Master plan for Establishing Certification Scheme in Peru (Electrical & Electronics Field)

1. Master plan for Establishing Certification Scheme in Peru (Electrical & Electronics Field) July 20, 2012

2. Contents 1 Outline of Cooperation 2 Results of the research 3 Certification Scheme Proposal

3. Outline of Cooperation

4. Background  Korea became member of OECD DAC(Development Assistance Committee) (Jan. 2010) - Plans to expand ODA up to 0.25% of GNI by 2015 (average of DAC: 0.31%) Korea ODA Record 2011 Busan High level forum on Aid  Korea had received development assistance from other countries (Independence, Korean war~1995) - Total amount approx. 12.7 billion US$ (1945-1990’) • Korea-Peru FTA effective • - Article 7.8 Technical Cooperation on TBT 1950 Korean War Korea-Peru FTA

5. History of Cooperation

6. Program Outline for the master plan AS IS Status of Peru •  Consumer Protection •  Foster related • Industry Korean Scheme International Scheme • KC Scheme •  Experience • International • Certification • Scheme of • advanced countries Guide Reference TO BE Master Plans for Certification Scheme 2

7. Results of the research 1. Current status of Peru Related to Industry, Products Related to Certification scheme Related to Legal system

8. Electrical/Electronics Industry <Economically active population per economic sector (Ratio)> Note: Economically active population in accordance with 2007 national household budget survey * Data: DNPE (2010). 2010 KSP (KDI) Re-citation ▶ As shown on the table, agriculture, stockbreeding, and forestry occupy 32.1% of the total population. Commerce (16.9%) and government service (11.4%) follow. The other production sector is very weak with 1.2%.

9. Electrical/Electronics Industry <Export and Import Amount of Electric/Electronic Products> <Total Export and Import Amount between Korea and Peru > • Data: LAIA-Latin American Intergration Association/ ALADI-Asociacion de Latinoamercia de Intergacion) ▶ Peru’s electric/electronic export amount is around 3-4% compared to import amount ▶ Import share from Korea is about 2.3%

10. Hazardous cases of products Case Data collected from Peru Ministry of Energy and Mining (MINEM)

11. Hazardous cases of products Data of Product Sales Company After Service • Case 1 • - Region: Carhuaz-Huaraz (February 2010) • - Product: 29inchCRT TV • Situation: Picture tube exploded and caught on fire while watching TV. The accident happened in front of a user, so the fire didn’t spread elsewhere. • Cause: Manufacturer found thunder and lightening were the cause. Since the alpineregion is related to insulation, there may be a relationship between the accident andthe region. <Case of TV>

12. Hazardous cases of products • Case 2 • - Region: Chosica-Lima (April 2011) • Product: Microwave Oven (MWO) • Situation: The product caught on fire while not in use and the control panel in front of • the product melted. The fire did not spread anywhere else. • Cause: Manufacturerassumes the accident is from liquid entering the equipment, but the exact cause is unknown. <Case of Microwave Oven> * Data: BElectronics>

13. Consumer claims <National Complaints per Electronic Product (2006~2010)> * Data: SAC (Complaint Service)-INDECOPI (Patent, Fair Trade, Knowledge Property Right, Consumer Protection Agency) ▶ TVs (21.59%), refrigerators (15.59%), washers (7.83%), and audio devices (6.55%) are generally used products for most consumers. Many complaints are from devices that are constantly connected to a power supply.

14. Consumer claims <Reason for Complaint per Electronic Product(2006~2010)> * Data: CPC (Consumer Production Committee)-INDECOPI (Patent, Fair Trade, Knowledge Property Right, Consumer Protection Agency) ▶ Breakdown and defect (67.74%), repair (8.78%), and warranty (6.99%) show that complaints due to breakdown or defect form the biggest proportion.

15. Consumer claims <Claim per Product and Content> ▶ Products related to reported complaints/claims in the past year and a half show 10 cases related to refrigerators, 8 for TVs, and 5 for washers, which forms a large proportion. Safety-related contents were 73% of the total claims. In specific, 53% was for overheating, 18% was for breakdown of product function, and 13% was for water leakage.

16. Product usage environment Grounding Environment ▶ Ministry of Energy and Mining assumes the household grounding rate to be around 4-5%. ▶ Protection grounding installation has been promoted for the last 14 years, but is still not yet adequate. ▶ To solve this problem, an international standard such as IEC must be added to recognize grounding as a type of protection to establish Peru’s unique national Deviation.

17. Product usage environment Indoor Wiring <Peru Household Wiring and Circuit Breaker Box> ▶According to fire related institutions regarding indoor wiring, 60-70% of fire causes are from electricity facility infrastructure. The main reasons for this are from using parts with improper capacity, and using double wiring for homes in building wiring. ▶From observation of houses and a few buildings, wires were not used in according to standard or proper use. Also, connections were improper and inadequate insulation was used. In particular, the panel board must be in accordance with standards, but was instead replaced with lead wires for soldering.

18. Product usage environment Power Connection Parts (Plug, Socket-outlet, etc.) <Various Socket Outlets and Plugs of Peru> ▶ Although the form doesn’t match or the connection is improper, people use the products regardless of safety as long as the product operates. ▶ Ministry of Energy and Mining enforces legal standards of plug and socket outlets, and unified them into 2 types of 10A and 16A for 220V. But there is no certification system for socket outlets and plugs, and thus it is questionable whether quality parts in accordance with standards will be installed in buildings.

19. Results of the research 1. Current status of Peru Related to Products Related to Products Related to Certification scheme Related to Legal system

20. Peru standardization system and national standards Current Status of Standardization Technical Committee by Category (As of 2009) INDECOPI Standardization Technical Committees by sector (updated 2009) Chemical Technology, 7 Environment, Health Protection and Safety, 12 Building materials, 6 Management Systems, 9 Agricultural and Food, 42 Textile and leather, 5 Others, 29 ▶ The agriculture and food category have the most technical standardization committees with 42, environment, health, and safety-related committees total 12, electric and electronic related committees (energy efficiency included) are 3, and an electric/electronic product committee is being prepared. * Data from; INDECOPI

21. Peru standardization system and national standards Current Status of Standardization <Current Status of Standardization by Year (As of September 2010)> <Current Status of Standardization by Category (As of 2010)> * Data from; INDECOPI * Data from; INDECOPI ▶ As of September 2010, there are total of 4,339 standards (NTP) in Peru, and approximately 200 standards are enacted every year. ▶ The major categories for standards are agriculture and food related with 29%, with fiber (23%) and chemicals (18%) following. The electric and energy category constitutes only 4%, due to a weak industry in the related category and a lack of demand for standards. ▶ There are 2 technology committees related to electric/electronic parts, and there are a total of 53 enacted standards including 30 for wiring and 23 for switch and protection devices.

22. Conformity assessment system and infrastructure Current Status of Accredited Conformity Assessment Body

23. Conformity assessment system and infrastructure < Accreditation Scope of Certification Bodies> <Accreditation Scope of Testing Bodies> Number of Accredited bodies Number of Accredited bodies Category ▶ Food and beverage, publication, printing, and metal product categories are assigned to more than 3 out of 11 certification bodies. The electrical/electronics product category is not accredited. ▶ Accredited testing bodies by ISO/IEC 17025 are mostly chemical, microorganism, organic functions test, and physics categories. Again, electrical/electronics category is not accredited.

24. Conformity assessment system and infrastructure < Accreditation Scope of Quality System Certification Bodies > < Accreditation Scope of Calibration Body > Number of Accredited Bodies Category ▶ In the case of Calibration bodies, 7 were accredited for mass, indicating those affairs related to measurements of weight. PERU-SELEC is the only institution accredited for calibration of electricity resistance , voltage, etc. ▶ There are 2 institutions accredited for quality system certification, and both were selected for Peru’s major industries food, fiber, metal, transportation, vehicle repair, etc.

25. Conformity assessment system and infrastructure Current Status of Peru’s Mandatory Certification System

26. Results of the research 2. International Certification Scheme

27. WTO Good regulatory practice With the popularity of its “Good Regulatory Practice” policy spreading across the advanced world and many developing countries, the following areas of the policy’s universal principles are playing a pivotal role in regulating internal commerce, market opening, and investment stimulation. Use of internationally harmonized standards and technical regulations Avoidance of unnecessary trade restriction High quality technical regulations Recognition of other countries’ technical regulations Transparency and Openness in decision making Regulatory coordination and consistency Non-discrimination <Elements of Good Regulatory Practice with respect to Technical Regulation> Good regulatory practice

28. International certification scheme(IECEE CB Scheme) ▶ An international certification scheme established and operated by IECEE underIEC ▶ Supported by 53 member nations around the world, through mutually accepting test results and meeting the goal of eliminating obstacles in the international trade ▶ Test reports are reviewed among member nations for international credibility; redundant tests from individual countries can be avoided. ▶ Applied to: Batteries, components such as cables or codes, home and information appliances, etc.

29. Results of the research 3. Overseas Certification Scheme

30. Certification Schemes in Europe ▶ CEMarking: Designed to break down technological, physical, and financial barriers between EU nations, this Marking was introduced through various different approaches. ▶ The CE conformity assessment procedure is divided into 8 modules, selected according to the pertinent EU guideline. ▶ The most outstanding feature of CE for electrical and electronics items is the “Self Declaration of Conformity (SDoC).” ▶ Appliances subject to Low Voltage Directive (LVD) are designed to use a rated voltage between AC 50~1000V and DC 75~1500V. ▶ Auditing the market through a regularly scheduled or surprise visit is allowed, by sampling and testing the product. Procedure <CE Certification Procedure for Electrical and Electronics Products > • Ex) Vacuum cleaner(AC 230V, 50Hz) • Apply LVD andEMC directives • LVD annex I, EMCD annex I • Apply Module A • Safety: EN60335-1, EN60335-2-2EMC:EN55014-1(-2), EN61000-3-2(3-3) • Write technical documents (TF) • Declaration of Conformity (DoC) • Attach CE-Mark • Review governing directives • Identify essential requirements • Review conformity assessment process • Review applying standards and tests • Write technical documents (TF) • Declaration of Conformity (DoC) • Attach CE mark

31. Certification Schemes in U.S. ▶NRTL Certification: Run by private institutions appointed by the federal government to ensure the safety of workers on the field. (Currently, 16institutions are participating) ▶ Administrated by OSHA (Occupational Safety and Health Administration) under the Occupational Safety and Health Act (29 USC 651and29 CFR 1910.7). ▶ Applied to 700 articles in 37 areas including wires, electric equipment, and extinguishers. ▶ Applying standards such as ANSI, ASTM, FM, and UL <Applicable Procedures for NRTL Certification > • Test and assessment conducted directly by NRTL • Use test results fromindependent institutions other than NRTL • Use product assessment data fromindependent institutions other than NRTL • Use data from tests conducted in the presence of inspectors with NRTL • Use test data from contractors of NRTL • Use product assessment data from contractors of NRTL (requires review by NRTL prior to market release) • If the customer makes minor changes to the product, a corresponding certification is issued and maintained • Use product evaluation data from institutions who joined the IECEE CB Scheme (or CB Scheme reports) • Use data from sources other than tests or assessments by agencies or subcontractors of NRTL

32. Certification Schemes in Developing World

33. Central and South American Nations and Institutions operating Certification Schemes

34. Results of the research 4. Korean Certification Scheme

35. History of Certification scheme Unit: US $ Year Unit: US$ million Peru, 35,565 Year

36. Development of standard • 1962-2000 : Zero to 10,000+ KSs • Production Based Standards; Mainly from JIS, BS, DIN, ASTM, etc • 2000-2010 : 10,000 to 20,000+ KSs • Function based Standards; Mainly from ISO, IEC Imitator +Innovator = Imovator Imitator Mainly from ISO, IEC Mainly from JIS, BS, DIN, ASTM, etc

37. Semiconductor HCI Product 80% Wig Textile Automobile Semiconductor, Mobile Phone, DTV, Display, Automobile, Shipbuilding, etc. 50% Light Industry Product 14% Agricultural Product 6% 1980 1990 1960 1970 2000 Industrialization(Exporting products) Changing Export Structure: from Agriculture to Light Industry to HCI Export proportion

38. Proposal for Peruvian safety certification system Certification system Target Products Testing and certification body Follow-up inspection Law Enactment Implementation system and detailed plan Required budget Expectations

39. Selecting a certification system Certification systemproposal (ISO/IEC Guide 67) *Consider manufacturer’s burden and Authority’s management costs

40. Proposal for Peruvian safety certification system Certification system Target Products Testing and certification body Follow-up inspection Law Enactment Implementation system and detailed plan Required budget Expectations

41. Considerations when selecting an item • <Important application principle> • Is it hazardous product? Does product itself possess dangerous nature? • Has product exposed to actual dangerous situation and have a hazardous accident? <High-risk components or products>

42. Electrical accidents(Fire) in Korea Statistics on disasters by electricity <Analysis of electrical fires over the recent 10 years> <Electrical firedistribution by cause, 2007> No. of fires Year < Electrical firedistribution by cause – 10 years trend> < Electrical firedistribution by equipment, 2007> 11,796 12,300 11,204 10,,560 10,807 11,202 10,670 10,450 9,991 9,392 No. of fires Year

43. Statistics on disasters by electricity Electric shock accident in Korea <Electric shock accident distribution by type, 2007> < Electric shock accident distribution by electric equipment, 2007> < Electric shock accident distribution by voltage, 2007> 7 1 279 139 Accident voltage 16 8 19 9 1 161 7 0 3

44. Electrical accidents in overseas countries Statistics on disasters by electricity <USA. Distribution by electrical fire by equipment> <Canada, Fire distribution by ignition equipment, 2002> Fire. Electric equipment Reference: 28,300 electrical fires occurred in residential buildings on average every year from 2003 to 2005. Source: USFA, Residential building electrical fires <Japan, Fire distribution by electrical instrument, 2006> <Electric shock death per million people> Electric shock death per million people

45. <Summary of the target products by accident statistics and use frequency >

46. Selecting a target product group <Application priority of the product group to manage> (Hazard assessment to select the priority of the item by product group) Urgency of infrastructure establishment • - Legend- • Wires and cords • Switches • Connectors • Household equipment • AV equipment • Lighting equipment 3 1 High 2 4 6 5 Low Low High Degree of hazard

47. Selecting detailed management targets by electrical and electronics product group

48. Selecting detailed management targets by electrical and electronics product group

49. Proposal for Peruvian safety certification system Certification system Target Products Testing and certification body Follow-up inspection Law Enactment Implementation system and detailed plan Required budget Expectations

50. Acceptance of the test report Management method of testing, certification body Recommended Recommended Recommended * CB Test Report can be accepted regardless of IECEEE membership status by Peru decision