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

Master plan for Establishing Certification Scheme in Peru

(Electrical & Electronics Field)

July 20, 2012

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Contents

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 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 had received development assistance from other countries (Independence, Korean war~1995)

- Total amount approx. 12.7 billion US$ (1945-1990’)

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

Korea-Peru FTA effective - Article 7.8 Technical

Cooperation on TBT

Korea ODA Record 2011 Busan High level forum on Aid

1950 Korean War

Korea-Peru FTA

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KC Scheme

Experience

KC Scheme

Experience

Master Plans forCertification Scheme

Master Plans forCertification Scheme

Korean Scheme

International Scheme

Status of Peru

Guide

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Related to Legal system

Related to Certification scheme

1. Current status of Peru1. Current status of Peru

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▶ 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%.

Economic Activity

Economically

Active Population

(Ratio)

Agriculture, stockbreeding, and forestry 32.1

Commerce 16.9

Government Service 11.4

Construction 4.0

Weaving 1.8

Financial Service 1.3

Other Production 1.2

Milling and Baking 1.0

Metal Production 1.0

Fishery 0.6

Printing and Publishing 0.4

Nonmetal Production 0.4

Other Food Production 0.3

Beverage and Tobacco 0.3

Shoemaking 0.3

Pharmaceutical 0.2

Electricity and Water 0.2

<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

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▶ Peru’s electric/electronic export amount is around 3-4% compared to import amount▶ Import share from Korea is about 2.3%

<Export and Import Amount of Electric/Electronic Products>

• Data: LAIA-Latin American Intergration Association/ ALADI-Asociacion de Latinoamercia de Intergacion)

<Total Export and Import Amount between Korea and Peru >

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Case Data collected from Peru Ministry of Energy and Mining (MINEM)

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<Case of TV>

Case 1

- Region: Carhuaz-Huaraz (February 2010)- Product: 29 inch CRT 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 alpine region is related to insulation, there may be a relationship between the accident and the region.

Data of Product Sales Company After Service

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< Case of Microwave Oven>

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: Manufacturer assumes the accident is from liquid entering the equipment, but

the exact cause is unknown.

* Data: B Electronics> 12

▶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.

No. Category 2006 2007 2008 2009 2010 Total %Cumulative

%

1 TV 144 179 165 182 193 863 21.59 21.59

2 Refrigerator 99 94 154 134 142 623 15.59 37.18

3 Washer 45 56 67 71 74 313 7.83 45.01

4 Audio Device 59 70 43 48 42 262 6.55 51.56

5 DVD 57 40 35 40 25 197 4.93 56.49

6Stoves (Range-Gas Stove, Electric Range, etc.)

27 35 37 35 40 174 4.35 60.85

7 Mini Component 33 31 20 18 15 117 2.93 63.77

8 Microwave Oven 17 14 25 24 200 100 2.50 66.27

9 Mixer 15 18 23 24 19 99 2.48 68.75

10 Freezer 13 18 23 17 26 97 2.43 71.18

11 Vacuum Cleaner 5 4 7 2 3 21 0.53 71.70

12 VHS 3 1 2 - 1 7 0.18 71.88

13 Others 136 197 259 244 288 1,124 28.12 100.00

Total 653 757 860 839 888 3,997 100.00

<National Complaints per Electronic Product (2006~2010)>

* Data: SAC (Complaint Service)-INDECOPI (Patent, Fair Trade, Knowledge Property Right, Consumer Protection Agency)

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▶Breakdown and defect (67.74%), repair (8.78%), and warranty (6.99%) show that complaints due to breakdown or defect form the biggest proportion.

No.Reason for Complaint

2006 2007 2008 2009 2010 Total % Cumulative%

1 Breakdown or Defect 77 78 59 86 78 378 67.74 67.74

2 Repair 8 10 4 11 16 49 8.78 76.52

3 Warranty 6 1 9 13 10 39 6.99 83.51

4 Product Delivery 5 5 4 4 4 22 3.94 87.46

5Labeling (Product Sticker)

- 3 - - - 3 0.54 87.99

6 Repair Parts 1 - - 1 - 2 0.36 88.35

7 Others 13 9 12 11 20 65 11.65 100.00

Total 110 106 88 126 128 558 100.00

<Reason for Complaint per Electronic Product (2006~2010)>

* Data: CPC (Consumer Production Committee)-INDECOPI (Patent, Fair Trade, Knowledge Property Right, Consumer Protection Agency)

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▶ 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.

<Claim per Product and Content>

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▶ 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.

Grounding Environment

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Non-standard wire used in building wiring

Improper wire connection, no consideration for insulation

Securing of electric wire with non-insulated metal wire

Use of non-standard fuse

<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.

Indoor Wiring

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<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.

Power Connection Parts (Plug, Socket-outlet, etc.)

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Related to Legal system

Related to Products

Related to Products

1. Current status of Peru1. Current status of Peru

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Current Status of Standardization Technical Committee by Category (As of 2009)

* Data from; INDECOPI

▶ 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.

INDECOPI Standardization TechnicalCommittees by sector (updated 2009)

Environment,Health

Protection andSafety, 12

ChemicalTechnology, 7

ManagementSystems, 9

Others, 29

Buildingmaterials, 6

Agriculturaland Food, 42

Textile andleather, 5

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Current Status of Standardization

▶ 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.

<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

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Current Status of Accredited Conformity Assessment Body

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< Accreditation Scope of Certification Bodies>

▶ 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.

Number of Accredited bodies

Category

<Accreditation Scope of Testing Bodies>

▶ Accredited testing bodies by ISO/IEC 17025 are mostly chemical, microorganism, organic functions test, and physics categories. Again, electrical/electronics category is not accredited.

Number of Accredited bodies

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< Accreditation Scope of Calibration Body >

▶ 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.

Number of Accredited Bodies

Category

< Accreditation Scope ofQuality System Certification Bodies >

▶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.

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Current Status of Peru’s Mandatory Certification System

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2. International Certification Scheme2. International Certification Scheme

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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.<Elements of Good Regulatory Practice with respect to Technical

Regulation>Transparency and

Openness in decision making

High qualitytechnical

regulations

Use ofinternationally

harmonized standardsand technical regulations

Recognition of othercountries’ technical

regulations

Non-discrimination

Avoidance ofunnecessary

trade restriction

Regulatory coordinationand consistency

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▶ An international certification scheme established and operated by IECEE under IEC ▶ 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.

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3. Overseas Certification Scheme3. Overseas Certification Scheme

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▶ CE Marking: 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.

<CE Certification Procedure for Electrical and Electronics Products >

1. Review governing

directives

2. Identify essential

requirements

3. Review conformity

assessment process

4. Review applying

standards and tests

5. Write technical

documents (TF)

6. Declaration of

Conformity (DoC)

7. Attach CE mark

1. Review governing

directives

2. Identify essential

requirements

3. Review conformity

assessment process

4. Review applying

standards and tests

5. Write technical

documents (TF)

6. Declaration of

Conformity (DoC)

7. Attach CE mark

Ex) Vacuum cleaner (AC 230V,

50Hz)

1.Apply LVD and EMC directives

2.LVD annex I, EMCD annex I

3.Apply Module A

4.Safety: EN60335-1, EN60335-2-2

EMC:EN55014-1(-2), EN61000-3-

2(3-3)

5.Write technical documents (TF)

6.Declaration of Conformity (DoC)

7.Attach CE-Mark

Ex) Vacuum cleaner (AC 230V,

50Hz)

1.Apply LVD and EMC directives

2.LVD annex I, EMCD annex I

3.Apply Module A

4.Safety: EN60335-1, EN60335-2-2

EMC:EN55014-1(-2), EN61000-3-

2(3-3)

5.Write technical documents (TF)

6.Declaration of Conformity (DoC)

7.Attach CE-Mark

ProcedureProcedure

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▶ NRTL Certification: Run by private institutions appointed by the federal government to ensure the safety of workers on the field.

(Currently, 16 institutions are participating)

▶ Administrated by OSHA (Occupational Safety and Health Administration) under the Occupational Safety and Health Act (29 USC 651 and 29 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 from independent institutions other than NRTL

- Use product assessment data from independent 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

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Nation Schemes Items

Nigeria SONCAP (Standards Organization of Nigeria Conformity Assessment Program)

Toys, electrical/electronics appliances, tires, vehicle maintenance and parts, chemicals, structures and machinery, paper stationary, etc.

South Africa Voluntary SABS and mandatory LOA scheme Electric products, vehicle parts, food and health products, chemicals, etc.

Malaysia Mandatory certification, COA, and SIRIM Mark (PCS and BTS)

Illuminators, sockets and outlets (15A), fluorescent lamp holders and capacitors, etc.

Mexico NOM (Normas Oficiales Mexicanas) Mark Electrical devices, electronics, gas appliances, communication equipment, food, fire extinguishing tools, clothes, etc.

Bangladesh BSTI Mark (CM License) Food (64 items), chemicals (39 items), fabrics (11 items), electrical/electronics (25 items), architectural/machinery (14 items), etc.

Vietnam Quality Mark (Certification Mark License) Electrical devices, wires, lighting systems, etc.; mandatory for 13 standards

Brazil INMETRO Mark Medical equipment, electrical equipment used in hazardous environment, circuit breakers, switches, plugs, sockets, ballasts, wires, cooling devices, etc.

Saudi Arabia CoC (Certificate of Conformity) scheme All items imported to Saudi Arabia

Argentina 1. IRAM Mark of Conformity with IRAM standard: 2. IRAM Safety Mark: 3. IRAM Certification Manufacturing Conformity:

All electrical/electronics products using 50-1000Vac (1500Vdc), chemicals, gas products, toys, machinery/metal products

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4. Korean Certification Scheme4. Korean Certification Scheme

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YearYear

ISSUEISSUE

Adoption Development Harmonization

Supplement I Supplement II Current

Type ApprovalFactory License

Class A: ApprovalClass B: Registration

Adopt IEC Std./Certification

Scheme for used products

Self regulatory confirmation

Adopt sDoC

GDP/GDP/capitacapita

ExportExport

DevelopmenDevelopment strategyt strategy

Build self-reliant growth base• Promote HCI• Build SOC

Expand tech-intensive industries• Industrial rationalization• Trade liberalization

Enhancing productivity through innovation• Nurture venture business• Build ICT infrastructure

Globalizing the economy• Structural reform• Liberalization• Financial market development

Toward an advanced economy • Regionalization• FTAs• Internationalized economy

Industry Industry SupportSupport

KTL(1966) KITECH(1987) KIF(1990) KONICOF (2004)

SpecializatiSpecializationon

Testing & Inspection

Manufacturing Financing Nuclear international cooperation

Unit: US $

Year

Unit: US$ million

Year

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Peru, 35,565

•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

Mainly from JIS, BS, DIN, ASTM, etc

Mainly from ISO, IEC

Imitator+Innovato

r=

Imovator

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1960 1970 1990 2000 1980

HCI Product

Agricultural Product

Light Industry Product

50%

Wig Automobile SemiconductorTextile

Semiconductor, Mobile Phone, DTV, Display, Automobile, Shipbuilding, etc.

80%

14%

6%

Changing Export Structure: from Agriculture to Light Industry to HCI

Export proportion

37

Testing and certification body

Target Products

Expectations

Follow-up inspection

Law Enactment

Implementation system and detailed plan

Required budget

38

Certification system proposal (ISO/IEC Guide 67)

*Consider manufacturer’s burden and Authority’s management costs39


Certification system

Expectations


Law Enactment


Required budget

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<Important application principle>

1.Is it hazardous product? Does product itself possess dangerous nature?2.Has product exposed to actual dangerous situation and have a hazardous accident?

<Important application principle>

1.Is it hazardous product? Does product itself possess dangerous nature?2.Has product exposed to actual dangerous situation and have a hazardous accident?

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<High-risk components or products>

Electrical accidents(Fire) in Korea

<Analysis of electrical fires over the recent 10 years> <Electrical fire distribution by cause, 2007>

< Electrical fire distribution by cause – 10 years trend> < Electrical fire distribution by equipment, 2007>

Year

Year

10,807 11,204 11,796 12,30011,202 10,670 10,450 9,991 9,392

10,,560

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ItemEquipment Decease Injury Total Share (%)

High voltage equipm

ent

Cable/Wires 21 85 106 16.3

Transformer 2 51 53 8.2

Breaker/Switches 3 28 31 4.8

Others 3 13 16 2.5

Low voltage equipm

ent

Socket Outlet - 88 88 13.5

Electric circuit 7 72 79 12.2

Breaker/Switch 1 40 41 6.3

Distribution board/Cabinet panel - 26 26 4.0

Measurer - 16 16 2.5

Others - 22 22 3.4

Electric m

achines and equipm

ent

Manufacturing equipment/facility 5 43 48 7.4

Electrical appliances 1 34 35 5.4

Lighting equipment 2 9 11 1.7

Electrical instrument for children 7 22 29 4.5

Others 9 40 49 7.5

Total 61 589 650 100

Electric shock accident in Korea

<Electric shock accident distribution by type, 2007>

< Electric shock accident distribution by voltage, 2007>

< Electric shock accident distribution by electric equipment, 2007>

7

1279

139

168

199

1

161

70

3

Accident voltage

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Electrical accidents in overseas countries

<USA. Distribution by electrical fire by equipment> <Canada, Fire distribution by ignition equipment, 2002>

<Japan, Fire distribution by electrical instrument, 2006> <Electric shock death per million people>

Fire. E

lectric equipment

Reference: 28,300 electrical fires occurred in residential buildings on average every year from 2003 to 2005.Source: USFA, Residential building electrical fires

Electric shock death per m

illion people

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<Application priority of the product group to manage> (Hazard assessment to select the priority of the item by product group)

Urgency of infrastructure establishment

High

Low

- Legend -1.Wires and cords2.Switches3.Connectors4.Household equipment5.AV equipment6.Lighting equipment

13

4

2

6

5

Low High Degree of hazard46

Target Products


Expectations


Law Enactment


Required budget

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Acceptance of the test report

Recommended

RecommendRecommendeded

RecommendRecommendeded

* CB Test Report can be accepted regardless of IECEEE membership status by Peru decision

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Organizational chart of Testing, Certification body

▶Recommend at least 2 testing bodies are required to prevent monopoly and improve the testing quality through fair competition among related bodies.

▶ Certification body can have function of Testing body, recommended.

▶ The qualified body should be designated by the national accreditation institute (INDECOPI-SNA), which was established by the national “Laws regarding Standards and Accreditation”.

▶ The SNA designation system needs to be improved, by subscribing to ILAC and IECEE CB system

ILAC IAF

Certification body

(Professional institution)

Private testing body

Acceptance of the overseas test reports

MRA

Overseas institution(eg. KATS)

National testing body

(Support development of the facility infrastructure)

Managing Authority(Control and Monitoring,

e.g.. INDECOPI)

* Joint Ventured Professional Institution can be considered 51


Target Products


Expectations

Objectives and Necessity

Law Enactment


Required budget

52

Classification by inspection item

<Module composition by management item>

▶ The distribution possibility of the poor or defective product is lower and control is easier when performed at the left side phase . More difficult as the phase moves to the right side.

▶ Cost and regulatory degree used for routine follow-up inspection activities increases when the phase moves to the left.

Classification by product life cycle

<Correlation between risk management and cost of follow-up inspection>

Cost

Risk

Before shipping-

out

Before distribution

After customs clearance

DisposalBefore customs clearance

(for import)

Factory inspection Market monitoring

Phase

Place

Method

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Proposal for Peruvian follow-up inspection

▶ Customs should be the main place for follow-up inspection, and distribution product survey at the market and report by consumers/civil groups should be maintained as an auxiliary means. This Is the method that can produce the best performance with minimal cost, under the present conditions of Peru.

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Target Products


Expectations




Required budget

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▶ Three methods to enact the law governing the safety management of electric goods.

MethodStrengths

and shortcomings

Content

1) Enacts as the national assembly law (Resolucion Legislativa)

Strength•The most appropriate legislation method •The law can include the certification system, fostering testing, and certification body.

ShortcomingIt is likely that the bill cannot be processed quickly or discarded due to the Peruvian economic situation and industrial policy.

2) Enacts as the government’s delegated legislation

(Decreto Legislativo)

StrengthDifficult to apply for safety certification of electrical product

Shortcoming

3) Compulsion of standard by Decreto Supremo (DS)

StrengthMore convenient than legislation of the Congress law, because many procedures can be omitted.

ShortcomingAs the contents that can be included are limited, constraints in the inclusion of nurturing and establishment of the test/certification body etc.

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Target Products


Expectations



Law Enactment

Required budget

57

Certification introduction implementation system

Public hearing

Government(Peru)

CAN(RAN)

Testing/ certification

body

Korea

Academic circles

National assembly

Consumer groups

Industries

WTO

Opinion

CooperationExperience

Budget

Personnel and

policy study

Opinion

Regulation noticeOpinionRegula

tion

notic

e

Legislatio

nLe

gislat

ion p

ropo

sal

OpinionDesignate

Testing assessment Public hearing

PublicHearing

58

<Detailed plan for certification system introduction, 5 years>

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Target Products


Expectations



Law Enactment


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Overall Budget Details

System introduction cost 400

HR cost and R&D cost 200

Consulting fee, meeting expense, interpretation service charge, etc.

100

Seminar expenses (10 times) 30

Travel expenses, activity expenses, etc. 50

Meeting expenses, printing expenses, etc. 20

Infrastructure establishment cost

(building construction, equipment purchase)

9,750Building construction 1,370

Equipment purchase 8,380

Required workforce 22 persons

Certification policy establishment and implementation

4 persons

Safety certification management 9 persons

Designating and managing the testing body 4 persons

Post management 5 persons

(Unit: $1,000 USD)

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Target Products




Law Enactment


Required budget

63

Thank You!Thank You!

Korean Agency for Technology and Standards

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

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