Legal Metrology Bill

1. Legal Metrology Bill Select Committee on Trade and International Relations 20 November 2013

2. Contents • Technical infrastructure • Trade Metrology • Shortcomings of the Trade Metrology Act • What is Legal Metrology • Legal Metrology Impact • Process of developing Bill • International Metrology • The Bill • Conclusion

3. Technical Infrastructure • The technical infrastructure is a system that allows our economy to set standards, mainly for industrial production, and test against those standards. • Technical Infrastructure comprises of standards, quality assurance, metrology (scientific and legal) and accreditation. • Globalisation is increasing the demands on countries to demonstrate that they have the technical infrastructure to guarantee that products originating in their territories are safe and ‘fit for purpose’.

4. Industrial policy • In Industrial Policy Action Plan (IPAP) the concept of “lock-out” non-compliant products and “lock-in” compliant products is used • Technical infrastructure is required to meet the standards and measurement challenges required by health, safety and environmental considerations (including climate change), as well as considerations of interoperability necessary for globally dispersed manufacturing platforms. • Government continues to maintain and improve the Technical Infrastructure Institutions in order to remain relevant as the platform for market access of products.

5. Technical Infrastructure: REGULATORY SUPPORT JUDICIAL

6. Trade Metrology • Trade Metrology (Weights and Measures) is the entirety of the legislative, administrative and technical procedures established by the Trade Metrology Act and Regulations, and implemented in order to specify and to ensure, in a regulatory or contractual manner, the appropriate quality and credibility of measurements related to trade transactions where a measuring instrument is the basis for said transactions • A few examples are • Sale of prepacked goods – scales, volume measuring instruments • Maize meal • Beer • milk • Sale of Petrol – Liquid fuel dispensers • Sale in front of customer – scales • Fresh fruit • Biltong

7. History of Trade Metrology in South Africa • Dates back to 1902 – Weights and Measures System • Since 1973 under the auspices of the Department of Trade and Industry • Function transferred in 1991 to the South African Bureau of Standards (SABS) • In 2008 it became the responsibility of the National Regulator for Compulsory Specifications (NRCS) where Trade/ Legal Metrology is now a dedicated division

8. Shortcomings of the Trade Metrology Act • Trade Metrology Act (Act 77 of 1973) provides for regulation of trade measurements only • Limited scope – only trade measurements • Penalty is ineffective – R1000 or 6 months or both • Size of business is not considered • No clear separation of duties of repair and verification functions • No alignment to NRCS funding model for all activities ( levy System) • In trade metrology the government acts as referee

9. What is Legal Metrology? Legal Metrology is the entirety of the legislative, administrative and technical proceduresestablished by, or by reference to public authorities, and implemented on their behalf in order to specify and to ensure, in a regulatory or contractual manner, the appropriate quality and credibility of measurements related to official controls, trade, health, safety and the environment

10. Legal Metrology Impact • Legal Metrology extends scope of Trade Metrology through regulations coupled with impact assessments • Expands enforcement through increased market surveillance – coupled to scope and new fee structure • Provision is made for effective and relevant penalties • Provision is made for regulating verification and repair activities to counter conflict of interest • In legal metrology the government is one of the parties

11. Why move into Legal Metrology? • Technological developments • developments in • Agriculture • Use of water – needs to be measured – SA water scarce country • industry • transportation • Speed trapping equipment • Breath analysers • Overloading – destroyed road network • Movement of direct sales of products to multiplicity of transactions through production, wholesaling, processing and retail trade

12. DRIVER FOR CHANGE IN METROLOGY DOMAIN Expanding scope of legal metrology • Quality measurements to be introduced e.g. grain • Trade measurements expanded to include • water, • gas, • electricity, • telephone meters • Regulatory/Legal measurements • Environment, health and safety • (water pollution, blood pressure)

13. Telephone meter • Land line • Cellphone • bytes

14. Utility meters • Gas meters: • Domestic and • Bulk • Smart meters • Electricity meters • Smart meters • Pre-paid meters

15. Utility meters Environmental measurements • Emissions • Vehicles • Manufacturing plants • Water meters to 35 mm done currently • Include up to 100mm • Bulk meters

16. Medical devices Scales Baby scales Incorrect diagnosis Death • Syringes • Blood pressure instruments

17. Legal Metrology Internationally • The International Organisation of Legal Metrology (OIML) was established in 1955 with the signing of the OIML Convention by 24 countries. Currently there are 59member states and some 67 corresponding members • South Africa acceded to the OIML in 1998 • The OIML was established to disseminate information on legal metrology laws and regulations, the development and promotion of international best practice, elimination of barriers to trade caused by legal metrology and to develop and promote Mutual Recognition Acceptance Agreements in legal metrology

18. Regional and International participation WTO SADCMEL OIML NRCS SADC/ COMESA/ EAC AFRIMETS

19. Introduction to the Legal Metrology Bill

20. Objectives of the Bill • To promote fair trade, industrialisation and to protect public health and safety and the environment • To provide for the implementation of a regulatory and compliance system for legal metrology by the NRCS and for the administration and maintenance of legal metrology technical regulation • To provide for market surveillance by the NRCS in order to ensure compliance with legal metrology technical regulation.

21. Application • The new Act applies to measurable products and services, measurements in trade, health, safety and the environment and measuring instruments used for a prescribed purpose

22. Administration • The new Act will be administered by the National Regulator for Compulsory Specifications and authority lies with the CEO reporting to Minister. • The schedule to the Legal Metrology Bill addresses changes in governance structure of NRCS in terms of NRCS Act. This is done to implement a policy decision to bring regulators closer to the dti. • Currently a entity with a Board • This will change to a governance structure where the CEO will report directly to the Minister.

23. NRCS offices: NRCS currently has offices in the following provinces: • Eastern Cape - PE • Free State - Bloemfontein • Gauteng - Pretoria • KwaZulu Natal - Durban • Western Cape – Cape Town Areas of expansion identified for the following 5-10 years: • Limpopo - Polokwane/ Musina • Northern Cape – Upington • North West - Mahikeng/ Rustenburg • Mpumalanga - Mbombela/ Komatipoort • Gauteng – Johannesburg • KwaZulu Natal - Richards Bay/ Newcastle • Eastern Cape - East London • Western Cape - George

24. Legal Metrology Technical Regulations • The Minister must declare a SANS a technical regulation in respect of any measuring instrument or any product or service which may affect fair trade, public health and safety or the environment. • A SANS standard will be the basis for a technical regulation • Formal procedure for introducing new technical regulation should be followed • Feasibility • Impact • Risk • Consultation • OIML standards can also be used as the basis for technical regulation • Only if a SANS is not available may the Minister make a regulation in Government Gazette. . 24

25. Registration Registration of importers, manufacturers or sellers to be prescribed by regulation • Know market size and coverage • Control purposes • Collection of fees 25

26. Repair and verification • The Bill makes provision for the Minister to prescribe requirements, through a regulation, to restrict verification officers from repairing prescribed measuring instruments. This will be informed by the risk associated by area of regulation. • This is to address the conflict of interest.

27. Accredited Verification Laboratories and qualified Verification Officers *Limpopo, Mpumalanga and North West is also serviced from Gauteng due to their close proximity.

28. Compliance Schemes And Use Of Distinctive Marks • Formal provision now made for schemes and marks • e mark – quantity of prepacked goods • The CEO must authorise and maintain a register of verification marks, repair marks and protective seals • Instruments • Verification status • To prevent unlawful adjustments 28

29. Penalties • Fines may be imposed but no monetary value stated or imprisonment for a period not exceeding 10 years or both • More effective and relevant penalties – fines at discretion of the court taking into account the Adjustment of Fines Act. 29

30. Financial Implications • The budget allocation is part of the allocation the dti has made for the NRCS in terms of the mandate of the current Trade Metrology Act(Act 77 of 1973). • The Bill also provides for fees for services rendered similar to the NRCS Act. • These will be paid by industry and will be determined through an annual consultation process. Fees will be determined per legal metrology regulation based on the cost that the regulator will need to incur to effectively and efficiently regulate.

31. Process thus far • A policy proposal on the move from Trade to Legal Metrology was developed by the dti • The dti consulted widely during the last quarter of 2010 on the draft policy proposal on Legal Metrology • Workshops were held in Pretoria, Durban and Cape Town • Consultations were held with Nedlac and finalized on 10 June 2011

32. Process thus far continues • This draft Bill was prepared by the State Law Advisers with input from the dti and the National Regulator for Compulsory Specifications (NRCS) using the OIML model law(OIML D1-www.oiml.org ) as well as the policy paper as a basis. • The Bill was published for general comment in Government Gazette on 7 December 2012. The comment period was extended till 1 February 2013 on request of stakeholders • Comments Review Committee considered comments on 8 February 2013. • The Bill was also discussed by a Nedlac Task Team and signed-off by Nedlac on 25 July 2013. • Portfolio Committee process concluded on 29 October 2013, • 2nd reading debate took place on 5 November 2013 in the National Assembly.

33. Conclusion • Current Trade Metrology Act is inadequate - Replace with Legal Metrology Bill • Current governance structure not ideal - entity will in future report directly to the Minister • Credibility of measurements assured • Financial needs of Legal Metrology addressed

34. Delegation’s details • Mr Garth Strachan – Acting Deputy Director General: Industrial Policy Development Division gstrachan@thedti.gov.za • Dr TshengeDemana – Chief Director: Technical Infrastructure tdemana@thedti.gov.za • Ms Anna-Marie Lötter - Director: Technical Infrastructure alotter@thedti.gov.za • Mr Stuart Carstens - General Manager: Legal Metrology, NRCS carstesh@nrcs.org.za