Here are the final three of the 7 Things You Gotta Know To Comply With SEC’s Conflict Minerals Rule (if you missed #2-4, here they are):
Timing of disclosures for product components is as important in conflict minerals compliance as is timing for possession of conflict minerals.
For the former, one has to disclose the source and network information for the year when the conflict minerals have been used in manufacturing and production. At times, it can be the year when the finished product that contains that component has been completed. If one possesses the conflict minerals, but did not produce the product in a calendar year, then there is no need to audit and report that year.
Consider and prepare for liability actions when complying with the conflict minerals law.
The disclosure needs to be filed with the Securities and Exchange Commission (SEC), which means that the issuers are subject to Exchange Act Section 18 liability for fraudulent or false conflict minerals reporting.
Make sure that you have consulted both legal and industry experts to help you deal with the conflict minerals SEC rule. Misrepresentation or false information, even inadvertently put, can land you in serious legal troubles and also lead to heavy financial losses and damages.
With the help of expert consultants you can also find and prepare your Conflict Minerals Report as per the accepted framework.
An internationally recognized due diligence framework is the OECD framework, which can be applied to specific as well as multiple metals, like tin, tungsten, tantalum and gold.
Conflict mineral compliance is going to be a monumental challenge for many companies. It is something that should not be taken lightly. Acknowledging these seven items – Examination of Sources; Exemption of Minerals, Careful Acquisition Rules, Application/Preparation; and Timing, Liability and Framework – will help you start the process.
MetalMiner welcomes Patrick Hunter as a guest contributor from MFG.com, which offers LiveSource – a cloud-based eSourcing tool that combines the power of advanced supplier management with the global reach of the world’s largest manufacturing marketplace. LiveSource helps companies discover, collaborate and work with qualified global suppliers, resulting in smarter spending, reduced product costs, shorter delivery times, and a more flexible supply chain, all without adding IT infrastructure costs.