CONFORMITY ASSESSMENT

1. CONFORMITY ASSESSMENT FOR THOSE WHO DID NOT ATTEND CA 101 -- • CONFORMITY ASSESSMENT (CA) PROCEDURES INCLUDE: • SAMPLING AND TESTING • INSPECTION • CERTIFICATION • MGT. SYSTEM REGISTRATION • ACCREDITATION • ACCREDITATION PROGRAM RECOGNITION • PROCEDURES USED TO CONFIRM THAT PRODUCTS/SERVICES FULFILL REQUIREMENTS IN REGULATIONS/STANDARDS. • CA SYSTEMS SHOULD BE LOOKED AT AS A WHOLE INCLUDING STANDARDS THAT UNDERLIE THEM.

2. WHY SHOULD YOU CARE ABOUT CONFORMITY ASSESSMENT? • NON-TRANSPARENT/DISCRIMINATORY CA CAN BE USED AS EFFECTIVE PROTECTIONIST TOOLS – POSSIBLY MORE IMPORTANT THAN EVEN STDS. • INCOMPETENTLY CONDUCTED/INADEQUATE CA OR POORLY WRITTEN STDS/REGULATIONS THAT UNDERLIE THEM CAN CREATE MARKETPLACE DECEPTION AND MISINFORMATION. • COMPETENTLY CONDUCTED CA BASED ON WELL WRITTEN STANDARDS CAN BE A VALUABLE MARKETPLACE TOOL – CAN’T ALWAYS ASSESS PRODUCTS BY LOOKING AT THEM. • CA REQUIREMENTS CAN AFFECT YOUR COMPANY’S BOTTOM LINE!

3. WTO TBT AGREEMENT AND CA PRINCIPLES • WILL BE VERY BRIEFLY COVERING: • WTO, • TBT AGREEMENT AS IT RELATES TO CA, • SEVERAL WTO/TBT PRINCIPLES, AND • ARTICLE 8 - PROCEDURES FOR ASSESSMENT OF CONFORMITY BY NON-GOVERNMENTAL BODIES

4. WTO AGREEMENTS WORLD TRADE ORGANIZATION (WTO) CAME INTO BEING IN 1995. WTO IS SUCCESSOR TO THE GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT) ESTABLISHED AFTER SECOND WORLD WAR. WTO IS ONLY GLOBAL INT’L ORGANIZATION DEALING WITH TRADE RULES AMONG NATIONS. WTO AGREEMENTS NEGOTIATED/SIGNED BY 144 TRADING NATIONS AS OF 1/1/2002.

5. TBT AGREEMENT • SEEKS TO ENSURE THAT REGS/STDS AND CA PROCEDURES DO NOT CREATE UNNECESSARY OBSTACLES TO TRADE. • HOWEVER, AGREEMENT RECOGNIZES THAT COUNTRIES HAVE RIGHT TO ESTABLISH PROTECTION, AT LEVELS THEY CONSIDER APPROPRIATE, FOR EXAMPLE FOR PROTECTION OF HUMAN, ANIMAL OR PLANT LIFE/HEALTH, ENVIRONMENTAL PROTECTION, OR PROTECTION OF NATIONAL SECURITY. • AGREEMENT STATES THAT COUNTRIES SHOULD NOT BE PREVENTED FROM TAKING MEASURES NECESSARY TO ENSURE LEVELS ARE MET. • AGREEMENT ENCOURAGES COUNTRIES TO USE INT’L STDS WHERE APPROPRIATE, BUT DOES NOT REQUIRE THEM TO CHANGE THEIR LEVELS OF PROTECTION.

6. TBT PRINCIPLES • AVOIDANCE OF UNNECESSARY OBSTACLES TO TRADE • NON-DISCRIMINATION AND NATIONAL TREATMENT • EQUIVALENCE OF TECHNICAL REGULATIONS • HARMONIZATION • MUTUAL RECOGNITION OF CA PROCEDURES • TRANSPARENCY

7. AVOIDANCE OF UNNECESSARY OBSTACLES TO TRADE • UNNECESSARY OBSTACLES TO TRADE CAN RESULT FROM STRICTER/MORE TIME-CONSUMING PROCEDURES THAN NECESSARY TO ASSESS THAT PRODUCTS COMPLY WITH DOMESTIC LAWS/ REGULATIONS OF IMPORTING COUNTRY. • EXAMPLES OF SPECIFIC REQUIREMENTS - INFORMATION REQUIREMENTS SHOULD BE NO GREATER THAN NEEDED; SITING OF FACILITIES TO CARRY OUT CA AND SELECTION OF SAMPLES SHOULD NOT CREATE UNNECESSARY INCONVENIENCE TO AGENTS (ARTICLES 5.2.3 AND 5.2.6). • THERE ARE MANY OTHER REQUIREMENTS IN TBT AGREEMENT.

8. NON-DISCRIMINATION AND NATIONAL TREATMENT • CA PROCEDURES ARE TO BE APPLIED TO PRODUCTS IMPORTED FROM OTHER WTO MEMBERS "IN A MANNER NO LESS FAVORABLE THEN THAT ACCORDED TO LIKE PRODUCTS OF NATIONAL ORIGIN AND TO LIKE PRODUCTS ORIGINATING IN ANY OTHER COUNTRY" (ARTICLE 5.1.1). • EXAMPLES OF REQUIREMENTS FROM ARTICLE 5.2: • IMPORTED PRODUCTS MUST BE TREATED EQUALLY WITH RESPECT TO FEES CHARGED. • MEMBERS MUST RESPECT CONFIDENTIALITY OF INFORMATION OBTAINED AS RESULT OF CA PROCEDURES FOR IMPORTED PRODUCTS IN SAME WAY AS FOR DOMESTIC PRODUCTS SO THAT COMMERCIAL INTERESTS ARE PROTECTED. • THERE ARE A NUMBER OF OTHER SPECIFIC REQUIREMENTS SPELLED OUT IN ARTICLE 5.2.

9. EQUIVALENCE • BECAUSE: (1) REACHING CONSENSUS ON REGS/STDS/CA REQUIREMENTS CAN TAKE YEARS; AND (2) TIME BETWEEN ADOPTION OF AN INT’L STD AND ITS IMPLEMENTATION BY NATL REGULATORS CAN BE SIGNIFICANT TBT AGREEMENT INTRODUCED COMPLEMENTARY APPROACH TO HARMONIZATION, KNOWN AS EQUIVALENCE. • TBTs CAN BE REDUCED/ELIMINATED IF MEMBERS ACCEPT THAT DIFFERING REGULATIONS (INCLUDING CA REQUIREMENTS) CAN FULFILL SAME POLICY OBJECTIVES.

10. HARMONIZATION • AGREEMENT ENCOURAGES MEMBERS TO USE INT’L STDS (INCLUDING THOSE FOR CA) FOR NAT’L REGULATIONS UNLESS "THEIR USE WOULD BE INEFFECTIVE OR INAPPROPRIATE" TO FULFILL A GIVEN POLICY OBJECTIVE, SUCH AS PROTECTION OF NAT’L SECURITY, PREVENTION OF DECEPTIVE PRACTICES, PROTECTION OF HUMAN HEALTH OR SAFETY, PROTECTION OF ANIMAL OR PLANT LIFE, OR PROTECTION OF ENVIRONMENT. • CA PROCEDURES THAT ARE IN ACCORDANCE WITH RELEVANT INT’L STDS ARE PRESUMED "NOT TO CREATE AN UNNECESSARY OBSTACLE TO INT’L TRADE."

11. MUTUAL RECOGNITION OF CA PROCEDURES • COSTLY MULTIPLE TESTS/PRODUCT CERTIFICATIONS COULD BE DRASTICALLY REDUCED IF PRODUCT COULD BE TESTED ONCE AND TEST RESULTS ACCEPTED IN ALL MARKETS. • ARTICLE 6.3 OF TBT AGREEMENT STRONGLY ENCOURAGES MEMBERS TO ENTER INTO NEGOTIATIONS FOR MUTUAL ACCEPTANCE OF CA RESULTS. • HOWEVER, HIGH DEGREE OF CONFIDENCE IN TESTING/ CERTIFICATION BODIES IS PREREQUISITE FOR MRA. • ARTICLE 6.1 RECOGNIZES THAT PRIOR CONSULTATIONS MAY BE NECESSARY. • COMPLIANCE BY CA BODIES WITH RELEVANT INT’L GUIDES/RECOMMENDATIONS CAN BE AN INDICATION OF ADEQUATE TECHNICAL COMPETENCE.

12. TRANSPARENCY • PUBLISH NOTICE OF PROPOSED REGULATION AT AN EARLY STAGE. • NOTIFY APPROPRIATE PROPOSED REGULATIONS (INCLUDING THOSE CONTAINING CA REQUIREMENTS) TO WTO SECRETARIAT. • PROVIDE COPIES IF REQUESTED • ALLOW TIME FOR COMMENTS. • CONSIDER COMMENTS. • ESTABLISH AN INQUIRY POINT AND RESPOND TO QUESTIONS.

13. ARTICLE 8 - PROCEDURES FOR ASSESSMENT OF CONFORMITY BY NON-GOVERNMENTAL BODIES • MEMBERS SHALL: • TAKE REASONABLE MEASURES TO ENSURE NONGOVERNMENTAL CA BODIES WITHIN THEIR TERRITORIES COMPLY WITH PROVISIONS OF ARTICLES 5 AND 6, EXCEPT FOR NOTIFICATION. • NOT DIRECTLY/INDIRECTLY REQUIRE/ENCOURAGE SUCH BODIES TO ACT IN MANNER INCONSISTENT WITH PROVISIONS OF ARTICLES 5 AND 6. • ENSURE THAT CENTRAL GOVERNMENT BODIES RELY ON CA PROCEDURES OPERATED BY NONGOVERNMENTAL BODIES ONLY IF CA BODIES COMPLY WITH PROVISIONS OF ARTICLES 5 AND 6, EXCEPT FOR NOTIFICATION.