NEDLAC PRESENTATION

20 JULY 2016

ASOGAN MOODLEY

CEO

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Contents

Establishing Act

Legislative Mandate of the NRCS

Mission & Vision

Strategic Outcomes

NRCS business overview

Regional & International Participation

Changing Conditions since 2008

Impact of Port of Entry Inspections

NRCS Risk Based Approach

Background – Approval of Motorcycles

Compulsory Specification

Implementation of VC9098

Approval of Imported 2nd Hand Motorcycles

Importation of Second-hand Engines

National Regulator for Compulsory Specifications of South Africa (NRCS)

established by Act 5 of 2008

on 1st September 2008 all regulatory functions of SABS transferred to

NRCS

NRCS Mandate: Administer compulsory specifications in the interests of public

safety and health or for environmental protection

Establishing Act and Mandate

NRCS - INCEPTION TO CURRENT

• Functions of NRCS housed within the SABS as Regulatory DivisionPre 2008

• NRCS formed on 1 September 2008

• Schedule 3A Public Entity in terms of the PFMA

• Appointment of the Interim Management Committee 2008

• Implemented updated 5-year strategic plan

• Introduction of Risk Based Approach

• Introduction of Border Enforcement Strategy2009 to 2013

• Change in Governance Structure

• Report under the Minister of Trade & Industry

• Implementation of Legal Metrology BillNRCS Current

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National Regulator for Compulsory Specifications Act

(Act No. 5 of 2008)

Legal Metrology Act

(Act No. 9 of 2014)

National Building Regulations and Building Standards Act

(Act No. 103 of 1977)

The Foodstuffs, Cosmetics and Disinfectants Act

(Act 54 of 1972)

Mandate of the NRCS is derived from the following Acts.

Legislative Mandate

Mission and Vision

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Dedicated to protect South Africans by developing compulsory specifications and technical regulations, and maximizing compliance of regulated products and services

NRCS MissionA credible and respected

regulator for compulsory specifications and fair trade.

NRCS Vision

Strategic Outcomes

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To ensure an optimally

capacitated institution

To develop, maintain and

administer compulsory

specifications and technical

regulations

To maximise compliance with all specifications

and technical regulations

To inform and educate our stakeholders

about the NRCS

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Regional and International Participation

NRCS attends various forums at an organizational level and as a representative

of South Africa is some instances:

SADC Technical infrastructure committees

– SADCMET – SADC Metrology

– SADC TBTSC – SADC Technical Barriers to Trade Stakeholder Committee

– SADCTR – SADC Technical Regulations

– NRCS also acts as Regional coordinators and secretariats for three SADC

committees

OIML - Organization

Participate in the WP (Working Party) 29 for Automotive regulations

CASCO – International - Conformity Assessment

COPOLCO – Consumer Policy Committee of the International Standards

Organization

CODEX – Codex Alimutaruis

IEC – IECEECMC

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The changing conditions since 2008

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FACTOR BEFORE (2008) TODAY (2015)

Application received per month ~400 ~1200

Turnaround time 10 - 12 days 120 days

Number of compulsory specifications

regulated and requiring LOA's e.g.

Electrotechnical BU.

15 - regulated

4 requiring LOA's

18 - regulated

18 - requiring LOA's

Market surveillance strategy Inspections concentrated at

retailers, 70-80%

Inspections concentrated at

source, 60-70%. Manufacturing

plants and Ports of Entry.

Inspections planning Market coverage based on

geography

Targeted inspections based on

profiling

Non compliant products found Small volumes scattered all over

the country

Large volumes at source

NRCS Impact of POE

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Statistics per Port of Entry and Average NRCS Stops (Jan 2015 to Jan 2016)

NRCS stops and Inspections: Average less 1%, 99% containers process without stops and Inspections.

• 70% of stopped containers include regulated products, 30% non-compliant or not approved

• 2009 – 2014 - products valued over R 1 billion uncovered

• 2014/15 - R 548 million unsafe products removed from the market

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The Risk-Based approach recognizes that regulatory resources, both human and

financial, are limited and allows for the NRCS to direct resources to where the risk is

greatest.

The risk-based approach to approvals is meant to allow for a separation of LOA

applications through a systematic classification of applications as low risk applications,

medium risk applications and high risk applications

The target turnaround times for these three categories are as follows:

Low risk applications – to be processed within 75 calendar days

Medium risk applications – to be processed within 90 calendar days.

High risk applications – to be processed within 120 calendar days.

NRCS – Risk Based Approach

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Background – Approval of Motorcycles

Prior to the implementation of the compulsory specification, a motor

cycle whether new or second-hand, defined at the United Nations as a

Category L motor vehicle, only had to comply with the requirements

that were mandated under the Road Traffic Act and Regulations (Act

93 of 1996)

The National Department of Transport (NDoT), to more effectively

manage the safety of motorcycles, requested that the SABS develops

a compulsory specification for motor vehicles of Category L

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Compulsory specification

The SABS on 8 May 2008 approved that a recommendation be

made to the Minister of Trade and Industry for the proposed

introduction of a Compulsory Specification for Motor Vehicles of

Category L

The Dti published a final Gazette, on 27 May 2011.

The final gazette is VC 9098 “Compulsory specification for

category L motor vehicles”

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Implementation of VC 9098

Similar to other motor vehicle compulsory specifications for

passenger and commercial vehicles, the scope of the

compulsory specification covers motor vehicles of category L,

not previously registered or licensed in South Africa.

The specification requires for all unregistered manufactured and

imported category L motor vehicles, whether new or second-

hand to comply with various SANS safety and environmental

standards,

VC 9098 was implemented as from December 2011

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Approval of Imported 2nd Hand Motorcycles

The NRCS approval requirements are the same for new and second-hand

motorcycles

All companies that Import new or second hand (used) motorcycles for

selling purposes are required to register as an Importer (MIB registration)

All registered MIB’s must homologate their motorcycles before they are

offered for sale

The homologation process requires the MIB to apply and present their

motorcycle and proof of compliance (required test reports) to the NRCS in

order to verify that the motorcycle is safe to be operated on the public

roads.

NRCS issues eNatis model numbers to all motor cycles that comply with

the approval process

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Importation of second-hand engines

The NRCS regulates products that are covered within the scope

of compulsory specifications

There is currently no compulsory specification for second hand

engines

NRCS is therefore not involved in regulating importation of

second hand engines.

Thank - you