PARTICIPANTS IMPACTED

WE

IGH

ING

&

SC

ALE

CO

MP

AN

IES

• Product

• Repair

• Verification

• Software

IN H

OU

SE

CO

RP

OR

ATE

WE

IGH

ING

• Product

• Repair

• Verification

• Software

VO

LU

ME

CO

MP

AN

IES • Product

• Repair

• Verification

• Software

THE NATIONAL WEIGHING ASSOCIATION

• Seeks to represent all Participants.

• Board representation is allocated as to one seat for:

• Verification

• Industrial Repair > 1 ton

• Scale Repair < 1 ton

• Product Importation and Distribution

• Software

• NWA is not there to represent just current parties accredited to verify nor is voting based on number of verification officers.

• The hope is the NWA will evolve to become the NMA –i.e. include Volume.

BBBEE PARTICIPANT TYPES

EME

<R10M

Level IV

QSE

R10-50M

¾ Compliance

LARGE

>R50m

4/4 Compliance

2013 BBBEE CODE “RESHUFFLE”

•NUMBER ?•Verification?

•Repair?

•Product?

•Software?

EME

•NUMBER ?•Verification?

•Repair?

•Product?

•Software?

QSE•NUMBER ?

•Verification?

•Repair?

•Product?

•Software?

LARGE

THE REALITY OF THE METROLOGY ACT

• The Act is passed, the debate is over.

• South African metrology practices will now

align with global standards.

• Consumers will be better protected.

• Regulations now need to be drafted.

DRAFTING THE REGULATIONS – FOCUS AREAS

• Registration of Participants

• Certification of Repairers

• Independence of Verification

• Approval of Software

REGISTRATION OF PARTICIPANTS

• NWA supports this 100%.

• Reason:

• Helps control the quality of products sold.

• Helps control quality of repairers.

• Better protects the Consumer.

CERTIFICATION OF REPAIRERS

• NWA supports this 100%:

• Reason:• Modern technology requires specific training• Consumers need to know repairers are correctly trained • Repairer’s staff need to be certified per product • Register of “trained” repairer staff is needed.

• Trained “repairer” can be employed by either in house weighing companies, equipment owners or scale and weighing companies.

PROTECTING THE CONSUMER

• The overriding principle that verification should be

independent of repair is accepted.

• Consideration should be given to the extent that the

costs of implementation out weigh the benefits.

• NWA believes that for weighing instruments of <1 ton

the costs out weigh the benefits.

“INDEPENDENCE EXEMPTION” FOR <1TON

• Therefore the NWA believes that:

• The potential costs to the consumer of inaccuracy in < 1 ton capacities are not that material in Rand values

• The requirement for verification and repair to be done by independent parties should be waived.

• Participants that focus on the < 1 ton equipment to verify and repair up to < 1 ton.

• No waiver to in house corporate weighing companies.

INDEPENDENCE REQUIRED FOR >1TON

• The NWA believes that:

• Volumes and values of goods weighed over instruments >1 ton are significant

• The potential costs to the consumer of inaccuracy in the > 1 ton capacities are material in Rand values.

• Therefore verification of > 1 ton instruments must be done by participants independent of repair.

DEFINING VERIFICATION “INDEPENDENCE”

• NWA believes that the definition of “independence” should mean:

• Separate legal entity

•No cross shareholdings with any repairer.

•No common directors with a any repairer

• Own offices.

• Own staff

• Own administration.

“INDEPENDECE COST” ARGUMENT VOID

• To the Equipment Owner the major cost of weighing is down time, inaccuracy and administration.

• For > 1 ton equipment the added cost of having repairer and verification split is not material.

• Example:

• 30 weighing’s per day of coal to 60T WB capacity average volume 34 tons of coal = R150m per annum of product.

• Cost of “ verification independence” = 0.01% of product sold. Significant cost?

APPROVAL OF SOFTWARE

• Software is a fundamental component of modern weighing systems.

• Software now included in the component list of a what makes up a trade approved weighing instrument.

• No regulations exist in South Africa to specify how “software” is to be approved.

• NWA proposes that the the approach taken in the Europe or the USA is followed and that work starts immediately on these standards.

CLOSING REMARKS