June 24, 1998 A Global Model for Regulatory Reform Northeast Product Safety Society Boxboro, MA 24 June 1998 Michael Neuffer Manager, Corporate Product Safety and Regulations Digital Equipment Corp. Speaking for …. ITI, The Information Technology Industry Council June 24, 1998 Information Technology Industry Council ITI represents the leading providers of information technology products and services • $420 B worldwide revenue in 1997 • 1.2 million employed in the U.S. • IT Sector expected to be 20%of the U.S. GDP by the Year 2000 AMP Incorporated IBM Corporation Philips Key Modules Apple Computer, Inc. Information Handling Services Samsung Electronics America, Inc. AT&T Intel Corp Silicon Graphics, Inc. Bull HN Information Systems Inc. Lexmark International, Inc. Sony Electronics, Inc. Compaq Computer Corporation Lucent Technologies, Inc. Storage Technology Corporation Digital Equipment Corporation Motorola, Inc Symbol Technologies, Inc. Eastman Kodak Company NCR Corporation Tandem Computers Incorporated Gateway 2000, Inc. Panasonic Communications and Tektronix, Inc Hewlett-Packard Company Systems Company Texas Instruments Incorporated Hitachi Computer Products (America), Inc. Xerox Corporation See “Product Regulations in Global Markets: How product regulations can best facilitate global commerce.” 13-Aug-97, under http://www.itic.org/ June 24, 1998 Does this growth represent REAL VALUE to either Customers or to Society? A Snapshot of Growth in Global Regulatory Standards and Certifications Data provided by Hewlett-Packard Company Information Technology Equipment 1989 90 91 92 93 94 95 96 1997 0 1 2 3 4 5 6 7 Year Relative No. Stds & Regs Certifications 6 X June 24, 1998 Product Safety and EMI Regulations Two areas that countries increasingly regulate  Product Safety  Electromagnetic Interference (EMI) June 24, 1998 Values Government role Governments establish regulations to protect the safety and health of their citizens, to manage their environment and resources, and to ensure national security. Citizen value Citizens benefit from regulations that provide protection AND facilitate market development, technology diffusion, and business investment. Customer value Customers benefit when industry creates or provides something that has meaningful value to them. Customers reward us when we provide a service or product that they value. June 24, 1998 “Getting Higher Value …” The key question is … How do you optimize the Value of Information Technology (IT) products  for both Customers and Citizens? June 24, 1998 The Opportunity is Based on Three Concepts For IT Regulations 1 of Product Safety and Electromagnetic Interference (EMI) …  “One Standard - …  “One Test  An Implementation Model Based on a Supplier’s Declaration of Conformity 2 1 Other regulated sectors such as Telecom support “one suite” on internationally recognized standards. 2 Supplier’s Declaration of Conformity as an regulatory option to third-party certification. June 24, 1998 “One Standard” - Product Safety and EMI Use one standard Use country-unique standards or deviations No position What is the value to customers and citizens for country-unique standards or deviations ? Product Safety and EMI regulations in APEC countries June 24, 1998 “One Test*” - Product Safety and EMI Accept one test Require unique test No position What is the value to customers and citizens for having redundant or country-unique tests ? * One Test includes Supplier’s Declaration of Conformity option Product Safety and EMI regulations in APEC countries June 24, 1998 Model for Regulatory Reform One Standard One Test Market Surveillance Tested once at supplier or third-party test facility. Accepted equally without restriction of test location. Designed once to internationally-accepted global standards SDoC or third-party certification accepted globally Product sample and audit. Customs inspection for SDoC. Marketplace complaints. After-market surveillance. feedback feedback f e e d b a c k Supplier’s Declaration of Conformity (SDoC) [...]... (US) … years this form since An ITI principal for many but articulated in July 1997 Trans-Atlantic Business Dialogue CEO Roundtable in Rome (US and Europe) … Adopted November 1997 World Trade Organization Information Technology Agreement II … are countries on use of standards and SDoC US and EU have asked for talks leading to a signed agreement APEC World Trade Organizations surveying …… APEC has endorsed... “One Standard - One Test, SDoC” Possible? Yes! For the IT sector … Many countries’ regulations already reference “one standard”, recognize “one test”, and accept “SDoC” Australia - EMI Czech Republic - EMI, Safety Canada - EMI EU - EMC Safety HK - Safety US* - EMI *requirement for FCC - acceptable accredited test labs June 24, 1998 Progress Toward One StandardOne Test, SDoC for IT Products Information... third party test facility conforming to ISO/IEC Guide 25, without restriction on location Allow for Supplier’s Declaration of Conformity option – Communicate administrative requirements for testing and SDoC – Example; Publicly available documents, WEB, Publications, seminars, etc Establishes the appropriate market surveillance system to assure protection for health and safety June 24, 1998 – Example; audits... requirements and content of a Compliance Folder and a Declaration of Conformity Guidance on market surveillance methods that a government should consider Conform to administrative and international requirements for testing and SDoC – ISO/IEC Guide 22, 25, and “to be developed” international administrative requirements Self-regulate to assure protection for health and safety – Timely response to known violations... concept June 24, 1998 Call to Action - Regulators For Product Safety and EMI, each government, in cooperation … Matches regulations to the global model of “One StandardOne Test, Supplier’s Declaration of Conformity” – Use internationally accepted standards from ISO and IEC Work to – eliminate local and national deviations and unique requirements Provide for one time testing of a given product by either... SDoC elements and compliance folder, investigates complaints, cites penalties of violators, and public registry of violators Call to Action - Industry For Product Safety and EMI, industry takes the lead to … Develop ISO/IEC standards and guides on “how” to implement “One Standard-One Test, SDoC” – Guidance on how government should reference internationally accepted – – standards Standard on what are...The “One Standard-One Test, SDoC” Model Offers Improved Customer and Citizen Value Speeds up products-tomarket Reduces redundant costs for customers and frees resources for governments Maintains protection of public health and safety June 24, 1998 Fewer Negotiations Move from To Bilateral Agreement Model One Std-One Test, SDoC Model Number of bilateral agreements = n (n-1)/2 No reciprocities... improvements to internationally accepted standards and SDoC requirements ITI Contact For Regulators and Industry who support the “One Standard-One Test, Supplier’s Declaration of Conformity” and seek help in regulatory implementation … Information Technology Industry Council 1250 Eye Street, NW Suite 200, Washington, DC 20005 – John Wilson, Vice President, Technology Policy Phone 202-626-5735, Fax 202-638-4922... Policy Phone 202-626-5735, Fax 202-638-4922 jwilson@itic.nw.dc.us – John Godfrey, Director, Technology Policy Phone 202-626-5734, Fax 202-638-4922 jgodfrey@itic.nw,dc.us See “Product Regulations in Global Markets: How product regulations can best facilitate global commerce.” 13-Aug-97, under http://www.itic.org June 24, 1998 . 1998 A Global Model for Regulatory Reform Northeast Product Safety Society Boxboro, MA 24 June 1998 Michael Neuffer Manager, Corporate Product Safety and. standards and SDoC. US and EU have asked for talks leading to a signed agreement. APEC …… APEC has endorsed the concept. June 24, 1998 Call to Action