.HongKongEcho : : — ele Testing & Cert | in Greater GninaThe Lee Gardens: Sogo Dept. Store Pace Pace - The Galles - Elements “The Peninsula = N°S Canton Road For enquiies: 2919 5799 mee Giant scart in summer twit Hermés, contemporary artisanSpecial Guest Foreword Sl “Teeting and Cenifeation (T&C) is one of six new economic sectors whese Hong Kong enjoys cleat advantages. The Government is fully committed to promoting and supporting ite Gare development, aad in September 2009 we establihed the Hoag Kong Council foe Testing and Centficaton to advise Govemment on the overall development strategy and iniinives which will propel is growth. ‘The process of T&C permeates our everyday lives: from ascertaining the food we exis ft for human consumption aud the products we use axe safe, to medical teste on whicl we ely foe diagnosis of linesses A tsliable and triste T&C industey underpins Hong Kone’s positon as an intemstional ‘uading hb and enhances the values of businesses. ‘Coupled with our sound legal stem and supported by our world-class infimsutctuss, “Tested and Certified in Hong Kong” is a symbol of qualify assurance, professional integity and high efficiency. Hong Kong's TIC industry is eenenened for is professionali, integsny and knawleclge of the intexational mkt; With ou proximity to the manufictusing base in dhe Mainland , and the global tend for increasing consumer awaceness of the qulty and safety of products, the potential for father grow is enormous. The value of T&C to the local economy. {increased by 13% fiom 2008 to 2009 despite the on-ser ofthe financial dowamasn. ‘The Hong Kong SAR Govemiment filly supports the development af the TIC industy and the work of the Hong Kong Council for Testiug and Certifiestion under the -haiananship of Profeesoc Ching Pale clumng, Po-Viee Chancellor ofthe Chinese Univer of Hong Kong, With the concerted efforts of Govemnment, dhe Council and al stsehokders, the TSC indvsuy is set to grow in suength and importance inthe peas to conte. (Mrs Rita Lau Ne Walan, JP Seczetay for Commetce aud Economic Development of the (Goverment of the Hong Kong Special Administative Region. era Kran 4Pe ero Pe eT eee) py =Lei | BUILD FINANCE OPERATE dragageshk.comEditor's Letter Des sacess, Alice centuties of Westetn dominance, Chis is once again the centue of the woud’ anention. Last year was marked by its emesgeace as the second economic power ‘worldwide, This economic and political ascendaney comes together with new and overwitelming sesponsbilies thet Beijing is taking very seciousy as they wil chape the ‘county’ estexmal image. That reputation has been tamished a couple of times by scandals ‘within ite manufactxing industry. Fist, in 2007 shen some toys produced ia China liad ‘been Snished with lead paing, and second in 208 with the melamine-aiared ale pores. Such lessons have prompted China t0 adopt a very sti approsch to its Testing and Ceniiication (T&O) policy, ss our contibutors attest in this sprig issue of Hong Kong Echo. To filly undesstand the extent of the T&C business in Hong Kong and Greates (China, Professor Ching Pal-chung, Channa of the Hong Kong Connell for Testing and Certification enlightens us on the importance of this industry for the Pead Rives Delta (p. 18-19), while Su Yanging and Husng Zhen of the law fam Gide Loyrerte ‘Novel explose and dlarify the legal Eamework of product T&C in China (p, 22-23), “As consumer awareness and concein for environmental issues increases, there ate & ‘growing amber of iatatives and elias being made celiting to the envisonmnental impact ‘of products, Cille de Labsiolle of API sboratoxies elasifes the methodology and dea the line between ‘Green Washing’ and Truly Groen’, Christine Lob, the well-known, ‘Hoag Kong lobbyis, is opening another window on green labels by challengine the Hong Kong standasts on ais pollution (p. 29), Sourcing and cesifing your products ip Chins mighe sound lke » challenge, bot Beinn ‘Whites from Bureau Veritas helps by sharing his bes ips on how ro manage the supply hin fiom A to Z, using a Supply Chain Risk Management Approach (p. 3435}. Still on sourcing, Chiistophe Lichon fram Tatertek brings up to date the latest developments in rocial compliance ia China, and the beset ceralers ean expect fiom these programs (p. 36-37) For his par, Sebastien Breteau fiom Asialnspeccion chullenges te Encopean Frontiess which have been gradually xeplaced by none’ bauzecs (p. 38-40). ewe ace what we eat, then weld bemes know what we actually ate cating! Chadine Yau fiom SGS looks into Food testing in Hong Kong to help us do just that (p. 48-49). Finally, sce winp up thie special feanare with svo amieles on the histry iadaets. The fet fon the restile ede and looks ar the challenges regarding the vasious noms when importing {nt China (p. 45). The recoud looks at jewel testing, aud the expestive being developed in Hong Kang (p. 42-49) ‘This esse of HC Echo highlights the importance of the THC sector for China and Hong Kong, Withour tested and cestied goods, Western counties will nor import products sonced in the segiou. That is why dhe Hong Koag Goveanment’s suppoit for it testing and certification industry is fundamental foe the segion’s funwe as a main and selable ‘centie of production and expoxt Christophe Degois President of the Sousciag Committee ofthe Freucl Chamber asd Vice President Operations, Tntediux Ca, LTD era ran 3and prior to that she Asian regional respor sod isa Pacitie Inspection eniny spe in providing CSR mciting services snd consultancy actos th continent foe cexaliees, supplies and bora, (p, 2 eed Andeew Davis is Aseociate Disector- General of Invest ment promotion and tide development or Intemational Business Woales. He is an Asia Pa ecals, having spent such of his axces in the and the past 4 yencs gio ia Hong Kong (p. 19-2 Kong, asthe Hed of Business Seavices since Janay 20 bie ba eld sev pinitec Tous A fos the Jannaican G din Asia as A Professor Ching Palechung is Profesor of Electronic Engineering arte Chinese Univessisy Heis aizman and Certification, sod a member of the van Wong isa Senior Manager (Comacil Services) of the suvction Indurty Council and is « qualified civil enginees aod exvicoamental engine: He worked previously in the finance sector, in mortzage insurance, asset acquisition and Su Yanging, Associate - Gide Loyrette Novel Shaughai, is 2 Exnmanuelle Le Moing, Adoninisteative Manager at Pascatheses,is along-term ‘contubutor to Hong Kong Echo, She fella lowe with this French bookstore when she atived in the ny. Thirteen years later, the love story continues. Ia this edition, invites us to the woud of Hong Kang comics. (9. 62.63) Huang Zhen, ciate Gide Lomrette Novel Shanghai, s a member ‘of the Pacis Bac. She Inolds a Ceitiicate in Schastien Breteat gradasted from ENSAM (Ast et Meties) and om HEC, He has fouaded and devel chain icine, in Asia. Heis Comm French legal stacks and vanced specialized ESS jntellecrval propesty kw som the Univessiy Pus HL (p. 22-23) and the Middle Hager Eleco Ltd. The “Hager Group isa leading supplier of sohtions and services fot electzo technica installatio in esidental aad ‘commercial buildings, as well as for indeed applications. (p. 41) Christophe Liebon is Global Disector of environmental impa ctitions for Intertek. based in Hong Kon with a specie for 19 contmer product histophe has been. vorking in the field of | sstainabilty, quality sand social complian foc more than 12 years. Andee Leroy is the Marketing Director of Modem Testi Services, a world-clss independent [provider of technical services since Je 2007, Andie ins particular Lionel Toueas After geacating fiom the INSA de Lyon in anuienssing Enginecring in 200, Lionel mowed to Chista to ‘wouk for Thomson Multimedia ins Shenzhen s# SAP coordinator. Ta 2007, he joined the GF group, FFeench sender, and opened their foorwear indus. (p. 45) in Hong Kong for (Ospbd Evel) ou years ago, He has 10-yeass expec toy dusty. The father Brian Whitters is Discetex, Global Line Supply Chain Sohuions, ofThe French Chamber of Commerce wishes to thank Echo the following companies for their sponsorship: BEB] wrrrance > seanontlh 2, ig Ben, room oeh Atcatel-Lucent @) ALSTOM Bi ecceeacs. ea Filewrransss —brandimage’ @siassese ma ‘cher SL’ ay coface® — Cc sonoma mare passauer fo Eden < Park aaa cere FALCON EU ERNST& YOUNG ‘nae Guttering We > A$. tunonsce Wontpine Snes er atacer i tet Express HERMES @ HSBC <> ong PARIS. A ‘ee Chine Lagardére LPA vat cere uicen Hows Kone Uw. "ACE z “CET HENNESSY, LOU mi eee mee % socieTe caer, romoa crt foie RR GENERALE eta ian ue Wee ae as laine commana eee : WINSTON Tem mace ive cat ~ VERANDA &STRAWN Sa A NaTIXIS LupCOVERAGE AND INVESTMENT BANKING A Master of SY financal | INeenng ‘Choose a bank which serves its customers by applying its expertise with the skill and precision of a Master. You are the primary focus of our Senior Bankers. They coordinate and manage efforts in every one of our business lines such as investment banking or loan syndication according to your specific requirements and priorities. Benefit from their expertise and commitment, and reap the rewards. @¥ CREDIT AGRICOLE von t.com SSE corporates InvestMENT BANKHongKong AIRFRANCE #4 1 Foreword 3 Editors etter 4 controutors 10 Hong Kong News 12 Economic Review 14 Cosmetics industry encounters “One Gountry Two Systems” problem in China 18 Testeclin Hong Kong, cetiied in Hong Kong 20 ins endoutsofteating and catication 22. Have your products tested and certfied in Crina for the Eurepean marketplace 24 1 construction industry moving towerds EU standards, 26 Groen certication: Greerv wasting or tnly green? 29) Why Government just can't see through the smog 30 Toyinctsty plays by theres 311 ace in China or marred in China? ‘34 Responsible sourcing through a Supply Chain Rsk Management approach 36 Social complance - mitigating repuatnal sks for branes and rotors 38 An inspector calls 41 China Compulsory Certification ensures product quality A2 A tesing business 45. Apparel industry seeks to standerdize rules AG Bordeaux innovates in the interests of security AB cod testing: fom raceabty to abols 50 Past 4 Future Events, 54 Members’ News 57 New Members 62. Book Review 64 Members’ Club: is available on board ts — CATHAY PACIFIC BRITISH AIRWAYSLOUIS VUITTON RoLER AU Larel | Greet ACLU eye Nae Lad Pee ern eee eee eee ee ee Sold exclusively in Louis Wuiton stores. Tel. 8100 1182"EEE Hong Kong News No easy Budget Financial Sectetay John Tsang presented the 2011-2012 Bualget tothe Legislative Covscl on Wednesday, February 23, 2011. The fndget is stremred around theee main objectives: improve people's livelihood, sbiize the propesty macket, and combat infiaton, + The Financial Scesiay forceats Hang Kong’ GDP growth ro bbe 458% forthe year 2011 + On the dewside, Tsang focecst that dhe inition rae foe 2011 vill average 45%, smost double last yeac’s rte, The challenges inthe comming year wl sive msinly from the sick of asset pice ‘bobble and inflaton, + Total Govesnient expendiase for 2011-12 is estimated to be HIK3371 billion, up 22% fiom 2010-11, while its eevenue is ceximated to be HKS375 bilion, esuking isan asepard supiss ‘of HKS39 blfon, and» consolidated surpas of HKS71 biion. + Teaag anounced almost HK$20 biion words of hand-outs in his budget adees. “Theater was contones sit ws fist announced tobe handed cox by an injeeson of FI§6000 ins the Mandatory Peoident Fond sccounts of al MPF scheme member. Bowing to polit presse, ‘Teang changed his budget proposal, and ia its place announced IK 000 ach hand-cut all ade peanawent ides. HK overtakes London as most expensive office site A study bas sind that Hong Kang became the wodd!s most expeative place fo seat office space lat yeas, desire Government efforts 10 cool the suging propesty mickct and avoid a bubble. The average price of office propexty ‘pec workstition in Hong Koug sose by almost A thir Fim a year easier to $22,530, passing ‘the 2009 leader, London's West Eady the DTZ seport su The survey compared office ents in 121 businces dissicts across 47 tenitores acound the globe. Jobless rate hits two-year low Hong Kong! waemploymeat sate has flea 10 38% ss lowest {in more than two years, a the cays red hot economy continnes to power ahead. Accoréing to a Census and Statistics Department seport in Fedeuay, the unemployment sate for the November Jenuary period wa dora from 4% in the October December pesiod, and masked Hong Kong's lowes jobless ae since late 2008. Hong Kong!s employment peaked 25, sid 2009 a twas pound by the global financial cs, but the teitorys export ated ceonony as sine poste sung cco China: biggest luxury goods market by 2020 China wil be the world’s biggest usury goods marker by 2020 as its economy booms and an emerging middle cass spends a growing chuak of thele cash on high-end inema, Over the next deeade, Chinese eoneumers, including a surging number of billionaires, will account for 44% of global spending on goods auch as bags, vehicles, watches, shoes and clothes, the sepomt by brokerage CLSA said. “The astion’s amsry goods sector was worth about §25 billon in 2009, or about 10% of the word make, indading puchases by consumess ia Hong ‘Kong, Maca and Taiwan, Teavel spending could boost that figure as high a8 138 of the eutrent world masket: The country was “well on track” to surpass Japan within dace years, CLSA added. The sepose was based on a suvey of 340 ‘consumers and 31 hususy store managers in cites across China. Consultancy PuicewatedhouseCoopers hae already predicted that China will be dae wou! top buyer of kanury goods by 2015, even sooner than CLSA’s fotecast. City Pulse omens eee crac near es Mai Hong Rong, So eae Ml favourite venues in 1 nin LU Best shopping? For clothes, I shop at Pacific Place, Festival Walk oc The Landmark, For grocery shopping, for veggies, and especially For seafood, T go to the Wet Maser in Cental, ‘where the seafood is alive, and really fresh! Botif I don't want to cook, Igo to Sai Kung to eat at Chuen Kee restausant. They have the best seafood ia Hong Kong! Cheap eats? Wonton noodle shop in Cearsal. I love Wonton noodles, Some like ithor? ‘Withourhesiarion: Masim’s Chinese restanzant at Cy Hall whese they have tuaditional dim sim sexved on a uolley and dhe sestaust has natwal daylight. Excelsior Hotel's Chinese Restanenat ia Canseway Bay is also another favonsite dim sam place for me. Irs spacious, alumuy in crowded Hong Kong. Deinkes with a view? don't seal choose the vere in terms of the view, sas move to do with the company Ya with. Bur if I had to go far a view, I ‘wold choose Café Deco on the Peat, whese you have a goageous view over Houg Koug. JE you waat another vantage point, T would say the Shesatoa’s sky lovnge in TST. Ukimate way to spend a Sunday afternoon? Enjoy teading snd relaxing at home! Hong ‘Kong is so busy that whea I selex, Took for 4 quiet ple, which is somehow difficult ro ‘nd outside your home ia Hong Kong, Best Hong Kong singed? Jcky Cheung, even if he is half tne.EEE Economic Review TS Ness Nee eres car Se = matesal gain for investors, with many signs favousing the accumulation of indseet wealth, But, with a contimation of lst yei’s conflict berveen heavenly metal stem and earthly wood ‘branch, ge set for mote volaiy (Abongh less than we had with the Gulden Tige) Regaading the masket, at firs, the Rabbit will be sehuetat to ‘merge fiom its hole for far that the tiger stil ingess, uate finds The hit Index: Watch the Metal Rabbit bounce CISA Asia-Pacific Markets has released its 17th Feng Shui Index, a tongue-in-cheek look at what 2011 holds for equities, commodities, property and celebrities, as well as for the individual zodiae signs. onjuoees Sas fe Seaying nm seen iis feet in Apel a great month for those with stamina as wealth ‘sll come fiom the West. May begins with one of the yeat’s fous most auspicious dates (4 May), but CLSA expects a tumble in Jase, providing 2 great buying opposanity forthe savvy: Investors ‘may want to cethink she summer-vacaton plans! markets wil se sharply over July and August. Money will ow: With Fall comes a fall, the Feng Shui Index predicts a shasp decline in September — but not for long: October masks » susczined market cally with money flowing abundansy darough the end of November. However, investors should seman focused as, markets decine dusing December. Come January 2012, the Banas ‘bounces back to dose the year an a high Burrowing into the sectors Sector focused investors should pay atenton to the fre ements metal is hot, wate a bubbiy, ei on fe, wood ‘woul if icould and eats sie. So where ro inves? Te be a gret year for Financial, Gaming, Gold, Revontces ad “Teansport Iwi be a good year for Ol and Ges, Technology, “Telecoms, Intemet and Ure, but an unexching time fo the cxstvcelated Propeny ecto Best and worst dates his ORR rags eas MM My, 4 Auguae eet sur 16 Jue, 22 Jou, Sepemtcr aod 15 Deven “Phos lca fil 8A Feng Shins 207, ho vat ceca“One Country, Two Systems” was a slogan coined to demonstiate ‘he pragmatism of the Chinese government in allowing a liber and “business friendly” regime to contifine to lhe famous “One Canty, ‘Two Systems” slogaa can he need to desetibe the rues thar apply to cosmetics industry in China where imported cosmetics are subjected to much stricter regulations than those munufacted ia China The main difference is that for Imported products, each ceference number fiom a sange of cosmetics mast be segistexed with the natioual office of the State Food and Drug Administration (SFDA) in Beijing, THE SFDA keeps a file of each reference number coataining, the item's formula translated into the Chinese language, the specifications of ‘each ingredient, the manuficuting process, the seacch for banned substances and the potential hazard of each ingredient: This ‘potential hazard” sequisement has only been added recently, and itis difficult to now what exactly the SFDA demands to know. Ie is a sequest that is unique to China Japan, long considered the most demanding country for registration, hhas solved the problem by publishing 4 positive list of acceptable ingredients (hich includes the products used in the vast majosity of cosmetics), reducing the length of tegieteation to three weeks as ‘opposed tothe months itused tore. a China, in addition to the SEDA's records, you must also add local tests 14 tngrera cero operate in Hong Kong after it beeitme Chinese s6l- wo df CEO of Innoledge [at@znational Lc, explaias how theSame slogangipplies tolthe cosmeticdindustry, to teak the Quality: pH, microbiology, BBbligMeAnging fom -5 to 40°C and selec for protsyfed substances Tele preshichelsime to have “special” iets fr esa. -scrinkle oF snti- ‘Wenig teste musi sepeated in China con Chilissa jects AMRIROREEGRS sequent, cach acc geHORBOEE aber seccives a segiouaioy nb val for four years. Ie dating the validy of the mgitation, the manufactifer decider for marketing seasons to amend the tet on the packgiag ‘vithout changing the forma, the SFDA seqites a new application folder as if t sree anew bench. On the other hand, coumetics cacti fx Choa ely Serie to a decation made atthe local office of the SFDA in the city where the plant is located, The documentation is very Tinted and loa tents (pH, micobiology, stability at 5 and 40°C and search for Bonnedsubsssseta). ace tdances) to those for imported products. The big diffecence between imported and locally smanufacrued isthe regjstration number, svhich ered for enc seference for al inmpene pede wil al oe pects manufactured in the same factory use dhe segistiation avenber of the plant. Th athee woads, f plant with o registration number can pur on the macker as many references se it wants, but sll only bas to cany out the quality tests indicated above, Ici in this way dt there age indced two diferent systems foc the authorization of cosmetics jn Mainland China! In addition to these segistiation proceduses, you also still have to get approval for the texts on the packaging. ‘The criteia are similar for both Chinese and impored produets, but obviously the text on imported products is often jn a forciga language and the Chinese ‘wansition can be conteovessial. Finally, imported products are Jnspected by customs which may sequest {information to justify certain terms on the packaging. This customs control is another baie thar local produets do aot Tf the concept of “One Comatry, Two Systems” is conducive to Hong Kong and China, its application to the cosmetics industry is largely favourable to the Chinese industry, which provides half dhe smasket shase, estimated at over 20 billion fencos. ‘The major joint-ventace beands provide an additional thied of the marker, ‘lle the imported products have les than 20% of masker share. Ea LES CONSEILLERS DU COMMERCE EXTERIEUR DE LA FRANCE ILS VOUS OUVRENT LA CHINE Sse LO Chey Vincent AVRILLON, Dracaces Frederic GUIRAL, Ate lyemariona Jacques BOISSIER, Ciassc Fix Foo0s Grou Jean-Benolt KAEPPELIN, Starrowouse lresuanoNAL Laurent de BRAY, Paurs ‘Helene KRIEFF, News Paarreas Richard BURTON, Corsce ‘Thierry LABARRE, Dewwas Hows Kovs L1o Paul CLERC-RENAUD, FarcoGnour Jean-Francois LAVAL, Amsus Pierre COPPERE, PemooRowro Bruno LERATLLEZ, holo eswaTIONAL LTD Patrice COUVEGNES, Crsor AcacousComroraTeanoliesmienrBanx Efe MAYER, Twowas Maver Assoors Christine DEBIAIS-BRENDLE, Dow JonesCMG Philippe NEVEU, TeosworuL10 ‘Anne-Laure DESCOURS, Lis Func Teaons Lo ‘Marie-Helene PREVOT, Govren Consucrns Lo Didier DUTRONC, Waco ‘Beatrice REMY, Luvnous EMC Edouard ETTEDGUI, Mavoann Onewrat Hore. Grour Ludovie VALS, UTS Philippe GRELON, Veous Ewvnowwexrat Seraces ASI Victor VISOT, Licaroen: Ace Corinne GRILLET, Sores Asa Lio Paul YANG, BNP Passas www.enecef.orgInspectionEEE Testing & Certification in Greater China Tested in Hong Kong, ertified in Hong Kong ‘Two years ago, the Government set up a council to support the growth of Hong Kong’s testing and certificate industry. Now that council seeks to \ ie luelp promote the development of the terting and certification indusy, the Gavemment established in September 2009 the Hong Kong Council for Testing. and Cestification (HKCTO), This advisory body is now working losely with the Government on the implementation of a theee- ‘year maker oriented development plan for the industry, which adopts 1 dual approach of enluneing competitiveness on the one ttand and focusing effort in specific tiades on the othes. Farthes, HIKCTC is helping the industry to step up promotion of its serves in the oressens and Maia marke, Enhancing the Industry's Competitiveness To exhance the competitiveness of Hlong Kong's testing and cettifenton industry, HKCTC and the Goverament rte working make Hong Kong a hub for the industry. a Professor Ching Pak-chung, Chairman ee of the Hong Kong Council for Testing & Certification offers us an overview of the sector. to improve Hong Kong's accreditation service and factors of production Having a sobust accreditation spstem is the comerstone of Hoong Kong's testing and certification industry, as many cepalatoey bodies, buyers and ceters will only use services fiom accredited testing laboratosies, inspection bodies and cextfication bodies 10 cease the quality of testing/inepection/cestifestion sesults. Ia Hong Kong, acczeditation sesvice is provided by the Govesnment through the Hong Kong Accreditation Service (HKAS) under the Innovation and Technology Commission. HKAS ‘conducts sigorous assessments and surveillance using competent and knowledgesble technical ss:essors based on intecastional standards, Through active participation ia international ‘organizations for accceditations, HKAS has conchnded mutual /" _ccognition arrangements with mote than 75 accreditation bodies in about 60 economies, including all of Hong Kong's major ruading pactners. “Many initiatives have beea taken to eulauce the vatious ‘toes of production in Hong Kong. For example, when it comes to manpower, it important to assist the indsty in attineting talents from the neatly 10,000 students who graduate each year in the science, applied science ancl engineering disciplines. Hence, HIKCTC hiss been cooperating with univessites, the Vocational Taaining Cousel and the industy to organize carer talks and to [promote more internship appamanitie for smdents to sake theit aseareness and understanding ofthe industy. In the technology aspect, the Govemnment is encouraging the industey to make wider use of vatious fonding schemes under the Innovation and Technology Fand to couduct research and development to enhance the tecanial capability of the incistry. ‘The Hong Kong Productivity Council and the Science Patk also offer testing fncilties for shared we, which is pasticulaely usefil fic SMEs in the indstiy. Exploring Opportunities for Specific Trades ‘Over 85% ofthe testing business in Hong Kong is lated to testing of textiles and garments, toys, electrical products and medical items Development of testing in these teader i moce mance and the makers Iaave been generally well explored, To maximize te effet of effrs it x putting in to promote testing and certification secvions on spec races, FIKCTC is ideniffing new taades where there is strong potential demand for testing a and cefcation services ws well © ae 2s the possbily for creating syneepy NAS, td bencfng the identied tds. 4 ‘An example where smiesgy can be erated 4s the jewel sect. These was time dat consumers ‘wer way about puss of ade jude — jewel thats popula in the Chinese communis — due wo the lek of commonly scoped specifications on product quality and proceduses on testing. To stiengthen consumer confidence and enhance the credibility of the local gemetone testing sector, the jeweller tide developed the “Standacd Methods for Testing Fei Cui (adeive Jade) for Hong ‘Koug” in 2004 wit funding support fiom die Govesument, HAS lntsoduced an acctediation scheme for laboratories providing testing for jadeite jade in 2005 to dovetail the initiative from the ‘wade. Business in jadeite jade has improved since then as consumer ‘confidence has been sestoced. In addition to the jewellery tad, HIKCTC has also identified (Chinese medicine, construction materials and food as uades with good oppomanities foe using testing and cesificatin services to rent synergy for monaal development, Promotion in Overseas and Mainland Markets “The HKCIC is assisting the testing and cetcation industry to step up the promotion of te services by teinfocring the branding of “Tested in Hong Klong, Cestifed in Hong Kong” hoth within and ‘outside Hong Kong, With segard ro access 10 the Mainland maskes, the Government has taken steps to implement Supplement VIL 1 the Mainland and Hoag Kong Closes Economic Partership ‘Agreement (CEPA). Stacting this year, qualified testing labocstodes ia Hoag Kong can for the first time undertake testing for the China Compulsory Centification (CCC) System on a pilot basis for flour types of products processed in Hong Kong (e. toys, cist installitions, information technology equipment and lighting appacanas). This initiative will help ceeate business opportunities for loeal Iaboratories, and facilitate access 10 the Mainknd masket for products processed in Hong Kang, Current Situation Hong Kong has a well established testing and ‘cestifcation indusuy. As at the end of 2009, there were bout 690 establishments jn the indosty, ineiuding 370 private independent companies, 70 in-house testing laboratories in major manufacturers and exporters, and 50 testing labosatasies in Government departments and public organizations. Together, they employed about 15,700 people, of ‘whom sbout 60% were professionals and sssociate professionals. Tn 2009, the tel business sceeipts of the psivate establishments in the industy were about HIKSS billion, Ager deducting the value of goods and services uscd in production, the dcect counibutian to GDP by these ‘staishments amounted to HKGS bilion sefleting tha dis i a igh vale added industry, With a solid foundation aad stcong support from the Government, and by working closely with the testing and cenification industry and other stakeholders, HKCTC believes that it can realize its vision for Hong Koug to develop into a regional ub for testing and cestfestion,EEE Testing & Certification in Greater China Ins and Outs of Testing and Certification ‘Do you have trouble understanding the difference between testing, certification and inspection? To shed some light on the core components of the industry, Hong Kong Echo met Andrew Davis, Associate Director-General, InvestHIK and Philip Kung, Head of Business and Professional Services, InvestHK. InvestHK’s objective is to help businesses in Testing & Certification to settle in Hong Kong. Ts that right? Andrew Davis: We help businesses in ight didicvent secioss. Our sole objective is to help companies establish a base in Hong Kong, aud to keep them hee, Philip Kung: The testing and cesieation industry is about confidence in a professional assessment or judgement thatthe mannfacnuecs have respected the standacds sequiced for the product. It is providing a very objective view. When an ‘object obtains a certificate, usually it is for the purpose of exportation 10 ajussdieion where certain standards are required, In Hong Kong, itis aot mandatory for certifying companies to obtain the acecedieation stam, Tt is basically their ‘own choice 1o register ot to obtain the accredittion stats with the Hong Koug Accieditation Service (HCAS) wader the Innovation and Technology Commission (TO), Right now, Hong Kong has 172 accredited bodies or companies with this stanas. On top of these, there are also 12 credited cetification sevice providess. AD: As an example, one of ous clients is accredited to test and check electronic gaming machines in Macau. Within the ‘broad sphere, this isa very niche business = there are only thice companies in the ‘whole world which ate accredited to check gaming machines. All three originally started in Australi, where there is a bstogy of polkies or gaming machines. As 4 result, the Ausnaians have a very stong segulstory framework, and that drove the ceeation ofan indus. 20 Hongkong What about quality control? (PK: Basically, quality contol is not past of the testing & centifeation sectoe. Quality control involves checking the quality of 8 Giniched product ia accordance with importer oc buyer requicements. Quality contzois, For example, te measurement of 1 specie coloue foe a peodiact to see that it marches esaety the cleats specifications. ‘This could happen in conjunction with the inspection process. AD: Quality control is pact of the manfactucing process sather than an extemal tet, inspection or certification. AD: Depending on where you expost your manufactused products to, diverse standards will apply. The buyer specifications must match the impost connty cegulations. PK: If manufheneer produces goods in sccordsace with the quality cequisements Of the buyer, but ifthe ater i iguosant of specifications required by the EU, itis not the manufactarer’s Flt, What isthe added-value of Hong Kong, in that file? PK: The demand fot secvices in testing or cestienion is prety moch market driven, ‘The season that mamafhenicers, buyers o¢ exporters need to produce valid cesiiates| 4s that ite physical evidence tothe authority concetned that sequiced standards have been inet. That is whiy the EU or the US ‘will only tnt third or accredited pay of cenifenton iesuess. Te is whese componste igovemance and integity kick in because it ‘would be very essy t0 cheat if you did aot excise stringent comporate governance. AD: Becanse Hong Kong has the rule of law and acbitestion, these miles and egulations axe very open and cleat. ‘Protection of intellectual peopesty is vesy Important. And you have to cemember ‘ara lot of the faetoris in the Peal River Delta ace nia by Hong Kong companies, +0 they ace based here and enter the Hong ‘Kong legal system, a system that protecte ‘one companies scene the hordes. Is the testing & certification industry's success in Hong Kong driven by Mainland China? AD: We are definitely lose to the Chinese sadket. Cstomecs feel confident in the TEC seevices offered by organisations bared in Houg Kong, Also, the quality of the QA engineers and people employed ia “Houg Kong is very high and they have a ‘good level af lamas. ‘ie dizeelly engaged in this the private (which accounts Q00) and public sectace, ext of a otkiosve of 3.6 million. So 0.5% of the “Hong Kong workfoice is engaged in this discipline. “What are the prospects forthe sector? PE: There ace many diffecent stages of process in this wype of industry, and ‘Hong Kong tends to setain those who coffer the higlvend of the supply chin. In other worde, dhe base testing will be done lose to the production sites, whereas the high-tech testing will be done in Hoag Kong. Here it i very amch lookiag at ‘complicated specifications Ts there a threat that Mainland companies nay take over part of HRs busine PK: T have beea involved in peomotiag Hong Kang’s secvice sector over the last decade, and its important to remember that ia any sesvice industry, people ate the cerucial clement — hman capital As Tong as Hong Kong setains integrity, the sule of law and a pro-business gorecament, itis going w be really challenging for the ‘Mainland to catch-up, because thie sort of cexpetience dacs not develop ovesnight EHave Your Products Tested and Certified in China for the Huang Zhen and Su Yanqing of Gide Loyrette Nouel introduce the legal framework of product testing and certification in China, Peete etree ene ne cones = See eee coe eae eee eee eee ee ee eee eee eee reas ee Ce et ee ea oxduct condition a ee eee aeeeeert snancdiy Inspection 20 eee Senet eat eres See ren ee err sme pe are See ee eto oe ase: Ser ere ee ee Tee eee eee ees ene ere eee ne eee eres Seer set font inapplicable telusical eee eee eee ee eee a et fee procedtes Certain commodities (excluding foods, animals, plants, dangerous goods, co unstable bulk goods), though listed fn the Catalogue, ean be exempred fiom fnspeetion dusing expos ifthe mannfienres cor exporter applies for the exemption and is approved by the PRC's General Administation of Quality Supervision, Taspection and Quacatne (AQSTQ). For commodities (especially thote concesning safety, sanitation and crvironmental protection) not covered by the Catalogue oF not granted exemption, the competent inspection authositics may Jenpore saadom inspections. Cammodities tac do not pass the testing wil be sued a equation actice and wal be sequesied to muke technical improverseats. If the commodities fal futher testing alter technical improvements have heen made, such commodities wil be prohibited fiom exporason, Authorities and requirements. to conduct inspection AQSIQ is cuccently the highest level authority in charge of the national administaation for impost and export commodity inspection. Local entey-exit inspection and quacantine buteats and thie branches under the supervision af AQSIQ (Local Commodity Inspection Authorities) ate respousible for commodity inspection ‘within thei cespectivejusedicions ‘When a manufiener exports goods tat are subject to inspection, it (or its shipping agent) shall apply for commode inspection with Local Commodity Inspection Authoites befoce declaing the cstoms clearance. If the manufseruses’s goods do not undergo inspection or fil the testing, those goods will be probited fiom exportation, Should any manatieasec take the risk of exporting goods that have filed oc have not gone thcough the testing, any unlawfl gains desived theseof shall be confiscated and » fine shall be imposed. Additionally, che mannfaeracer shall assume ‘xin ability if the offence reaches the theeshold for prosecution. Product certification and its advantages ‘Though inspection efficiently conte uly, it also consumes both time snd enexgy especially when an inspection is required each time a manuficnuser expotts ‘goods fiom China. However, European buyecs requize certainty that producte somced from China ate safe, non-defective and conform with the Enropean standards ‘The product cesitication system came into being as a result, and has been proven to help ensure safe, healthy products and ‘acids intentional trade, Certification on import and export commodity (Certification) covers sanitary, liypiene and quality aspects. In pacticula, the texm "product quality certification” is legally defined to be an activity of a certification body, on the basis of ‘product standards and relevant technical sequirements and thxough its confizmation sd issuance of certificate of cestfcation, and a cerifiation mack, as evidence that a product is in conformity with relevant srandacds and technical requisements, AQSIQ and the Local Commodiry ‘Inspection Authouties ate responsible for the administative work of Certification, while their accredited testing and certification instinates implement the Centfieation possuanr to the agreements signed between AQSIQ and foreign organizations or under the entrustument of selevant foreign instinaes. ‘Any companies, whether Chinese or foreign owned, exporting goods fom China may apply for Cenificazion. Upon seceiving a Certification application, the Loeal Commodity Inspection Authovites cor their sceredited cextification institutes ‘ill condhice prodnct resting and an audit of the manufaenaes. Ifthe product qualies for Certification after testing and avdit, a certification certificare will be issued and a centfieation mark (CCIC mack, for Jnstance) may now be wed on the certified product. Though a cemtfication mats, consumers can easily tell thar the product is duly cenfied and may sest assured thatit is qualifed under corresponding seundnuds ‘oc requirments (Centfeaton benefits manufacturers in China legally and economically. Legally speaking, ifthe product is extiied except for legally sanctioned inspeetions, it shall bbe esempted fiom anyother inspection — this should greatly help fice your company from redundant inspections conducted by vations commedity inspection authorities. Furthermore, certified products enjoy preferential ueatment such as “fair price foc higher quali” ({RRUGG) o« prints in getting recommendation for “quality cescellent national product” ((BIOEP fh) appraisal. From an economic aspect, certified products are cusly accepted on the intecnational marketplace since they offer a guaantee of being in confoumity with applicable standards and sequitements, ths helping to promote the «esporntion sce of a producing enti Product liability Tt sometimes happens that a product is cemtified but subsequent batches fail to meet the centification requirements Ge. they do not conform to applicable standuds of cequisements) but have been Alivered to and msketed in Esnope. In such cases, the Certificate of Certification ean be revoked and the manvlactuser has the legal obligation to gusunntee it sepa, exchange and refund. The manufscmurer could be liable for compensation in the event consumers incur losses and damages. As a result, manufacturers should always properly maintain product conditions within applicable standards and cequisements to ccosite a good position in the international smackerplace. ‘The inspection and ceniication system in Chins may provide cectain guarantees regarding the quality of manufsctuced goods, however practices indicate that an inspection and certification provided by international inspection organizations would ‘bean addional means to ensue consumers tata productis of rlisble quality. Eer meet By ivan Wong, Senior Menage, Construction Indury Cunel (IC) ‘ong Kong has made extensive use of Bish Senna as design standards ad codes inthe secral design of ininemicmaes ‘The selevant British Standards 10 which ‘Hong Kong suuctaal design sefecs oc mkes sefexence have heen phased out since Maich 2010. Indeed, Hong Kong has taken such change a an oppomaniy ta exploce Enrocedes snd the United Kingdom's Nasional Anneses (URNA) and access outside expestise and to smacket both in sespoct of mate supply and project oppomunies. As we are awate, most local stakcholders belie that spending cffxt 0 develop and maintia one omen codes foe Socal vase may norbe a wise option. Eurocodes, being an advanced and comprehensive suite of design standards, case the way for a tenastion fiom British Standacls andl ace tational choices for Hong, Kong's consimetion industey. Hong Kong is moving towaude Eucocodes and UKNA for stonetucal design of infiastmcrure. Dusiag this transition stage, we foresee that there ‘sil be ample opportunities for the Europea, Union and Hong Kong to share expedences and increase collaboration, Jn respect of construction matesas, the Hong Kong community shaves the view of all responsible global citizens in recognising, 24 Honwrorasc that seducing gicenhouse gas emissions is 1 solution to combating climate change Ta the local constmetion industry, though ‘more environmentally-fiendly materials axe coming onto the market, gleen construction product certification has yet ra he developed and implemented, The CIC has taken inkiasives here and ceceatly commissioned the University of Hong Kong to establish a Hong Kong based carbon labelling framework for coustevction matezials, Daring the cousse of srady, reference will bbe made to the international standasds and ‘relevant implementation experiences of the leading countsies, and European Union nos will deftly be one of the areas we wish ta explore “Through exchanges nnd partnering with organisations in other comatties, the CIC ig to bring new experiences and evelopment opportunities to Hoag Kong, ‘The main functions of the CIC ate to forge consensus on long-term steategic issues, convey the industry's needs and aspirations to the Govemment, provide teainiag for constmnetion workforces, and serve as a communication channel for the Government to solicit advice on all constauction-ielated matters. E ua com at FE CMA CGA commitment to stenabie devpment and wspect far rane fs on simon ecrzoomertal indies A Fading digging company, CMA CGM's approach seeks 10 rriniize te ingact off activites on the envisoument wile contibuting to the development of alternative ranepactation modes, Protecting the sasie enviconment, Sein climate deve, offing coschions ad sevices aed devoping a camel ate cule are mej challeuges that CMA CGN ees to SL The Vessel Theieissconcentation of exioumentall-sbiendlytechunologiee and innovations: the world’s frst container ship ta be eqiioped with the suteobthear “Fast Oi Reeorery System” designed to prevent marine polkition. 30 vessels ave been eqsigged 50 i with tie technology. Developing eco-containers (Over a mimber of seats, innovative and eco-Biendly containers — made fiom bamboo — live been feasuing in the Group's container Aeet. As the Jeader in eco-containess with bamboo flooring, CMA CMG is aso the pioneer in developing the new _geuetatin light ste couaines. €02 Emission In line with is envisoumeutal policy, te CMA CGM. Group has made cline change one ff ir mala conceass. Tn the last ive yews, the Group hs taken smmerous ‘measures which have enabled it 10 seduce CO2 emissious fiom its dect (both owned aad chastesed) by 35% ‘This is an eady positive cesult for the Group, which is fully committed +0 continuing with its envisonmental stentegy: Onc tage sto reach a 30°% improvement of out carboa efficiency in 2012 2008.ME Testi Forward-thinking manufactures are putting environmental labels on their products, but unless a global standard for such labelling is introduced, customers may be left confused and suspicious. Cyrille de Labriolle of Asia Pacific Inspection tells us more. +s consumer atwaseness of and concern for L\ casiconmenol eave inceesses there are a growing ‘number of iniatives and claims being made celating the cxiconmental impact of prodcts Given the great vacery of eavisonmental labels and declataions that exist, customers ean find the information confusing, especially when it is over simplified, scieutifically vaseliable o: based on inconsistent methodologies, ‘The effect can be to wdermine comstmer tast, lead to accnsations of “green washing”, and even stand ia the sway of aiding eal environmental improvement. Hence, is essential to preserve the credibly of eavixoumental labels and declarations in ordec to ghide consumers and to encomiage manuficnarrs to desiga environmentally Sead prods Certification according 10 a xobust standacd an intecesting option that can be sed to build this credibly. However, the toad to credible exstiication and avoiding the pitfall OF green-washing i ant slsays simple, shown in the development of proshct caibon Footpiiat labels at Jabs A product exrbon footprint measures the total gecenlaonte gas emissions genemted aver the prodc’= fe cyele, from the extuaction of 12 materials and manufacturing sight through to its use and end. of life. Te includes both missions geaciated diseetly, such a8 eaibon emissions fiom trick efhanst ducing ‘transportation, and efnissions generated indirect, ssnch a8 conmumption of purchased electeciry ding macnafacnasing “The binad Walkers chins that 80g of CO2is equlsed to pioduce a bag of espe, of whic 1g & Certification in Greater China + 36% comes fiom the suse mares (potatoes, sunflowers and seasoning) + 17% comes fiom the manuaenie (producing exisps rom potatoes) +34% comes from the packaging + 10% comes from the disuibution and +34 comes from she disposal ofthe emp packs. Pioncers like Walkers stasted to kepott product eachon foorpdiat a° eadly a2 2007. Since then, many baal, eters and importers have followed the trend and are communicating to consumers the carbon botpiint of theic peoduers and commining dhensselves rorecuctions. 123g GR =e CO: ® Tn the consumer goods sector for instance, TESCO, Maks & Spencer and Wal Mart use their declasations ‘to compete forthe attention of consumers. In Febroauy D011, Wal Mart announced sit would xt a goal of climinating 20m tonnes af essbon dioxide emissions som ite sappy hala by the end of 2015, However, there is a downside, since the profusion of carbon footprint labels and declarations creates ask of confusion that could disosientate cimate-covtscious consumers and undesmine theic trast in the beands “To scinfosce the credibility oftheir xcboa footprint and pootect comstimer tat, companies are calling for an intemationally agreed methodology for caleulaing and communicating the catbou footptint of product Indeed, eachon foor printing plays an increasingly important role in the environmental and sustainability today. The organizations developing these standards had stentegies of companies. to make some compromises ducing the development process to preserve this goal (One important choice in defining the staadasd's goal ‘The sespoase comes fiom tro leading intemational was nat ra allow it to be used for eashow foospeint offer Jniasives: 8014067, exbon foorpaint measixing prorocal ne fox compasison of products, At the same time, it was developed by the Intemational Standard Organizason, and recognized that compatison would be inevitable and so 2 the Gren House Gas Protocol Product and Supply Chain recommendation was made to develop produet category Staucasd developed by tie World Resouce Insitute (WRI) rules. Stungent but piactical sequizements on quality sogether with the Would Business Council foc Snetiaable assurance on the claims made in labeling have also been Development (WESCD), The World Resouces Tnetinte developed, ‘bi its exedibilty fiom the success of the Green House ‘Gos protocol comporate standard, which is the reference Implicatio c standaad used by many lage organizations to account and --»-#Hasmonisation in standards and completion ‘communicate this gree house gas inventory Cf product category rules will generate an incteasing To decelop this new standard for produc and hive incentive for maa it accepted internationally, WRI has Tunched a multi- fsendly products and seek certification that is valid in all Stakeeder process involving business, NGOs, academics, destination counties, government adi socery. This process includes a huge Al snuess to deslgn envisonmentaly- dy some local initiatives ate showing the way roxd-texting process ia which moze than 60 compaaies The Low Carbon Manufacturing Program, for instance, Ihave participated. A deaf of the tana! is curently being nan by the WWF ia parmeiship with the Hong Kong sevised to integaae the feedback fiorn that xond testing. Produerivigy Council, awards mamufaenucers engaged in Both standards axe expected o be published in 2011. reduction of enesgy and cxsbon foorprnt, according 10 industy best practices, the chance to receive a label carbon I is lkely that ianovative Hong Kong imposters ns veil grasp an interesting business opportinity in excbon Buullding a credible scromating methodology for footprint certification that could addess the needs of ccurbon footprinting that would be widely accepted is cimate-conscious consumers and ultimately tly adavess ‘not an easy task given the vasiety of products avaible climate change. E ‘The compaay EeaSol Le, which specializes in environmental consulting and caches sudit, condneted the review ‘of Victor Segalen French International School (FIS) in Apsil 2009, The assessment eavesed the previous schoo! yeat (Catherine Touzard, accredited carbon auditor for ADEME and ISO 14064 did the emissions’ eeulations, both izect and indizec, caused bythe sl activity of the institution ‘The review focussed on the burden of the FIS's global emissions, as well as those of more e Rae ee Fae ee en ae er a) oa ee eet ae la te eer eee ere ee ee area te ine emer Tees Cees ce eee ee oul be implemented ada ‘The results of the seview wee saved with all stodeute aad teschess at FFIS, Snidents west also given an intendncton ta the esuses of glabal warming, recent developments in anthiopalogical gis emissions and measuces that can be ten to reduce emissions at an insivical level. Fae ahha ee Sera Rene Ae eee ee ee eee Bee ees Des ieee er eeu ee ee