Revision of Directive 2007/46/EC establishing a framework for the approval of motor vehicles and their trailers
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1 Revision of Directive 2007/46/EC establishing a framework for the approval of motor vehicles and their trailers Johan Renders Legislative Officer DG GROWTH Automotive and Mobility Industries
2 Revision of Directive 2007/46/EC: What are the main issues? What is guiding us? What have we done so far? What have we to do next? What will be new or changed? 2
3 What are the main issues? Introduction of common provisions on market surveillance, better implementation & enforcement Clarification & reinforcement of main principles, in particular with regard to concept of: extension of type- approvals, safeguard measures & recalls 3
4 4 What is guiding us? 1. New Legislative Framework (NLF) adopted in July 2008 clear EU rules for application & enforcement of current and future internal market legislation for goods introduces provisions on market surveillance to protect consumers from unsafe and non-compliant products, including imports from third countries, aimed at complementing & strengthening EU harmonisation legislation & its enforcement overall objective is that Member States have appropriate control mechanisms in place to verify & ensure that products placed on their market comply with the applicable EU harmonisation legislation first exchange of views on this issue with the representatives of the Member States in the Technical Committee on Motor Vehicles (October 2009) 4
5 What is guiding us? 2. Commission strategic objective for 2010 and beyond: A NEW STRATEGY FOR THE SINGLE MARKET AT THE SERVICE OF EUROPE'S ECONOMY AND SOCIETY 2009: Political Guidelines of President Barroso call for: a major analysis of the "missing links" in the internal market, a major package of measures to re-launch the single market in time for the 20th anniversary of the 1992 project : Monti report on a new strategy for the single market: To maintain a dynamic and expanding single market for goods: the 2008 goods package must be fully implemented special attention to mutual recognition & market surveillance principles of the New Legislative Framework (NLF) to be extended to other areas of product legislation 5
6 What is guiding us? 3. Automotive Unit's work programme (from 2010 onwards): announced the update of framework legislation on automotive products to include provisions on market surveillance not limited to the framework Directive on the type approval of motor vehicles (vehicles of categories M,N & O), but also consider a similar initiative for vehicles of category L & T Member States requested to give priority to the framework legislation governing L-category vehicles (TCMV March 2010) Legislative proposal for a Regulation on the approval and market surveillance of two- or three-wheel vehicles and quadricycles, adopted by Commission in October 2010 (COM (2010)542 final). Regulations adopted in March
7 What is guiding us? 4. CARS 21 (re-launched in 2010) HLG Final Report: Recommendations for "checking the products on the market" need to improve/strengthen implementation & enforcement of type-approval legislation by complementing it with market surveillance ensure through market surveillance that products not conforming to requirements and/or dangerous for safety or environment, as well as counterfeits, can be identified, and being prevented to enter the EU market or can be quickly withdrawn from the market recognise & strengthen where appropriate the main responsibilities & obligations of type-approval authorities to improve confidence that corrective actions are fully implemented enhance legal provisions on vehicle recalls to ensure their proper enforcement. 7 7
8 What is guiding us? 5. CARS 2020 Action Plan (adopted in 2012) Commission's commitments related to smart regulation: carry out an extensive and in-depth evaluation (fitness check) of the vehicle type-approval framework adopt a proposal to enhance the type-approval framework to include provisions for market surveillance in areas where a need has been identified, in order to ensure vehicles & their components are safe and compliant with relevant legal requirements, and that this framework effectively achieves the relevant policy objectives carry out a rigorous competitiveness proofing exercise for relevant major future initiatives, including those with a significant impact on the automotive industry. 8 8
9 What is guiding us? 6. Recent difficulties in application & enforcement 9 9
10 What is guiding us? 6. Recent difficulties in application & enforcement Need to bring greater clarity in the type-approval framework for motor vehicles with regard to: the procedures and conditions for granting extensions to typeapprovals for existing types of vehicles the safeguard & recall procedures, to ensure that also cases, where no appropriate remedial action would have been taken by the issuing type-approval authority against non-compliant or unsafe automotive products, can be adequately redressed. the rights & obligations of other Member States and the role of the Commission in such cases
11 What is guiding us? 6. Recent difficulties in application & enforcement 11 11
12 What have we done so far? Adoption FWD 2007/46/EC Entry in to application FWD 2007/46/EC 1. Impact Assessment Roadmap 2. Public consultation 3. Ex-post Evaluation study 4. Impact Assessment study 12 12
13 What have we done so far? Fitness Check study Commission Staff Report on the Fitness Check 6. Competitiveness Proofing Study 7. Address current implementation & enforcement problems 9. Draft Legislative proposal 11. Political validation 8. Commission Staff Impact Assessment Report 10. Interservices consultation 13 13
14 What have we done so far? 1. Impact Assessment Roadmap (2010) ( 5 main areas of attention identified with 4 different policy options for each: Attention areas A: traceability of products & responsibilities of economic operators B: responsibilities & cooperation of enforcement authorities C: quality of type approval & conformity of production tasks carried out by Technical Services D: post safeguard measures & recalls Policy Options 1: No action, Status quo 2: Self-regulatory initiatives 3: Co-regulatory initiatives (joint actions between MS & EC) 4: Regulatory initiatives at EU-level E: procedures for ensuring conformity of production 14 14
15 What have we done so far? 2. Public consultation on policy options ( ) Target groups: all stakeholders (industry sector organisations, private companies, public organisations, Member State authorities, NGOs & individuals) 40 relevant responses received 95% agree with the key objectives of the policy options 85% agree that the presence of non-compliant & unsafe automotive products on the market is resulting in: - distortion of competition & - serious challenge for the enforcement of the current legislation & - significant negative impacts on our society (health & safety, environment) 76% confirm to have knowledge of/or experience with non-compliant and/or unsafe automotive products on the EU market 3% consider the current procedures for taking actions against noncompliant or/and unsafe automotive products across the EU market fully effective and sufficient (47% consider them not effective nor sufficient) 15 15
16 What have we done so far? 2. Public consultation on policy options ( ) 76% agree on the need for increasing the focus on market surveillance 75% agree on the need to better clarify the rules on providing information to ensure the traceability of automotive products 78% agree on the need to better clarify the role & responsibilities of economic operators in the supply chain for automotive products 57% agree that traceability information on automotive products would facilitate enforcement of the current legal system 46% consider that the respective roles & responsibilities of the authorities involved in enforcing the current legal system are not sufficiently clear 79% consider that the criteria for quality & performance level of technical services involved in the type approval and conformity of production process should be strengthened 16 16
17 What have we done so far? 3. Ex-post evaluation study (2011) MVWG 06/07/2011) 17 17
18 What have we done so far? 3. Ex-post evaluation study (2011) MVWG 06/07/2011) 18 18
19 What have we done so far? 4. Impact Assessment study ( ) Preferred combination of policy options Attention areas Policy Options Preferred Combination A: traceability of products & responsibilities of economic operators B: responsibilities & cooperation of enforcement authorities C: quality of type approval & conformity of production tasks carried out by Technical Services D: post safeguard measures & recalls E: procedures for ensuring conformity of production 1: No action, Status quo 2: Self-regulatory initiatives 3: Co-regulatory initiatives (joint action MS & EC) 4: Regulatory initiatives at EU-level 19 A3 (incorporation of NLF principles) B4 (incorporation of NLF principles) C3 (technical & financial independence of Technical Services) D3 (two-step approach NLF) E3 (conformity assessment during production stage) 19
20 What have we done so far? 4. Impact Assessment study ( ) Preferred combination of policy options: benefits Benefits in terms of reducing the value of non-compliant (NCDs) & unsafe (UADs) automotive products on the EU Market ( million) Option A3 *Option B3 & B4 Option C3 Option D3 Option E3 Combination Reduction in NCDs Reduction in UADs * In this context, Option B3 is implemented as a complementary option to Option B4 and provides additional benefits by reducing NCDs and UADs by 31 million and 1.5 billion respectively 20 20
21 What have we done so far? 5. Fitness Check Pilot Project on type-approval framework MVWG 28/01/2013) 21 21
22 What have we done so far? 5. Fitness Check Pilot Project on type-approval framework MVWG 28/01/2013) 22 22
23 What have we done so far? 6. Competiveness Proofing study commitment stemming from the CARS 2020 Action Plan aims to provide an empirical ex-ante evaluation of the impacts of the preferred combination of policy options on the competitiveness of the automotive industry, and to identify corrective or mitigating measures if needed Quantify the likely impacts of the policy options in 3 dimensions of enterprise competitiveness: 1. Cost competitiveness: the cost of doing business, which includes cost of intermediate inputs & of factors of production (labour & capital) 2. Capacity to innovate: the capacity of the business to produce more and/or higher quality products and services that meet better customers' preferences 3. International competitiveness: likely impact of the policy options on the European industries market shares and revealed comparative advantages 23 23
24 What have we done so far? 7. Address current implementation & enforcement problems clarify & reinforce: the concept of new vehicle type the procedures for granting extensions to type-approvals for existing types of vehicles the safeguard & recall procedures the rights & obligations of other Member States and the role of the Commission in cases where no appropriate remedial action is taken (by the authority of the Member State who issued the type-approval) against non-compliant and unsafe automotive products
25 What have we done so far? 8. Commission Staff Impact Assessment Report (early 2014) IPM = public consultation results IPM IA IA = Impact Assessment study results CP CP = competitiveness proofing study results Impact Assessment Report 25 25
26 9. Draft legislative proposal strengthen provisions for better enforcement & surveillance of the market, based on the preferred combination of policy options (see IA + CP study) and on the enforcement problems stemming from non-harmonised application of the concept of new vehicle type, the procedure for extension of typeapprovals and the safeguard & recall measures coherence with approach adopted in new L- & T-cat Regulations transform Directive into a Regulation better & more acceptable inlay of the concept of system approvals within the whole vehicle type approval, in particular with respect to new vehicle types reassessment of conditions for access by manufacturers to the individual approvals scheme adaptation to the Lisbon Treaty What have we done so far? 26 26
27 What have we to do next? Adoption by Commission Start interinstitutional discussions 27 27
28 Revision of Directive 2007/46/EC: Basic principles What will be new or changed? 28 28
29 Basic principles Adaptation to Lisbon Treaty Replace Directive by a Regulation Maximum coherence with L- and T-cat Regulations Market surveillance provisions in line with the New Legislative Framework: Regulation (EC) N 765/ Decision N 768/2008/EC 29 29
30 What will be new or changed? Market surveillance provisions traceability of products responsibilities of economic operators responsibilities & co-operation of enforcement authorities safeguard measures and recall procedures 30 30
31 What will be new or changed? Enhance type-approval provisions: designation of technical services conformity of production validity & extension of approvals provision of information 31 31
32 Market surveillance provisions: obligations for Member States New provisions obliging Member States to organise and carry out market surveillance and controls of vehicles and automotive products entering the market, in accordance with Regulation (EC) No 765/2008. Obligation to withdraw non-compliant products from the market or prohibit or restrict their market access, and to inform the public, other MS and the Commission. Objective: ensure proper and effective post-market controls to complement the ex-ante type-approval procedures 32
33 Market surveillance provisions: obligations for economic operators New provisions obliging manufactures (established outside the EU) to appoint an authorised representative within the EU for market surveillance purposes. Obligation for manufacturers and other economic operators in the supply chain to co-operate with market surveillance authorities Objective: ensure proper and effective post-market controls and remedial action against non-compliant automotive products as a necessary complement to the ex-ante type-approval procedures 33
34 Market surveillance provisions: responsibility of economic operators New provisions to clearly specify the respective responsibilities of the economic operators in the supply chain (manufacturers, importers, distributors) related to the evidence of compliance of the automotive products placed on the market. Objective: provide enforcement authorities with tools to identify and to take remedial action against noncompliant products and against economic operators not respecting the rules. 34
35 Market surveillance provisions: traceability of products New obligations for manufacturers to provide on/with the product the information to enable the identification and to trace the origin of non-compliant products encountered on the market and to establish who are the economic operators in the supply chain to be held accountable for the non-compliance Objective: provide enforcement authorities with tools to identify and to take effective remedial action against noncompliant products and against economic operators not respecting the rules. 35
36 Market surveillance provisions: responsibilities & co-operation of enforcement authorities New provisions specifying the responsibilities of different national authorities involved in the enforcement of the legislation and establishing clear procedures for information exchange and co-operation between them. Objective: Put in place clear procedures enabling enforcement authorities to effectively remedy any market failure caused by the presence of non-compliant products on the market. 36
37 Market surveillance provisions: enhanced safeguard measures New provisions introducing a 2 step safeguard procedure (national level + Union level) on the basis of Regulation (EC) No 765/2008. The Union level safeguard procedure provides for a clear role for the Commission, including a decisive power in case of disputes or if national measures are considered insufficient. Objective: Put in place clear procedures enabling enforcement authorities to effectively take remedial against products on the market representing a serious risk. 37
38 Market surveillance provisions: enhanced recall procedures If other MS or the Commission consider recall remedies not sufficient or timely enough, recalling MS to take all protective measures. If no such measures are taken, or not satisfactory for other MS and Commission, Commission to take a decision and MS to implement it. Objective: Put in place clear procedures enabling enforcement authorities to effectively take remedial action against products on the market representing a serious risk. 38
39 Enhanced type-approval provisions: designation of technical services Introduction of mandatory performance criteria for technical services, addressing their independence (also for subsidiaries & subcontractors), and including operational, reporting and information obligations. MS to notify the Commission if designation changes, and to restrict, suspend or withdraw designation if necessary. Investigation power for the Commission to challenge competence of technical services. Objective: Improve reliability and performance of technical services. 39
40 Enhanced type-approval provisions: conformity of production clarify and strengthen the provisions on conformity of production, in particular in relation to the assessment of quality management systems for production, and product related controls through inspection and testing, and better surveillance by the competent authorities. Objective: Improve reliability of the type-approval procedure by ensuring the conformity of vehicle production through product controls by the enforcement authorities. 40
41 Enhanced type-approval provisions: validity & extension of approvals When changes in the particulars of an approved type are of such an extent that an amendment to an existing typeapproval cannot be justified, a new type approval has to be issued. When new requirements have entered into force for the type concerned, an existing type approval can only be amended if the type complies with the new requirements. Objective: Improve reliability of the type-approval procedure to ensure continued compliance 41
42 Enhanced type-approval provisions: validity & extension of approvals Limitation of the period of validity of type approvals in time. After expiry of that validity period (5 years), the type approval has to be checked on its continued validity to ensure that all requirements applicable to the type concerned are met. Objective: Improve reliability of the type-approval procedure to ensure continued compliance 42
43 Enhanced type-approval provisions: Safeguard procedures Introduce the 2 step safeguard procedures (national level + Union level) as already incorporated in L-cat Regulation 168/2013. The Union level safeguard procedure provides for a clear role for the Commission, including a decisive power in case of disputes compare with articles 46 to 48 of Regulation L168/
44 Enhanced type-approval provisions: Safeguard procedures 44
45 Enhanced type-approval provisions: Safeguard procedures 45
46 Enhanced type-approval provisions: recall procedures If other MS or the Commission consider remedies not sufficient or timely enough, TAA to take all protective measures. If no such measures are taken, or not satisfactory for other MS and Commission, Commission to take a decision compare with article 52.4 of Regulation L168/2013: 46
47 Enhanced type-approval provisions: 1) EU individual approval: Manufacturer or owner of a vehicle may apply for EU individual approval. Individual approvals are very often used for completed trucks (multi-stage built vehicles). There are two main reasons for this: 1) burden of the multi-stage approval procedure may be too high, 2) some vehicles are really completed on demand, therefore requiring an individual approval. However, such individual approvals are only recognised in the territory where it was granted, which creates burden for manufacturers and creates problems for the internal market when the vehicle is transferred to another country. 47
48 Enhanced type-approval provisions: 2) Further simplification for multi-stage approvals: Multi-stage approval shall apply also to complete vehicles converted or modified by another manufacturer after their approval Multi-stage approval may be applied by a single manufacturer Multi-stage approval was introduced to simplify the life of second stage manufacturers (body builders) by allowing that tests carried out on the chassis can be used for the approval of the completed vehicle. However, the current procedure in Directive 2007/46/EC is so burdensome for second stage manufacturers, that most of them actually use individual approvals. 48
49 Enhanced type-approval provisions: 2) Further simplification for multi-stage approvals: A 1 st step was achieved with the proposal for amendments to Annex XVII to Directive 2007/46/EC presented to TCMV on 1 April However, further simplifications of the procedure would require the modification of the articles of the Directive. It is of particular interest for standard modifications brought by body builders on different vehicle types (e.g. modification brought to the same vehicle sold under different brands, simple changes like the fitting of the same standard box on different chassis frames). 49
50 Enhanced type-approval provisions: 3) Mandatory EU approvals of after-market products. Furthermore this creates problems when the parts are moved from one country to another: some Member States requiring that after-market products meet the same requirements than original parts, and others requiring nothing. Finally, for market surveillance authorities, it is difficult to check the compliance of a product when the latter is not regulated at all. At the same time the technical requirements exist :many regulations could also be applied to aftermarket products. It is therefore proposed to cover replacement parts with the same requirements as the original parts. 50
51 Enhanced type-approval provisions: 3) Mandatory EU approvals of after-market products. Many original parts (e.g. lighting systems, heating systems) of a vehicle are covered by Directive 2007/46/EC through the mandatory EU type approval of vehicles. On the contrary, there is no mandatory EU legislation on the type-approval of aftermarket automotive spare parts sold in the EU, except for replacement brake pads discs, tyres and replacement exhaust systems and catalytic converters. This situation creates unfair competition on the aftermarket. Many replacement part are of lesser quality compared to the original ones. Furthermore this creates problems when the parts are moved from one country to another: some Member States requiring that after-market products meet the same requirements than original parts other requiring nothing. Finally, for market surveillance authorities, it is difficult to check the compliance of a product when the latter is not regulated at all. At the same time the technical requirements exist :many regulations could also be applied to aftermarket products. 51
52 Enhanced type-approval provisions: 4) EU end-of-series instead of national end-ofseries According to Article 27 of the Directive, the "end of series vehicles" exemptions are subject to the approval of each Member State which cannot go beyond a number of units/member State specified in Directive 2007/46/EC, Therefore, these derogations are granted nationally under the conditions set out in Directive 2007/46/EC. Member States are not obliged to use this derogation possibility or recognize derogations granted by other Member States. This lack of harmonization for end of series may put at risk the concept (no guarantee for the total of vehicles covered by this derogation EU wide) and encourage manufacturers/importers for "approval (s)hopping". 52
53 Enhanced type-approval provisions: 4) EU end-of-series instead of national end-ofseries It also creates problems when the vehicle is moved to another country (no obligation to accept a derogation given by another Member States). Finally, for manufacturers it requires to launch procedure in the 28 Member States. One way to avoid these problems would be to give the power to the Commission to regulate end of series (e.g. same procedure as for new technologies) and ensure a coherent approach EU wide. 53
54 Enhanced type-approval provisions: 5) Repair and Maintenance information (RMI) New Annex XVIII on RMI RMI provisions will be moved without substantial modifications - from the emission Regulations to the successor of Directive 2007/46/EC to clarify that they do not only apply to emission components but to all safety and environment related components fitted on vehicles. 54
55 Thank you for your attention
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