PED Workshop Nicosia, 3-5 October, 2005

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1 EU Trade Policy in the Pressure Equipment Sector An Industry Perspective PED Workshop Nicosia, 3-5 October, 2005 Frank Wohnsland VDMA German Engineering Federation Page 1 4 October 2005

2 Our platform We, the capital goods industry System suppliers/integrators and services that accompany the product Representation of the process chain from components to the plant 3,000 member companies 46,000 visitors 1,540 events 400 dedicated employees The largest network in our sector Page 2 4 October 2005

3 Our specialised industries One stop for diversity Agricultural technology Air-handling technology Building control and management Cleaning systems Compressors, compressed air and vacuum technology Construction equipment and building materials machines Equipment for metallurgical plants and rolling mills Fire fighting equipment Fluid power Food processing & packaging machinery Foundry machinery Garment and leather technology Industrial communication Lifts and escalators Machine tools and manufacturing systems Materials handling and logistic technology Micro technology Recognise, analyse and canvass markets Mining equipment Municipal Equipment Plastics and rubbers technology Power systems Power transmission engineering Precision tools Printing & paper equipment and supplies Process plant and equipment Productronics Pumps + Systems Robotics + automation Safes and strongrooms Software Testing technology Textile machinery Thermo process and waste treatment technology Valves Weighing technology Welding Woodworking machinery Page 3 4 October 2005

4 An Industry Perspective on Pressure Equipment Table of Contents Review current situation Pressure equipment in the EU Before PED Situation today Pressure equipment outside the EU New EU candidate countries North America China & further Asian countries Directions for Future Trade Policy In European Economic Area (EEA) Outside EEA Page 4 4 October 2005

5 Pressure Equipment in the EU Equipment under the New Approach Directives under New Approach are an effective means to guarantee equal prerequisites for the manufacturing of products and their placing on the market in the European Economic Area (EEA) Pressure equipment under European Directive 97/23/EC (PED) Directives according to Art. 95 require adoption by national law, only small deviations possible Placing on the market to a large extent harmonised in EEA Strict separation of manufacture and operation Page 5 4 October 2005

6 Pressure Equipment in the EU Situation until 1999 Manufacturing under national legislation Sometimes specified by further national technical rules National codes mandatory National certification body/bodies Manufacture and operation often intertwined Each country with a separate concept for manufacturing and service Page 6 4 October 2005

7 What is the Situation in Europe today? Manufacture European directives according to Art. 95 are transposed 1:1 into national law PED in force all over the EEA Harmonised standards as the tool for implementation on the technical level Europe-wide system of conformity assessment bodies as supervising institutions Guidelines as support for interpretation Identical requirements for the placing on the market all over EEA Page 7 4 October 2005

8 What is the Situation in Europe today? Standardisation Harmonised Standards: EN (unfired pressure vessels) still struggling EN (piping) and EN (cryogenic vessels) on a good way EN und EN for boilers established National codes, in part adapted to PED (examples): Germany: AD 2000 France: CODAP 2000 Great Britain: PD5500:2000 USA: ASME code Page 8 4 October 2005

9 What is the Situation in Europe today? Standardisation (continued) Where do some of the difficulties of EN come from? Publishing of EN very late (only shortly before PED became mandatory) therefore strong competition by national codes that had been adapted to PED EN is rather complex; manufacturers are reluctant to learn a new standard without the perspective of immediate use Nobody wants to take the first step: manufacturers depend on the orders of their customers (users); users are familiar with traditional codes, do not want to take any risk by using a new standard Page 9 4 October 2005

10 What is the Situation in Europe today? In-Service Matters Service/operation regulated by national laws Assessment bodies not necessarily identical to notified bodies National regulations show very wide variations and are often based on different approaches and safety philosophies, differing for each country Typical problem: discussions on in-service inspection intervals because of large differences within European Economic Area (EEA) Each country with a separate concept for operation Page 10 4 October 2005

11 Pressure Equipment in the EU Summary Manufacture and placing on the market Harmonised throughout EEA World-wide unique system: one common market for more than 25 countries European standards Some widely recognised and accepted (even outside Europe) Some still do have some way to go... In-service matters No common basis yet Separate solutions in each country Page 11 4 October 2005

12 Pressure Equipment outside EU Some General Remarks Manufacture and operation handled differently in almost every country Old national European codes as well as American standard (ASME) to a large part accepted in many regions Quite often: additional measures necessary to fulfil the local requirements New European standards still to be established (can also be a chance) ISO activities in pressure equipment sector (ISO/TC 11) Page 12 4 October 2005

13 Pressure Equipment outside EU Focus on some Selected Regions New EU candidate countries North America China Asia India (South) East Asia Middle East Page 13 4 October 2005

14 Pressure Equipment in EU Candidate Countries Technical requirements of PED largely acknowledged Concept of PED often in many parts established No PECA agreement finished for PED at this time Usually national legislation require additional measures, e. g. involvement of national supervision institutions Page 14 4 October 2005

15 Pressure Equipment in North America American pressure vessel code (ASME/ASTM) is the leading standard; involves certification procedure for pressure vessel manufacturer as well as ASME inspector for products No strict separation between manufacture and operation as in New Approach; ASME contains both technical as well as legal aspects Regulations on pressure equipment can vary for every state; sometimes additional measures required EU Commission: Intensive discussions on differences and possible mutual acceptance of EN materials and ASTM materials Page 15 4 October 2005

16 Pressure Equipment in China New Chinese legislation on manufacture and service of Special Equipment since 2003 For pressure equipment: New Manufacture Licensing procedure since 2004, involves also new requirements on products Chinese standard mandatory; temporary(!) exemption: foreign standards allowed for companies outside China New system lots of open questions Ongoing negotiations of EU Commission with Chinese authorities Page 16 4 October 2005

17 Pressure Equipment in other Asian countries National European codes as well as ASME widely known, often accepted In practice additional national regulations may be encountered So far: no systematic technical barriers obvious; difficulties for manufacturers lie rather in the large variety and in their lack of knowledge of local or national regulations In general: non-european countries often have difficulties understanding the New-Approach-concept (harmonised standards) Page 17 4 October 2005

18 Directions for Trade Policy European Economic Area Further enforce PED by making market supervision even more efficient Is a (partial) harmonisation of in-service/operation requirements possible and/or desirable? Further push European standards, also from an integral point of view (e. g. supporting material standards) to enable consistent application of harmonised standards Page 18 4 October 2005

19 Directions for Trade Policy Outside European Economic Area Support EU candidate countries on their way towards adjusting to European directive system, possibly by PECA agreements Continue and strengthen talks with Chinese authorities (first contacts have been very productive) Continue negotiations with ASME representatives Be prepared to support European industry in emerging markets, but focus only on urgent problems Flexibility is necessary Page 19 4 October 2005

20 Ευχαριστώ! Page 20 4 October 2005

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