REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the exercise of the power to adopt delegated acts conferred on the Commission pursuant to Regulation (EU) 2017/821 of the European Parliament and of the Council of 17 May 2017 laying down supply chain due diligence obligations for Union importers of tin, tantalum and tungsten, their ores, and gold originating from conflict-affected and high-risk areas
Date: 2022-02-17
Institutions: Directorate-General for Trade and Economic Security, European Commission
Subjects: European Commission, delegated legislation, gold, import (EU), mineral resources, non-ferrous metal, originating product, powers of the institutions (EU), surveillance concerning imports, third country

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 17.2.2022  COM(2022) 52 final  REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the exercise of the power to adopt delegated acts conferred on the Commission pursuant to Regulation (EU) 2017/821 of the European Parliament and of the Council of 17 May 2017 laying down supply chain due diligence obligations for Union importers of tin, tantalum and tungsten, their ores, and gold originating from conflict-affected and high-risk areas    
 
 
I. 

Introduction 

In  2017,  the  European  Union  (EU)  adopted  Regulation  (EU)  2017/821  of  the  European 
Parliament  and  of  the  Council  of  17  May  2017  laying  down  supply  chain  due  diligence 
obligations for Union importers of tin, tantalum and tungsten, their ores, and gold originating 
from  conflict-affected  and  high-risk  areas1  (“the  EU  Regulation”  hereinafter).  The  EU 
Regulation entered into force on 8 June 2017 and its key requirements apply to EU importers 
since 1 January 2021. 

The  EU  Regulation  establishes  a  Union  system  for  supply  chain  due  diligence  (‘Union 
system’) in order to curtail opportunities for armed groups and security forces to trade in tin, 
tantalum  and  tungsten,  their  ores,  and  gold.  It  is  designed  to  provide  transparency  and 
certainty  as  regards  the  supply  practices  of  Union  importers,  and  of  smelters  and  refiners 
sourcing  from  conflict-affected  and  high-risk  areas.  In  its  Article  19(2),  the  EU  Regulation 
confers  powers  upon  the  Commission  to  adopt  delegated  acts  in  respect  of:  (1)  establishing 
and amending the import volume thresholds of minerals and metals, and (2) establishing the 
methodology and criteria for the recognition of supply chain due diligence schemes. 

The EU Regulation lays down supply chain due diligence obligations in accordance with the 
OECD  Due  Diligence  Guidance2  including  its  Annex  II.  These  obligations  apply  to  Union 
importers of minerals and metals as set out in Annex I of the EU Regulation. To ensure the 
proper functioning of the Union system, the power to  adopt  acts  in  accordance  with  Article 
290 of the Treaty on the Functioning of the European Union is delegated to the Commission 
in  respect  of  amending  Annex  I  by  establishing  and  amending  the  volume  thresholds  of 
minerals and metals. 

The EU Regulation further stipulates that owners of supply chain due diligence schemes may 
apply to the Commission to have their schemes recognised as equivalent to the requirements 
of the EU Regulation. Such schemes should be aligned to the specific recommendations of the 
OECD  Due  Diligence  Guidance.  To  facilitate  the  assessment  of  due  diligence  schemes  that 
might  be  recognised  under  the  EU  Regulation,  the  power  to  adopt  acts  in  accordance  with 
Article  290  of  the  Treaty  on  the  Functioning  of  the  European  Union  is  delegated  to  the 
Commission  in  respect  of  establishing  the  methodology  and  criteria  for  that  assessment  for 
recognition.  

II. 

Legal Basis 

In line with Article 19(2) of Regulation (EU) 2017/821 of the European Parliament and of the 
Council  of  17  May  2017,  the  Commission  shall  draw  up  a  report  to  the  Council  and  the 
European Parliament in respect of the delegation of power.   

III. 

Exercise of the Delegation 

The EU Regulation, through its Article 19(2), confers powers upon the Commission in order 
to implement the following provisions of this Regulation: 

- 

as  regards  the  amendment  of  Annex  I,  by  establishing  the  volume  thresholds  for 
tantalum or niobium ores and concentrates, gold ores and concentrates, tin oxides and 

1 OJ L 130, 19.5.2017, p. 1.  
2 http://www.oecd.org/daf/inv/mne/mining.htm  

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hydroxides, tantalates and carbides of tantalum, if feasible by 1 April 2020 but no later 
than 1 July 2020 (Article 1(4) of the EU Regulation); 

as  regards  the  amendment  of  existing  thresholds  listed  in  Annex  I  every  three  years 
after 1 January 2021 (Article 1(5) of the EU Regulation); 

as regards supplementing this Regulation by setting out the methodology and criteria 
allowing  the  Commission  to  assess  whether  supply  chain  due  diligence  schemes 
facilitate the fulfilment of the requirements of this Regulation by economic operators 
and  allowing  the  Commission  to  recognise  schemes  (Article  8(2)  of  the  EU 
Regulation). 

The Commission has adopted two (2) delegated acts based on the EU Regulation as follows: 

-  Commission Delegated Regulation (EU) 2019/429 of 11 January 2019 supplementing 
Regulation (EU) 2017/821 of the European Parliament and of the Council as regards 
the methodology and criteria for the assessment and recognition of supply chain due 
diligence schemes concerning tin, tantalum, tungsten and gold.3 

-  Commission Delegated Regulation (EU) 2020/1588 of 25 June 2020 amending Annex 
I  to  Regulation  (EU)  2017/821  of  the  European  Parliament  and  of  the  Council  by 
establishing  volume  thresholds  for  tantalum  or  niobium  ores  and  concentrates,  gold 
ores and concentrates, tin oxides and hydroxides, tantalates and carbides of tantalum.4 

Delegated acts to amend the existing thresholds listed in Annex I of the EU Regulation have 
not  been  adopted  so  far,  as  the  Commission  is  empowered  to  adopt  them  every  three  years 
after 1 January 2021, pursuant to Article 1(5) of the EU Regulation. 

IV. 

Conclusions 

The Commission invites the European Parliament and the Council to take note of this report 
in  the  context  of  proper  exercise  by  the  Commission  of  the  powers  delegated  by  the  EU 
Regulation. 

3 OJ L 75, 19.3.2019, p. 59. 
4 OJ L 360, 30.10.2020, p. 1.  

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