building linkages for export success

8/19/2019 Building Linkages for Export Success

1/88

Buidng ln k age for export ucce s s

Trade Promotion Organizations andNational Standards Bodies working together


2/88

International Trade Centre

(ITC)

Palais des Nations

CH -1211 Geneva 10

Switzerlandwww.intracen.org

International Organization

for Standardization

ISO Central Secretariat

1, chemin de la Voie-Creuse

Case postale 56CH - 1211 Genève 20

Switzerland

www.iso.org

ISBN 978-92-67-10536-9

© ISO/ITC, 2010

All rights reserved


3/88


4/88

2 Building linkages for export success

DISCLAIMER

Te designations employed and the presentation of the material in this handbook do not

imply the expression of any opinion whatsoever on the part of the IC, nor on that of ISO,

concerning the legal status of any country, territory, city or area or its authorities, or con-cerning the delimitation of its frontiers or boundaries.

Tis document has been developed by the authors mentioned above, with editing and publish-

ing by ISO and IC. Discussions and recommendations do not necessarily reflect the views

of ISO and IC, and are not endorsed by these organizations. While every effort has been

made to verify the information contained in this document, neither IC nor ISO can accept

any responsibility for any errors that it may contain. Tis document is strictly an informa-

tion document and in no way represents the consensus views contained in ISO standards

and other ISO deliverables.


5/88

Building linkages for export success 3

Table of contents

Acknowledgments 1

able o contents 3

ISO – International Organization or Standardization 5

International rade Centre (IC) 6

List o abbreviations and acronyms 7

Foreword 9

1. Introduction 11

1.1 he consultations 12

1.2 Clariying some concepts 12

2. Structure o this handbook 15

3. he role o quality in exporter competitiveness 17

3.1 echnical regulations and SPS measures 183.2 Voluntary and private standards 18

4. he role o national standards bodies 23

4.1 NSB services 25

4.2 WO B and SPS enquiry points 30

4.3 Users o NSB services 31

4.4 Funding o NSBs 32

5. he role o trade promotion organizations 33

5.1 PO services 34

5.2 Sectors supported 36

5.3 Users o PO services 37

5.4 Funding and resources 38


6/88


6. Possible areas o collaboration 39

6.1 Inormation linkages 39

6.2 Capacity building and advisory services 43

6.3 Obtaining and demonstrating compliance 44

6.4 Other collaborative possibilities 45

7. Mapping quality-sensitive value chains 47

7.1 Value chain analysis during the consultations 47

7.2 Agriculture 48

7.3 Garment manuacturing 50

7.4 ourism 52

8. Making it all possible 558.1 Policy ramework 55

8.2 Challenges related to possible collaboration 55

9. Conclusion 61

10. Reerences and deinitions 63

10.1 Reerences 63

10.2 Deinitions 63

Appendix I : Programme o the consultation workshop 67

Appendix II: List o participants o the consultation workshop 73

Appendix III: IC’s capacity building modules to strengthen SIs 81

Appendix IV: Selected bibliography 83


7/88


ment, energy, quality management, conormity

assessment and services.

ISO only develops standards or which there

is a clear market requirement. he work is

carried out by experts in the subject drawn

directly rom the industrial, technical and

business sectors that have identiied the need

or the standard, and which subsequently

put the standard to use. hese experts may

be joined by others with relevant knowl-

edge, such as representatives o government

agencies, testing laboratories, consumer

associations and academia, and by interna-

tional governmental and non-governmental

organizations.

An ISO International Standard represents

a global consensus o the knowledge in aparticular subject or process, whether it is

the state o the art in that subject, or what is

good practice.

ISO – International Organization forStandardizationISO has a membership o 163* national stand-

ards bodies rom countries large and small,industrialized, developing and in transition,

in all regions o the world. ISO’s portolio o

more than 18 300* standards provides busi-

ness, government and society with practical

tools or all three dimensions o sustainable

development : economic, environmental and

societal.

ISO standards make a positive contribution to

the world we live in. Tey acilitate trade, spread

knowledge, disseminate innovative advances

in technology, and share good management

and conormity assessment practices.

ISO standards provide solutions and achieve

beneits or almost all sectors o activity,

including agriculture, construction, mechani-cal engineering, manuacturing, distribution,

transport, medical devices, inormation and

communication technologies, the environ-

* September 2010


8/88


ITC : EXPORT IMPACT FOR

GOOD

Te International rade Centre (IC) is the

joint agency o the World rade Organization

and the United Nations.

ITC MISSION

IC enables small business export successin developing and transition countries by

providing, with partners, sustainable and

inclusive trade development solutions to the

private sector, trade support institutions and

policymakers.

International Trade Centre (ITC)

ITC OBJECTIVES

■ Strengthen the international

competitiveness o enterprises through

IC training and support

■ Increase the capacity o trade support

institutions to support businesses

■ Strengthen the integration o

the business sector into the global

economy through enhanced support

to policymakers.


9/88


APEC Asia-Pacific Economic Cooperation

BIPM International Bureau o Weights and Measures

CAC Codex Alimentarius Commission

CBI Centre or the Promotion o Imports rom Developing Countries

(Netherlands)

CEN European Committee or Standardization

CENELEC European Committee or Electrotechnical Standardization

CMC Calibration and measurement capability

DSM Department o Standards Malaysia

EAC East Arican Community

EN European Norm (Standard)

ETSI European elecommunications Standards Institute

EU European Union

GAP Good agricultural practice

HACCP Hazard analysis and critical control point

IAF International Accreditation Forum

ICT Inormation and Communication echnology

IEC International Electrotechnical Commission

ILAC International Laboratory Accreditation Cooperation

IPPC International Plant Protection Convention

ISO International Organization or Standardization

ITC International rade Centre

ITU International elecommunication Union

MATRADE Malaysia External rade Development Corporation

MERCOSURSouthern Common Market o Argentina, Brazil, Paraguay and Uruguay

List of abbreviations and acronyms


10/88


MLA Multilateral recognition arrangement

MoU Memorandum o understanding

MRA Multilateral recognition agreement

NEP National enquiry point

NQI National quality inrastructure

NSB National standards body

OECD Organization or Economic Co-operation and Development

OIE World Organization or Animal Health

OIML International Organization or Legal Metrology

QI Quality inrastructure

SADC Southern Arican Development Community

Sida Swedish International Development Cooperation Agency

SIPPO Swiss Import Promotion Programme

SMEs Small and medium-sized enterprises

SPS Sanitary and phytosanitary (measures)

TBT echnical barriers to trade

TPO rade promotion organization

TSI rade support institution

UNIDO United Nations Industrial Development Organization

WTO World rade Organization


11/88


ance with market requirements and enhance

national competitiveness.

Tis collaboration may assist any enterprise

looking to export but especially small and

medium-sized enterprises (SMEs) who find

it difficult gaining the inormation necessary

to evaluate and comply with market access

requirements in another country.

o explore how such collaboration could beachieved, the ISO and IC jointly organized

a regional consultation on “ Quality Manage-

ment : Linking POs and NSBs or Export

Success ” in Malaysia in December 2009, partly

unded by Sida.

Tis handbook is based on the outcome o that

meeting, and reflects the position o those par-

ticipating. Te examples given are drawn rom

their shared experiences, and can be used by

developing economies in all regions to review

local situations. Tis handbook thereore offers

pointers or any country to utilise in develop-

ing its own approach to help open avenues

o collaborative effort between the national

PO and NSB to leverage their services or

the benefit o local exporters.

Foreword

National standards bodies (NSBs) and trade

promotion organizations (POs) have specificand important roles to play — NSBs as devel-

opers o national standards and representatives

o their country in international and regional

standardization organizations, POs as the

source o much needed oreign market inor-

mation, and acilitators o export trade. In most

developing countries, the NSB is the national

enquiry point as required by the World rade

Organization (WO) Agreement on echni-

cal barriers to trade (B), and may also be a

provider o conormity assessment services. In

many countries, little or no ormal cooperation

existed in the past between NSBs and POs.

Tis handbook is designed or those in NSBs,

POs and government agencies supporting

international trade to show the advantageso closer collaboration to assist exporters in

your country.

Te growth o international trade and the

increasing importance o high level standards

and technical regulation in developed markets

presents greater opportunities or NSBs and

POs to collaborate and create more oppor-

tunities or exporters to demonstrate compli-

Patricia Francis

Executive Director

International rade Centre

Rob Steele

Secretary-General

International Organization

or Standardization


12/88


13/88


in obtaining the right inormation. Tis might

include compliance with logistical, manage-rial and financial requirements, and proo o

ormal product and/or service quality. And

in order to remain competitive in aggressive

global markets, manuacturers must continue

to innovate. Understanding and financing

these challenges is crucial, as is estimating

the potential profitability o the market and

buyer they may have identified.

Governments develop strategies to acilitate

export trade through initiatives and trade

support institutions. wo such institutions

that support manuacturers, producers and

suppliers in accessing oreign markets are the

POs and NSBs o the exporting country. Te

ormer can provide primarily intelligence and

bring exporters and the market together, and

the latter can contribute relevant inormation

on quality and regulatory requirements, dem-

onstrating compliance, and provide conormity

assessment services. One would expect these

organizations to have developed strong col-

laborative systems, since their services would

seem to complement each other well. Yet

in many countries POs and NSBs have to

develop much, i any, cooperation.

o explore how such collaboration could be

achieved, the ISO and IC jointly organized

a regional consultation on “ Quality Manage-

ment : Linking POs and NSBs or Export

Success ” in Malaysia in December 2009, partly

unded by Sida. Senior NSB and PO officialsrom 16 countries in East, South East and South

o compete and succeed in today’s trading

environment, an overseas supplier must notonly find a buyer, but must also ensure its

products and services meet rigorous quality

requirements (i.e. perormance, perceived

quality, conormity, reliability and durabil-

ity) demanded by the customer, end user,

and others in the global supply chain. While

these requirements are much the same or

all suppliers and create a level playing field,evidence 1) suggests that some suppliers find

high standards and proo o compliance di-

ficult to meet.

Exporters require :

■ Inormation regarding voluntary, market

related, mandatory or statutory require-

ments

■ Capacity building and advisory services

to meet and exceed these requirements

economically and consistently

■ Evidence o compliance with require-

ments acceptable to buyers and

regulators.

All organizations must comply with manysuch requirements to access markets and sell

their products. SMEs with ewer resources

and limited inormation may find it especially

diicult. he challenge is greater still or

enterprises outside the market, particularly

1) See World rade Report 2005 : Exploring the linksbetween trade, standards and the WO, World radeOrganization, Geneva 2005, see www.wto.org/english/res_e/booksp_e/anrep_e/world_trade_report05_e.pdf

1. Introduction


14/88


exporters meet and exceed market require-

ments with the support o NSBs and POs.

Elements o possible partnerships and how

these could be made to work were identified,

and next steps by all the countries represented

were discussed. Te ull programme is listed

in Appendix I.

1.2 Clarifying someconcepts

Several common misconceptions regarding

standardization are re-defined here or clar-ity, since the concepts appear throughout

this handbook :

■ A standard is a ormal document,

established by consensus and published

by a recognized body, that provides,

or repeated use, rules, guidelines, or

characteristics or activities or their

results, aimed at the achievement othe optimum degree o order in a given

context. Standards can thereore pertain

to products and services as well as the

processes or systems that are utilised to

provide them. Generally speaking, stand-

ards are considered “ voluntary ”, i.e.

suppliers can choose whether they wish

to comply with standards, even thoughthey may be demanded by contract or

considered desirable by the market place

■ echnical regulations although

covering much the same territory as

standards, are generally not developed

by consensus, are published by regula-

tory authorities, and compliance is

demanded by law. echnical regula-tions are usually implemented when

Asia shared experiences, considered common

challenges to strengthening inter-linkages,

and discussed best practice cases. Te list o

participating countries and representatives

is provided in Appendix II.

Tis handbook is based on the outcome o

that meeting, and reflects the position o those

participating. Te examples given are drawn

rom their shared experiences, and can be

used by developing economies in all regions

to review local situations. Every country is

unique, and no one model o cooperation

can fit all situations. However, this handbookoffers pointers or any country to utilise in

developing its own approach, and make its

own choices. In addition, the ollowing guide-

lines can help open avenues o collaborative

effort between the national PO and NSB

to leverage their services or the benefit o

local exporters.

1.1 The consultations

Te consultations were supported by papers

developed by the NSB and PO o each par-

ticipating country, as well as those by ISO,

IC and international experts. All papers are

available on the IC website at http://www.

intracen.org/eqm/events.

Consultations consisted o inormation ses-

sions chaired by moderators rom ISO, IC

or rom invited international experts. Experts

and participants explained the roles o NSBs

and POs, and the scope o quality require-

ments in export markets. Value chain analysis

was used to identiy current and potentialcollaborative actions, and how to enable


15/88


and packaging and labelling require-

ments related to ood saety

■ Conormity assessment is a collective

term covering all the services needed

to provide evidence that a product orservice complies with a standard or

a technical regulation. Conormity

assessment can be provided by inde-

pendent third parties, or by the supplier,

depending on the purchaser or regula-

tory authority requirements. Conormity

assessment includes inspection, testing,

product or system certification, or anyrelevant combination o these. Metrology

and accreditation are part o conormity

assessment, and together with standards,

are considered the three undamentals

without which any conormity assess-

ment regime lacks credibility.

Reerence to definitions can be ound in Sec-tion 10, References and definitions. Tese are

mainly based on two International Standards :

ISO/IEC Guide 2:2004, Standardization and

related activities – General vocabulary , and

ISO/IEC 17000:2004, Conformity assessment

– Vocabulary and general principles, and also

the WO Agreements on echnical Barriers

to rade and on Sanitary and Phytosanitary

Measures.

market ailures negatively impact on

the health and saety o the population

or the auna and lora, and sometimes

to protect consumers rom large-scale

deception. Frequently, technical regula-

tions reerence standards, and in some

countries these are called compulsory

or mandatory standards. echnical

regulations requently include packag-

ing and labelling requirements

■ SPS measures (sanitary and phytosani-

tary) are legal measures implemented

by a government to protect human,animal or plant lie in its territory

rom risks such as the entry, establish-

ment or spread o pests, diseases and

disease-carrying or disease-causing

organisms. Hence, they endeavour to

manage the risks arising rom additives,

contaminants, toxins or disease-causing

organisms in oods, beverages oreedstus as well as risks carried by live

animals or plants, or rom the actual

entry, establishment or spread o pests.

hese legal measures could include end

product criteria, process and produc-

tion methods, testing, inspection,

certiication and approval procedures,

quarantine treatments, transport

requirements or animals and plants,


16/88


17/88


Possible areas of collaboration

Section 6 provides guidance regarding possi-ble linkages between the WO B and SPS

enquiry points, the NSB standards inormation

services, and the PO inormation services.

Tese linkages include the sharing o inor-

mation on current and uture standards and

technical regulations, private standards, and

conormity assessment services. racking o

notifications sent by WO members is alsocovered, plus other possibilities, such as shar-

ing o customer databases.

Te section also deals with capacity build-

ing and advisory services regarding product

and service compliance with export market

requirements, and advises on obtaining and

demonstrating such compliance. Other col-laboration possibilities such as workshops and

consultancies, cross membership in governance

structures, technical committees or advisory

committees are also reviewed.

Mapping quality-sensitive value chains

In Section 7 three generic value chains – agri-

culture and agro-processed oods, manuac-tured products (e.g. garments manuacturing)

and tourism services – are given as specific

examples o areas where NSBs and POs

could provide quality management services

that add value.

Making it all possible

Section 8 explores ways o initiating andmaintaining a process o collaboration.

Tis handbook is an edited version o the

conclusion paper which was largely basedon the orum discussions in Malaysia, with

additional inormation where relevant, and

is structured as ollows :

Te role of quality for exporter competi-

tiveness

Section 3 describes the extent to which

quality requirements aect exports, and

the implications or developing country

exporters and support institutions. It also

elaborates the complexity and scope o qual-

ity requirements.

Te role of national standards bodies

Section 4 provides a general overview o therole o NSBs and the services they provide in

standards development, provision o inorma-

tion on standards and technical requirements,

conormity assessment or advisory services

and technical regulations, and identiies

potential NSB clientele.

he role of trade promotion organiza-tions

Section 5 gives a general overview o the role

and services o POs in providing inorma-

tion and market intelligence, capacity build-

ing and advisory services, and in connecting

suppliers, manuacturers, and exporters with

markets, discusses how POs can acilitate

conormity assessment services, and listspotential PO clientele.

2. Structure of this handbook


18/88


Conclusion and final sections

Sections 9 and 10 summarize the main points

o the publication, and provide reerences and

definitions, and appendices (programme, list

o participants, example o IC’s capacity

building modules to strengthen SIs, and

selected bibliography).


19/88


3. The role of quality in exportercompetitiveness

has many dimensions beyond compliance with

stated requirements or established standards.It can encompass perormance o primary

characteristics, including inerred quality or

reputation, the probability o malunction,

and the amount o use beore the product

deteriorates. Tereore, organizations have

a key need or :

■ Comprehensive and up-to-date inor-

mation on mandatory or “ voluntary ”

technical requirements, either clearly

specified in standards, or demanded by

the market

■ Capacity building and advisory services

to assist in product design and develop-

ment, international purchasing and

supply chain management, quality

management including costs, and

innovation

■ Prompt and cost-effective conormity

assessment services to provide evidence

that products conorm to requirements,

whether mandatory or “ voluntary ”.

Innovation is increasingly undamental to mar-keting success as global competition toughens.

But even the most innovative products must

conorm with standards, especially those relat-

ing to health and saety. Similar arguments

apply to products that must integrate with

existing systems, particularly in electronics and

communication. Conormity with standards,

whether mandatory or voluntary, is thereoreundamental to gaining and maintaining

o become and remain competitive in local

and oreign markets one must meet chal-lenges in2) :

■ Product development . Te emphasis is on

aster, more systematic quality processes

to develop new products that meet

rapidly changing global market require-

ments and customer preerences

■ Supply and purchasing . Organiza-

tions require productive partnerships

with suppliers, including outsourcing

partnerships in other countries, to take

advantage o the globalization o the

supply chain

■ raining and human resources develop-

ment. Employees must be given quality

tools, processes and support to enable

them to continuously improve the busi-

ness and its products

■ Economics of quality. Te costs o

achieving customer satisaction while

absorbing the economic pressures o

globalization must be systematically

measured and managed

■

Hands-on management. Managers musttake a strong, strategic and hands-on

approach to continuous management o

innovation based on quality.

Te concepts o “ quality ” and “ innovation ”

eature prominently in such challenges. Quality

2) Source : “ Spring into Action ”, by A.V. Feigenbaum inQuality Progress, November 2009 (www.qualityprogress.com)


20/88


echnical regulations and SPS measures

are normally valid or decades rather than

years. Tis is an advantage or the supplier,

as compliance must be consistently and con-

tinuously applied. But they can also become a

barrier to innovation i they do not keep up

with technical developments. Nevertheless,

all suppliers must provide evidence o com-

pliance. Hence, it can be argued that com-

petitiveness is not determined by compliance

with technical regulations or SPS measures,

since they lead to a level playing field or all

suppliers. However, i products or services

do not comply with such requirements, then

there is no way the supplier can enter the

market. For SMEs in developing economies,

they can be a ormidable barrier to entry into

lucrative developed economy markets. Tis

is especially so o environmental and health

regulations requiring complex and expensive

conormity assessment services that may not

be available locally.

3.2 Voluntary and privatestandards

At the next level are the many regional,

national or international standards where

conormity may be contractually demanded

by the purchaser and thereore becomes a

business decision or the exporter.

Formal international standards are an

established and proven approach to tech-

nological and global challenges. WO

disciplines in using standards as the basis

or regulatory measures demand that

“ international standards ” be developed bydesignated organizations in the case o the

market access, and is an essential part o

total product quality, whether innovative or

not. Mandatory requirements are generally

contained in technical regulations and SPS

measures, whereas voluntary requirements

are ound in standards.

Standards requirements, technical regula-

tions and SPS measures differ greatly between

products and markets, and can be quite daunt-

ing or any exporter or potential exporter.

Whereas conormity with standards is a

voluntary decision by the supplier, techni-

cal regulations and SPS measures have to becomplied with by law.

3.1 Technical regulationsand SPS measures

Governments develop and implement techni-

cal regulations and SPS measures or products

that could have a damaging effect on the envi-

ronment, or on the health and saety o the

population. echnical regulations comprise

requirements that are ofen comparable to

standards or the same products, and admin-

istrative provisions that include conormity

assessment requirements. SPS measures are

similar and must also be considered, especially

in the ood sector.

All products alling within the scope o

these two regulatory areas must comply

with requirements as a mandatory or legal

obligation. However, since some all outside

the scope, it is very important to establish

whether a technical regulation or an SPS

measure exists in the target export marketor a product or service.


21/88


to such disciplines, nor do they share other

attributes o ormal international standards.

Several international standards – notably the

management system standards ISO 9001 7)

and ISO 14001 (see Figure 1) – have become

extremely important in the manuacturing

and service sectors.

Te use o international standards in support

o public policy and regulation has increased

in recent years, as countries have joined the

WO and have begun to apply B and SPS

Agreement disciplines in using standards as

a way o reducing barriers to trade.

Examples o regional standards are those

o the European Union (EN), East Arican

Community (EAC) and Southern Arican

Development Community (SADC). Other

bilateral and multi-lateral trade arrangements,

as well as existing and new regional ree trade

agreements in dierent parts o the world,have also been major drivers to adoption

o international standards. Organizations

or trade areas, such as the Organization or

Economic Co-operation and Development

(OECD), Asia-Paciic Economic Coopera-

tion (APEC), and Southern Common Market

o Argentina, Brazil, Paraguay and Uruguay

(MERCOSUR), encourage the use o interna-tional standards as a way o ostering trade

within their membership, and with the rest

o the world.

Standards at national level are too numerous

to list, since nearly 150 o the 163 ISO member

bodies publish national standards. Fortunately,

7) Te ull titles and reerences o the various standardsmentioned in the text are provided in Section 10.

SPS Agreement 3) or according to principles

or international standards development

in the case o the B Agreement. Formal

international standards, such as those rom

ISO and the International Electrotechnical

Commission (IEC), are prepared ollowing

such principles.

A distinction is made between international

standards prepared using the principles set

out in the WO Agreements 4) and disciplines

established through the Code of Good Practice

for the Preparation, Adoption and Application

of Standards5)

, and other “ private ” standardsthat do not adhere to these principles and dis-

ciplines. Standards that are developed using

processes open to worldwide participation, and

that use these principles, are considered to be

“ international standards ”. ISO International

Standards are developed within proven struc-

tures, operational approaches and participation

models detailed in ISO/IEC’s existing direc-tives and development procedures 6). While

other standards may be developed that meet

the needs o specific sectors or segments o the

population, and may be perectly valid and

relevant or their purpose, they do not adhere

3) Te SPS Agreement specifically names the CodexAlimentarius Commission (CAC) ; the World Organiza-

tion or Animal Health (OIE) ; and the InternationalPlant Protection Convention (IPPC) as organizationsthat produce “ international standards ” regarding oodsaety, animal health, and plant health respectively.

4) See Annex 4 on “ Decision of the Committee onPrinciples for the Development of International Standards,Guides and Recommendations with relation to Articles 2,5 and Annex 3 of the Agreement ” contained in the Sec-ond riennial Review o the B Agreement at http://docsonline.wto.org/DDFDocuments/t/G/TBT/9.doc

5) See http://www.wto.org/english/docs_e/legal_e/17-tbt_e.htm#annexIII

6) See http://www.iso.org/iso/standards_development/processes_and_procedures.htm


22/88


international standardizing organizations asdescribed above, and other “ private ” standards

setters 8). At least three important categories o

private standards have evolved in the context

o ISO’s work, leading to efforts to harmonize

or coordinate them with the ISO standards

development system :

■ Private standards in the inormation

and communication technology (IC)sectors (consortia and ora)

■ Private standards rom the retail and

agri-ood industry

8) A more complete treatise on the subject can beound in the ISO publication : International standardsand “ private standards ” (ISBN 978-92-67-10518-5)available as a ree download rom the ISO website at :http://www.iso.org/iso/private_standards.pdf .

many are based on international standards,but ull equivalence is not always achieved.

In many countries, technical regulations are

based on national standards or reerence them

as is. Tis means that inormation regarding

national standards in target markets remains

a key need o any exporter.

International standards are reviewed approxi-

mately every five years to ensure they remain

useul and relevant. National standards have

a similar lie cycle.

Tere is a vast and growing number o non-

governmental standards and significant differ-

ences in the bodies/organizations that develop

them or areas such as governance, develop-

ment approach and stakeholder engagement.ISO makes a distinction between “ ormal ”

Figure 1 : ISO 9001 and ISO 14001 certificates issued worldwide

1 000 000

900 000

800 000

700 000

600 000

500 000

400 000

300 000

200 000

100 000

0

Source : ISO

1 9 9 2

1 9 9 3

1 9 9 4

1 9 9 5

1 9 9 6

1 9 9 7

1 9 9 8

1 9 9 9

2 0 0 0

2 0 0 1

2 0 0 2

2 0 0 3

2 0 0 4

2 0 0 5

2 0 0 6

2 0 0 7

2 0 0 8

ISO 9001

ISO 14001


23/88


Other private standards are those imposed

by some o the large multinational retail

organizations. hese are developed as a

consequence o intense competition among

retailers and are used to gain a competitive

advantage. Tese retail organization standards

have a very short liespan, typically one to

two years, until competitive advantage has

diminished and a new one has to be sought.

Currently, these standards apply mainly to

the ood sector, but they may extend to other

areas in the uture.

■ Private standards related to social and

environmental aspects.

Compliance with private standards is not a legal

requirement, but is requently a precondition

or trading with some o the major purchasing

groups or retailers in the developed economies.

However, certification to these standards can

be costly. Te market reality is that they are

in place, and current or potential exporters

to such markets have to pursue compliance

in order to be competitive.


24/88


25/88


4. The role of national standards bodies

Organization or Legal Metrology (OIML),

dealing mainly with legal metrology. As is thecase or standards, many regional structures

have been established to harmonize metrol-

ogy issues at regional level. For accreditation,

the two main international organizations are

the International Laboratory Accreditation

Cooperation (ILAC) and the International

Accreditation Forum (IAF), which deals mainly

with system and product certification. Regionalaccreditation organizations also exist.

At the national level, a variety o organizational

set-ups are possible. For example, separate

national organizations may be established

or standardization, metrology and accredi-

tation, or all services are combined into one

organization. Te organizations making up

the NQI may be public or private entities,

or both. Te mix is not uniorm and there

is no single, global best practice or the type

o organizational set-up, even though some

trends are developing slowly. In some coun-

tries, the NQI is guided by a national quality

policy, in others it has developed more or less

organically over many years. It is recognized

by most experts, however, that an effective

and efficient NQI is vitally important to the

modern economy. In this handbook, only the

NSBs are dealt with in any detail, even though

the others are no less important.

Some standards bodies publish standards and

provide related inormation services only – this

type o specialization is mostly ound in devel-oped economies. Others, and this is the case in

NSBs provide a wide range o standardization

and conormity assessment services, gener-ally depending on how the national quality

inrastructure (NQI) 9) is arranged. Tereore,

beore discussing the services an NSB may be

able to provide, it is useul to briefly describe

the elements o a quality inrastructure (QI)

and their relationship to each other. Te main

elements and deliverables o a QI are shown

in Figure 2 10)

.

For each o these elements national, regional

and international structures have been estab-

lished or many years. In the case o stand-

ardization, ISO, the IEC, the International

elecommunication Union (IU) and Codex

Alimentarius are well-known international

organizations, and there are many more. Te

regional counterparts o the first three in the

European Union, or example, are the Euro-

pean Committee or Standardization (CEN),

the European Committee or Electrotechnical

Standardization (CENELEC) and the European

elecommunications Standards Institute (ESI).

In other regions, a similar arrangement exists.

Te main international bodies or metrology

are the International Bureau o Weights and

Measures (BIPM), which deals mainly with

undamental metrology, and the International

9) See definition o the national quality inrastructure(NQI) in Section 10.

10) A more extensive discussion on the elements oquality inrastructures can be ound or example on thewebsite o the Network on Metrology, Accreditation andStandardization or Developing Countries at :http://www.dcmas.net .


26/88


Each o the above services are described in

more detail below. In-depth discussions onstandardization in industrial development,

trade acilitation and on improving access

to global markets can be ound in the ISO/

UNIDO publication “ Fast forward – National

Standards Bodies in Developing Countries ”12).

12) Fast forward – National Standards Bodies in Develop-ing Countries, ISBN 978-92-67-10477-5, ISO, 2008, seewww. iso.org/iso/fast_forward.pdf

most developing economies, also provide many

additional standardization related services suchas consultancy, conormity assessment and

training. An indication o the wide variety o

services offered by NSBs can be seen in the

breakdown o ISO member body services listed

in ISO Members 2009 11) (see Figure 3).

11) ISO Members 2009, welfh edition,ISBN 978-92-67-01174-5, ISO, 2009, see www.iso.org/iso/publications_and_e-products/governance.

htm#PUB100029

Figure 2 : Elements or services of a quality infrastructure

Metrology

Standardization

Conformity

assessment

Accreditation

Metrology is the technology or science of measurement and the service is required to

ens ure inte rnat iona lly recogn ized trac eabi lit y of measurements and calibration of

measuring instruments. Metrology can be subdivided into:

y Scientific metrology

y

Legal metrology y Industrial metrology

Development and publication of a formal document by a recognized body, generally by con-

sensus, containing the requirements that a product, process or service should comply with.

Standards can be the basis of technical regulation, contractual obligations or market expecta-

tions. Standards are developed on a number of levels, namely

y International standards

y Regional standards

y National standards

y Private standards

Conformity assessment is the collective term for services necessary to provide evidence that a

supplier, product or ser vice meets requirements such as provided for in a standard or technical

regulation. The following are generally considered to be conformity assessment services:

y Inspection

y Testing

y System certification

y Product certification

Accreditation, including peer assessment, is the activity providing independent attestation as

to the competency of individuals or organizations providing conformity assessment ser vices,

thereby facilitating international recognition of claims of conformity.

Source : Author’s elaboration


27/88


committees that operate in accordance with

principles laid down in the ISO/IEC Directives,

and Annex 3 o the WO B Agreement.

Authorities, organized trade and industry,

academia and civil society are normally repre-

sented. With ew exceptions, most developing

economies are “ standards takers ” rather than

“ standards makers ”, i.e. national standards are

based on, adopted with some modifications,

or are ully equivalent to international and/or

regional standards. Even so, a progressive NSB

would ensure that its country is adequately

represented in relevant technical committees

at the international and regional level, in order

to protect national interests.

Te NSB serves two major groups in develop-ing standards. First, authorities need national

Additional inormation on all aspects o con-

ormity assessment and its role in international

trade is provided in the joint ISO/UNIDO

handbook : Building trust – Te Conformity

Assessment oolbox 13).

4.1 NSB services

4.1.1 Standards development

As confirmed in the ISO Members 2009 data,

the majority o NSBs, however small, develop

and publish national standards, i.e. 151 o 162.

Tis is achieved through national technical

13) Building trust – Te Conformity Assessment oolbox,ISBN 978-92-67-10511-6, ISO, 2009, see www.iso.org/iso/casco_building-trust.pdf

Figure 3: Services provided by ISO member bodies

Source : ISO Members 2009

Member bodies Correspondent members Subscriber members

0 20 40 60 80 100 120 140 160 180

Other

Applied industrial research

Testing ser vices

Calibration services

Legal metrology

National measurement reference standards

Accreditation

Inspection

Certification of management systems

Certification of products

Marketing and sales

Consultancy

Training services

Information on standards

Standards development


28/88


and electrical saety standards) or act as agents

or the sale o oreign and international stand-

ards 14) as hard copies or in electronic ormat,

i.e. CD-ROM. Standards can be downloaded

through the Internet rom the more progressive

NSBs once the appropriate payments have been

made electronically. Some NSBs also provide

an updating service to selected customers, i.e.

they are inormed as soon as specified stand-

ards, whether national or oreign, have been

amended, revised or re-affirmed.

Inormation on conormity assessment pro-

cedures and technical regulations in targetmarkets is o similar importance to exporters.

NSBs are well placed to access such inorma-

tion through their knowledge and international

links. Such an inormation service would

be a valuable addition to NSB portolios in

developing countries. WO B and SPS

enquiry points are also in a good position to

provide inormation on technical regulations,as described later.

4.1.3 Training

Many NSBs provide training services in

standardization, testing and certification, and

most would include implementation o Hazard

Analysis and Critical Control Point (HACCP),

or management systems conorming to ISO

9001, ISO 14001, ISO 22000, or similar.

14) International standards o non-intergovernmentalbodies such as ISO and IEC are generally subjectto copyright and must be purchased. Others, romintergovernmental bodies such as OIML and the CodexAlimentarius Commission may be downloaded ree ocharge.

standards as a basis or establishing technical

regulations and SPS measures. Second, indus-

try requires standards as the basis or design

and manuacturing. Standards development

programmes should thereore reflect the needs

o these two groups. In view o the dynamic

growth o international trade, national stand-

ards should remain as close to international

standards as possible, i.e. national versions

should be kept to an absolute minimum, in

order to help industry connect with outside

markets more easily.

4.1.2 Information onstandards, conformityassessment proceduresand technicalregulations

Nearly all ISO member bodies provide inor-

mation on national standards, as well as the

major international standards such as ISO,

IEC and Codex Alimentarius. he larger

NSBs would also have access to the national

standards o the major trading partners o the

country. In view o the growing significance o

private standards, NSBs in developing coun-

tries should consider providing inormation

on these standards and associated conormity

assessment procedures. In well organized NSBs

this inormation service is staffed by proes-

sionals with a working knowledge o the sub-

ject matter in question, so that organizations

seeking inormation on standards in oreign

markets can be assured that the inormation

received is accurate and up to date.

In addition, NSBs will sell individual nationalstandards or sets o standards (i.e. building


29/88


in inspecting and testing products. Indeed,

some 50 % o NSBs do offer such services, as

confirmed by the list in Figure 3. Te major

caveat is that consultancy services can only be

provided i the NSB does not also offer related

testing and certification services. Otherwise,

they would not be able to gain accreditation,

as this combination is considered a conflict

o interest.

In some organizations, the conflict o interest

has been circumvented by establishing sepa-

rate certification and consultancy operations,

with totally separate managements under theauspices o a holding company. However,

this issue is subject to change and it would

be important or the NSB to obtain the lat-

est inormation and rulings on conflicts o

interest made by IAF and ILAC.

4.1.5 AccreditationAccreditation is increasingly used as the basis

or determining the technical competency o

laboratories (testing and calibration) and cer-

tification bodies (product and system). Many

NSBs provide accreditation services as part

o their remit to establish proper standards

in their country, as exemplified by Canada,

Malaysia, Tailand and others. Tis is only

meaningul i the NSB does not provide any

conormity assessment services, as this would

be seen as a serious conflict o interest.

Te primary accreditation service customer

would be any laboratory, whether private or

public, and especially those that provide serv-

ices with a public dimension (e.g. in technicalregulation or SPS measure implementation)

Tis general training is normally augmented

by training and accreditation o quality audi-

tors. Candidates or quality, environment,

ood saety, and other auditor training would

typically be drawn rom the staff o organiza-

tions implementing those management sys-

tems. Where the NSB is also responsible or

metrology in the country, training in calibra-

tion systems at company level, or training o

metrologists will also be major activities. NSBs

can also become involved in the training and

accreditation o other technical proession-

als such as those in non-destructive testing

disciplines. All such schemes are guided by

international standards such as ISO 19011 or

ISO/IEC 17024.

raining is not considered a conflict o interest

with the provision o conormity assessment

services provided that the training is given

in open orum and is generic in nature, i.e.

not single company specific. Otherwise it isconsidered as consultancy and the caveats

outlined in section 4.1.4 apply. Even i the

NSB sets up the training/consultancy as a

separate division rom certification, the conflict

o interest remains as ar as the accreditation

organization is concerned.

4.1.4 Consultancy services

As centres o excellence or technology, NSBs

in developing countries are in an ideal posi-

tion to provide consultative services regard-

ing compliance with standards and technical

regulations in target markets. Tis should be

the case since NSBs are heavily involved in

setting standards, participating in regional andinternational standardization activities, and


30/88


the first step to ensure that the measurements

will be accepted elsewhere in international

markets, but without it, the rest o the national

metrology system is meaningless. Metrology

services must be government unded, and

thereore not paid by the customer.

rade metrology is akin to technical regula-

tion, since it is intended to ensure that trade

based on measurements, i.e. mass, volume,

length, etc., is an equitable process whereby

measurements are made by instruments that

meet minimum accuracy criteria. Tese instru-

ments must meet defined standards beore

they can be used commercially, and must be

calibrated and verified at stipulated intervals

as defined by law to ensure their continuous

compliance. Te undamental purpose o

trade metrology is to ensure that trade at the

national level is properly conducted, hence

government is seen as the client. However,

with the increase in pre-packed goods or

the export trade, exporters use trade metrol-

ogy services to ensure that their goods are

accepted in oreign markets without having

to be weighed or measured again.

Measuring equipment becomes less accurate

over time, so calibration at regular intervals is

necessary to ensure continued accuracy. NSBsin developing economies provide calibration

services mainly to industry and laboratories,

but also to authorities. In smaller countries

the NSB is requently the sole supplier o such

services. In larger economies, private calibra-

tion laboratories increasingly augment the

role o the NSB in this regard. However, it is

important or the NSB to establish a propernational calibration system, i.e. to ensure

or those that provide conormity assessment

services or export markets. Te same applies

to inspection bodies, and system and product

certification organizations.

International recognition o accreditationservices is achieved by becoming a signatory

to the multinational recognition agreements

o ILAC (laboratories), designated “MRAs”

and the IAF (certification systems), designated

“MLAs”. NSBs whose accreditation services

have not been peer reviewed and acknowl-

edged through the MRA with ILAC or the

MLAs o IAF, will have a recognition problem– conormity assessment service providers not

accredited by them may find that their services

are not accepted in oreign markets.

4.1.6 Metrology

Metrology consists o three distinct domains

– undamental or scientific metrology, legalmetrology and industrial metrology. NSBs

in many economies are custodians o the

national measurement standards, are involved

in legal metrology (mostly in the orm o trade

metrology, a subset o legal metrology), and

provide calibration services on request to

industry and the authorities.

National measurement standards must

demonstrate accuracy comparable to other

national standards, with proven competency

o the metrology laboratories, in order that

the country’s best calibration and measure-

ment capabilities (CMCs) can be listed in the

world-wide directory o the BIPM 15). Tis is

15) Te list o CMCs can be accessed through the BIPMwebsite at : http://www.bipm.org


31/88


technically competent, independent third party

testing services to satisy customer demands,

or determine whether products meet stated

requirements or standards. In developing

economies, the NSB together with other gov-

ernment laboratories are ofen the only test-

ing service providers o note. For such testing

services to be accepted, it is important that all

individual laboratories should be certified to

ISO/IEC 17025:2005, General requirements for

the competence of testing and calibration labo-

ratories. Simply being the national standards

body (or ministry laboratory) is no longer an

adequate criterion.

In the case o certification services provided by

the NSB, the most important rom an exporter’s

perspective are the quality and environmental

management system standards ISO 9001, ISO

14001, and increasingly ISO 22000:2005, Food

safety management systems — Requirements

for any organization in the food chain. Com-

pliance with HACCP is also important rom

a ood exporter perspective. Certification to

ISO/IEC 17021:2006, Conformity assessment

— Requirements for bodies providing audit

and certification of management systems is

a prerequisite or the recognition o these

system-related certification services.

Product certification services are important,

particular or medical devices, and or electri-

cal products intended or the North American

market. In such cases the NSB can act as a

subcontractor or product certification bodies

operating in the target markets abroad. Such

arrangements require the developing country

NSB to demonstrate competence and negoti-ate specific arrangements.

traceability o measurement standards used

by the calibration laboratories to international

standards, i it acts as the national metrology

institute, and to ensure that measurements

are accepted in export markets.

4.1.7 Inspection, testing andcertification

Inspection, testing and certification are the pri-

mary means o demonstrating to purchasers or

authorities that products and services comply

with standards. NSBs requently provide inspec-

tion services to authorities covering imports

or implementation o mandatory standards.

hese generally all within the domain o

technical regulations, i.e. they are mandatory

requirements imposed by governments. Some

countries allow pre-shipment inspection to take

place in lieu o border-entry inspections. Tis

is preerable since it prevents non-compliant

product rom being shipped. Industry may

use NSB inspection services as a pre-shipment

inspection beore sending products to oreign

markets i the NSB’s inspection services are

accepted abroad. Inspection services may also

provide evidence that products comply with

contractual obligations between the purchaser

and supplier. his applies to government

purchases locally or overseas. Tey should be

accredited to demonstrate their competence,

and certified to ISO/IEC 17020:1998, General

criteria for the operation of various types of

bodies performing inspection.

esting services are provided to regulatory

authorities or the implementation o techni-

cal regulations and SPS measures. Similarly,product manuacturers and suppliers need


32/88


and conormity assessment organizations.

Several WO members have also expanded

the role o the enquiry points beyond the

obligations o the WO B Agreement by

providing inormation services to the domestic

industry and trade sector.

Enquiry points must provide the ollowing

inormation :

■ Current technical regulations (includ-

ing legal metrology and compulsory

standards)

■

Current national standards ■ Proposed new technical regulations

■ Proposed changes to technical regula-

tions

■ Any requirements on assessing con-

ormity with technical regulations or

standards

■

Any membership o the country’snational organizations in regional or

international organizations dealing with

standards or conormity assessment

■ Any bilateral or multilateral recognition

agreements regarding all o the above

■ Te name and contact details o each

organization responsible or any o the

above inormation.

SPS Enquiry Points are similar in that they

must provide inormation regarding any

adopted or proposed sanitary or phytosanitary

regulations, any control or inspection proce-

dure, requirements or production processes

and quarantine treatment. Tey must also

answer questions regarding risk assessmentprocedures used by the authorities, including

4.1.8 Services excluded

While NSBs generally provide a broad range o

services, there are some that are the responsi-

bility o other organizations in most develop-

ing economies. Te most obvious is the SPS

domain which is separated rom the NSB in

most countries, and inspections and regula-

tory activities are the responsibility o other

agencies. Hence, the control, inspection and

approval procedures or plants and animals are

generally not provided by the NSB. However,

even in this case, NSBs may provide testing

and certification o SPS measures where theyare required by the authorities.

4.2 WTO TBT and SPSenquiry points

Some 60 % o NSBs (according to WO Sec-

retariat data) are the sole designated WO

B Enquiry Point, about 15 % share this

responsibility with their line ministry, and a

small percentage o NSBs provide the WO

SPS Enquiry Point or their countries. In the

remainder o the WO member states, the

WO B Agreement Enquiry Points are

located in the ministry responsible or trade.

Te WO SPS Enquiry Points are usually

shared between the ministries responsible or

health and agriculture.

WO B Enquiry Points are established as

an obligation under the WO B Agree-

ment to respond to questions rom other

WO members regarding national standards,

technical regulations, conormity assessment

organizations and regimes, international andregional affiliations o local standardization,


33/88


standards, either as a market requirement or

as the basis o technical regulations and SPS

measures. I the NSB acts also as the national

enquiry point, then the authorities will expect

the ull spectrum o inormation as required

by the WO B and/or SPS Agreement(s).

Where NSBs provide conormity assessment

services, especially as preerred service pro-

viders with regard to technical regulations,

then the authorities will make ull use o such

services – either in the case o pre-market

product approvals, or to determine compli-

ance o products in the market place. Te

NSB would normally charge or conormity

assessment services, while inormation services

would usually be provided ree o charge, i.e. a

“ good-or-country ” service financed through

government unding mechanisms.

Te second group o NSB clients would be

industry, i.e. manuacturers and suppli-

ers, ranging rom multinational companiesoperating locally and in export markets,

to the smallest SMEs. Te spread o needs

would be very similar to the authorities, but

the ocus would be different. Tey would be

more interested in conormity assessment as

a continuous service than inormation as a

one-off requirement. esting, certification and

calibration will constitute the bulk o theseservices as long as the technical competence

o the NSB can be demonstrated. Suppliers

would generally demand compliance inorma-

tion through their industrial partners, i.e. the

manuacturers, but might occasionally request

conormity assessment services rom the NSB

directly. However, suppliers would be major

customers or NSB inormation services,particularly in export markets.

actors taken into consideration when deter-

mining sanitary or phytosanitary protection

requirements. Membership o national bodies

in international and regional sanitary and

phytosanitary organizations and systems,

and o bilateral and multilateral agreements

and arrangements, should be provided i

requested. SPS Enquiry Points are mainly

attached to the ministries responsible or

agriculture and health (ood saety), plant

health and animal health, and are not usually

part o the NSB remit.

Well organized enquiry points augment theseservices by providing alerts and advance warn-

ings on technical regulations and SPS measures

to be implemented by trading partners. Te

WO Secretariat lists and makes available all

such notifications rom WO members on

a regular basis. Tese enquiry points review

notifications, determine their relevance or

the country and distribute them to industryand authorities or comment and inormation.

Tey may even collate all the comments or

urther action by the trade proessionals in

the responsible ministries, i.e. transmitting a

country position to the WO member wish-

ing to implement the measures. Exporters in

developing countries benefit greatly i their

enquiry points provide such a service.

4.3 Users of NSB services

he broad spread o potential and actual

services provided by NSBs suggests that the

range o clients can be equally varied. Te

first group would include authorities in the

domestic market as well as potential exportmarkets in need o inormation on national


34/88


mandatory or compulsory standards and

certification. Figure 4 shows the extent o

government grants as a source o revenueamong ISO members in 2009 .

NSB unding mechanisms are not particularly

relevant to this handbook, with the exception

o selected collaborative efforts between NSBs

and POs. More important is the unding o

collaborative efforts in “ good-or-country ”

activities by the state. Tese are addressed in

more detail in Section 8.2. Detailed inorma-

tion on NSB unding can be ound in the ISO

publication Financing NSBs – Financial Sustain-

ability for National Standards Bodies 16).

16) Financing NSBs – Financial Sustainability for NationalStandards Bodies, ISO (International Organization orStandardization ), Geneva, 2010, ISBN 978-92-67-10534-5,see http://www.iso.org/iso/financing_nsbs.pdf

Tirdly, private individuals and the public

sometimes make use o NSB inormation

services ; although the cost o conormityassessment services is normally too high or

the general public.

4.4 Funding of NSBs

NSB unding sources vary, depending on

whether they are government departments,

statutory bodies or private companies, anddier rom country to country. In some

countries, NSBs are totally unded by the

state, and in others a large proportion o their

budgets must be earned through conormity

assessment services. I the NSB is a private

organization, it must obtain payment rom

those benefiting rom its services, including

the state. Some NSBs even derive the bulko their budgets rom the administration o

Figure 4: Government grant as source of revenue of NSBs

Source : ISO Members 2009

Member bodies Correspondent members Subscriber members

0 10 20 30 40 50

Unspecified

0 - 20%

20 - 49%

50 - 99%

100%


35/88


5. The role of trade promotionorganizations

ministries (e.g. the Philippines), in others they

are statutory agencies created by public law(e.g. Fiji), in others, private sector bodies (e.g.

chambers o commerce in Austria). Sometimes

they are a combination o public and private

enterprise (e.g. Swedish rade Council).

One PO may represent smaller nations while

larger nations may be represented by POs at

regional and local/city levels. However, one is

generally recognised as the national PO in

international meetings because o its public

law and unding status. Nevertheless, export

customers will use the most convenient PO

that can best meet their needs. A ew POs

rade support institutions (SI) exist in every

country to help businesses develop, promoteand sell their goods and services abroad – broad

categories are shown in Figure 5. Tere is no

standard ormat or a SI and ofen more than

one exists in each country. As an illustration

o the unctions and services perormed by

SIs, Appendix III shows the SI capacity

building modules proposed by the IC.

A PO traditionally has a more limited role

in “promoting” international trade. Tere may

be more than one PO per country, they are

not homogeneous and can take many orms.

In some countries they are part o government

General

Sector specific

Function specific

y TPOs – Trade promotion organizations

y

Ministries (with an interest in export development) y Chambers of commerce and industry

y Economic development agency (with export focus)

y Foreign trade representatives/attachés/offices

y Regional economic groupings (with export focus)

y Exporters’ associations

y Trade associations

y Chambers (agriculture and other sector specific)

y

Sector based (industry and services ) bodies

y Export credit and financing bodies

y Standard and quality agencies

y Export packaging institutes

y International purchasing and supply chain management bodies

y Training institutions

y Trade law and arbitration bodies

Figure 5 : Broad categories of TSI organizations

Source: ITC


36/88


etc., but rarely give advice on credit worthi-

ness. his is the unction o commercial

bureaux. Te PO may include inormation

on standards and technical regulations, but

very ew o those present at the consultation

were doing so. MARADE in Malaysia was

an exception in sourcing this inormation on

demand rom its offices abroad. Tis however

is labour intensive and POs are increasingly

sub-contracting or buying-in the results o such

work rom commercial inormation providers.

POs assemble and distribute inormation

via publications, websites, selective e-mail

and in person at enquiry points. Tey may

also delegate this task to provincial offices

and agencies closer to the exporter.

5.1.2 Promotion in targetmarkets

Once a PO has identified details o potentialbuyers and markets, and the exporter has decided

to develop the opportunity, it can acilitate

contact between buyer and seller. Tis could

involve providing and/or subsidising participa-

tion by the exporter, either alone or with other

enterprises, at an international trade air. It can

also organise buyer/seller missions to and rom

the target market. All these activities are aimedat developing the contact between buyer and

seller, and making the exporter more aware o

the export market conditions.

5.1.3 Support abroad

POs with networks o offices or representa-

tives overseas can provide additional help tothe country’s exporters – this is particularly

have responsibility or promoting tourism,

but more combine their exporting role with

that o promoting inward investment. As the

customer base or tourism and inward invest-

ment promotion can be different rom that

o traditional exports, not all combinations

have worked and there have been subsequent

separations (e.g. Portugal).

5.1 TPO services

PO services can be those demanded by the

exporting community, perhaps in response toa customer needs analysis, or in response to

an analysis o the requests received. POs may

also use inormation rom around the world to

identiy opportunities in markets and sectors as

yet unnoticed by the country’s exporters. Tis

would be seen as proactive work by the PO,

with the balance o responsive and proactive

services being at the PO’s discretion. A menuo possible PO services is shown in Figure 6.

However, many POs offer only a raction o

these because o limited resources or legal

powers, customer demand, or competition

rom other SIs. Tis handbook ocuses on

those unctions with the greatest potential

or collaboration with NSBs.

5.1.1 Information

Te main objective o a PO is to put sellers

in touch with buyers abroad and acilitate the

development o that contact. POs can pro-

vide inormation about buyers and sellers, or

example size, turnover, contact details, market

reputation, customer attitudes, competitive-ness, methods o doing business, market size,


37/88


Larger POs with extensive overseas networks

can assist exporters with such local market

knowledge. However, PO employees are

expensive to relocate in oreign markets, and

are usually supplemented by local staff who

can provide local language capabilities andknowledge at lower cost.

important or SMEs without agents or dis-

tributors in a new market able to deal with

local requirements in the local language.

SMEs ofen need to use the PO’s overseas

offices, the country’s embassy or other rep-

resentatives to make these introductions andidentiy translation and interpreting services.

Trade and marketdevelopment

Advice andconsulting

Information andnetworking

Training

Facilities andinfrastructure

services

y National branding

y Advocacy

y Export promotion, including trade fairs / missions

y Buyer / sellers matchmaking

y Foreign trade representation

y Delegated government functions (e.g. commercial arbitra-

tion, export finance, certificate of origin, etc.)

y Individual counselling and mentoring

y Understanding trade laws, export regulations, etc.

y Export readiness assessment

y Product design and development

y Legal services (e.g. contractual issues)

y Financial and taxation advice y Quality standards

y New technologies and environmental aspects

y Business information services

y Prospective market research

y Exporter / importer directories

y Web-based services (business portal)

y Business management

y Technical / vocational training

y Human resource development (labour skills)

y Workshops / seminars / group consultancy

y Business centre

y Internet access

y Logistical issues

Figure 6 : Broad categories of TSI services

Source: ITC


38/88


packaging and labelling). Such extensions o

PO services could include help with stand-

ards and technical regulations.

5.1.5 Services excluded

POs in developed markets usually direct

customers to sources o advice rather than

themselves becoming involved in specializa-

tions such as packaging, transport, financing

and insurance, which require knowledge and

skills not usually possessed by government

officials. Tus they have not traditionally provided inormation about technical regulations

or standards required by exporters to meet

market needs. In view o the globalisation o

trade and greater movement o goods between

countries, it is more important than ever that

exporters have better inormation on market

entry requirements. Te unction o this con-

clusion paper is to show how POs can addsuch assistance to their activities, and work

with NSBs to bring this about.

5.2 Sectors supported

POs are accustomed to dealing with export-

ers shipping goods to oreign countries. Tis

service has been extended to helping export-ers set up overseas subsidiaries and generate

profit rom manuacturing abroad (outward

investment). In parallel with globalisation

and the transer o manuacturing acilities

to lower cost economies is a dependence on

selling services (such as proessional advice,

construction activities, transport). POs have

had to develop mechanisms to assist servicesuppliers, whether proessionals – e.g. archi-

Import promotion offices have been established

in some developed economies to support

SMEs rom developing economies gain access

to their markets. ypical examples include

the Netherlands Centre or the Promotion o

Imports rom Developing Countries (CBI),

or the Swiss Import Promotion Programme

(SIPPO) 17).

5.1.4 Role of TPOs in tradedevelopment

Te PO ocus changed with the arrival othe Internet, enabling exporters to search

or market inormation directly rather than

through a PO, and to contact potential buy-

ers via e-mail, business networking sites or

electronic marketplaces. In response, some

POs began to intervene earlier in the export

process (“going-up-stream”) to help export-

ers become export-ready in developing andadapting their products.

Tis has challenged POs to equip themselves

with additional skills. I POs do not provide

assistance in export-readiness then it may

become the responsibility o separate small

firms agencies (the United Kingdom’s (UK)

Business Link network is one example). Some

POs (e.g. those o Sweden and Norway) in

developed countries provide more detailed

support (“going downstream”) and offer ull

cost consultancy services in competition with

the private sector. Te same applies to some

developing economies (e.g. MARADE pro-

vides financial support to help SMEs improve

17) Link to import promotion organizations : http://www.tponetwork.net/importpromotionagencies.php


39/88


the context o collaboration with the NSB,

the partner may be an organization other

than the principal PO.

5.3 Users of TPO services

Although the range o PO services provided

may seem quite wide, as shown in Figure 7,

in reality it is relatively narrow. Surveys show

that, even in developed markets like the UK,some 40 % o exporters are unaware o the

existence o a PO. Large companies tend not

to need PO services because they generally

sell established products to established mar-

kets, and know their buyers and markets well.

I they wish to enter a new market, they will

probably appoint an agent or distributor, or set

up a local office and not require PO services.An exception might be a service organization,

tects, lawyers, accountants, or consultants

– e.g. business or internationally tradable

services. Te tools developed or selling goods

(e.g. trade airs) are not necessarily relevant

to selling services. Here, trade missions that

concentrate on personal introductions have

generally been more effective. However the

provision o market inormation is common

to selling goods and selling services.

Less developed countries are also interestedin selling primary products abroad, typically

raw materials, or agricultural products which

may be urther processed as ood. While the

tools used to assist the export o products

can also be relevant, more extensive market

inormation may be needed to assist a ood

exporter. Sometimes the promotion o agri-

business is handled by a ministry o agricul-ture or ood, rather than the PO. Tus in

Figure 7 : Role of TPO varies according to the level of export readiness

Source: ITC

Closing export deals

Selecting marketingstrategies

Building export skillsAwareness raising

0 % Increase in export readiness

100 %

EXPERIENCEDEXPORTER

NEW EXPORTERINTENDERNON INTENDER

Identifying salesopportunities


40/88


o the extra cost o delivering this exclusive

service. Tis may take the orm o payment

by the exporter to the PO, or as a grant rom

the PO to reimburse the exporter or part o

its costs. Both methods have their advantages

and disadvantages, e.g. a grant towards costs

may be simple to administer, while recover-

ing a service ee rom an exporter can involve

staff-intensive debt collection. Te tendency to

share support in this way is more common in

developed economies, but may become more

prevalent in developing countries with increas-

ing demands on national treasuries.

5.4.2 Prioritization ofresources

POs have inite sta, skills and inancial

resources. Tis applies equally to large POs

in developed countries and small POs in

developing countries. Tey cannot do every-thing and must make choices. Many already

prioritise services by sector, countries o inter-

est or type o organization. Unless exporters

are prepared to finance additional services in

technical requirements, standards, SPS meas-

ures and conormity assessment, POs must

compare the importance o those services with

the demand-driven services already supplied. Inaddition, POs must prioritize the initiatives and

opportunities they have identified, and decide

which resources should be diverted to the new

services. It would be preerable or a PO to

undertake a market survey among exporters

beore deciding how resources might be re-

deployed. I the PO is governed or advised

by a committee o business representatives, thisbody could also be asked or its views.

such as a large distribution or construction

company, requiring diplomatic support to reach

decision makers in the local ministry. Service

organizations such as banks, and proessionals

such as architects and surveyors will rarely call

on the PO because it is unlikely to have the

necessary knowledge and expertise.

PO customers tend to be SMEs. In most

sectors, micro businesses are normally con-

sidered to be too small to export, particularly

i substantial amounts o working capital or

effort is required to penetrate a oreign mar-

ket. SMEs wishing to enter new markets or

sell new products into existing markets may

seek PO help to find buyers and undertake

market research. Such a service is likely to be

low cost or ree o charge.

5.4 Funding and resources

5.4.1 Funding

National governments or regional and local

authorities in most countries see economic

beneits rom selling goods and services

abroad, so some or all PO resources come

rom public unding. It is unusual or a PO

to be unded rom sources other than govern-

ment. ypically, where a service is available toall without customization to meet individual

exporter needs, that service is provided ree

to the exporter at the point o delivery. Where

some element o the service is customized

(e.g. the PO researches a specific market

or an exporter) or is available selectively

to a group o companies (e.g. a group wish-

ing to exhibit at a oreign trade air), thosecompanies are expected to pay some or all


41/88


6. Possible areas of collaboration

tion, so they may turn to agencies to do this

or them. Having a choice o many agenciescan make inormation available in more places

more ofen, but to know who does what, and

best, can be conusing. Tis has driven many

governments to establish and maintain “one

stop” or “first stop” enquiry “shops”. Much o

the required inormation can be provided by

POs and NSBs, as described in sections 4

and 5. Hence, it would make sense to estab-lish collaborative efforts to ensure the seam-

less delivery o inormation shared between

NSBs and POs.

6.1.1 Information sharingbetween TPOs and NSBs

In summary, the inormation maintained bythe NSB deals with standards, technical regula-

tions, conormity assessment, and sometimes

SPS measures. his inormation would be

available in its own country, as well as region-

ally and internationally. Te NSB should pro-

vide current as well as uture inormation on

developments through linkages to the national

enquiry points or B and SPS, its peers,regional and international standardization

organizations, and the WO. NSBs have vast

amounts o data on standards inormation and

conormity assessment services through their

technical committees and customer databases.

Tey also communicate increasingly through

websites, but would also selectively target com-

mittee membership, and identified industriesand/or industry associations.

Te consultations have indicated that ew

NSBs and POs have collaborated extensivelyor ormally to date, so it is appropriate to list

many o the collaborative efforts possible.

Individual countries and their institutions

should sel