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Kimball Electronics
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Industrial Scientific
AHEAD
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By Deepa Shetty | Fri Nov 11 2022 | 3 min read

Table of Contents

Understanding EU Conflict Minerals & US Conflict Minerals Responsible Sourcing Regulations

The EU Conflict Minerals Regulation and Section 1502 of the U.S. Dodd-Frank Act are both regulatory measures aimed at curbing the negative impact of conflict minerals mining. Conflict minerals, which include tin, tungsten, tantalum, and gold (3TG), are often sourced from areas riddled with human rights abuses, armed conflict, and governmental instability. The profits generated from mining these minerals usually fund the groups perpetuating these issues.

EU Conflict Minerals Regulation

The EU Conflict Minerals Regulation was enacted on January 1, 2021. The regulation applies to EU-based importers of 3TG sourced from conflict-affected and high-risk areas (CAHRAs). The regulation covers all imported 3TG, including processed metals, mineral ores, or concentrates. Upstream companies, including those involved with mines, smelters, refiners, etc., fall within the scope of the regulation. They must conduct due diligence and report on imported 3TG. Downstream companies that import or distribute end-user products containing 3TG or source finished components are currently exempt from the regulation. However, downstream companies are encouraged to report on their use of 3TG voluntarily.

Reporting Requirements for EU Conflict Minerals Regulation

Upstream companies are required to follow the Organization for Economic Cooperation and Development (OECD) Guidance, which has a 5-step framework for due diligence. Additional requirements for upstream companies include:

  • Sharing supply chain data with downstream purchasers.
  • Publicly reporting due diligence policies and practices.
  • Publishing conflict minerals summary reports of annual third-party supply chain audits.

Dodd-Frank Conflict Minerals Act Section 1502

The U.S. Dodd-Frank legislation Act was enacted on July 21, 2010, with a specific Section 1502 focused on conflict minerals compliance. Section 1502 applies to publicly traded companies that manufacture products containing 3TG sourced from the Democratic Republic of the Congo (DRC) or any surrounding countries within the scope of the regulation and are required to submit a Specialized Disclosure - FORM SD along with their annual SEC filling

Reporting Requirements for the US Conflict Minerals Act

If 3TG is necessary for the functionality or production of a product, the product falls within the scope of Section 1502. This requires public companies to conduct due diligence by tracing the 3TG back to the utilized smelter to determine where the minerals originated.

Public companies are required to file a Conflict Minerals Report and must follow the due diligence process of a nationally or internationally recognized framework, such as the OECD Due Diligence Guidance. The due diligence process results in one of three determinations, each with its own set of requirements.

OECD 5-Step Due Diligence Guidance

  • Step 1: Establish strong company management systems.
  • Step 2: Identify and assess risks in the supply chain.
  • Step 3: Design and implement a strategy to respond to identified risks.
  • Step 4: Carry out an independent third-party audit of supply chain due diligence.
  • Step 5: Report annually on Supply chain due diligence
OECD 5-Step Due Diligence Guidance.jpg

Key Differences Between the EU Conflict Minerals Regulation and Section 1502 of the U.S. Dodd-Frank Conflict Minerals Act

Although both regulatory measures share similar goals, there are some key differences between them. For instance, The Dodd-Frank Act applies only to companies that are publicly traded in the United States, while the EU Regulation applies to all companies that import minerals into the EU. This means that the EU Regulation has a much broader scope, and more companies are likely to be affected by it.

In addition, the EU Regulation requires companies to conduct due diligence on their supply chains to identify and mitigate the risks of conflict minerals. This due diligence process must conform to international standards and must be conducted in a way that is consistent with the OECD Due Diligence Guidance. In contrast, the Dodd-Frank Act does not specify a particular due diligence process that companies must follow but instead requires them to report on their efforts to determine the source and chain of custody of conflict minerals.

Another important difference is the types of minerals that are covered by the regulations. The Dodd-Frank Act focuses on four minerals: tin, tantalum, tungsten, and gold, which are commonly referred to as 3TG. The EU Regulation, on the other hand, covers a broader range of minerals, including tin, tantalum, tungsten, ores, and gold, as well as other minerals and metals that are associated with human rights abuses.

Despite these differences, there are also some similarities between the two regulations. For example, both regulations require companies to disclose information about their use of conflict minerals, and both regulations aim to address the problem of conflict minerals by promoting responsible sourcing practices.

How Acquis Conflict Minerals Software can help companies comply with both the EU Conflict Minerals Regulation and Section 1502 of the U.S. Dodd-Frank Act.

Acquis Conflict Minerals Compliance Solution can help companies comply with conflict minerals regulations with a comprehensive set of software and services including:

  • Monitor Compliance Status

Keep track of your suppliers' compliance status easily. Use tools to stay updated and address any risks quickly.

  • Global Supplier Engagement

Communicate with suppliers worldwide through user-friendly multilingual support. Clear communication helps ensure everyone meets compliance requirements.

  • Plan Your Compliance Roadmap

Create a clear plan for conflict minerals compliance. Set steps and milestones to ensure your supply chain adheres to regulations.

  • Execute RCOI Due Diligence

Conduct Reasonable Country of Origin Inquiry (RCOI) due diligence through supplier CMRT declarations and smelter validation. This helps ensure accurate data and compliance.

  • Budget-Friendly Compliance Reporting

Use budget-friendly solutions for easy compliance reporting. Automated tools can simplify data collection, analysis, and reporting, saving you time and money.

By leveraging expertise and technology, Acquis can help companies streamline & automate conflict minerals compliance processes and ensure meeting obligations under conflict minerals regulations.

Reach out to our Conflict Minerals Compliance experts to streamline your compliance process

Topics

Conflict MineralsResponsible SourcingEuropean Union RegulationsUSA Regulations

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The Similarities and Differences between US & EU Conflict Minerals Regulations

Both regulations aim to reduce the role of mineral extraction in financing armed conflict and human rights abuses, particularly in Conflict-Affected and High-Risk Areas (CAHRAs). They do this by forcing transparency into global supply chains and requiring companies to understand, document, and disclose where tin, tungsten, tantalum, and gold (3TG) originate and how sourcing risks are managed.
The EU Conflict Minerals Regulation applies primarily to EU-based importers of 3TG minerals and metals, including ores, concentrates, and processed metals sourced from CAHRAs. It targets upstream actors such as smelters, refiners, and importers of raw materials. Downstream manufacturers and brand owners are currently exempt from mandatory reporting but are encouraged to align voluntarily with OECD due diligence expectations.
Section 1502 applies to U.S. publicly traded companies that manufacture or contract to manufacture products in which 3TG minerals are necessary to functionality or production. These companies must conduct Reasonable Country of Origin Inquiry (RCOI), trace minerals to smelters, and file Form SD and — when applicable — a Conflict Minerals Report with the SEC.
The EU regulation mandates process-based due diligence aligned strictly with the OECD 5-Step Framework, including supply chain risk management, audits, and public policy disclosures. The U.S. rule focuses more on disclosure obligations, requiring companies to report findings and due diligence outcomes but offering flexibility in how due diligence is conducted, as long as it aligns with a recognized framework such as OECD.
The OECD framework is the global backbone of both regulations. It provides a structured approach for establishing management systems, identifying supply chain risks, responding to those risks, conducting audits, and publicly reporting results. EU compliance requires explicit alignment with all five steps, while U.S. reporting uses OECD guidance as the recognized standard for defensible due diligence.
While downstream manufacturers are not legally obligated under the EU regulation, they are indirectly impacted. EU importers increasingly require CMRTs, smelter transparency, and sourcing assurances from downstream partners. As a result, voluntary reporting and OECD-aligned due diligence have become de facto requirements for global manufacturers selling into EU supply chains.
Companies operating globally benefit from a single harmonized compliance program that uses CMRT-based supplier engagement, smelter validation, OECD-aligned due diligence workflows, and centralized documentation. Automating RCOI, supplier outreach, and reporting ensures consistency across jurisdictions while reducing audit risk and operational burden.