EX-1.01 2 tmb-20210528xex1d01.htm EX-1.01 2017 Form SD

Exhibit 1.01

Conflict Minerals Report

IEC Electronics Corp. (“IEC Electronics,” “we,” “our,” “us,” or the “Company”) provides electronic manufacturing services to advanced technology companies that produce life-saving and mission critical products for the medical, industrial, aerospace and defense sectors. We specialize in delivering technical solutions for the custom manufacture of complex full system assemblies by providing on-site analytical testing laboratories, custom design and test engineering services combined with a broad array of manufacturing services encompassing electronics, interconnect solutions, and precision metalworking. We manufacture complex printed circuit boards and system- level assemblies, a wide array of cable and wire harness assemblies and precision metal components. We are headquartered in Newark, NY and also have operations in Rochester, NY and Albuquerque, NM. Conflict Minerals are necessary to the functionality or production of the products that we manufacture for our advance technology customers pursuant to the designs they provide to us.

Section I. Due Diligence

Design of Due Diligence

Our due diligence procedures conform to the Organisation for Economic Co-operation and Development (“OECD”) “Five- Step Framework for Risk-Based Due Diligence in the Mineral Supply Chain.”

Establish Strong Company Management Systems

Our policy regarding Conflict Minerals is posted to our website.
Our cross-functional conflict minerals team was established to carry out the necessary due diligence and reporting requirements. The team currently includes the following roles:

Team Members:

Director of Quality

Director of Supply Chain

Supplier Quality Engineer

Buyer

Executive Sponsor:

Chief Financial Officer

Develop a list of applicable suppliers with the assistance of supply chain personnel at each location.
Request potential vendors to complete a Conflict Minerals Reporting Template (“CMRT”) prior to them being established as a vendor.

Identify and Assess Risk in the Supply Chain

Develop a list of applicable suppliers with the assistance of supply chain personnel at each location.
We identify and assess risks within the supply chain based on commodity type and sourcing requirements and availability. For the majority of our parts, tin is necessary to the functionality or product manufactured. To a lesser extent, tantalum, tungsten, and gold are also necessary for some parts.
Data is collected directly from applicable suppliers using the CMRT.
IEC has engaged with IHS Markit to assist in supplier data collection, management, and aggregation.
Supplier declarations are evaluated, compiled, and tested for conformity by IHS Markit’s iPoint software to determine if supplies, products, or components containing Conflict Minerals purchased by IEC are derived from the Covered Countries.

Design and Implement a Strategy to Respond to Identified Risks

IHS Markit’s iPoint software is used to assess the status of supplier responses and facilitate responses to customer inquiries.
Non-responses are followed up with additional requests and/or direct contact (email, phone, or in person) depending on risk.

Carry Out Independent Third-Party Audit of Supply Chain Due Diligence at Identified Points in the Supply Chain

IEC Electronics utilizes IHS Markit’s iPoint software which includes information from the Global Smelter List.

Report on Supply Chain Due Diligence

IEC Electronics files the Form SD and CMR with the SEC annually.
We post the Form SD and CMR on our website.
IEC Electronics issues a standard response using the CMRT.
IEC’s corporate policy regarding Conflict Minerals and disclosure regarding whether any Conflict Minerals necessary to the functionality or production of a product originated in Covered Countries are made publicly available on our website in accordance with the Securities Exchange Act Section 13(p)(1)(E).

Steps taken to mitigate the risk that necessary conflict minerals benefit armed groups include the following:

Require potential vendors to complete a CMRT prior to them being established as a vendor.
Working with customers when it is discovered that a component we source to support their product may benefit armed groups in the Covered Countries.

Section II.

Product Description

IEC Electronics has facilities located in Newark, NY; Rochester, NY; and Albuquerque, NM. At these facilities, we manufacture complex printed circuit boards and system-level assemblies, a wide array of cable and wire harness assemblies and precision metal components. Products are built to specifications provided by our customers.

Product Determination

IEC Electronics conducted due diligence on the products listed above, and as a result of that due diligence, IEC Electronics was unable to definitively determine if the conflict minerals used in the production of applicable products originated from the Covered Countries. Through our due diligence and reasonable country of origin efforts, the greatest possible specificity IEC is able to provide is the following list of countries of origin.

Reasonable Country-of-Origin Inquiry Results

The following countries were reported to IEC Electronics by our supply chain for the 2020 Reporting Year:

Andorra

Germany

Netherlands

Sudan

Australia

Ghana

New Zealand

Sweden

Austria

India

Norway

Switzerland

Belgium

Indonesia

Peru

Taiwan

Bolivia

Italy

Philippines

Thailand

Brazil

Japan

Poland

Turkey

Canada

Kazakhstan

Russia

Uganda

Chile

Kyrgyzstan

Rwanda

United Arab Emirates

China

Lithuania

Saudi Arabia

United States of America

Colombia

Malaysia

Singapore

Uzbekistan

Czechia

Mauritania

South Africa

Vietnam

Estonia

Mexico

South Korea

Zambia

France

Myanmar

Spain

Zimbabwe

Efforts used to determine the country of origin are described in “Section I. Due Diligence,” above.

Consistent with the provisions of the Rule, the SEC’s Statement on the Effect of the Recent Court of Appeals Decision on the Conflict Minerals Rule dated April 29, 2014, and the SEC’s Order Issuing Stay dated May 2, 2014, this Report has not been audited by a third party. Notwithstanding anything to the contrary in this Report, for purposes of clarification and without limitation, IEC does not claim, nor are we implying, that any of our Covered Products are “DRC Conflict-Free.” An audit is not required for the reporting period from January 1, 2020 to December 31, 2020.