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Woo-jin Jung
Ministry of Construction & Transportation
Republic of Korea
Implementation of SDoC in Korea’s A
utomotive Sector
March 21, 2005
Contents
1. Vehicle Safety Standards
2. Korea’s regulatory practice
3. Harmonization of Safety Standards
4. Conformity Assessment Streamlining
5. Conclusion
3
SAFETY
STANDARDS
Vehicle Safety Standards
Protect
Environment
(Emission/Noise ) Accidents / Casualties
Reduce
4
Vehicle Safety Standards & Conformity Assessment Procedure
Most countries have their own vehicle safety standards & conformity
assessment procedure, often resulting in technical barriers to trade.
Europe NationRegulations
EEC Directives
ECE Regulations
U.S.
FMVSSStandards Standards
KOREAStandards
5
Korea’s Regulatory Practice
Export & Import of Vehicles in Korea
0
5,000
10,000
15,000
20,000
25,000
'84 '86 '88 '90 '92 '94 '96 '98 '00 '02 '04
Num
ber
of
Expo
rted V
ehic
les
(hundre
d)
0
5,000
10,000
15,000
20,000
25,000
Num
ber
of
Impo
rted V
ehic
les
Exported Imported
Differences in safety standards and conformity assessment procedure burdens to both the
government and manufacturers
Government decides to take action
6
Action Taking
Conformity Assessment Streamlining - Switchover from Type Approval System to Self-certification System
(SDoC)
Conformity Assessment Streamlining - Switchover from Type Approval System to Self-certification System
(SDoC)
International Harmonization of Vehicle Safety Standards - Join UN/ECE/WP.29
- Participate in APEC/RTHP(Road Transport Harmonization Project)
- Establish cooperative relationship with other countries
(EU, US, Japan, China etc.)
International Harmonization of Vehicle Safety Standards - Join UN/ECE/WP.29
- Participate in APEC/RTHP(Road Transport Harmonization Project)
- Establish cooperative relationship with other countries
(EU, US, Japan, China etc.)
7
International Harmonization Trend
1958 Agreement
1998 Agreement
6 Expert Meetings
GRE, GRSP, GRRF GRSG, GRPE, GRB
UN/ECEWP29
Harmonization of
Safety Standards
APEC
(RTHP)
International CooperationInternational Cooperation
Exchange InformationExchange Information
Rule-making ActivitiesRule-making Activities
8
Harmonization Activities
• ’96. 6 : First participation in WP29
• ’01. 1. 1. : Accession to 1998 agreement
• ’04. 12.31 : Accession to 1958 agreement
UN/ECE
WP29
• ’96. 11 : First participation in 10th meeting
• ’02. 9 : Elected chairman• Chairmanship : 22nd (’03.9) – 24th(’04.8)
APEC/TPT
/RTHP
9
Conformity Assessment Streamlining
Implementation of self-certification (SDoC) : 2003. 1. 1
Basis for implementing SDoC
• Technical level of manufacturers in vehicle industry
• Consumers’ awareness level
Before overall implementation of SDoC,
Recall System (PL) was introduced in 1992
10
Expected Effects of Self-certification
To improve flexibility to market
- reduce costs and time associated with testing Manufacturer
To save regulatory costs - meet policy objectives such as safety of consumers & protection of the environment
Government
※ To facilitate international trade of automobiles
by avoiding unnecessary obstacles
11
Process of Self-Certification
Manufacturer/importer registers laboratory with the MOCT before manufacturing or importing vehicles.
Registration
Labels affixed to vehicles upon declaration by the manufacturer/importer that the vehicles are in compliance with all applicable safety standards
Self-Certification
Manufacturer/importer notifies the MOCT of vehicle specifications before selling vehicles
Notification of Vehicle Specification
12
How to ensure compliance – Recall System
InformationCollection
InformationCollection
Manufacturerdecides to recall
DefectInvestigation
ComplianceTest
Owner Notification
HearingHearing
Order to Recall(Minister of MOCT)
Progress Reportto MOCT
Completion
Annual planAnnual plan
Advisory Committeeon Vehicle Recalls
When is a recall necessary?
1. Motor vehicle does not comply with safety standards.
2. Safety-related defects exist in the vehicles.
13
Compliance Test
Selecting Test Vehicle Selecting Test Vehicle
Test Test
Analysis Analysis
Final ReportFinal Report
Hearing Hearing
Recall & PenaltyRecall & Penalty
Criterion: Large volume of sale Criterion: Large volume of sale
Manufacturers given opportunities for defense Manufacturers given opportunities for defense
14
Defect Investigation
Data Gathering Data Gathering
Initial Analysis Initial Analysis
Preliminary Investigation Preliminary Investigation
Final Report Final Report
Defect Investigation Defect Investigation
Hearing Hearing
Recall & PenaltyRecall & Penalty
- Complaints from consumers
- Report from vehicle inspection center
- Complaints from consumers
- Report from vehicle inspection center
Manufacturers given opportunities for defense Manufacturers given opportunities for defense
15
Recall Process
Order to RecallOrder to Recall
Submit Remedy Action Plan to the Authorities Submit Remedy Action Plan to the Authorities
Conduct RecallConduct Recall
CompletionCompletion
- Vehicle manufacturer is obliged to rectify
defects & noncompliance at his costs.
- Quarterly status report to be submitted to
MOCT until the recall is completed.
- Vehicle manufacturer is obliged to rectify
defects & noncompliance at his costs.
- Quarterly status report to be submitted to
MOCT until the recall is completed.
Maximum fine of $1 million may be imposed
as additional penalty
Maximum fine of $1 million may be imposed
as additional penalty
16
Recall Statistics in Korea
Volume of Recalled Vehicles in Korea
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
'92 '94 '96 '98 '00 '02 '04
Volu
me
- Active market surveillance mechanism by consumers resulted in increase
of recalled vehicles since 2000.
- Major cause of recall was safety related defects rather than noncompliance.
17
Vehicle Safety Standards & Conformity Assessment
Procedured have become very important in Korea.
In keeping with Philosophy of the TBT Agreement,
Korean government has
- harmonized with international safety standards.
- implemented SDoC in automotive sector.
Vehicle Safety Standards & Conformity Assessment
Procedured have become very important in Korea.
In keeping with Philosophy of the TBT Agreement,
Korean government has
- harmonized with international safety standards.
- implemented SDoC in automotive sector.
Conclusion