Product Conformity Assessment (PCA)

1. Product Conformity Assessment (PCA) September 2013

2. What is a Conformity Assessment Program? • Product Conformity Assessment is a solution designed to ensure that specific products meet the requirements of the technical regulations and standards set by a regulatory authority in the importing country. • The program consists of verifying Product’s compliance with the requirements of applicable standards and technical regulations. • The evaluation is done following the review of reports from one or a combination of interventions such as laboratory testing, physical Inspection and factory audits. • The conformity of the products is evidenced by the issuance of a Certificate of Conformity usually requested for customs clearance.

3. Program’s Objectives Product Conformity Assessment is needed to: • Prevent the importation of unsafe, sub-standard and/or counterfeit goods • Protect consumer’s health and safety and the environment • Safeguard local producers & Industry from unfair competition • Reduce the risk that the domestic market becomes the dumping ground for nonconforming products • Facilitate customs clearance process • Overcome the risk of rejection of the products in the country of destination • Promotes the image of the quality of the products

4. Benefits for the exporting countries • Improves economic growth and development • Facilitates trade and access export markets ( product counts with an added value) • Reduces the risk of rejection of the products by the importer and by the local market at the country of destination • Provides good information of the quality of the products (certified products = quality guarantee) • Generates trust in the client countries • Consumer confidence in products and services • Image of quality • Helps the private sector to solve the quality , compliance and certification problems

5. Conformity Assessment procedure • Depending on the nature of the product and certification scheme, the verification procedure may include one or a combination of the following activities: • Product testing • Physical Inspection • Factory and desk Audits • Documentary review • Product’s conformity with defined requirements is evidenced by a document of compliance (e.g. Certificate of Conformity) issued by the Certification body following applicable certification standards (e.g. ISO Guide 65)

6. Parties and activities implied in the Product Conformity Assessment Applicant Product Information / Request for Certification Certification Body (SGS) Product Experts (evaluation and analysis) Certification Manager (Decision to certify) TestReport Accredited Laboratory Audit Report Inspection & Certification Body Inspection Report

7. More frequent questions on the need of the Certificate of Conformity • Why is it needed? • Because the presentation of the CoC is a mandatory requirement in the importing country. • Are other certificates recognized or validated? • The fact of having other certifications does not exonerate the exporter or producer to obtain the CoC for a specific transaction • Having other types of certificates might help to reduce the scope of the intervention • Where is required? What for? Who needs it? • Destination Customs To clear the consignment The importer • In the Bank To negotiate the LC The exporter • In the Ministry / Bank To open an Import License The exporter

8. Some of the programs under Product Conformity Assessment Russia, Belorussia, Kazakhstan Customs Union Saudi Arabia Kurdistan region, Republic of Iraq Kenya Nigeria Algeria Ethiopia

9. Algeria Mandate authorized by the Central Bank of Algeria The scope of the program is to ensure conformity of imported products to the applicable technical regulation and standards All transaction regulated by a letter of credit / cash against documents or being composed of consumer goods. The attestation is through the issuance of a Certificate of Conformity (CoC) / “Certificat de Controle de Qualité des Marchandises” The purpose is the goods clearance or the letter of credit negotiation The selection of the Certification body can be either Exporter / Importer’s choice

10. Saudi Arabia • Mandate authorized by the Ministry of Commerce and Industry • The scope of the program is to ensure conformity of imported products to the applicable technical regulation and standards • The attestation is through the issuance of a Certificate of Conformity (CoC) • The purpose of attestation is Custom clearance and Saudi Authorities post market surveillance • The selection of the Certification body is Exporter’s choice

11. Kurdistan / Iraq • Mandate authorized by Kurdistan Standardization and Quality Control Administration • The scope of the program is to assess and verify the conformance with Iraqi/Kurdish Standards and/or approved International Standards and certification of each compliant shipment • All consignments of imported goods subject to the Program • The attestation is through the issuance of a Certificate of Conformity (CoC) • The purpose of attestation is Custom clearance and import of goods in Kurdish / Iraqi market • The selection of the Certification body is Exporter’s choice

12. Nigeria • Mandate authorized by The Standards Organisation of Nigeria (SON) • The scope of the program is to assess and verify the conformance with Nigerian Industrial Standards and/or approved International Standards and certification of each compliant shipment • All consignments of imported goods subject to the Program • The attestation is through the issuance of a Product Certificate (unregistered, registered or licensed) and consequent issuance of Certificate of Conformity for each shipment. • The purpose of attestation is to obtain the SONCAP certificate in Nigeria directly. • The selection of the Certification body is Producer/ Exporter’s Choice

13. Kenya • PVoC program launched by KEBS (Kenyan Bureau of Standards) • Three certification routes: • Route A: consignment inspection and testing • Route B : Product registration • Route C: Licensing • Testing should be performed in accredited ISO/IEC 17025 laboratories • COC is a mandatory customs clearance document for each consignment. • Goods arriving without COC will be denied entry or penalties will be imposed at KEBS discretion.

14. Russia, Belorussia, Kazakhstan – Customs Union Since 2010 Customs Union between Russia, Belorussia and Kazakhstan and creation of a Unique Certification System with Technical Regulation (similar to EU Directives) valid on the territories of these Countries. Gost Certificate System still exists for those products for which Technical Regulation has not been issued yet. Conformity to products to Technical Regulation Customs Union is assessed by issuance of a CoC or DoC to TR CU. Such documents can be issued only by Certification Bodies accredited for Customs Union. Only goods with HS code indicated in the TR CU are subject to CoC or DoC TR CU. The purpose of the CoC or DoC TR CU is Customs clearance, post market surveillance, installation and putting into operation. The selection of the Certification body is Exporter’s choice

15. Fees • PCA fees depend on the scope of the program as well as the type and the level of interventions • In some of our programs, fees are established by our Principals • The fees are generally borne by the exporters

16. SGS Network At the end of 2012 we employed approximatively75.000 employees. SGS operates a network of over 1,500 offices and laboratories around the world. Over 31,500 employees in Europe, Middle East & Africa Over 17,250 employees in North and Latin America Over 26,250 employees in Asia/Pacific

17. Thank you for your attention