Regulation (EU) 2017/821 of the European Parliament and of the CouncilShow full title

Article 4 U.K. Management system obligations

Union importers of minerals or metals shall:

(a)

adopt, and clearly communicate to suppliers and the public up-to-date information on, their supply chain policy for the minerals and metals potentially originating from conflict-affected and high-risk areas;

(b)

incorporate in their supply chain policy standards against which supply chain due diligence is to be conducted consistent with the standards set out in the model supply chain policy in Annex II to the OECD Due Diligence Guidance;

(c)

structure their respective internal management systems to support supply chain due diligence by assigning responsibility to senior management, in cases where the Union importer is not a natural person, to oversee the supply chain due diligence process as well as maintain records of those systems for a minimum of five years;

(d)

strengthen their engagement with suppliers by incorporating their supply chain policy into contracts and agreements with suppliers consistent with Annex II to the OECD Due Diligence Guidance;

(e)

establish a grievance mechanism as an early-warning risk-awareness system or provide such mechanism through collaborative arrangements with other economic operators or organisations, or by facilitating recourse to an external expert or body, such as an ombudsman;

(f)

as regards minerals, operate a chain of custody or supply chain traceability system that provides, supported by documentation, the following information:

(i)

description of the mineral, including its trade name and type;

(ii)

name and address of the supplier to the Union importer;

(iii)

country of origin of the minerals;

(iv)

quantities and dates of extraction, if available, expressed in volume or weight;

(v)

where minerals originate from conflict-affected and high-risk areas or, where other supply chain risks as listed in the OECD Due Diligence Guidance have been ascertained by the Union importer, additional information in accordance with the specific recommendations for upstream economic operators, as set out in the OECD Due Diligence Guidance, such as the mine of mineral origin, locations where minerals are consolidated, traded and processed, and taxes, fees and royalties paid;

(g)

as regards metals, operate a chain of custody or supply chain traceability system that provides, supported by documentation, the following information:

(i)

description of the metal, including its trade name and type;

(ii)

name and address of the supplier to the Union importer;

(iii)

name and address of the smelters and refiners in the supply chain of the Union importer;

(iv)

if available, records of the third-party audit reports of the smelters and refiners, or evidence of conformity with a supply chain due diligence scheme recognised by the Commission pursuant to Article 8;

(v)

if the records referred to in point (iv) are not available:

• countries of origin of the minerals in the supply chain of the smelters and refiners,

• where metals are based on minerals originating from conflict-affected and high-risk areas, or other supply chain risks as listed in the OECD Due Diligence Guidance have been ascertained by the Union importer, additional information in accordance with the specific recommendations for downstream economic operators set out in that Guidance;

(h)

as regards by-products, provide information supported by documentation as from the point of origin of those by-products, namely the point where the by-product is first separated from its primary mineral or metal falling outside the scope of this Regulation.