STANDARDS AND TRADE SAE Standards in the Classroom

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1 STANDARDS AND TRADE SAE Standards in the Classroom

2 AGENDA SAE Overview The Importance of Standards Standards Systems around the World Governments Role World Trade Organization SAE Standards and Trade 2

3 SAE International is a global body of scientists, engineers, and practitioners that advances self-propelled vehicle and system knowledge in a neutral forum for the benefit of society. SAE International is a not-for-profit, non-lobbying technical organization and membership association with 138,000 members in over 100 countries. Aerospace Commercial Vehicles Automotive

4 World Headquarters Warrendale PA, USA Automotive Headquarters Troy MI, USA Aerospace Standards Washington DC Aerospace Standards Europe London SAE China - Shanghai

5 SAE History and Future 1905 SAE formed in 1905 to promote safety and common practices for the emerging automobile market. SAE charter expanded in 1916 to incorporate aeronautics SAE member Elmer Sperry created the term Automotive - from Greek autos (self), & Latin motivus (of motion) to represent any form of self powered vehicle Electronic publishing, 1980s Opened offices in Washington DC, London, Shanghai 100 year anniversary of the 1 st aerospace standard, 2016 SAE Standards and Trade 5

6 SAE offers: Publications: Standards Magazines Books Technical Papers CD-ROMs Membership Benefits: Conferences/Symposiums Worldwide Meetings Discounts on cell phones, auto insurance, computer supplies Education: Training courses Professional Development Collegiate Design Competitions K-12 programs SAE Standards and Trade 6

7 Members Strength in numbers strength in diversity. SAE International has more than 145,000 members in 98 nations SAE Standards and Trade 7

8 Members Hundreds of committees, thousands of volunteers They offer Time Skills Technical Expertise SAE Standards and Trade 8

9 What is a standard? A standard is a technical document developed by consensus. It is a formal document that establishes uniform engineering or technical criteria, methods, processes and practices. Used effectively, standards help to improve the reliability of materials, contribute to public welfare and the overall quality of life, and facilitate regional, national and international commerce. SAE Standards and Trade 9

10 Technical committees are responsible for drafting and revising the standards. Standards development 17,000+ committee members 11,000+ technical standards Committee membership includes people from: Industry Academia Government They typically have a background in: Engineering Science Aerospace Committees: Ground Vehicle Committees: Anyone with interest may join. SAE Standards and Trade 10

11 How are standards developed? Initiate Draft Ballot Approve Publish 1. The document is proposed By industry By regulator For revision 2. The draft is created by the technical committee 3. The draft document is balloted by committee. 50% Quorum and 66%* Approval required 4. Required changes made; affirmation ballot and Council Ballot 5. The document is published by SAE SAE Standards and Trade 11

12 THE IMPORTANCE OF SAE INTERNATIONAL STANDARDS SAE Standards and Trade 12

13 The Importance of International Standards Standards provide benefits such as defining accurate and necessary measurements, lowering product costs; improving product performance, quality, uniformity, interoperability and functionality; and providing a method to improve health, safety, the environment, communications, competition, international trade, and improving the quality of life. We cannot afford to go on taking standards for granted. The business world and society served by the standards infrastructure are changing rapidly. Global trade means that today s products are built with components sourced from around the world, which must fit together and perform as expected. Product life-cycles are becoming shorter and the pace of technological development is accelerating In this dynamic environment, the ability to harness the potential of standards is a source of competitive advantage [United Kingdom National Standardization Strategic Framework (April 2003) at page 2; SAE Standards and Trade 13

14 SAE publishes global standards. Aircraft, cars, construction and agricultural equipment, heavy trucks, buses and specialty vehicles operate all around the globe. Therefore experts from around the world including those from OEMs, suppliers, operators, MROs, regulatory authorities, military agencies, researchers, and consultants collaborate to develop consensus-based standards of high technical merit. 700 technical committees and voluntary efforts of 17,000 technical professionals from 58 countries develop standards and serve every aspect of industry from vehicle design and integration to build, manufacture, operate, and maintain. SAE Standards and Trade 14

15 STANDARDS SYSTEMS AROUND THE WORLD SAE Standards and Trade 15

16 Europe Standardization in General EU standards setting is a process based on consensus initiated by industry or mandated by the European Commission (EC) and carried out by independent standards bodies, acting at the national, European or international level. CEN (European Committee for Standardization) is the major provider of various European Standards prefixed with EN*. CENELEC (European Committee for Electrotechnical Standardization) is responsible for standardization in the electro-technical engineering field. The members of CEN and CENELEC are the national standards bodies (NSBs) of the 33 Member States working together to develop voluntary European Standards (EN). The NSBs are ASI, NBN, BDS, HZN, CYS, UNMZ, DS, EVS, SFS, AFNOR, DIN, ELOT, MSZT, IST, NSAI, UNI, LVS, LST, ILNAS, ISRM, MCCAA, NEN, SN, PKN, IPQ, ASRO, SUTN, SIST, AENOR, SIS, SVN, TSE, and BSI. ETSI (European Telecommunications Standards Institute) produces standards for Information and Communications Technologies (ICT), including fixed, mobile, radio, converged, broadcast and internet technologies. *European Standard = EN (French: Norme, German: Norm) SAE Standards and Trade 16

17 U.S. Standardization in General No single organization, public or private, controls the U.S. standards development system. The system is coordinated - publicly and privately. The U.S. system is unregulated, market-oriented and diverse. In the U.S. there are multiple methods of standards development (600 developers). The American National Standards Institute (ANSI) was formed in 1918 to act as the coordinator of all U.S. based standards developers. ANSI does not develop standards, but rather accredits standards developers. The National Institute of Standards and Technology (NIST), founded in 1901, is a measurement standards laboratory, and is a non-regulatory agency of the United States Department of Commerce. NIST s mission statement: Promote U.S. innovation and industrial competitiveness by advancing measurement science, standards, and technology in ways that enhance economic security and improve quality of life. NIST is also one of the oldest U.S. national laboratories. SAE Standards and Trade 17

18 China Standardization System in General There are four levels of Chinese standards: National Standards are often referred to as GB standards. Professional Standards are often referred to as Industry Standards. Local standards are often referred to as Provincial Standards. Enterprise Standards may be developed and/or used by an individual company in China in cases where National Standards, Professional Standards and Local Standards aren't available. Chinese standards may be either mandatory or voluntary. Key organizations (all state controlled): General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) Standardization Administration of the People s Republic of China (SAC) China Association of Standardization (CAS) China National Institute of Standardization (CNIS) Standards Press of China (SPC) Many Chinese national GB standards are adoptions from ISO, IEC or other standards developers. SAE Standards and Trade 18

19 India Standardization System in General The standardization process in India follows the basic principles for standards development outlined by the World Trade Organization (WTO) Technical Barriers to Trade Agreement (TBT). The Bureau of Indian Standards (BIS) is the National Standards body of India, functioning under the aegis of Ministry of Consumer Affairs and Public Distribution, Government of India. BIS oversees the development of Indian Standards (IS), coordinating input from various public and private sector stakeholders through its technical committees. In addition to IS, many other types of standards are used in India, including those developed by international standards developers, regional standards, foreign national standards, and others. SAE Standards and Trade 19

20 Conformity Assessment is any activity to determine that a process, product, or service meets relevant standards and fulfills relevant requirements. Many electrical products, for example, require certification through organizations such as Underwriters Laboratories (UL). Manufacturers of UL-certified products must demonstrate compliance with the appropriate safety requirements before appending a UL mark. The CE marking indicates a product s compliance with EU legislation and so enables the free movement of products within the European market. The CCC Mark is China s main quality and safety mark. Products listed in the CCC system catalogue, must possess the CCC label before they are able to be marketed, imported, or sold in China. The Standard Mark (Popularly known as ISI Mark) on a product indicates conformity to the relevant Indian Standard. Japanese Industrial Standards Committee (JISC) is the governing body and policy making agency that establishes Japanese Industrial Standards (JIS) and oversees the Conformity Assessment Board and the Committee on JIS Marking. SAE Standards and Trade 20

21 GOVERNMENT S ROLE SAE Standards and Trade 21

22 Free Trade Agreements level the playing field and encourage governments to adopt open and transparent rulemaking procedures. Free Trade Agreements can help strengthen business climates by eliminating or reducing tariff rates, improving intellectual property regulations, opening government procurement opportunities and easing investment rules. With tariffs becoming less of a factor in trade as a result of these agreements, technical measures, i.e. regulations, standards, and conformity assessment, have begun to be used as trade barriers. SAE Standards and Trade 22

23 The European Commission plays an important role in standardization through its funding participation in the standardization process. The European Commission provides money to the standards bodies when it mandates standards development to the European Standards Organizations for harmonized standards that will be linked to EU technical regulations. The EC will fund CEN, CENELEC, ETSI and individial National Standardisation Bodies for the following functions the development and revision of European standards verification of conformity to EU legislation and policies the translation of European standards development of guidance materials (EU) No 1025/2012 is a regulation that defines EU policy on European Standardisation. SAE Standards and Trade 23

24 The Official Journal, published daily, lists the standards reference numbers linked to legislation. The Official Journal of the European Union (OJ) is the official compendium of EU legislation (L series documents) and other official documents (C series documents) of the EU institutions, bodies and agencies. For example, the EU implemented EC No 1907/2006 Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) Regulations. EC No 1907/2006 can be found under the entry, L396 of the OJ EC No 1907/2006 references CEN standards: EN17234, EN , and EN (Excerpt below is from EC 1907/2006, which can be found in L396, page 423 of the OJ) SAE Standards and Trade 24

25 The U.S. government supports trade through several agencies. Two important examples are: The International Trade Administration (ITA) which is part of the Department of Commerce and helps U.S. companies to grow international sales. In the ITA s Standards and Competitiveness Report it is stated that The international language of commerce is standards. The United States Trade Representative, which is part of the Executive office of the President, negotiates directly with foreign governments to create trade agreements. Each trade agreement includes a section on the use of international standards. SAE Standards and Trade 25

26 Support and Mandate for Government Participation In 1995, the National Technology Transfer and Advancement Act mandated U.S. federal agencies to use the standards developed by voluntary standards organizations and participate in their development. all Federal agencies and departments shall use technical standards that are developed or adopted by voluntary consensus standards bodies, using such technical standards as a means to carry out policy objectives or activities determined by the agencies and departments.and shall, when such participation is in the public interest participate with such bodies in the development of technical standards. P.L National Technology Transfer and Advancement Act of 1995 (NTTAA) SAE Standards and Trade 26

27 U.S. Federal Regulation The U.S. Administrative Procedure Act allows executive branch government agencies to develop detailed rules and regulations through a public "rulemaking" process where the public is allowed to comment. After a period of time, the rules and regulations are usually published in the Federal Register. Government regulation often plays a critical role in moving a product to market and regulations often reference standards. More than 460 SAE standards are referenced in U.S. regulations and guidance materials. SAE Standards and Trade 27

28 WORLD TRADE ORGANIZATION SAE Standards and Trade 28

29 Member countries of the World Trade Organization signed a Technical Barriers to Trade Agreement in Technical Barriers to Trade Agreement (TBT) Prohibits use of regulations, standards, and conformity assessment (technical measures) as barriers to trade. Identifies standards as a key component of trade and prohibits their use as non-tariff barriers. Each WTO member is required to report to the WTO Secretariat in Geneva, proposed central government regulations and provide a 60 day comment period to allow other WTO members to review and comment on the proposal. If duplicative standards are referenced in regulations from different countries, it can interrupt the flow of goods across borders, or result in duplicative testing on imported goods. In the U.S., the National Center for Standards and Certification Information housed at the National Institute of Standards and Technology carries out this duty. SAE Standards and Trade 29

30 The World Trade Organization has established a Dispute Settlement Body (DSB) for any member country to bring disagreements on trade issues. The WTO s Dispute Settlement Body (DSB), and in particular its Appellate Body, have made it very difficult for WTO Members to use technical regulations (TBT Agreement) and health regulations (SPS Agreement) as a form of disguised protectionism, and several Members have taken advantage of the DSB for this purpose. Countries who do not agree to comply with the decisions on the Settlement Body can face trade sanctions. SAE Standards and Trade 30

31 Standards are key components of trade. Principles Transparency Openness Impartiality and consensus Effectiveness and relevance Coherence Consideration of developing nations Transparency Openness Impartiality and consensus Effectiveness and relevance Coherence Consideration of developing nations SAE Standards and Trade 31

32 Summary Standards are key documents for trade. SAE Standards are international standards that are used globally. The WTO defines the principles of international standards.

33 Contact Information Customer Service: (U.S. and Canada only) or (Outside U.S. and Canada) Locations SAE International 400 Commonwealth Drive Warrendale, PA SAE International Troy Office 755 W. Big Beaver, Suite 1600 Troy MI SAE International Washington Office 1200 G St., NW, Suite 800 Washington, DC SAE International Aerospace Standards Europe Office 1 York Street London W1U 6PA, United Kingdom SAE International China Office Room 3037, 3F, Silver Court 85 Taoyuan Road, Huangpu District Shanghai P.R. China SAE Standards and Trade 33

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