Industrial Painting and Conflict Minerals

Question Posed:

The only activity of my company is industrial painting; we paint the parts provided by our customer and return them painted. Do we really need to concern ourselves with conflicts minerals compliance?

Answer Provided:

Generally, under the United States Dodd Frank section 1502 conflict minerals law, the application of paint to another party's product would be deemed a service.  

If the part is provided by the customer and your company’s role is exclusively to apply paint, the in-scope portion of your declaration is either:

  • The paint itself, assuming you are the manufacturer of the paint and the paint contains 3TG
  • Nothing, provided you are not the manufacturer of the paint and your company’s role is exclusively in the application of a third party paint selected by the customer onto the customer's part

If however, your company is purchasing the part from a third party, then finishing (painting) the part and branding the part as a product marketed by your company, then your company would be responsible for performing the due diligence and making the associated declarations.

Reference: https://www.sec.gov/rules/final/2012/34-67716.pdf

**Article contents valid as of 2017-08-03




Have more questions? Submit a request

Comments