What is the EU Conflict Minerals Regulation?

As of 1 January 2021, the EU Conflict Minerals Regulation (Regulation (EU) 2017/821) came into full effect across the EU. This regulation mandates that EU importers of tantalum, tin, tungsten, and gold (3TG) source only from responsible and conflict-free suppliers. Its goal is to prevent the trade of these minerals from financing armed conflicts, combat the exploitation and abuse of local communities, and support local development.

Are you in scope of the EU Conflict Minerals Regulation?

If you believe you might be subject to this regulation, follow these steps to verify:

• Check Annex 1 of the regulation, which lists the specific minerals covered, along with Combined Nomenclature (CN) codes and import volume thresholds that determine whether you fall within its scope.
• If you are uncertain or confirm that you are in scope, contact your National Competent Authority (NCA) for verification.
• Since compliance can take time, reaching out to the NCA early demonstrates your commitment. Additionally, ask the NCA for any required templates, reporting formats, and submission guidelines, as requirements may vary across EU countries.

Due Diligence Requirements & Compliance

To ensure that your mineral sourcing does not finance conflicts or involve illegal practices, the regulation requires importers to follow a five-step due diligence framework outlined by the OECD Due Diligence Guidance for Responsible Supply Chains from Conflict-Affected and High-Risk Areas (OECD DDG). These steps include:

1. Establish strong company management systems – Set up internal policies and controls for responsible sourcing.
2. Identify and assess supply chain risks – Map out supply chains to detect potential risks.
3. Develop and implement risk mitigation strategies – Take action to address and minimize identified risks.
4. Conduct independent third-party audits – Verify compliance through external audits.
5. Report annually on due diligence efforts – Publish reports on sourcing practices and risk management.

For guidance on conducting due diligence, the European Commission’s Due Diligence Portal provides resources, tools, and training materials. Additionally, the OECD offers introductory resources on the OECD DDG, which serves as the foundation for the EU Conflict Minerals Regulation.