CONFORMITY ASSESSMENT, ITS IMPLEMENTATATIONAND THE KENYAN EXPERIENCE

PRESENTATION AT ARSOKOREA AFRICA STANDARDS COOPERATION FORUM

1EVAH ODUOR

East Africa

Kenya, Uganda, Tanzania, Rwanda & Burundi

East African Community

Common Quality Policy and Infrastructure

Common Standards; 6 months adoption

Currently on Common Market Status

July 2012, Common Monetary System

July 2013,Political Federation

Market of 135 Million

2

Kenya National Quality Infrastructure Quality Policy Quality

Infrastructure Dissemination

through National Institutions

Directly tied to National Quality Infrastructure and Knowledge dissemination;

KEBS and National Quality

Institute responsibility

3

Organization; Integrated Model Preamble KEBS Organization KENAS

(Accreditation) Separated from KEBS in 2009

1. Standards Development

2. Metrology 3. National Testing

Labs including Chemical Metrology

4. Quality Assurance5. Certification Body

of KEBS6. National Quality

Institute 4

KEBS & Conformity Assessment National System Regional System International

System

Creating national resources to create the necessary capacities

Supplementing the national resources through cooperation where possible

Supporting Neighbor countries in creating viable Quality infrastructure.

5

Technical Requirements

The emergence of trade on a global scale has changed the scene introducing Technical Requirements (TRs)

TRs have become necessary basically to create Confidence that certain products &commodities comply with the regulatory requirements of the importing country.

Elements of Technical Requirements:

Technical regulations Standards Conformity Assessment

6

TECHNICAL BARRIERS TO TRADE

Whereas indeed TRs may be cited as TBTsthe WTO/TBT Agreements strikes a balancethus avoiding unnecessary barriers to trade while offering Governments THE RIGHTS to regulate imports to achieve Legitimate objectives:- Health- Safety &- Environmental protection

(Article 5)

7

PRE-EXPORT VERIFICATION OF CONFORMITY (PVoC)

The Kenya PVoC Program is based on the provision of WTO/TBT Agreement, Article 5

PVoC principles & procedures were developed in accordance with the TBT Committee guidelines exhibiting:- Transparency- openness- impartiality & consensus- effectiveness & relevance- Coherence

8

IMPACT OF SUBSTANDARDS PRODUCTS & COUNTERFEITS Substandard products and counterfeits have

lead to trade malpractice which has serious consequences on the economy. These include:- Uneven and uncontrolled spill over of counterfeit products and substandard goods on a well structured nascent industrial sector- Excessive revenue loss to the Country- Low capacity utilization of resources and non commitment in investments from industrial investors- Unemployment and general poverty; human development index deterioration

- Country risks overburdening9

CONFORMITY ASSESSMENT

Pre-shipment Verification of Conformity to Kenya Standards (PVoC);

Programme & Our Experiences

10

BACK GROUND INSPECTION OF IMPORTS - DESTINATION

Destination Inspection: June 1995 – June 2005

Difficulties encountered under Destination Inspection

100% verification not feasible Verification delays contributing to port congestion Overstretching KEBS testing facilities Establishment of Container Freight Stations (CFS) Difficulties in enforcing re-exportation & Destructions Lack of storage facilities for rejected goods …….among many others

11

PVoC BACKGROUND

Need for New Inspection Approach To ease difficulties encountered & be more

efficient and effective Need for cost-effectiveness in the

implementation of standardsTo be in harmony with the Modernization

programmes undertaken with KRA & KPA

(Scanner, Simba 2005, CBS, & Waterfront)

12

PVoC OBJECTIVES :

The program’s key objectives: Protection of public health, Consumer safety &

Protection of environment. (Does not cover all Goods imported into the country but only those in the Product list)

Block importation of counterfeit goods at source.

Prevention of deceptive practices in trade.

Efficiency in the clearance of goods hence facilitating trade.

13

DESTINATION INSPECTION & PVoC IMPLEMENTATIONTo Curb Substandards: A Two prong Approach Destination Inspection for goods not covered under PVoC (48%) Surveillance of imported goods covered under PVoC including instant

Import Standardization Mark process in addition to Diamond mark under Route A,B and C of Pvoc.

Processes Operationalizing PVoC: Appointment of PVoC Partners: International Inspection Companies

(current; China Government, GIG, SGS & INTERTEK INTERNATIONAL, Commercial Companies and capable NSBs or related governmental Conformity Assessment bodies…. International Competitive Bid

Consultative meetings with stakeholders : Government(Revenue, Port, Sanitary, Plant, Public health authorities), Business and other non state actors including shipping infrastructure agents

Legal Consultative meetings with Partners (to work out operation related issues)

Awareness programs for Stakeholders locally, abroad & Dedicated Website

14

PVoC IMPLEMENTATION Major Issue in the process is the attainment of Certificate

of Conformity (COC) PVoC Conformity assessment is based on Kenya

standards or approved/ recognized standards and technical regulations (International/National).

Guidelines for exporters and importers (including list of goods subject to the PVoC program) have been published and posted on www.kenyapvoc.com website. (Including Routes for obtaining a CoC.

The Program provides Three (3) Routes for conformity assessment having mutual recognition of other conformity assessments

PVoC Routes: A – Consignment Testing B - Product Registration C - Product Licensing

15

HANDLING OF GOODS At Entry Points

Handling of goods listed as subject to PVoC at thePorts of Entry. Such goods are allowed entry into the country if

accompanied by a CoC or the COC can be tracked on the database.

Goods issued an NCR are not to be permitted into the Country.

Goods arriving at the Port of entry without a CoC are subject to destination inspection at a fee of 15% of the CIF and execution of a security bond equivalent to the said fee where applicable (penalty)

Currently the compliance level averages 75%

Handling of goods not subject to PVoC Destination Inspection at the port of entry at no extra Cost to

the importer

16

PVoC Program

PVoC is an exporter pay program

KEBS’ Benefits from the PVoC program is through capacity building,Technical cooperation & support by the PVoC Partners

17

Emerging Issues During Implementation

The PVoC programme has far reaching implication on trade issues, the economy,health,safety,environment,hence the interest it has generated at the EAC & COMESA forums

Shortcomings/threats Costs of the PVoC services Delays in Inspection & Issuance of CoCs Funding of the Program

18

Emerging Issues During ImplementationCHALLENGES Handling of small shipments of low value. It was being

effected through a consolidated inspection procedure but currently open for abuse through third countries and different airports

Exemption of raw materials from the program Handling of airfreight consignments Development of the PVoC Product List (interests) Lack of ISO/IEC accredited laboratories in many parts

of Africa; however, in developed quality infrastructure countries such as Korea, the challenge is time for inspection

Absence of PVoC partners in some parts of the world (can sign agreements with national systems)

Program not covering used automotive spare parts Handling of goods from EAC and COMESA countries

19

Benefits of the PVoC Program

Block unfair competition from substandard products and especially imported counterfeit goods

Reduce delays/ congestion at the Ports of entry. And support other modernization programs currently being undertaken at the Port [e.g. Waterfront, Simba 2005, Community Based System (CBS) etc.]

Other than Health & Safety, Contributes Greatly to Environment Protection especially w. r. t damping, E-Waste and Used Motor

Vehicles

Reduce importation costs- e.g demurrage charges arising as a result of goods being held at port awaiting test.

Eliminate the loses to importers which would result from having to re-export products found not to comply with the Kenyan technical regulations and standards requirements.

20

CONFORMITY ASSESSMENT

Destination Inspection & PVoC

21