The Regulatory Landscape: Enhancing Standards in Business Operations

1. THE SOCIAL, ECONOMIC & POLITICAL RELEVANCE OF SABS Presentation by Dr. Randall Carolissen Trade and Industry Portfolio Committee RSA Parliament 28 May 2002

2. Enabling Legislation • Standards Act(Act 29 of 1993) • Trade Metrology Act(Act77 of 1973) • Road Traffic Act(Act 93 of 1996) • Foodstuffs, disinfectants and cosmetics Act • OHS Act • Mines & Minerals Act

3. Business Context • Globalization (WTO TBT, SPS, ISO,OIML, CODEX – HACCP) • People Development • Presidential Imperatives • Public Expectations (Consumer Protection) • Internet Revolution • Financial Robustness • Sustainability

4. LEGISLATION REGULATOR CONFORMITY STANDARDS (SURVEILLANCE, ASSESSMENT SANCTIONS (TECHNICAL AUDIT, APPROVALS, (TEST, INSPECT, VERIFY, (FAILURE) REQUIREMENTS) SANCTIONS) CERTIFY WTO-TBT Regulatory Best Practice Model This Technical Regulation best practice encompasses five essential building blocks Technical Regulations Product Characteristic Administrative Procedure

5. COUNCIL SABS CEO NON-COMMERCIAL CORPORATE COMMERCIAL HOLDINGS [PTY] LTD JOINT VENTURES STANDARDS DESIGN INSTITUTE RESEARCH & DEVELOPMENT REGULATORY

6. REGULATORY

7. Benefits - Effective Regulatory Framework • Reduced disputation and transaction costs • Consumer protection • Level playing fields for commercial transactions • Effective stock control and Control of fraud • Full benefit obtained for commodity exports and control over local content requirements • Effective collection of government excise and taxes

8. Regulatory Appointments of SABS • ICASA – Telecommunications • SITA – Information Security • NGB – Gambling • Certification of Marine exports to EU – RSA & Namibia • Automotive –Department of Transport for railway safety standards

9. Specific Regulatory Activities • Homologation and type approval • Surveillance of requirements of (72) compulsory specifications • Consignment inspections • Market surveillance • Verification • Calibration of verification Standards • Confidential forensic investigations • Customs and excise activities • Training

10. Scope of activities1 April - 30 November 2001 • Audits /Inspections = 20 812 • Homologation = 44 (cars, trucks and busses) • Type approval • instruments = 11 • Modifications to approved instruments = 37 • Sanctions • Court cases = 122 • Warnings = 1594 • Embargoes = 333

11. STANDARDS DIVISION

12. Alliances (1) • Continue & develop it’s membership of International Standards Organizations • ISO • IEC • ETSI • Take part in international standardization forums: • CAC • UN ECE WP’s • CEN • CENELEC • COPANT • JASIC • PASC

13. Alliances (2) • Increase involvement & take leadership in the SADCSTAN mechanisms to further the harmonization of standards & technical regulations within SADC and operate the SADCSTAN secretariat • Provide assistance to National Standards Bodies in Africa, and in particular SADC member countries • Ensure that SADC input is sought for national standards projects where a possibility of harmonization within SADC has been identified

14. Activities • Ongoing attention to the process time for the development of standards and maintaining them at better than international norms • Maintaining a database of SADC technical regulations • Refine the process for developing fast-track type standards that are limited consensus documents used by industry • Increased focus & participation in the development of standards within SADC • Ongoing transformation of the standards legacy into electronic format • Enhance the SABS Website as a tool for standards development • Developing training courses for use internally, nationally & regionally

15. PRESIDENTIAL IMPERATIVES PROGRAMME

16. Focus Areas • SMME’s Development – see next slide • Human Resource Development – to be elaborated on • HIV-Aids –Development of Code of practice for corporate and other organizations • SABS, ABSA Foundation and Daimler Chrysler rural development project to build capacity in math's, science and technology launched in the Eastern Cape on 2 Nov. 2001 and Feb 2002 Northern Province

17. SMME Development • Samples tested = 153 • Capability reports = 15 • Training Programmes • 395 Entrepreneurs trained in: • Missing Link Training Programme • South African Excellence Model • ISO 9000 • DTI-Tisa Development contract for assessment of export readiness of SMEs • Enterprises selected & audited = 11 • Companies approved for technical assistance support = 10

18. Policy Formulation and Legislation Review • Acceptance of OIML recommendations as National Standards • Assist DTI with the promulgation of • New Standards Act • Technical Regulations Act • Legal Metrology and Consumer Protection Act

19. HUMAN RESOURCE DEVELOPMENT

20. Target Groups • SABS employees • Industry • Service sector • SADC • Government institutions • SMME’s • Consultants

21. Products/Courses Improved competitiveness • SABS ISO 9001 – Quality management systems • SABS ISO 14000 – Environmental management systems • OHSAS 18000 – Occupational health and safety management systems • HACCP – Food industry • SABS ISO 17799 – Information security management • Management Development

22. Human Resources Development (2)

23. Human Resources Development (3)

24. Internship, Learnerships & Interventions for PDI’s

25. SABS- Eurotype Internship (1) East London • Arrangements with Border Technicon, PE Technicon & East Cape Technicon to accommodate 6 students annually to complete 2nd phase of mandatory practical training. • Students are rotated though all operational areas such vehicle emission certification for export & the noise level test section & fuel testing & engine and catalytic converter testing • Tasks performed: • Vehicle preparation • Equipment calibration • Process documentation • Software development

26. SABS- Eurotype Internship (2) • Pretoria • Training of students from Pretoria Technicon • Rotated through Powertrain & Body/Chassis & other automotive related tests eg. Towbars, seatbelts. • Gains experience in: • Test methods • Equipment used for various tests • Dynamometer refurbishment project (in some cases)

27. INTERNATIONAL PROGRAMMES

28. International Liaison • UN ECE Working Party 29 partner • Codex Alimentarius membership • South African representative at Organisation Internationale Metrologie Legale (OIML) • Information enquiry point for WTO/TBT • SADCMEL (Legal Metrology cooperation) • NEPAD program • RSA WTO-TBT point of enquiry • Founder member of ISO – the only developing nation

29. RESEARCH & DEVELOPMENT DEPARTMENT

30. Projects (1) • National HIV/AIDS Management Standard • The effect of EMF of cell phones on human and animal tissues and systems • Future fuel octane grading system for South Africa • Treatment of rural houses with flame retardation insecticide • Standard for a reed bed water purification system • Code of practice for the use of micro organisms in the cleanup of oil spills • Certification Standard for identification of country of origin of goods • Standard for indoor and outdoor Air Quality Measurement

31. Projects (2) • Code of Practice for commercial operators for the observation of marine mammals and other marine life • Standard for sisal fibers used in the automotive industry • Corrosion of types of wire fence under different climatic conditions

32. Summary • Underpin social imperatives • Lower Technical Barriers to Trade • Improve on International competitiveness • Improve investors confidence through Regulatory reform • Protect interests of developing nations at international policy formulation forums