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					                          United Nations
                  Economic Commission for Europe


                                Symposium

                       Towards a better regulatory
                      environment in countries with
                         economies in transition
R.Pocthier - October 23, 2007
Agenda
   Our Industry: Earth Moving Machines
   A better regulation environment
     Use of International Standards
     UN model legislation
     WTO - TBT
   Industry contribution

   Conclusion
Our Industry: Earth Moving
Machines
Our area of competency: Earth Moving Machines
    Machines for excavating, loading, transporting, spreading and
    compacting earth and other materials.
    Machines designed according to performance based specifications of
    ISO standards developed in ISO/TC 127
What is a better regulation
environment?
   A better regulation environment
should lead to global Market Access. It
  should be based on international
              standards
Why are international standards so
important?
   Give a good foundation for the development of new
    regulations
   Provide performance based specifications to design our
    machines
    Widely accepted because developed by the very best
    international technical experts
   Facilitate communication in an international market
   …
   We are in a low volume and global market that needs
    global standards and regulations to avoid producing
    different machine models for Asia, Europe and North
    America
General Standards Strategy

   Develop and maintain a complete
    set of reasonable ISO standards,
    and help promote the ISO
    standards as national standards
    and regulations for all countries.
Standards in National Regulations

   The ISO/TC 127 Standards are used for compliance with
    regulations in the EU, the USA and in Japan.

   The ISO/TC 127 Standards are being promoted as national
    standards and as the basis for regulations for China, Russia
    and India.

   China is actively adopting the ISO standards and we
    are trying to work with Russia to encourage the
    adoption and use of UN/ECE Common Regulatory
    Objective (CRO) based on ISO standards.
      UN/ECE INTERNATIONAL MODEL
          A regulatory technique which make use of standards


TECHNICAL REGULATION:

             Essential safety requirements,
Conformity assessment procedures, marking provisions etc

                making reference to



STANDARDS:
    UN/ECE INTERNATIONAL MODEL
   “An International Model for Technical Harmonisation
    based on Good Regulatory Practice for the
    preparation, adoption and application of technical
    regulations via the use of international standards”
    prepared by a team of specialists on STandardization
    And Regulatory Techniques (“START” Team) was
    finalised at the annual session of the UN/ECE - WP on
    Technical Harmonization and Standardization Policies,
    29 - 31 October 2001

   The UN/ECE – WP.6 agreed: that the “International
    Model” provides a voluntary framework which could
    contribute to the facilitation of market access through
    establishing sectoral agreements between interested UN
    member countries
         WTO TBT Agreement and
         International Standards
Art 2.4 states
“Where technical regulations are required and relevant
international standards exist….Members shall use them….as a
basis for their technical regulations except
when ….”

Art 2.6 states:
“With a view to harmonizing technical regulations on as wide a
basis as possible, Members shall play full part, within the limits
of their resources, in the preparation …. of international
standards for products for which they either have adopt, or
expect to adopt, technical regulations.”
Advantages for a regulatory technique which make
use of standards – for cooperation with other
countries
At the 1st WTO/TBT Triennial Review, the TBT Committee
reiterated that good regulatory practice for the preparation,
adoption and application of technical regulations was a
priority for Members to facilitate trade and the Committee
agreed at the 2nd Triennial Review to continue an
information exchange in this regard while noting that
minimizing the use of mandatory technical regulations and
using voluntary international standards, where appropriate,
could reduce the regulatory burden and open up market
access opportunities.
What is our industry doing to
contribute to a better regulatory
environment?
       Russia – New Technical Legislation
                  Background
   Up to now:
     no Technical Legislation ; State Standards regulate all Technical
      Regulation. They are mandatory documents.
     In addition to State Standards we have Industry Standards and
      Regulations. Ministries do supervise the product compliance.
     We have to work with 4 Certification Bodies
         Ministry of Communication (Gen Sets)
         Gosgortehnazor/Rostehnatzor (Safety Ministry – dangerous products)
         GostR
         Hygienic
   Duma approved a new Russian Federal Law N0. 184.03 on
    Technical Regulation in Y2002, which has been revised in
    Y2007
What did we do?
Since the law did not provide a formal structure or process we
    had to find an acceptable course of action

1.   Create an Industry Association in Russia?
           1. Local Association?
           2. Support from existing International Association (I.e: AEM,
              CECE)?

2.   Write our own draft TR?
3.   Create an International Working Council?
Course of Action
   Creation of a RF President Expert Council in May 2005

           Success in building the foundation for the future of a National
            Industry Association
           First meeting took place in Moscow June 1, 2005
           Council has 25 members / 4 foreigners. All very professional.
            Russian members represent Industry, Associations & Instituts/
            Universities. The foreigners include:
              – European Trade Association (CECE chairman– Jan Mimer /Volvo)
              – Japanese Trade Association (CEMA chairman - Kenzo Tamake
                /Komatsu)
              – USA Trade Association (AEM– Dan Roley /Caterpillar)
              – Industry (Standards & Regs – Roger Pocthier /Caterpillar
Course of Action
 Promoted the use of ISO 20474 Standards / UN ECE
  model legislation
     CAT translated ISO20474 in Russian language

   Promoted to use of Manufacturer self declaration
           In line with Western industry practices


   Draft of TR written

 We proposed to provide Training and Assistance for
     Understanding of ISO Standards Process
     Participating in the development of ISO/TC 127 Standards
     Using the technical requirements in the ISO/TC 127 Standards in
      Regulations
Challenges
   We must continue to explain the process in our council & at political level.
           Some Russian are interested and convinced about the benefits of
            international regulatory convergence and the use of international
            standards but others still believe that the actual system is better for
            them.
   Funding are required to work out draft TR
           International community/Associations provided financial support
           Caterpillar has spend substancial amount of resources to drive the
            process in the right direction
   We are face with a very complex political situation.
   Interpretation of the law is difficult and consensus is not always found even
    between Russian experts.
   We have to overcome communication difficulties
      Gaps enhanced by cultural disconnects
      Inertia in exchanges
                       Conclusion
   We are currently working with other manufacturers/ Trade
    Associations in Russia and elsewhere to have a better
    regulatory environment while using International Standards.
    Good progress are taking place.

   We are providing training and assistance for
     Understanding the ISO Standards Process
     Participating in the development of ISO/TC 127 Standards
     Using the technical requirements in the ISO/TC 127 Standards in
      Regulations

   We recommend adopting international standards as national
    standards to aid manufacturers who want to export

   We are in favor to add national variations to allow for the
    current level of technology and the social expectations
Thank You

				
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