ANNUAL GENERAL

MEETING 2012

REPORT FROM

DIRECTOR GENERAL

About IFIA

• A federation of organizations that provide

testing, inspection and certification (TIC)

services, internationally

• Established in 1982

• Global membership of 40 TIC companies

- A combined turnover of over €12 billion and 200,000

employees

- Approximately 44% of membership turnover in

Europe, 26% in Asia Pacific, 20% in North America and 10% Rest of World

Objectives

• To improve the methods, standards, safety

procedures and rules used by its members

• To establish legally defensible terms and

conditions of business

• To promote global recognition of the profession

as being associated with trust and integrity

• To defend the interests of its members and

promote the value of their services

IFIA Membership 2012 A1 (turnover >€800 Million) ALS Group Bureau Veritas Intertek SGS TŰV Rheinland Underwriters Laboratories B1 (€300M - €500M) Canadian Standards Association B2 (€100M - €300M) Cotecna Saybolt C1 (€10M - €100M) Alfred H Knight Amspec Camin Cargo Control Certispec Control Union World Group Geo Chem Overseas Merchandise Inspection (OMIC) Schutter Rotterdam Sucofindo

C2 turnover (<€10M) Abeni Surveyors Baltic Control Cargo Inspections Group Coastal Gulf & International Control Union International Control Quality Inspecoes Cugnier Certificadora CWM Survey & Inspection Engineering Bureau Franke Helmsman QTS Inspecta International Inspekt RGH Maloney Commodity Services National Marine Consultants Oil Test Internacional P T Carsurin Ravi Energie Seatrans Consulting SGT Services (Thailand) SOEX Superinspect Universal Inspectorate & Services

Finances

• Range of subscription £4150 (C2) - £40,000 (A1)

(constant for nine years)

• Member subscriptions for 2013 estimated to

generate £450,000

• Projected total income 2013: £700,500

• Projected expenditure 2013: c £695,200

• Main additional income generator (balanced by

expenditure): Inspector Certification (Petroleum)

• Reserves at start of 2012: £412,864

Committees

Agricultural & Vegetable Oils

Petroleum & Petrochemical Metals & Minerals Government Services

Industrial Services

Consumer & Industrial Products

Social Auditing

Accreditation

Compliance

Legal

Membership/corresponding members

• All IFIA members active in a sector are

encouraged to participate as committee

members

• Those unable to do so in sectors where the

committees is developing material that is

binding on the membership automatically

become corresponding members

Agriculture & Vegetable Oils

• Code of Practice covering key elements of the service

members provide under development to replace old

Guidelines. Particular emphasis on the contractual context

• New bulletins

•The issuing of Phytosanitary Certificates

• Certification of “Sound, loyal and merchantable”

• Inspector Certification Programme in vegetable oil

inspection area to be available on-line as from next year

• Active participation in GAFTA, FOSFA and through

ASCB (Brazil) with ANEC (Brazil)

Petroleum & Petrochemicals

• One Committee with two Regional Technical Committees

(i) Americas (ii) Africa/Asia/Europe (AAE)

• Code of Practice underway to cover key elements of the

service with particular emphasis on safety

• Set of nearly 30 bulletins under review/update

• Collection of safety data

• Inspector Certification becoming available on-line

globally. Now self financing in the Americas as well as

AAE

Metals & Minerals

• Draft Code of Practice in relation to the integrity of data

handling and Umpire Analysis under preparation in a sub-

committee

• When this is agreed, the full Committee will be asked to

identify what should be covered in a broader Code of

Practice to replace the existing Guidelines

Government Services

• The IFIA Code of Practice on Consignment Based

Conformity Assessment has now been published.

• An auditor check list has been developed for this, and

the five IFIA member companies presently engaged in this

service will undergo annual audits starting in 2013 (as for

PSI)

• Liaison with WTO, WCO and EU DG Trade to give a

positive impression of independent inspection to the

parties that are developing international trade agreements

Industrial Services

• Newly re-formed Committee identifying areas where

conflicting standards, or the absence of standards, inhibits

business

• To be followed by prioritizing actions to develop needed

solutions with appropriate parties

• Discussion with Shell over unreasonable demands on

internationally organized inspection companies under their

new Supplier Qualification System

Consumer & Industrial Products

• Survey of consumer products 1) submitted to CIPC members for testing and 2) purchased on the European market with CE marking but no independent testing now completed over three years

• Results demonstrate high level of non-compliance (82%), including 8% significant safety failures

• These results being used to spearhead a campaign (including forming alliances with consumer groups and “good” industry) for mandatory third party testing for regulated products as against supplier’s declaration. Contribution to partnership with CEOC

• Action in US towards OSHA, CPSC, NIST etc

• Consideration of a mutual recognition program for certain product certification

Social Auditing

• The five IFIA Members engaged in his service find that

– the procedures they have in place

– the communications they have with each other

– they can demonstrate that they have tackled corruption

now enable them to deliver this service effectively

• The IFIA system is therefore being maintained and expanded

beyond China

Accreditation

• Key principles based on opposing accreditation activities

that cause unnecessary cost reconfirmed as IFIA’s input to

the accreditation system

• Worked with CEOC to prevent ILAC (international

accreditation) imposing its own requirements over and

above the new ISO/IEC 17020 on inspection companies

• New IFIA representation on EA Advisory Board

(European Accreditation) provides basis for alliances in

pursuing our aims

Compliance

• The IFIA Compliance Code has been updated

• to specifically require that IFIA companies in group

membership demonstrate to their auditors that their

compliance programmes are being properly

implemented throughout every branch of their

organisation

• to clarify the business relationships to which members

are expected to extend their compliance programme

(Intermediaries, J V Partners, Agents, Subcontractors,

Franchisees, but NOT Contractors or Suppliers)

Legal

• The IFIA Membership requirements have been

tightened to include:

• An absolute requirement that subsidiaries may not

become members unless any parent or sister

company engaged in TIC joins as part of the same

membership

• New provisions to include Health and Safety

management

• Clearer definition of the “organization” that

constitutes a member’s group membership, all of

which has to be subject to IFIA’s membership

requirements

Issues addressed in Council

• MoU with CEOC

• Brazilian Association of Supervisors and Controllers (ASCB)

• Systems Certification and IFIA

• Government owned/controlled TIC organizations and IFIA

• Use of IFIA’s Associated Membership and Affiliated Body

categories

• Lobbying Strategy

International Federation of Inspection Agencies

1 Paternoster Square

London EC4M 7DX

United Kingdom

T: +44 20 7653 1604

F: + 44 20 7236 1977

www.ifia-federation.org