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The Role of Conformity

Assessment in Enhancing

Continental Free Trade Area

(CFTA)

Mr. Douglas Nyamori

12 August 2015

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INTERTEKValued Quality. Delivered.

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Who is Intertek?

Intertek is the leading quality solutions provider to industries

worldwide.

Intertek helps its customers meet the end users’ expectations for

safety, sustainability, performance, integrity and desirability in

virtually any market worldwide.

We deliver these services through our global network and as a

result have developed an unrivalled reputation for fast execution

of work.

Intertek range of services range from auditing and inspection, to

testing, training, advisory, quality assurance and certification.

Intertek developed the very first Conformity Assessment

Programme nearly 20 years ago and are market leaders.

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An Extensive Global Network

• FTSE 100 company in the

Support Services sector

• Market capitalization over

£5 billion

• Revenue generation of

over

£2.093 billion in 2014

100More than

countries

1,000More than

laboratories

and offices

38,000people

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Intertek Group

Industries we operate in

Agricultural Services

Building Products

Business Assurance

Cargo and Analytical Assessment

Electrical/Wireless

Exploration and Production

Food Services

Government and Trade Services

Hardlines

Industry Services

Life Sciences – Chemical and Pharma

Minerals

Product Intelligence

Softlines

Transportation Technologies

What we do

Testing and Analysis

Inspection

Certification

Auditing

Sourcing

Consulting

Training

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Services to Government

Intertek assists Government with a large number of services:

Local infrastructures in the field

of quality & conformity

(metrology, laboratories, etc.)

Ministry of Industry, Ministry of

Agriculture

Assistance to Standards Bodies

by ensuring that imports comply

with applicable standards ensuring

consumer protection, etc.

Ministry of Commerce/Industry

Customs Services, such as

Advisory, Fiscal support, Security,

Trade Facilitation Services, Single

Window Applications, Valuation

Data Bases, etc.

Ministry of Finance

Assistance to Health Authorities

with conformity assessment and

registration services, toxicological

assessments, audits..

Ministry of Health, FDA..

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Intertek Government Programmes

• CAP – Conformity Assessment

Programmes aim to help protect the local

consumer from unsafe and dangerous

imports and the economy from

counterfeited and sub-standards goods.

• CAP Product Specific Programmes

such as Anti-counterfeit Medicines or

Second-hand Vehicles programmes.

• Valuation & Customs Programmes

enhances the customs revenue collection

with Valuation services and other customs

related services (origin, coding, risk

assessment..)

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Intertek Government Programmes

• Container Scanning Programme – could

include the procurement and managing of

Container Scanners (BOT, PPP)

• Single Window Programme – could

include the need analysis, construction of

tailor-made software, management of the

SW.

• Laboratory Programme – Built operate

and manage local governmental labs.

• Export Inspection Programme – quality

and quantity and valuation services for

correct fiscal declaration. Certification of

production sites or products to improve

export quality

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ALGERIA BOTSWANA EGYPT GABONETHIOPIA

KENYA KUWAIT MEXICO NIGER NIGERIA

QATAR RUSSIA SAUDI ARABIA UGANDA

CAP Programmes Handled by Intertek

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BANGLADESH ECUADOR GUINEA LIBYAINDIA

MOZAMBIQUE PHILIPPINES SOMALIA UAE UZBEKISTAN

Other Government Support Programmes Handled by Intertek

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CONTINENTAL FREE TRADE AREABoosting Intra-African Trade

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Continental Free Trade Area (CFTA)

• The African Union endorsed a plan

to set up a Continental Free Trade

Area (CFTA) by 2017. The

proposed CFTA would be a key

component of the AU's strategy to

boost intra Africa trade.

• Intra-African trade currently stands

at an estimated 12 percent of total

trade, compared to 60 percent for

Europe, 40 percent for North

America, and 30 percent for

ASEAN, according to statistics cited

by the WTO. limited involvement of

the private sector in the design of

programmes intended to raise intra-

regional trade

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Continental Free Trade Area (CFTA)

Regional Economic Communities are regarded as the

building blocks of the African Economic Community. They

include the below, each established under a separate regional

treaty.

• Arab Maghreb Union (UMA)

• Common Market for Eastern and Southern Africa (COMESA)

• Community of Sahel-Saharan States (CEN-SAD)

• East African Community (EAC)

• Economic Community of Central African States (ECCAS)

• Economic Community of West African States (ECOWAS)

• Intergovernmental Authority on Development (IGAD)

• Southern African Development Community (SADC)

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Challenges Facing Intra-Africa Trade

Principal among the barriers are:

• poor transportation networks/high transport costs

• cumbersome import and export procedures and border crossing

problems;

• limited use of Information and Communication Technology (ICT)/

cumbersome documentation

• limited involvement of the private sector in the design of

programmes intended to raise intra-regional trade;

• Tariff Barriers/Protectionism

• poor trade dispute settlement systems and financial

encumbrances, among others

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Challenges Facing Intra-Africa Trade

• Trade flourishes when countries produce what their trading partners are eager to

buy. With a few exceptions, Africa largely consumes what it doesn’t manufacture.

It complicates regional integration and is a primary reason for the low intra-

regional trade,

• Lack of Harmonised Standards and procedures

There appears to be a growing awareness of the potential deterrence to trade posed

by differing national standards and technical regulations.

• Lack of Harmonized of customs procedures and poor

implementation of one-stop border posts

• Challenges in mutual recognition of National Quality

Marks

• Lack of trust/confidence in products manufactured

locally

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EFFECTIVE AND EFFICIENT

CONFORMITY ASSESSMENT

A tool to assist in facilitating trade thus increasing Intra-Africa trade

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Trade Facilitation

Definition

Trade Facilitation can be defined as the

simplification and harmonization of

international trade procedures including

import and export procedures.

i.e. "the activities (practices and formalities)

involved in collecting, presenting,

communicating and processing the data

required for movement of goods in

international trade".

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Conformity Assessment Programmes

Harmonized Standards

Conformity Assessment is driven principally by Standards to meet

Market and Regulatory Needs.

• Harmonized standards help to deal with product incompatibilities

e.g. Grading of rice

• Handle basic marking differences

e.g. Actual Expiry date vs. PAO, Shelf Life requirements

Grade designations

language and quantity designations

• Harmonization of standards helps trade facilitation. Intertek

intervention in any country aims to promote regional or

internationals standards by always engaging the National

Standards Body (NSB) and promoting best practice when local

applicable standards are non-consistent with

regional/international standards

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The Role of Conformity Assessment

Programmes in Enhancing/Facilitating Trade

Why are Conformity Assessment Programmes so important?

Standards carry knowledge

If the knowledge is not used , then standards are just ink on paper.

Using the knowledge creates value.

Conformity Assessment is the act of using the knowledge to create value

Standards and Conformity Assessment are like two sides of a coin.

Only together do they create value.

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The Role of Conformity Assessment

Programmes in Enhancing/Facilitating Trade

Why are Conformity Assessment Programmes so important?

Standards and conformity assessment affect virtually all commerce.

• Because of the challenge of unethical traders and the dangers posed by substandard products,

today, many products require testing for conformance with specifications or compliance with

safety or other regulations before they can be put on many markets.

• It is not always practical for these activities to be carried out by suppliers and customers, thus the

involvement of 3rd parties such as Intertek.

• Most African countries probably can define their needs, but they need to find the resources to

deliver against these needs.

• Solution? Private-public partnership. i.e. CAP programmes and outsourcing of laboratories, etc.

• The confidence that effective conformity assessment delivers facilitates these international

transactions and makes conformity assessment an important tool for all trade.

The objective of conformity assessment therefore is ease of movement of goods across

borders i.e. eliminating fear and building confidence in goods traded.

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Activities that Lead to Trade Facilitation

• Invest in and promote harmonisation of Regional/African standards

• Better inclusion in TC that develop standards

• Focus on Harmonised Essential Requirements during standards development

Intertek in many of the CAP programmes help NSBs in extracting essential requirements and

sharing this with NSBs

• Promote International accreditation as a measure of increasing confidence in conformity

assessment activities

• Investing in an IT systems that capture, store and provide a platform for data from Conformity

assessment activities to be used in real time as part of clearance procedures e.g. S/W systems

offered by private entities such as INTERTEK

• Promote mutual recognition of Conformity Assessment activities such as certificates of

conformity and Product certification marks awarded under the national product certification mark

schemes

• Ensure Conformity assessement is done before shipment

• Harmonised, efficient and effective use of CAP schemes (Conformity Assessment Programmes)

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The Benefits of Conformity Assessment

Programmes

• Faster Border clearance (Green Channels)

• Growth on the Quality Infrastructure

• Increased confidence in locally manufactured goods and in cross border trading

• Enhances global competitiveness, uniformity and good quality of products

• Reference to standards can guarantee products of good quality while also ensuring

their integrity

• Boost manufacturing in the Continent/growth in industrialization

and thus growth in exports

• Helps fight illicit trade (substandard and counterfeit products)

• Helps avoid the challenges and expenses of destroying

substandard products at destination or reshipping

23 www.intertek.com

Valued Quality. Delivered.