How to improve market surveillance in Europe

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How to improvemarket surveillance in
Europe?
CENELECs view

• ... to complete the success of the
• New Approach concept in the electrotechnical area

Paul Romanus, convenor of CCAF/WG on ST 3
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Table of contents
CENELECs view How to improvemarket
surveillance in Europe?

• Introduction to CCAF
• New Approach principles
• Current market situation
• CCAF proposals
• Outcome with or without actions
• Conclusions and recommendations

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CENELECs view How to improvemarket
surveillance in Europe?
1. Introduction to the CENELEC Conformity
Assessment Forum (CCAF)
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Introduction to CCAF
CENELEC is the European Committee for
Electrotechnical Standardization

• it is an independent non-profit organization
  founded in 1973
• it has been officially recognized by the European
  Commission as the competent standardization body
  in its field (e.g. LVD, EMC)
• the CENELEC members are the electrotechnical
  committees of 23 European countries
• CENELEC has 12 Affiliates and 32 co-operating
  partners

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Introduction to CCAF
CENELECs objectives are

• CENELEC aims at developing electrotechnical
  standards as a basis for a European market
  without internal barriers for electrotechnical
  goods and services.
• CENELEC supports, and co-operates with, the IEC
  for the development of international standards in
  the context of the WTO/TBT Agreement.
• CENELEC also promotes the development of
  harmonized conformity assessment procedures.

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Introduction to CCAF
The CENELEC structure
CENELEC MEMBERS
TECHNICAL
TBs Technical bodies MRAs Mutual
Recognition Agreements
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Introduction to CCAF
The concept of CCAF is based on the following
principles

• CENELECs objectives are to create and maintain
  European standards in the electrotechnical field
• CCAF intends to be the focal point for conformity
  assessment as far as CENELEC standards are
  concerned
• CCAF constitutes a formal link between
  standardization and the certification schemes in
  the CENELEC area

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Introduction to CCAF
The CCAF Mission Statement is

• to advise CENELEC GA on conformity assessment
  policy matters in the electrotechnical standards
  field

• to co-ordinate resolution of identified
  conformity assessment activity problems linked to
  the application of CENELEC standards

• to liaise with regional and international bodies
  active in conformity assessment matters

• to facilitate exchange of information on related
  policy issues

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Introduction to CCAF
CCAF members are

• 1 delegate from each interested CENELEC NC
• 1 delegate from each MRA who signed an MoU with
  CENELEC
• 1 delegate from the corresponding MRA-AC
• invited delegates with advisory role from the
  European Commission, the EFTA Secretariat, UNICE/
  ORGALIME and ANEC
• observers from the Affiliates, co-operating
  partners and CEN

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Introduction to CCAF
CCAF Strategic Targets
ST 1. Establish co-ordinated approach to the
interpretation of electrotechnical standards
used for European market
ST 2. Open dialogue exchange of information
with the European Commission in relation to
conformity assessment matters
ST 3. Investigate means of giving support to the
total market surveillance on the European market,
taking into account voluntary and regulatory
aspects, as far as CENELEC standards are concerned
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Introduction to CCAF
CCAF Strategic Targets
ST 4. Monitor communication link with CEN
concerning CEN/CENELEC European Mark
ST 5. Support activities aimed at strengthening
value of peer assessment, particular in the
framework of accreditation
ST 6. Facilitate availability of information on
conformity assessment activities
ST 7. Exchange information with IEC/CAB
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Introduction to CCAF
CCAF Strategic Targets
ST 8. Establish maintain communication channel
with ETSI on areas of mutual interest related to
conformity assessment
ST 9. Maintain communication channel with CEN on
areas of mutual interest related to conformity
assessment
ST 10. Monitor with CENELEC NCs political aspects
of ISO/CASCO matters
ST 11. Prepare annual report to CENELEC AG in the
light of CCAFs advisory role
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Introduction to CCAF
CCAF Strategic Target n3
To investigate means of giving support to the
total market surveillance on the European market,
taking into account voluntary and regulatory
aspects, as far as CENELEC standards are concerned
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CENELECs view How to improvemarket
surveillance in Europe?
2. The New Approach principles
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The New Approach principles
Single European Market

• Free movement of goods is the corner stone of the
  single market
• Mechanisms to achieve this aim are based on
  prevention of trade barriers, mutual recognition
  and technical harmonization
• The single market could not have been achieved
  without new regulatory techniques based on the
  New Approach

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The New Approach principles
The Council Resolution of 7 May 1985 (1)
on the New Approach to technical harmonization
and standardization Introduction

• reduce possible barriers to trade
• refer to European standards
• adopt a European policy in terms of conformity
  assessment

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The New Approach principles
The Council Resolution of 7 May 1985 (2)

• legislative harmonization is limited to essential
  requirements that products placed on the
  Community market must meet, if they are to
  benefit from free movement within the Community
• European directives set the essential requirements

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The New Approach principles
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The New Approach principles
The Council Resolution of 7 May 1985 (3)

• the technical specifications of products meeting
  the essential requirements set out in the
  directives are laid down in harmonized standards

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The New Approach principles
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The New Approach principles
The Council Resolution of 7 May 1985 (4)

• application of harmonized or other standards
  remains voluntary, and the manufacturer may
  always apply other technical specifications to
  meet the requirements
• products manufactured in compliance with
  harmonized standards benefit from a presumption
  of conformity with the corresponding essential
  requirements

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The New Approach principles
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The New Approach principles
The Council Resolution of 7 May 1985 (5)

• to adopt a European policy in terms of integrated
  quality assurance and modern conformity
  assessment techniques
• each NA directive describes the range and
  contents of possible conformity assessment
  procedures and the conditions under which the
  manufacturer can make his choice
• Notified Bodies perform conformity assessment
  tasks if the relevant directive requires a 3rd
  party intervention

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The New Approach principles
The Council Resolution of 7 May 1985 (6)

• market surveillance is an essential tool for the
  enforcement of New Approach directives
• market surveillance is the responsibility of the
  public authorities. Citizens are entitled to an
  equivalent level of protection throughout the
  single market, regardless of the origin of the
  product
• Member State authorities need to have the
  necessary resources, technical competence and
  professional integrity for their surveillance
  activities
• market surveillance is important for the interest
  of economic operators, because it helps to
  eliminate unfair competition

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The New Approach principles
NA pillars and their stakeholders
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The New Approach principles
Market surveillance

• means vigilant and proactive screening of
  products on the market to guarantee a high level
  of protection for the final consumer
• safeguards the correct functioning of the
  European single market
• the New Approach can only be successful with
  adequate market surveillance

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CENELECs view How to improvemarket
surveillance in Europe?

• 3.
• Current market situation

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Current market situation
Market picture

• More than 50 000 categories of electrotechnical
  products involved
• Market surveillance demands a wide range of
  competences
• Market surveillance varies from country to
  country
• Lack of coherence of market surveillance
  throughout Europe

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Current market situation
Legislative impact

• Throughout Europe, the perception of the
  activities of the law enforcement authorities is
  very weak
• The insufficient level and lack of coherent
  market surveillance permits non conforming
  products to enter the market and move freely
  across borders

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Current market situation
Sales and investments

• Unfair competition from non complying products
  limits the opportunity of sales of safe products
• Reputable manufacturers are discouraged from
  investing in qualified workmanship for product
  development

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Current market situation
Consumer interests

• The consumer is unable to differentiate between
  compliant and non compliant products
• Adequate market surveillance is essential to
  ensure that the expectations of the consumer are
  met
• Inadequate market surveillance damages the
  consumers confidence in Community legislation

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Current market situation
Conclusion
Current market surveillance does not fulfil the
requirements of the stakeholders. Thereforeit
must be considered to beinadequate for its
intended purpose.
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CENELECs view How to improvemarket
surveillance in Europe?

• 4.
• CCAF proposals

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CCAF proposals
Background

• Results of an enquiry amongst CENELEC members and
  CBsin the electrotechnical area
• Need for a level playing field for market
  surveillance based on a harmonized approach and
  taking into account the existing efforts in the
  different Member States
• Lack of political awareness of the importance of
  market surveillance
• Market surveillance is the responsibility of all
  Member States and concerns all market players
• CENELEC has the expertise and mechanisms for
  providing the necessary support regarding the
  correct use of standards for market surveillance
  purposes

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CCAF proposals

• To offer CENELECs expertise to establish tools
  for the use and application of European standards
  in the context of market surveillance
• To promote the concept of a Guide to the
  achievement of a harmonized approach to market
  surveillance, developed jointly by the Notified
  Bodies, Member States Authorities and CENELEC
• To adopt the principle of a targeted approach
  by experts to improve the use of available
  budgets for market surveillance
• 4. To support the development of a Europe-wide
  Market Surveillance information and communication
  Network

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CCAF proposals - detailed (1)
The CENELEC expertise

• CENELEC technical bodies can provide the
  necessary tools to achieve equal level of
  competence that increases confidence in market
  surveillance activities, through the development
  of
• - compliance criteria for the conformity
  assessment bodies involved
• - assessment procedures and methods
• CENELEC Guide 26 provides a fast track
  procedure that can be used for the handling of
  interpretations in the context of market
  surveillance
• CENELEC members can provide support and training
  at national level to the experts regarding the
  correct application of standards

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CCAF proposals - detailed (2)
Guide to the achievement of a harmonized Market
Surveillance Approach

• The Guide is intended to achieve a harmonized
  approach by the National Authorities and
  delegated Conformity Assessment Bodies (CABs)
  operating in the market surveillance sector
• The Guide will determine the principles on how to
  prepare, perform and report market surveillance
  activities on a European scale that delivers a
  more effective market surveillance system in
  support of the New Approach

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CCAF proposals detailed (3)
The targeted approach to market surveillance

• Presumption of conformity with the essential
  requirements of a product is demonstrated by
  testing to the whole standard before the product
  is placed on the market
• For Market Surveillance purposes, partial testing
  by experts within National Authorities and
  delegated Conformity Assessment Bodies (CABs) can
  be used to detect the non-compliance of a product
• The expert will decide on the tests and their
  order depending on the type of product

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CCAF proposals detailed (3 ctd)
Delegated Conformity Assessment Bodies

• The activities of National Authorities should be
  supported by delegated CABs with expertise in
  product assessment in the market surveillance
  sector
• These delegated CABs will be appointed according
  to their expertise in the sector
• They have to be assessed and accredited by their
  National Authority

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CCAF proposals detailed (4)
To support the development of a Europe-wide
Market Surveillance information and communication
Network

• Improve market intelligence, monitoring and the
  exchange of information amongst all market
  players, including the consumer
• Increase awareness of the importance of market
  surveillance at the political and market level,
  including towards the EU candidate countries
• Build a new culture of co-operation that improves
  the efficiency of market surveillance activities

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CENELECs view How to improvemarket
surveillance in Europe?
5. Outcome with or without actions
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Outcome with/without actions
Safety aspects increasing number of safeguard
clause notifications
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Outcome with/without actions
Safety aspects
There are large variations in notifications by
Member States
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Outcome without actions
Safety aspects

• the increase of the number of unsafe products on
  the market will jeopardize progressively the
  safety of the consumers
• concern about the tendency of retailers whose
  sales policy is based on the price of the product
  rather than its quality and performance

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Outcome without actions
Economical aspects

• non-compliant products on the market constitute a
  severe damage to reputable manufacturers
• reduction of market share of reputable
  manufacturers and reduction of their investments
  in the development of good products

Result A DISTORTED ECONOMY!
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Outcome without actions
Economical aspects one example...

• Compliance of electronic dimmers with EN
  60669-2-1 - RF emissions (art. 26.2.2) -
  temperature rise of parts in contact with cable
  insulation (art. 17)
• Non-compliant product using a coil with reduced
  size offers - reduction of purchase price of
  coil 30 - reduction of size of the
  equipment - increase of capacity 30 to 50

more trendy design
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Outcome without actions
Economical aspects one example... (contd)

• The market situation of manufacturers respecting
  the EN is severely damaged due to
• higher manufacturing costs leading inevitably
  to much higher sales prices
• market value of his product damaged by unfair
  selling arguments in favour of non-compliant
  product

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Outcome without actions
At the end of the day...

• false savings will damage the economy and will
  cost more money
• lack of market surveillance will undermine the
  credibility of the New Approach concept

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Outcome with actions
Example LVD and EMC in Finland
1400
1200
1000
tests
800
compliant
610
non compl
400
200
0
1994
1995
1996
1997
1998
1999
2000
2001
Increasing market surveillance testing and market
awareness reduces the ratio of non-compliant
products
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Outcome with actions
Adequate Market Surveillance...

• is essential for all market players
• is an equitable counterpart for the investments
  made by the manufacturers in implementing
  correctly the New Approach principles
• fits well in the proposal to implement the New
  Approach concept at WTO/TBT level(Common
  Regulatory Objectives)

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Outcome with actions
The application of European standards...

• is a concrete tool for manufacturers to
  demonstrate compliance of products with the
  essential requirements of those European
  Directives incorporating the principle of
  presumption of conformity
• contributes to adequate market surveillance

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CENELECs view How to improvemarket
surveillance in Europe?

• 6.
• Conclusions
• and recommendations

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Conclusion and recommandations

• What has been achieved already?
• What do we want to do now?
• and
• What can we do?

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Conclusions and recommendations
What has been achieved already?

• CENELEC members have endorsed the CCAF proposal
  regarding CENELECs view on adequate market
  surveillance in the electrotechnical
  standardization field (June 2002)
• The European Commission DG Enterprise - has
  been initially informed about CENELECs
  initiative (May 2002 and September 2002)
• A series of recommendations have been adopted for
  the practical application of CENELECs view
  (October 2002 and March 2003)

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Conclusions and recommendations
What do we want to do?

• To develop a draft Guide to the achievement of a
  harmonized Market Surveillance Approach
• To involve the European Commission, the Notified
  Bodies group, the Member States Authorities and
  the CENELEC members in the development of the
  draft Guide
• The Guide should cover the following subjects
• - provide framework for use by National
  Authorities- determine principles of market
  surveillance on a European scale, based on
  European standards- provide recommendations how
  to improve communication- include tools to
  increase effectiveness- assist new and candidate
  EU Member countries

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Conclusions and recommendations
What do we want to do?

• To propose the establishment of a joint TF with
  the involvement of ADCO and CENELEC for the
  development of a Guide for the achievement of a
  harmonized Market Surveillance Approach
• To make proposals for the development of
  competence criteria for all bodies involved in
  market surveillance and for the further
  development of the necessary market surveillance
  tools
• To implement a fast track infrastructure for the
  handling of interpretations of CENELEC standards
  in accordance with CENELEC Guide 26 , also in the
  context of market surveillance, with due
  involvement of the relevant technical body

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Conclusions and recommendations
What can we do?

• To make presentations on CENELECs view on market
• surveillance in the electrotechnical
  standardization field to
• help complete the success of the New Approach
  concept
• acknowledge that Member States are responsible
  for market surveillance
• offer CENELECs help and expertise as far as
  CENELEC standards are concerned
• recommend that CENELEC members inform their
  National Authorities of CENELECs view and
  corresponding proposals

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Conclusions and recommendations
What can we do?

• To promote the development of a Europe-wide
  Market Surveillance information and
  communication Network and to explain its benefits
  to National Authorities, manufacturers and
  consumers
• To recommend the CENELEC members to consider
  opportunities for providing training at national
  level to the experts involved in market
  surveillance with regard to the correct
  interpretation and application of the CENELEC
  standards

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FINAL CONCLUSION
Adequate Market Surveillance...

• Assures the safety of the consumer
• Enhances the realization of the Single European
  Market
• Respects competitiveness and the level playing
  field
• Establishes a fair counterpart for the
  investments made by industry for the correct
  implementation of the New Approach
• Requires co-operation and communication between
  involved market players

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Many thanksfor your attention
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