United Nations Economic Commission for Europe Rio-de-Janeiro, December 2006 Good regulatory and CA...

United Nations Economic Commission for Europe

Rio-de-Janeiro, December 2006Rio-de-Janeiro, December 2006

Good regulatory and CA practices

at UNECE projects


Plan of the presentationPlan of the presentation

A. About UNECE

B. Good Regulatory Governance – current tendencies (good regulatory practices)

C. WP.6 and GRP

D. WP.6 and GCAP

E. Market surveillance

F. Conclusions


50 - 80 % of World Trade is 50 - 80 % of World Trade is between UNECE Member Statesbetween UNECE Member States

(55 member States, Europe, North America, CIS)(55 member States, Europe, North America, CIS)

EELV

LT

BYPL

UA

ROHU

BG

TRGR AZ GEAM

KG

FI

CY

SENO

DK

DENLIE

ESPT

IT

CH AT

GB

HRBA

ALMK

FR

BECZ

M DSK

SL

YU

LKZ

RU

TMUZ

TJ

IS

MT

IL

CA

US


The UNECE’s Support to The UNECE’s Support to Governments and BusinessGovernments and Business

(since 1947)(since 1947)

Legal Instruments (conventions, standards, regulations …)

Trade & Transport Facilitation

Harmonization & Standardization


TRADE AND TRANSPORT TRADE AND TRANSPORT FACILITATIONFACILITATION

Reducing trade transaction costs through:

Harmonisation and Simplification of Procedures

Standardisation of Documentation and Information Flows


Trade Facilitation: Trade Facilitation: AchievementsAchievements

A. UN layout key for trade documents

B. UN/EDIFACT

C. Codes for trade locations

D. UN/CEFACT supply chain reference model

E. E-commerce standards

F. “Single Window”


TransportTransport

Regulations: Regulations on vehicles’ construction

Transport of dangerous goods

Agreements:

International transport of goods (transit under TIR convention)

Jaimurzina:

TIR stand for “Transport internationaux routiers”

Jaimurzina:

TIR stand for “Transport internationaux routiers”


HARMONIZATION &HARMONIZATION &STANDARDIZATIONSTANDARDIZATION

Good Regulatory Practices in Trade

Agricultural Quality Standards

Harmonization of Statistical Data Definitions and Collection


Quality Standards for:Quality Standards for:

• Fresh and Dried Fruits and Vegetables

• Meat

• Potatoes

• Egg & Egg products

• Cut flowers


Good Regulatory PracticesGood Regulatory Practices

Working Party on Regulatory Cooperation and Standardization Policies (Working Party 6)

International Model for Technical Harmonization (UNECE Recommendation “L”)

Promoting good practices in standardization, regulatory techniques and market surveillance


Good Regulatory Governance & Practices

Why Good Regulatory Practices (GRP)?

GRP:

= Good regulatory quality

= Good governance

= Gains for society

= Regulatory impact assessment

= Cost efficiency for society


Regulatory differences:possibilities to improve

National (Brazil): Starting a business takes:• 19 days in Minas Gerais• 152 days in São Paulo

In international context, based on an OECD study of 155 States, at a world level:• Minas Gerais is ranked 30• São Paolo is ranked 149 (Source "Doing Business in Brazil", IFC/World Bank publication, 2006)

International GRP context: • Work at OECD, APEC, US, EC and EU countries, etc.• GRP training (on RIA-College of Europe)


From « culture of control » to « culture of shared responsibilities »

“Traditional” regulatory approach: Control inspect punish

“Smart” regulatory approach: Focus on outcome (not on tools/means)

Cost/benefit assessment through consultation, balance of interests


Regulatory approaches « culture »

“Traditional” “Smart”Sectoral Coordinated

One time Systematic/monitored

Conventional means Tailored

Impose on market Use market

Procedure – focus Outcome/objective

Top – down Bottom-up

Authorian Transparent/Consultation


« Smart » regulation provides:

Problem definition/risks profile/scenarios

Objective of regulation/incentives

Solution justification (alternatives)

Effectivness to reach the outcome

Benefits/costs calculation

Proportionality of chosen measures

Consistent/simple (versus legislation)

Overall social net effectcost-efficienct outcome for society


Consulation with civil society -WHY ?

Transparency = understanding = compliance

Reduce regulatory failures ( problem or its "shadow" ?)

Best solution = technological or structural ?

Result: « Smart" regulation, partnerships, good governance


GRP & WP.6GRP & WP.6

Technical regulations – where to start?

Should you regulate?

If yes, what is the potential impact?

Based on impact assessment, how you shall regulate?


International UNECE Forum on Common International UNECE Forum on Common Regulatory Language for Global Trade,Regulatory Language for Global Trade,

Geneva, 20-21 June 2006Geneva, 20-21 June 2006

“UNECE region plus…” event

Good regulatory practices (WTO, OECD, ISO, UNECE)

Regional experiences (EU, North America, ASEAN, MERCOSUR, CIS)

To regulate or not to regulate…


Regulatory Method - « self-regulation » (examples)

Information awareness (by/for industry and consumers/users). standards, voluntary certification, quality/environment management schemes, industry codes (company; sectoral; multi (uni) lateral; "recognized", etc.), customer charters, official codes/guidelines…

Need for regional/international convergence?


Regulatory Method - Binding Regulation(examples)

Performance regulations; mandatory information/labelling; economic incentives (taxes, subsidies, "user pay" charges, loans/loan guarantees, insurance, public expenditure, public ownership, etc.); certification; …

Need for regional/international convergence ?


Promoting Good PracticesPromoting Good Practices

The Team of Specialists on Standardization and Regulatory Techniques (“START”)

The Advisory Group on Market Surveillance (“MARS” Group)

Promoting Good Governance including dialogue and cooperation with the private sector and NGOs


International Model for Technical International Model for Technical Harmonization (REC. L)Harmonization (REC. L)

PRINCIPLES

1. National technical regulations on the basis of international (regional) standards

2. "Common regulatory objectives" on the basis of mutually agreed safety and other legitimate requirements

3. Regulators should not harmonize existing regulations, but rather should try to agree on what safety (etc.) levels they would like to achieve


International Model for International Model for Technical HarmonizationTechnical Harmonization

Regional application: CIS agreement on technical harmonization

Balkan project: training of officials on good regulatory practices

Sectoral application: The TELECOM initiative Earth-Moving Machinery Safety of Pipelines Initiative (2005) Equipment for explosive environment. (June

2006)


UNECE/SIDA Southeast UNECE/SIDA Southeast Europe Regulatory ProjectEurope Regulatory Project

Identify regulatory-related obstacles to regional trade

Agree on national and regional regulatory priorities

Propose solutions for regulatory convergence

Promote good regulatory practices


Good Practices for Good Practices for Conformity Assessment Conformity Assessment

(GPCA)(GPCA)WTO principles transformed in GPCA:

SDoC (pre-requisite: liability laws for manufacturers and efficient market surveillance)

Acceptance of CA results («one test-one certificate-accepted worldwide»)

Less certification (voluntary compliance means?)


Conformity Assessment Conformity Assessment at WP.6at WP.6

A. National and regional developments (laws, procedures, changes in infrastructure)

B. Accreditation developments

C. Quality and environmental schemes (quality national policies, awards, integrated schemes, public governance, etc.)

D. Definitions (support to ISO work )

E. Market surveillance


Market Surveillance (MS) Market Surveillance (MS) at WP.6at WP.6

UN General Assembly decision 54/449 of 22 December 1999 (United Nations Guidelines for Consumer Protection)

International MS Forums (2002 & 2005)

Etablishing «MARS» Group in 2003


Control of Safety(at which stage and how?)

Design Production Placing on market

1. Certification Market surveilance

From certification to MS (& maybe to SDoC)


Market Surveillance (MSMarket Surveillance (MS))

Common feature- no (few) common features

Differencies in institutional structure (number of bodies, to whom repport),

Scope of work (safety or plus quality, IPR), legal basis, …

Less certification more market surveilance?


EU (EC) requirements for national MS organization

organize communication and national coordination between relevant authorities (incl. labour inspectorates and customs)

establish necesary procedures (for non-compliant products) in order to: Record of complaints/reports and follow-up Monitor accidents and damage to health, public

interest Establish/implement MS programmes for

specific categories of products or risks


EU (EC) requirements for MS measures (authorities shall:)

Perform checks on safety (and other issues) on adequate scale through appropriate controls (documentary, or physical, laboratory checks)

Apply best practices and sound resources

Take necessary representative samples of products for controls

Require that necessary documentation/information is available by economic operators (manufacturer, importer, distributor)

…/…


Take appropriate necessary national measures to alert/inform users of the risks from dangerous products placed on the market

Cooperate with economic operators on actions to avoid or reduce risks caused by their product

Carry out other duties with due independence and observe confidentiality and professional secrecy

Take appropriate measures when a dangerous product is detected (or sufficient reason to believe it) on the basis of a risk analysis (taking into account the precautionary principle)

Contribute to and use EU integrated information system on MS


EC Proposals for EU MS Electonic Information System

Archiving of data

Information exchange on MS activities in general

Particular MS information (MS statistics, information by sector, by product, ...)

Risk analysis methodlogies and results

Anaylsis of accidents with comparative data to exchange/adopt best practices

Information on counterfeits that could have impact on health, or other issues of public interest

Accessible to public (with safegurad of confidentiality and professional secrecy)


MS problems and solutionsMS problems and solutions((examples from “MARS” Groupexamples from “MARS” Group))

Legal representation on the market

Intellectual property rights (IPRs) and MS

Sampling, misleading labelling , success criteria, etc.

Who needs MS (state, companies)? Coordination …


““Disappearing” companiesDisappearing” companies

Who “represents” the product on the market?

Slovakia: Control by authorities (of legal papers and of premises) which grant permissions to sell on markets

Israel: Regime for imported goods based on risks of products and their use


Israel – four imported Israel – four imported products’ groupsproducts’ groups

1. High danger (207 products; toys, electrical home appliances …): certification of each shipment

2. Medium (120 ; carpets, bottles ...): type approval

3. Low (39; ceramic tiles ...) : importer’s declaration.

4. For industrial use (11): SDoC


IPR & UNECEIPR & UNECERecommendation “M”Recommendation “M”

Counterfeits = 5-7 % of international trade (in Russia: up to 1/3 in some sectors)

Counterfeit conformity assessment marks

Use of market surveillance against counterfeit goods (under preparation - adoption in 2007?)

Need for coordination on national level (IPR & other matters with customs, consumer protection, etc.)


Sampling in MS:Sampling in MS:Who pays?Who pays?

Brazil: - manufacturer replaces product to retailer

Russia, Belarus: retailer pays (restrictions on inspections to avoid abuse)

Czech Republic: MS body takes a product for inspection (charged when product meets requirements)

EU, Indonesia, Turkey, etc.: MS body buys the product from its budget


New problems - new experiencesNew problems - new experiences

Misleading labelling (fresh orange juice, cholesterol free, only 1% salt, etc.)

Choice of laboratories to inspect products (through tender?)

Criteria of MS success (0% or 100% of inspected products are safe?)


Conclusions & Way forwardConclusions & Way forward

GRPs and GPCA: no «one size-fit all » recipe

“Think globally - act locally”: “tailor” your own solutions on the basis of national and international experiences

UNECE welcomes you to join its work


Thank you ! OBRIGADOThank you ! OBRIGADO ! !For more information, please contact:

Mr. (Dr.) Serguei Kouzmine

Secretary to UNECE Working Party on Regulatory Cooperation and Standardization Policies (WP.6)Tel. (+41 22) 917 2771; Fax (41 22) 917 0479/0037

e-mail : [email protected]

United Nations Economic Commission for Europe Rio-de-Janeiro, December 2006 Good regulatory and CA...

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