) Disputes over oil, gas, minerals, timber and other natural resources rank second as a source of conflicts worldwide; competition over resources, such as land and water, is on the rise, and exacerbates existing conflicts or triggers new ones; the mismanagement of land and natural resources is compounded by environmental degradation, population growth and climate change.
Amendment 20 #
Proposal for a regulation
Recital 1 b (new)
Recital 1 b (new)
(1b) Human rights abuses are common within the extractive industry and include child labour, sexual violence, disappearance of people, violation of the right to a clean environment, loss of land and livelihoods without negotiation and without adequate compensation, forced resettlement and the destruction of ritually or culturally significant sites.
Amendment 24 #
Proposal for a regulation
Recital 2
Recital 2
(2) The issue concerns resource-rich regions where the challenge posed by the desire to minimiseshut off the financing of armed groups and security forces has been taken up by governments and international organisations together with business operators and civil society organisations.
Amendment 25 #
Proposal for a regulation
Recital 3
Recital 3
(3) The Union has been actively engaged in an Organisation for Economic Co- operation and Development (OECD) initiative to advance the responsible sourcing of minerals from conflict regions, which has resulted in a government-backed multi-stakeholder process leading to the adoption of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (OECD Due Diligence Guidance5 ) including supplements on tin, tantalum and tungsten, and on gold. In May 2011, the OECD Ministerial Council recommended to actively promote the observance of this Guidance. __________________ 5 OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas: Second Edition, OECD Publishing (OECD (2013). http://dx.doi.org/10.1787/9789264185050- en.
Amendment 26 #
Proposal for a regulation
Recital 6
Recital 6
Amendment 27 #
Proposal for a regulation
Recital 7
Recital 7
(7) On 7 October 2010In its resolutions of 7 October 20109a, of 8 March 20119b, of 5 July 20119c and of 26 February 20149d, the European Parliament passed a Resolution callinged for the Union to legislate along the lines of the US '‘conflict minerals’ law alias Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act; and the Commission announced in its Communications of 20119 and 201210 its intention to explore ways of improving transparency throughout the supply chain, including aspects of due diligence. In the latter communication and in line with the commitment it had made at the May 2011 OECD Ministerial Council, the Commission also advocated greater support for and use of the OECD Guidelines for Multinational Enterprises, and of the OECD Due Diligence Guidance – even outside the OECD membership. _____________ 9aEuropean Parliament resolution of 7 October 2010 on failures in protection of human rights and justice in the Democratic Republic of Congo. 9bEuropean Parliament resolution of 8 March 2011 on Tax and Development – Cooperating with Developing Countries on Promoting Good Governance in Tax Matters. 9cEuropean Parliament resolution of 5 July 2011 on increasing the impact of EU development policy. 9dEuropean Parliament resolution of 26 February 2014 on promoting development through responsible business practices, including the role of extractive industries in developing countries. __________________ 10 Trade, growth and development, COM(2012) 22 final.
Amendment 28 #
Proposal for a regulation
Recital 7 a (new)
Recital 7 a (new)
(7a) On 26 February 2014, the European Parliament adopted a resolution on promoting development through responsible business practices, including the role of extractive industries in developing countries, in which the European Commission is requested to bring forward binding legislation on conflict minerals;
Amendment 29 #
Proposal for a regulation
Recital 8
Recital 8
(8) Union citizens and civil society actors have raised awareness with respect to companies operating under the Union’s jurisdiction for not being held accountable for their potential connection to the illicit extraction and trade of mineralnatural resources from conflict regions. The consequence is that such mineralnatural resources, potentially present in consumer products, link consumers to conflicts outside the Union. To this end, citizens have requested, notably through petitions, that legislation be proposed to the European Parliament and the Council holding companies accountable under the Guidelines as established by the UN and OECD.
Amendment 32 #
Proposal for a regulation
Recital 9
Recital 9
(9) In the context of this Regulation, and in line with the OECD Due Diligence Guidance, supply chain due diligence is an on-going, proactive and reactive process through which business operators monitor and administer their purchases and sales with a view to ensuring that they respect human rights and do not contribute to conflict and adverse impacts thereof.
Amendment 33 #
Proposal for a regulation
Recital 9
Recital 9
(9) In the context of this Regulation, and in accordance with the OECD Guidance, supply chain due diligence is an on-going, proactive and reactive process through which business operators monitor and administer their purchases and sales with a view to ensuringupstream and downstream of the supply chain with a view to ensuring that they do not give rise to human rights abuses and that they do not contribute to conflict and adverse impacts thereof.
Amendment 34 #
Proposal for a regulation
Recital 9 a (new)
Recital 9 a (new)
(9a) This Regulation reflects the need for due diligence along the entire supply chain from the sourcing site to the final product, by requiring all companies who first place covered resources—including products that contain those resources—on the European market to conduct and publicly report on their supply chain due diligence. In line with the nature of due diligence, the individual due diligence obligations contained in this Regulation reflect the progressive and flexible nature of due diligence processes, and the need for obligations that are appropriately tailored to enterprises’ individual circumstances. Obligations are tailored to a company’s size, leverage, and position in its supply chain. Certain companies are recognised to have great influence over the due diligence that is conducted along the supply chain in the sourcing countries, due to their position in the supply chain. These actors, commonly referred to as choke points, are subject to more extensive obligations than other enterprises. Due diligence obligations duly reflect this difference. Downstream companies are required to make reasonable and good faith efforts to identify the relevant choke points in their supply chains, and do their best to assess the due diligence of these companies, for instance on the basis of the audited reports of said actors.
Amendment 35 #
Proposal for a regulation
Recital 9 b (new)
Recital 9 b (new)
(9b) In accordance with OECD Due Diligence Guidance, companies should take reasonable steps and make good faith efforts to conduct due diligence to identify and prevent or mitigate any risks of adverse impacts associated with the conditions of access to natural resources and the relationship of suppliers operating in conflict-affected or high-risk areas.
Amendment 36 #
Proposal for a regulation
Recital 10
Recital 10
Amendment 37 #
Proposal for a regulation
Recital 12
Recital 12
(12) Union companies have expressed their interest through the public consultation in the responsible sourcing of minerals and reported on current industry schemes designed to pursue their corporate social responsibility objectives, customer requests, or the security of their supplies. However, Union companies have also reported countless difficulties in the exercise of supply chain due diligence because of lengthy and complex global supply chains involving a high number of operators that are often insufficiently awaIn accordance with the OECD Due Diligence Guidance it is recognized that due diligence in conflict-affected and high-risk areas presents practical challenges and that flexibility is there for ethically unconcerned. The cost of responsible sourcing and their potential impact on competitiveness notably on SMEs should be monitored by the Commissione needed in the application thereof. The nature and extent of due diligence that is appropriate for an enterprises’ individual circumstances depend on a number of factors, including its size and position in the supply chain, fully taking account of the challenges faced by SMEs.
Amendment 39 #
Proposal for a regulation
Recital 13
Recital 13
(13) Smelters and refiners are an importantrecognised choke points in global mineral supply chains as they are typically the last stage in which due diligence can effectively be assured by collecting, disclosing and verifying information on the mineral’s origin and chain of custody. After this stage of transformation it is often considered unfeasible to trace back the origins of minerals. A Union list of responsible smelters and refiners could therefore provide transparency and certainty to downstream companies as regards supply chain due diligence practicestheir respective supply chains with substantial influence over the due diligence that is conducted along the supply chain in the sourcing countries. A Union list of responsible choke-point actors could therefore provide transparency and certainty to companies in the downstream with a view to carrying out supply chain due diligence practices. Consistently with OECD Due Diligence Guidance, choke-point actors should undergo independent third-party audit of their supply chain due diligence practices, also with a view to being included in the list of responsible actors. Choke point actors based outside the Union should also have a possibility for being included in the list to ensure its global scope.
Amendment 44 #
Proposal for a regulation
Recital 14
Recital 14
(14) The Member State competent authorities are responsible to ensure the uniform compliance ofwith the self- certification of responsible importers by carrying out appropriate ex-post checks so as to verify whether the self-certified responsible importers of the minerals and/or metals within the scope of the Regulation comply with the supply chain due diligence obligationobligation of operators to carry out due diligence by carrying out appropriate ex-post checks. Records of such checks should be kept for at least 5 years. Member States are responsible to lay down the rules applicable to infringements of the provisions of this Regulation.
Amendment 46 #
Proposal for a regulation
Recital 14 a (new)
Recital 14 a (new)
(14a) With a view to enhancing the effective implementation of this Regulation, and addressing development needs directly linked to the exploitation of natural resources originating in conflict- affected and high-risk areas, accompanying measures should be implemented. The Commission and the European External Action Service should apply and further develop an integrated Union approach to responsible sourcing as initiated in the Joint Communication of 5 March 2014 to the European Parliament and the Council ‘Responsible sourcing of minerals originating in conflict-affected and high-risk areas. Towards an integrated EU approach’1a. In particular, the promotion of responsible sourcing of natural resources originating from conflict-affected and high-risk areas and the establishment of national and international due diligence frameworks for responsible sourcing should be integrated into internal and external policies and in particular into political and policy dialogues with partner countries, local authorities and private stakeholders. Particular attention should be given to addressing the contribution and challenges of the artisanal and informal mining sector for local livelihoods and sustainable development. _______________ 1a JOIN(2014) 8 final.
Amendment 47 #
Proposal for a regulation
Recital 15
Recital 15
(15) In order to ensure the proper implementation of this Regulation, implementing powers should be conferred on the Commission. The implementing powers relating to the list of responsible smelters and refiners and the list of Member State competent authorities should be exercised in accordance with Regulation (EU) No 182/201111 . __________________ 11 Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13)amend Annex I and Annex II to this Regulation, the Commission shall be empowered to adopt delegated acts in accordance with Article 290 TFEU, following the provisions laid down in this Regulation.
Amendment 50 #
Proposal for a regulation
Recital 16
Recital 16
(16) The Commission should report regularly to the Council and the European Parliament on the effects of the scheme. No later than three years after entering into force and every six years thereafter, the Commission should review the functioning and the effectiveness of this Regulation, including as regards the promotion of responsible sourcing of the minerals within its scope from conflict-affected and high-risk areas. The reports may be accompanied, if necessary, by appropriate legislative proposals, which may include mandatory measures,.
Amendment 54 #
Proposal for a regulation
Recital 16 b (new)
Recital 16 b (new)
(16b) Once this Regulation has been adopted, the flanking measures should be implemented so that this Regulation can achieve its aims in conflict-affected and high-risk areas. These flanking measures should strengthen the ongoing political dialogue with the mineral-rich countries, make for closer harmonisation between national, regional and international certification systems and enhance international coordination in the area of due diligence practices.
Amendment 55 #
Proposal for a regulation
Article 1 – paragraph 1
Article 1 – paragraph 1
1. This Regulation sets up a Union system for supply chain due diligence self- certification in order to curtail opportunities for armed groups and security forces12 to trade in tin, tantalum and tungsten, their ores, and gold. It is designed to provide transparency and certainty as regards the supply practices of importers, smelters and refiners sourcing from conflict-affected and high- risk areas. __________________ 12‘Armed groups and security forces’ as defined in Annex II of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict- Affected and High-Risk Areas: Second Edition, OECD Publishing (OECD (2013). http://dx.doi.org/10.1787/9789264185050- en.designed to:
Amendment 57 #
Proposal for a regulation
Article 1 – paragraph 1 – point a (new)
Article 1 – paragraph 1 – point a (new)
(a) increase certainty and transparency as regards the supply practices of companies sourcing from conflict-affected and high- risk areas,
Amendment 58 #
Proposal for a regulation
Article 1 – paragraph 1 – point b (new)
Article 1 – paragraph 1 – point b (new)
(b) curtail opportunities for the sourcing, transport and trade of natural resources to fund conflict and/or fuel human rights violations or abuses,
Amendment 59 #
Proposal for a regulation
Article 1 – paragraph 1 – point c (new)
Article 1 – paragraph 1 – point c (new)
(c) help companies respect human rights and avoid contributing to conflict through their activities and sourcing decisions.
Amendment 60 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
Amendment 61 #
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
2. This Regulation lays down the supply chain due diligence obligations of all Union importers who choose to be self-certified as responsible importers of minerals or metals containsource minerals and metals falling within the scope of this Regulation, in accordance with the OECD Guidance. It is designed to guarantee transparency and traceability in respect of their sourcing practices in conflict- affected or high-risk areas, ing or consisting of tin, tantalum, tungsten and gold, as set out in Annex Ider to minimise or prevent violent conflicts and human rights abuses by curtailing the opportunities for armed groups and security forces, as defined in Annex II to the OECD Due Diligence Guidance, to trade in these minerals and metals.
Amendment 65 #
Proposal for a regulation
Article 2 – point a
Article 2 – point a
Amendment 66 #
Proposal for a regulation
Article 2 – point a a (new)
Article 2 – point a a (new)
(aa) ‘OECD Due Diligence Guidance’ means the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas: Second Edition, OECD Publishing (OECD (2013))1a including all Council Recommendations, Annexes and Supplements, as may be amended or replaced periodically; _________________ 1a OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas: Second Edition, OECD Publishing (OECD (2013), http://dx.doi.org/10.1787/9789264185050- en.
Amendment 67 #
Proposal for a regulation
Article 2 – point a b (new)
Article 2 – point a b (new)
(ab) ‘covered resources’ means all natural resources as set out in Annex I, as may be amended periodically in accordance with this Regulation;
Amendment 68 #
Proposal for a regulation
Article 2 – point a c (new)
Article 2 – point a c (new)
Amendment 69 #
Proposal for a regulation
Article 2 – point a d (new)
Article 2 – point a d (new)
(ad) ‘recycled resources’ means reclaimed end-user or post-consumer products, or scrap processed resources created during product manufacturing, including excess, obsolete, defective, and scrap materials which contain refined or processed resources that are appropriate to recycle in the production of any material. Minerals partially processed, unprocessed or a bi-product from another ore are not recycled resources;
Amendment 70 #
Proposal for a regulation
Article 2 – point a e (new)
Article 2 – point a e (new)
(ae) ‘operator’ means any natural or legal person that places any covered product on the market for the first time;
Amendment 71 #
Proposal for a regulation
Article 2 – point a f (new)
Article 2 – point a f (new)
(af) ‘placing on the market’ means the supply by any means, irrespective of the selling technique used, of products for the first time on the internal market for distribution or use in the course of commercial activity whether in return for payment or free of charge, including the supply by means of distance communication as defined in Directive 97/7/EC1a. ‘Placing on the market’ also includes the supply on the internal market of products derived from covered products already placed on the internal market. ________________ 1a Directive97/7/EC of the European Parliament and of the Council of 20 May 1997 on the protection of consumers in respect of distance contracts (OJ L 144, 4.6.1997, p. 19).
Amendment 72 #
Proposal for a regulation
Article 2 – point b
Article 2 – point b
Amendment 74 #
Proposal for a regulation
Article 2 – point c
Article 2 – point c
(c) ‘mineralresources supply chain’ means the system of activities, organisations, actors, technology, information, resources and services involved in moving and processing the mineralresources from the extractionsourcing site to their incorporation in the final product;
Amendment 75 #
Proposal for a regulation
Article 2 – point c a (new)
Article 2 – point c a (new)
(ca) ‘supply chain due diligence’ refers to the obligations of operators in relation to their management systems, risk management, third-party audits and disclosure of information with a view to identifying, addressing and publicly reporting on actual and potential risks linked to conflict-affected and high-risk areas to prevent or mitigate adverse impacts associated with their sourcing activities;
Amendment 76 #
Proposal for a regulation
Article 2 – point c a (new)
Article 2 – point c a (new)
(ca) ‘OECD Guidance’ means the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict- Affected and High-Risk Areas, Second Edition, OECD Publishing (OECD (2013)), including all Council recommendations, annexes and supplements, which may be periodically modified or replaced.
Amendment 77 #
Proposal for a regulation
Article 2 – point c b (new)
Article 2 – point c b (new)
(cb) ‘model supply chain policy’ means the model supply chain policy in Annex II of the OECD Due Diligence Guidance;
Amendment 78 #
Proposal for a regulation
Article 2 – point d
Article 2 – point d
(d) ‘chain of custody or supply chain traceability system’ means a system to identify and record of the sequence of entities which have custody of minerals and metalresources as they move through athe supply chain;
Amendment 79 #
Proposal for a regulation
Article 2 – point d a (new)
Article 2 – point d a (new)
(da) ‘risk management plan’ means an operator’s written responses to the supply chain risks identified under Article 5 in accordance with its supply chain policy;
Amendment 81 #
Proposal for a regulation
Article 2 – point e
Article 2 – point e
(e) ‘conflict-affected and high-risk areas’ means areas in a state of armed conflict, fragile post-conflict as well as areas witnessing weak or non-existent governance and security, such as failed states, and widespread and systematic violations of international law, including human rights abuses; dentified by the presence of armed conflict, widespread violence or other risks of harm to people and, for these purposes, it is recognized that: (i) armed conflict may take a variety of forms, such as a conflict of international or non-international character, which may involve two or more states, or may consist of wars of liberation, or insurgencies, civil wars; and (ii) high--risk areas may include areas of political instability or repression, institutional weakness, insecurity, collapse of civil infrastructure and widespread violence, both of which areas are often characterized by widespread human rights abuses and violations of national or international law;
Amendment 82 #
Proposal for a regulation
Article 2 – point e
Article 2 – point e
(e) '‘conflict-affected and high-risk areas' means areas in a state of armed conflict, fragile post-conflict as well as areas witnessing weak or non-existent governance and security, such as failed states, and widespread and systematic’ are identified by the presence of armed conflict, widespread violence or other risks of harm to people. There are several types of armed conflict: international (which may involve two or more states) or non-international, wars of liberation, insurgencies, etc.; High-risk areas are characterised by political instability or repression, institutional weakness, insecurity, collapse of civil infrastructure and widespread violence, and also widespread human rights abuses and violations of international law, including human rights abuses;or international law.
Amendment 83 #
Proposal for a regulation
Article 2 – point f
Article 2 – point f
Amendment 86 #
Proposal for a regulation
Article 2 – point g
Article 2 – point g
Amendment 88 #
Proposal for a regulation
Article 2 – point h
Article 2 – point h
Amendment 90 #
Proposal for a regulation
Article 2 – point i
Article 2 – point i
Amendment 92 #
Proposal for a regulation
Article 2 – point j
Article 2 – point j
(j) ‘grievance mechanism’ means an early- warning risk awareness mechanism allowing any interested party or whistle- blower to voice concerns regarding the circumstances of mineral extractionresource sourcing, trade, handling and export in respect of resources originating in conflict-affected and high-risk areas;
Amendment 93 #
Proposal for a regulation
Article 2 – point j a (new)
Article 2 – point j a (new)
(ja) ‘Annex II operator’ refers to any operator of the type identified in Annex II;
Amendment 94 #
Proposal for a regulation
Article 2 – point j b (new)
Article 2 – point j b (new)
(jb) ‘Annex II actor’ refers to any natural or legal person of the type identified in Annex II;
Amendment 95 #
Proposal for a regulation
Article 2 – point j c (new)
Article 2 – point j c (new)
(jc) ‘responsible Annex II actor’ refers to any Annex II actor that complies with this Regulation or the OECD Due Diligence Guidance and has submitted audited reports as set out in Article 6 to a Member State authority in accordance with Article 7 (3) or 7 (7);
Amendment 96 #
Proposal for a regulation
Article 2 – point j d (new)
Article 2 – point j d (new)
(jd) ‘business confidentiality and other competitiveness concerns’ means price information and supplier relationships without prejudice to subsequent evolving interpretation.
Amendment 97 #
Proposal for a regulation
Article 2 – point k
Article 2 – point k
Amendment 98 #
Proposal for a regulation
Article 2 – point l
Article 2 – point l
Amendment 99 #
Proposal for a regulation
Article 2 – point n
Article 2 – point n
Amendment 101 #
Proposal for a regulation
Article 2 – point o
Article 2 – point o
(o) '‘supply chain due diligence'’ refers to the obligations of responsible importers of tmin, tantalum and tungsten, their ores, and golderals and metals falling within the scope of this Regulation and the OECD Guidance in relation to their management systems, risk management, third-party audits and disclosure of information with a view to identifying and addressing actual and potential risks linked to conflict- affected and high risk-areas to prevent or mitigate adverse impacts associated with their sourcing activities and ensuring that the latter do not contribute to the illegal trade in minerals and the funding of conflicts and do not give rise to human rights abuses;
Amendment 102 #
Proposal for a regulation
Article 2 – point q
Article 2 – point q
(q) ‘Member State competent authorities’ means the designated one or more authorities with auditing and investigation competences and knowledge as regards raw materials and industrial processes.
Amendment 103 #
Proposal for a regulation
Article 2 – point q a (new)
Article 2 – point q a (new)
(qa) ‘armed groups and security forces’ means groups as defined in Annex II to the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High Risk Areas.
Amendment 104 #
Proposal for a regulation
Article 3 – title
Article 3 – title
Amendment 106 #
Proposal for a regulation
Article 3 – paragraph 1
Article 3 – paragraph 1
Amendment 107 #
Proposal for a regulation
Article 3 – paragraph 1
Article 3 – paragraph 1
1. Any importer of minerals or metals within the scope of the Regulation may self-certify as responsible importer by declaring to a Member State competent authority that it adheres to the supply chain due diligence obligations set out in this Regulation. The declaration shall contain documentation in which the importer confirms its adherence to the obligIn accordance with the OECD Due Diligence Guidance, operators shall take all reasonable steps and make good faith efforts to conduct their due diligence obligations pursuant to Article 4 and 5. Each operator shall ensure that they make progressive, measurable and timely improvement in complying with its obligations. The nature and extent of specific due diligence that is appropriate depends on individual circumstances and is affected by factors such as an operator’s position in the supply chain, the size of the operator, the location of the operator’s activities, the situations including results of the independent third-party audits carried out a particular country, the sector and nature of the products or services involved.
Amendment 109 #
Proposal for a regulation
Article 3 – paragraph 2
Article 3 – paragraph 2
Amendment 113 #
Proposal for a regulation
Article 4 – introductory part
Article 4 – introductory part
Amendment 115 #
Proposal for a regulation
Article 4 – point a
Article 4 – point a
(a) adopt and clearly communicate to suppliers and the public its supply chain policy for the minerals and metalcovered resources potentially originating from conflict- affected and high-risk areas,
Amendment 116 #
Proposal for a regulation
Article 4 – point a
Article 4 – point a
(a) adopt and clearly and systematically communicate to suppliers and the public its supply chain policy for the minerals and metals potentially originating from conflict- affected and high-risk areas,
Amendment 117 #
Proposal for a regulation
Article 4 – point b
Article 4 – point b
(b) incorporate in its supply chain policy the standards against which supply chain due diligence is to be conducted consistent with the standards set forth in the model supply chain policy in Annex II to the OECD Due Diligence Guidance,
Amendment 118 #
Proposal for a regulation
Article 4 – point c
Article 4 – point c
(c) structure its internal management systems to support supply chain due diligence, inter alia, by assigning responsibility to senior staff to oversee the supply chain due diligence process as well as maintain records for a minimum of 5 years,
Amendment 119 #
Proposal for a regulation
Article 4 – point c a (new)
Article 4 – point c a (new)
(ca) establish a system of controls and transparency over the resources supply chain, including the identification of Annex II actors in the supply chain, which may be implemented through participation in industry-driven programmes,
Amendment 120 #
Proposal for a regulation
Article 4 – point d
Article 4 – point d
(d) strengthen its engagement with suppliers, inter alia, by incorporating its supply chain policy into contracts and agreements with suppliers consistent with Annex II to the OECD Due Diligence Guidancethe model supply chain policy,
Amendment 121 #
Proposal for a regulation
Article 4 – point e
Article 4 – point e
(e) establish a company-level, or industry- wide, grievance mechanism as an early- warning risk- awareness system or provide such mechanism through collaborative arrangements with other companies or organisations, or by facilitating recourse to an external expert or body (e.g. ombudsman),
Amendment 122 #
Proposal for a regulation
Article 4 – point f
Article 4 – point f
Amendment 123 #
Proposal for a regulation
Article 4 – point g
Article 4 – point g
Amendment 127 #
Proposal for a regulation
Article 4 – paragraph 1 a (new)
Article 4 – paragraph 1 a (new)
In addition to the obligations set out in paragraph 1, Annex II type operators, shall operate a chain of custody or supply chain traceability system that provides, supported by documentation, the following information: (i) description of the resource including its trade name and type, (ii) name and address of the supplier to the Annex II actors, (iii) country of origin of the resource, (iv) quantities and dates of extraction, expressed in volume or weight, (v) when resources originate from conflict-affected and high-risk areas, additional information, such as extraction site; locations where resources are consolidated, traded and processed; and taxes, fees, royalties paid, in accordance with the OECD Due Diligence Guidance.
Amendment 128 #
Proposal for a regulation
Article 4 – paragraph 1 b (new)
Article 4 – paragraph 1 b (new)
Where an operator can reasonably conclude that covered products are derived only from recycled resources, it shall: (a) publicly disclose their determination; and (b) describe in reasonable detail the due diligence measures they exercised in making that determination.
Amendment 129 #
Proposal for a regulation
Article 5 – paragraph 1 – introductory part
Article 5 – paragraph 1 – introductory part
1. The responsible importer of the minerals or metals within the scope of this Regulation shallEach operator shall, in accordance with the OECD Due Diligence Guidance, identify and assess the risks in its resources supply chain in accordance with Article 4, and:
Amendment 130 #
Proposal for a regulation
Article 5 – paragraph 1 – point a
Article 5 – paragraph 1 – point a
Amendment 131 #
Proposal for a regulation
Article 5 – paragraph 1 – point b – introductory part
Article 5 – paragraph 1 – point b – introductory part
(b) implement a strategy to respond to the identified risks designed so as to prevent or mitigate adverse impacts, in accordance with the OECD Due Diligence Guidance, including by:
Amendment 132 #
Proposal for a regulation
Article 5 – paragraph 1 – point b – point i
Article 5 – paragraph 1 – point b – point i
(i) reporting findings of the supply chain risk assessment to its designated senior management of the operator,
Amendment 133 #
Proposal for a regulation
Article 5 – paragraph 1 – point b – point ii – introductory part
Article 5 – paragraph 1 – point b – point ii – introductory part
(ii) devising and adopting a risk management measures consistent with Annex II and the due diligence recommendations of the OECD Due Diligence Guidanceplan, considering its ability to influence, and where necessary take steps to put pressurbuild leverage on suppliers who can most effectively prevent or mitigate the identified risk, by making it possible either to:
Amendment 134 #
Proposal for a regulation
Article 5 – paragraph 1 a (new)
Article 5 – paragraph 1 a (new)
Amendment 135 #
Proposal for a regulation
Article 5 – paragraph 2
Article 5 – paragraph 2
2. If a responsible importen Annex II operator pursues risk mitigation efforts while continuing trade or temporarily suspending trade, it shall, in accordance with the OECD Due Diligence Guidance, consult with suppliers and affected stakeholders, including local and central government authorities, international or civil society organisations and affected third parties, and agree on a strategy for measurable risk mitigation in the risk management plan.
Amendment 136 #
Proposal for a regulation
Article 5 – paragraph 3
Article 5 – paragraph 3
3. A responsible importeEach Annex II operator shall, in order to design conflict and high-risk sensitive strategies for mitigation in the risk management plan, relydraw on the measures and indicators under Annex III of the OECD Due Diligence Guidance and measure progressive improvement in accordance with the OECD Due Diligence Guidance.
Amendment 137 #
Proposal for a regulation
Article 5 – paragraph 3 a (new)
Article 5 – paragraph 3 a (new)
3a. If an operator other than an Annex II operator pursues risk mitigation efforts while continuing trade or temporarily suspending trade it shall, as appropriate and in accordance with the OECD Due Diligence Guidance, consult suppliers and affected stakeholders, including local and central government authorities, international or civil society organisations and affected third parties, and agree on a strategy for measurable risk mitigation in the risk management plan.
Amendment 138 #
Proposal for a regulation
Article 6 – paragraph 1
Article 6 – paragraph 1
Amendment 139 #
Proposal for a regulation
Article 6 – paragraph 2 – introductory part
Article 6 – paragraph 2 – introductory part
Amendment 140 #
Proposal for a regulation
Article 6 – paragraph 2 – point a
Article 6 – paragraph 2 – point a
(a) include in the audit scope all of the responsible importeoperator’s activities, processes and systems used to implement supply chain due diligence regarding minerals or metals within the scope of the Regulation, including the responsible importecovered resources, including the operator’s management system, risk management, and disclosure of information,
Amendment 141 #
Proposal for a regulation
Article 6 – paragraph 2 – point b
Article 6 – paragraph 2 – point b
(b) determine as the objective of the audit the conformity of the responsible importeoperator’s supply chain due diligence practices with Articles 4, 5 and 7 of this Regulation,
Amendment 142 #
Proposal for a regulation
Article 6 – paragraph 2 – point c
Article 6 – paragraph 2 – point c
(c) respect the audit principles of independence, competence and accountability and any applicable audit scope, criteria and activities, as set out in the OECD Due Diligence Guidance.
Amendment 143 #
Proposal for a regulation
Article 6 – paragraph 2 a (new)
Article 6 – paragraph 2 a (new)
All operators may cooperate through their industry organizations to ensure that the independent third-party audit is carried out in accordance with the second paragraph.
Amendment 144 #
Proposal for a regulation
Article 7 – paragraph 1 – introductory part
Article 7 – paragraph 1 – introductory part
1. By 31 March of each year at the latest, the responsible importer of minerals or metals within the scope of this Regulation all operators shall submit to the Member State competent authority the following documentation covering the previous year’s calendar period:
Amendment 145 #
Proposal for a regulation
Article 7 – paragraph 1 – point c
Article 7 – paragraph 1 – point c
Amendment 146 #
Proposal for a regulation
Article 7 – paragraph 2
Article 7 – paragraph 2
2. By 31 March of each year at the latest, the responsible importer of minerals wioperators other thian the scope of this RegulationAnnex II operators shall also submit to the Member State competent authority the documentation covering the previous year’s calendar period as regards the proportion of minerals originating from conflict-affected and high-risk areas relative to the total amount of minerals purchased, as confirmed by independent third-party audits in accordance with Article 6 of this Regulation.management reports containing the following documentation covering the previous year’s calendar period:
Amendment 147 #
Proposal for a regulation
Article 7 – paragraph 2 – point a (new)
Article 7 – paragraph 2 – point a (new)
(a) the operator’s supply chain due diligence policy, including the operator’s management structure responsible for its due diligence and the person directly responsible,
Amendment 148 #
Proposal for a regulation
Article 7 – paragraph 2 – point b (new)
Article 7 – paragraph 2 – point b (new)
(b) the operator’s system of control and transparency over the resources supply chain, including the steps taken to identify upstream actors in the supply chain and to assess their due diligence practices,
Amendment 149 #
Proposal for a regulation
Article 7 – paragraph 2 – point c (new)
Article 7 – paragraph 2 – point c (new)
(c) name and address of each of the Annex II actors in its supply chain, as identified by the operator in accordance with Article 4 and 5,
Amendment 150 #
Proposal for a regulation
Article 7 – paragraph 2 – point d (new)
Article 7 – paragraph 2 – point d (new)
(d) independent third-party audits regarding each of the Annex II actors in its supply chain carried out in accordance with the scope, objective and principles set out in Article 6 of the Regulation, as identified by the operator in accordance with Article 4 and 5,
Amendment 151 #
Proposal for a regulation
Article 7 – paragraph 2 – point e (new)
Article 7 – paragraph 2 – point e (new)
(e) potential or actual risks identified by the operator and action taken by the operator to manage risks during the reporting period in accordance with Article 5,
Amendment 152 #
Proposal for a regulation
Article 7 – paragraph 2 – point f (new)
Article 7 – paragraph 2 – point f (new)
(f) action taken by the operator to strengthen its due diligence efforts during the reporting period.
Amendment 153 #
Proposal for a regulation
Article 7 – paragraph 3 – introductory part
Article 7 – paragraph 3 – introductory part
3. By 31 March of each year at the latest, the responsible importer of metals within the scope of this RegulationAnnex II type operators shall also submit to the Member State competent authority the following documentation covering the previous year’s calendar period:
Amendment 154 #
Proposal for a regulation
Article 7 – paragraph 3 – point a
Article 7 – paragraph 3 – point a
Amendment 156 #
Proposal for a regulation
Article 7 – paragraph 3 – point b
Article 7 – paragraph 3 – point b
(b) independent third-party audits regarding each of the responsible smelters or refiners in its supply chain carried out in accordance with the scope, objective and principles set out incarried out in accordance with Article 6 of theis Regulation,; and
Amendment 158 #
Proposal for a regulation
Article 7 – paragraph 3 – point c
Article 7 – paragraph 3 – point c
(c) information on the proportion of mineralcovered resources originating from conflict-affected and high-risk areas relative to the total amount of minerals purchased by each of those smelters or refinerscovered resources purchased, as confirmed by the independent third-party audits in accordance with Article 6 of this Regulation.
Amendment 159 #
Proposal for a regulation
Article 7 – paragraph 4
Article 7 – paragraph 4
4. The responsible importer of minerals or metals within the scope of this RegulationOperators shall make available to itstheir immediate downstream purchasers all information gained and maintained pursuant to its supply chain due diligence with due regard to business confidentiality and other competitive concerns, in accordance with the OECD Guidance.
Amendment 160 #
Proposal for a regulation
Article 7 – paragraph 5
Article 7 – paragraph 5
5. The responsible importer of minerals or metalsOperators shall publicly disclose in accordance within the scope of this Regulation shall publicly reportOECD Due Diligence Guidance and as widely as possible, including on the internet and on an annual basis on its supply chain due diligence policies and practices for responsible sourcing. The report shall contain the steps taken by the responsible importeoperator to implement the obligations as regards its management system, risk management set out in Article 4 and 5 respectively, as well as a summary report of the third-party audits, including the name of the auditorny independent third-party audits of responsible Annex II actors in the operators’ supply chain, with due regard to business confidentiality and other competitive concerns.
Amendment 161 #
Proposal for a regulation
Article 7 – paragraph 6 a (new)
Article 7 – paragraph 6 a (new)
6a. Responsible Annex II actors outside the territory of the Union may, for the purpose of being included in a Member State competent authority’s reports under Article 15(1) and the list referred to in Article 8, submit to that authority: (a) documentation in accordance with paragraphs 1 and 3 above, and (b) a written declaration of conformity with the OECD Due Diligence Guidance, also containing its name, address, full contact details and a description of its commercial activities.
Amendment 162 #
Proposal for a regulation
Article 8 – title
Article 8 – title
List of responsible smelters and refineAnnex II actors
Amendment 164 #
Proposal for a regulation
Article 8 – paragraph 1
Article 8 – paragraph 1
1. On the basis of the information provided by the Member States in their reports as referred to in Article 15, the Commission shall adopt and make publicly available a decision listing the names and addresses of responsible smelters and refiners of minerals within the scope of this RegulationAnnex II actors.
Amendment 167 #
Proposal for a regulation
Article 8 – paragraph 2
Article 8 – paragraph 2
2. The Commission shall identify on the list referred to in paragraph 1 those responsible smelters and refineAnnex II actors that source – at least partially – from conflict- affected and high-risk areas.
Amendment 169 #
Proposal for a regulation
Article 8 – paragraph 3
Article 8 – paragraph 3
3. The Commission shall adopt the list in accordance with the template in Annex II and the regulatory procedure referred to in Article 13(2)I. The OECD Secretariat shall be consulted.
Amendment 170 #
Proposal for a regulation
Article 8 – paragraph 4
Article 8 – paragraph 4
4. The Commission shall update the information included in the list in a timely manner but not less than every six months. The Commission shall remove from the list the names of the smelters and refineAnnex II actors that are no longer recognised as responsible importeAnnex II actors by Member States in accordance with Article 14(3), or the names of the smelters and refiners in the supply chain of the no longer recognised responsible importers.
Amendment 176 #
Proposal for a regulation
Article 9 – paragraph 2
Article 9 – paragraph 2
2. The Commission shall make a decision to publish, including on the internet, a list of competent authorities in accordance with the template in Annex III and the regulatory procedure referred to in paragraph 2 of Article 13V. The Commission shall update the list regularly.
Amendment 178 #
Proposal for a regulation
Article 10 – title
Article 10 – title
Ex-post checks on responsible importeoperators
Amendment 179 #
Proposal for a regulation
Article 10 – paragraph 1
Article 10 – paragraph 1
1. The competent authorities of the Member States shall carry out appropriate ex-post checks in order to ensure whether self-certified responsible importers of minerals and metalthat operators within scope of this Regulation comply with the obligations set out in Articles 4, 5, 6 and 7.
Amendment 180 #
Proposal for a regulation
Article 10 – paragraph 2
Article 10 – paragraph 2
2. The checks referred to in paragraph 1 shall be conducted by taking a risk-based approach. In addition, checks may be conducted when a competent authority is in possession of relevant information, including on the basis of substantiated concerns provided by third parties, concerning the compliance by a responsible importen operator with this Regulation.
Amendment 181 #
Proposal for a regulation
Article 10 – paragraph 3 – point a
Article 10 – paragraph 3 – point a
(a) examination of the responsible importeoperator’s implementation of supply chain due diligence obligations including the management system, risk management, independent third-party audit and disclosure,
Amendment 182 #
Proposal for a regulation
Article 10 – paragraph 3 – point c a (new)
Article 10 – paragraph 3 – point c a (new)
(ca) examination of the reporting requirements in accordance with the scope, objective and principles set out in Article 7,
Amendment 183 #
Proposal for a regulation
Article 10 – paragraph 4
Article 10 – paragraph 4
4. Responsible importeOperators shall offer all assistance necessary to facilitate the performance of the checks referred to in paragraph 1, notably as regards access to premises and the presentation of documentation and records.
Amendment 184 #
Proposal for a regulation
Article 10 – paragraph 4 a (new)
Article 10 – paragraph 4 a (new)
4a. The competent authorities of the Member States shall publish a report detailing the full findings of any ex-post checks, together with a reasonable explanation for making those findings and any documentation on which the competent authority based its findings.
Amendment 185 #
Proposal for a regulation
Article 11 – title
Article 11 – title
Records of checks on responsible importeoperators
Amendment 186 #
Proposal for a regulation
Article 12 a (new)
Article 12 a (new)
Article 12 a Definition of 'conflict area' or 'high risk area': The Commission shall, in close cooperation with the European External Action Service, make available to the public and companies adequate information as to what is meant by 'conflict area' or 'high risk area' and how they are defined.
Amendment 187 #
Proposal for a regulation
Article 13 – title
Article 13 – title
Amendment 188 #
Proposal for a regulation
Article 13 – paragraph 1
Article 13 – paragraph 1
1. The Commission shall be assisted by a committee. That committee shall be a committee within the meaning of Regulation (EU) No 182/2011power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.
Amendment 189 #
Proposal for a regulation
Article 13 – paragraph 2
Article 13 – paragraph 2
2. WThere reference is made to this paragraph, Article 4 of Regulation (EU) No 182/2011 shall apply. Where the opinion of the committee is to be obtained by written procedure, that procedure shall be terminated without result when, within the time-limit for delivery of the opinion, the chair of the committee so decides or a simple majority of committee members so request power to adopt delegated acts referred to in the relevant Articles shall be conferred to the Commission for an indeterminate period of time from the date that this Regulation enters into force.
Amendment 190 #
Proposal for a regulation
Article 13 – paragraph 2
Article 13 – paragraph 2
Amendment 191 #
Proposal for a regulation
Article 13 – paragraph 2 a (new)
Article 13 – paragraph 2 a (new)
2a. The delegation of powers referred to in the relevant Articles may be revoked at any time by the European Parliament or by the Council. A decision of revocation shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.
Amendment 192 #
Proposal for a regulation
Article 13 – paragraph 2 b (new)
Article 13 – paragraph 2 b (new)
2b. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council.
Amendment 193 #
Proposal for a regulation
Article 13 – paragraph 2 c (new)
Article 13 – paragraph 2 c (new)
2c. A delegated act adopted pursuant to the relevant Articles shall enter into force only if no objection has been expressed by either the European Parliament or the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or the Council.
Amendment 194 #
Proposal for a regulation
Article 13 a (new)
Article 13 a (new)
Article 13 a Amending Annex I and Annex II 1. The Commission shall regularly review developments with regard to the contribution of global trade in natural resources to conflict and human rights abuses and violations in conflict-affected and high-risk areas, the development of international responsible sourcing standards and the experience gained in the implementation of this Regulation. In the course of the review, the Commission shall take into account, in particular, the information obtained by the Commission under and for the purposes of Article 15 and information provided by international or civil society organisations and affected third parties. 2. The Commission shall regularly review the scope of Annex I and II, in the light of the information obtained pursuant to paragraph 1 so as to achieve effectively the purpose of this Regulation, as stated in Article 1. Annex I shall be reviewed with a view to expanding the list of covered resources. Annex II shall be reviewed with a view to identifying additional choke points of transformation and traceability in covered resources supply chains with a view to strengthening supply chain due diligence with regard to all Annex I resources. Such a review shall take place not less than every 6 months. 3. The Commission may adopt delegated acts in order to expand the list of covered resources as stated in paragraph 2. 4. Delegated acts adopted under this Article shall enter into force without delay and shall apply as long as no objection is expressed in accordance with paragraph 5. The notification of a delegated act adopted under this Article to the European Parliament and to the Council shall state the reasons for the use of the urgency procedure. 5. Either the European Parliament or the Council may object to a delegated act in accordance with the procedure referred to in this Article. In such a case, the Commission shall repeal the act without delay following the notification of the decision to object by the European Parliament or the Council.
Amendment 195 #
Proposal for a regulation
Article 14 – title
Article 14 – title
Rules applicable to infringement and penalties
Amendment 196 #
Proposal for a regulation
Article 14 – paragraph 1
Article 14 – paragraph 1
1. The Member StatesCommission shall lay down the rulpenalties applicable to infringements of the provisions of this Regulation and communicate these to the Member States. The penalties provided for must be effective, proportionate and dissuasive. The Commission shall determine the measures necessary to ensure that they are implemented.
Amendment 197 #
Proposal for a regulation
Article 14 – paragraph 2
Article 14 – paragraph 2
2. In case of an infringement of the provisions of this Regulation, the competent authorities of Member States shall issue a notice of remedial action to be taken by the responsible importeoperator.
Amendment 198 #
Proposal for a regulation
Article 14 – paragraph 2
Article 14 – paragraph 2
2. In case of an infringement of the provisions of this Regulation, the competent authorities of Member States shall issue a notice ofnotify the responsible importer of the remedial action to be taken by the responsible importerhim.
Amendment 199 #
Proposal for a regulation
Article 14 – paragraph 3
Article 14 – paragraph 3
3. In case of inadequate remedial action by the responsible importeoperator, the competent authority shall issue to the importeoperator a notice of non-recognition of its responsible importer certificate as regards the minerals or metals within the scope of this Regulation compliance and inform the Commission.
Amendment 200 #
Proposal for a regulation
Article 14 – paragraph 4
Article 14 – paragraph 4
Amendment 203 #
Proposal for a regulation
Article 15 – paragraph 1
Article 15 – paragraph 1
1. Member States shall submit to the Commission by 30 June of each year at the latest, a report on the implementation of this Regulation during the previous calendar year, including any information on responsible importersAnnex II actors, as set out in Article 7(1) (a), 7.2 and 7.3 (a) and (c(3) (a)-(b) and 7(7) (a).
Amendment 206 #
Proposal for a regulation
Article 15 – paragraph 3
Article 15 – paragraph 3
3. Three years after the entry into force of this Regulation and every six years thereafter, the Commission shall review the functioning and effectiveness of this Regulation, including on the promotion and cost of responsible sourcing of the mineralresources within its scope from conflict- affected and high-risk areas. The Commission shall submit a review report to the European Parliament and to the Council.
Amendment 209 #
Proposal for a regulation
Article 15 a (new)
Article 15 a (new)
Article 15 a Accompanying measures 1. In order to effectively break the link between the exploitation of natural resources and conflict and to ensure their responsible sourcing, the Commission and the External Action Service shall implement accompanying measures to this Regulation aimed at the enhancement of responsible sourcing, the effective establishment of national and international due diligence frameworks and related support systems, including reliable certification and traceability systems, and the addressing of development needs linked to (a) the exploitation and trade in natural resources originating from conflict- affected and high-risk areas and (b) the implementation of this Regulation, including: (i) support to companies to responsibly source from conflict-affected and high risk areas providing technical and other assistance and guidance to operators, taking into account the situation of small and medium-sized enterprises and their position in the supply chain, in order to facilitate compliance with the requirements of this Regulation. (ii) targeted, rights-based development cooperation, particularly addressing the challenges of implementing responsible sourcing in the local context of conflict- affected and high risk areas, including poverty reduction, good governance and the security sector; (iii) meaningful policy dialogues on responsible sourcing with third countries and other stakeholders; (iv) close cooperation with the Member States, in particular complementary initiatives in the area of consumer, investor and customer information and when providing technical and other assistance in accordance with point (i). 2. The European Commission and the European External Action Service shall, as appropriate, implement the objectives of accompanying measures through political and policy dialogues, programming, and relevant internal and external policies. Where appropriate, legislative proposals should be presented to the European Parliament and the Council. 3. The European Commission shall present to the European Parliament and to the Council an annual report of the accompanying measures implemented pursuant to this Article and their impact and effectiveness.
Amendment 210 #
Proposal for a regulation
Article 15 a (new)
Article 15 a (new)
Amendment 212 #
Proposal for a regulation
Annex I -- title
Annex I -- title
List of minerals and metalresources within the scope of the Regulation classified under the Combined Nomenclature
Amendment 213 #
Proposal for a regulation
Annex I -- table
Annex I -- table
Amendment 214 #
Proposal for a regulation
Annex Ia (new)
Annex Ia (new)
Annex Ia List of choke points identified in the supply chains of covered resources -‘smelters’ -‘refiners’
Amendment 215 #
Proposal for a regulation
Annex II -- title
Annex II -- title
List of responsible smelters and refiners’ template referred to in Article 8Annex Ia actors
Amendment 216 #
Proposal for a regulation
Annex II
Annex II
Column A: Name of smelters or refinersAnnex Ia actor in alphabetical order Column B: Address of the smelter or refineAnnex Ia actor Column C: Annex Ia category of the actor Column CD: (*) indicator, if the smelter or refiner sources mineralAnnex Ia actor engages in responsible sourcing of resources originating from conflict- affected and high -risk areas
Amendment 217 #
Proposal for a regulation
Annex II – table – new column
Annex II – table – new column
A B C D