Metrology-standardization problems and development prospects in Georgia Soon Georgia will have laboratory measuring standard of mass

M. Ghaniashvili

Country’s quality infrastructure malfunction (standardization, metrology, testing, accreditation, conformity assessment) and the problems existing there are the serious obstacle for the economic development of the country.

Development of small and average businesses and export encouragement is impossible without proper working of quality infrastructure.
How are the events developing in this sphere in Georgia? What are the future plans? A standard, technical regulations and metrology national agency general director Mr. Nodar Khatiashvili is discussing these issues.
– Mr. Nodar, allow me to start with brief excursus – What has been recently done in the country for the development of quality national infrastructure?
– During last 10-15 years in the bilateral and multilateral free trade agreements great deal of attention was paid to non-tariff barriers. However, obviously these non-tariff barriers can be frequently used as a masked and ulterior weapon for limiting product entrance at specific markets or assigning special preference to some commodity. Consequently, non-tariff barriers are quite important. International Standardization Organization (ISO) serves the aim of implementation of common trading principles, commodity standards and requirements, together with common procedures of conformity assessment, in other words so called “one window principle” for attainment of world-scale recognition.
– “One window principle” means:
One commodity > one world scale technical regulation;
One commodity > One world scale standard;
One commodity > One world scale accreditation;
One commodity > One world scale testing and measurement;
Up to 2005 the existing standards and requirements in the country were mainly based on Soviet State Standards and these regulations were mainly used in CIS. Georgia is in need of new markets and in order to enter global market there is a demand on making changes in the regulations of production and its conformity assessment in the country. Of course, this means that corresponding normative base should be changed and it should comply with internationally recognized principles.
This is a complex process and its implementation is done in a successive steps. The first stage was the visit of experts from donor countries that revealed the necessity of institutional changes and reforms of this field. The between the elements of quality infrastructure (standards, metrology, testing, accreditation and conformity assessment) must exist technical relationship – cooperation and not political or administrative hierarchy or independent institutions existing on equal levels.
After the reforms some institutional changes has been made – instead of one institution which was bearing all the functions, two independent organizations has been established: standards, technical regulations and metrological national agency and accreditation national centre.
The agency doesn’t bear the function of supervision any more; this function has been redistributed between various fields. The mentioned institutional changed are progressive step in upbringing quality national infrastructure to international standards. Agency has become the member-correspondent of ISO in 2006. By the membership we received access to the international standards’ base or the availability of the mentioned standards has raised both for private sector and regulating institutions also. Georgian parliament adopted an article according to which every law and regulation adopted and issued in the field of quality infrastructure must comply with international standards and requirement.
Directions are spread on the commodities that get in the regulated space of European Union; these directions include only general requirements. Directions are supplemented by the list of standards and accomplishment of the last means that requirements of the directions are met either – so called harmonised standards. This is so called new approach. Naturally, the necessity of implementing European standards arose in Georgia also. Therefore, in April 2008, agency became a member of European Committee for Standardization (CEN), which is European regional organization for standards.
– Mr. Nodar, what benefits might Georgia have by gaining access to European standards? Does this encourage export?

– There is a demand on European standards in the country. If entrepreneurs follow European and international standards, it will be easier to enter European market for them. Obligatory certification and standardization is nullified in Georgia and avowal procedure is adopted instead. While entrepreneur fills in the declaration, he indicates the standard or normative documents that are complied by its production. To distinguish regulation and standard – standard defines voluntary consumption, while regulation is obligatory. Entrepreneur has the right to choose which standard he wants to follow. The freedom of choice means only the right of choosing standard and it doesn’t release the entrepreneur from own obligations of complying the chosen standard. For instance, if entrepreneur breaks the standard paper size A4, his production becomes non-competitive, as the different size paper is useless in practice. At the same time the requirement that product must not contain harmful substances is an obligatory regulation. Quality standards are paid increased attention in global trading. State’s barriers concern only risky features of the product – the ones that can be harmful for the consumer’s health. While conformity with the standard requirements is in the interests of entrepreneur. Standard requirements and the international quality regulations described in the standards has become weapon of competition.
– Can Georgian entrepreneurs receive international certificates confirming the quality of own product?
– In the developing countries with scarce financial resources state doesn’t have to finance costly laboratories as it can use the service of private qualified laboratories and assign product testing functions to them. Via such private laboratories state will accomplish supervision in this field. Naturally, private laboratories should prove their qualification and obtain the licence for the accomplishment of the corresponding activity. They should prove that are able to issue corresponding certificates. Of course, state can built own laboratories. However, in this case some kind of monopoly can arise on the part of state laboratory. Maybe it would be better to develop only private sector in this field.
– Georgia cannot boast about progress in this sector; what are the mechanisms that ensure the proper working of this system and exclusion of corruption?
– “The system was running well”, when obligatory certification existed in Georgia and testing of production was compulsory. There were quite good laboratories together with the labs that were working in the basements. The last ones were offering low prices to entrepreneurs for issuance of certificates of the same value as the high quality and honest laboratories. The forms of certification and testing were distorted that way. Obligatory certification has been abolished and of course this was a right action at first stage. However, leaving production conformity control without supervision won’t be proper either. There are international standards and guidance documentation on how one should establish supervision and develop this system. In case of proper functioning of the laboratory network supervisor is responsible to check whether an entrepreneur follows the rules and does he have the document of product conformity. If there are some doubts toward product’s quality, the expertise should be conducted in order to find out which party made the mistake entrepreneur or the lab. In such system laboratory doesn’t manage to issue false certificates as it is responsible for this. It is important to establish system in such way that excludes corruption element. One factor should be considered also – this is an insurance system. Every laboratory should be insured by the bank so that it will be able to control the competence of the labs. On its part, government can make the insurance for the laboratories obligatory. Some banks require only local accreditation, while others might receive accreditation approved by international institution only. In this case, the system will be developed in private sector and this is very important.
Standards’ institution activity is play considerable role in export development process either. Standards’ Institution implements and puts into practice the rules of laboratory organization. For instance, product risk-factors inspection, the demands according to which accreditation of the laboratories should be done and the accrediting institution requirements also are given in the standards. In other words standards include all the rules of how the infrastructure should work. Equipment and measurement means are very important for proper work of quality infrastructure.
Once again we came to the point of metrology, what novelties are observed in this field?
Agency is a member of Euro-Asian cooperation of National metrological institutions – COOMET since 2005 and the member of international bureau of weights and measures (Bureau International des Poidset Mesures – BIMP) since April 2008. Metrology is very important foe the country and its economic development. Product inspection requires equipment in order to get sure that the measurement was done properly. I suppose any ordinary consumer wants to be sure that its counter measures correctly. When consumer pays money for electricity and gas, he/she wants to be sure that they are paying for the exact consumed amount. Measurement is more important when it concerns health and security (For instance, for right diagnosing measurement is essential as in case of mistake the results can be fatal). Improper work of metrology influences every field. When equipment is not working properly consumer suffer damage first of all.

– Are Georgian entrepreneurs still taking equipment to foreign countries for metrological services?
– Yes, agencies and private laboratories are taking equipment for calibration to foreign countries and it is not hard to image how this increases the prices of their production. If the laboratory will have to take its equipment to foreign countries this naturally influences the price of services it provides for entrepreneurs. Therefore, major entrepreneurs prefer to take own equipment for calibration to foreign countries. As regards small and average entrepreneurs, this might be a serious problem for them. It is essential to realize importance of this field. International practice shows that metrology mainly depends on state financing. In this case, state investment in economy is not directly visible, but proper and quality working of economy is a profit already. The recent researches in this field show that 1 Euro investment in metrology brings 3 Euros of profit. This number varies in different countries. at present three laboratories are functioning in the agency that are more or less conforming to international standards and one radioactive emanation regional department that calibrates radiation measuring equipment and serves in South Caucasian region. The mentioned department was established within the framework of international organization IAEA joint project. The department is regularly providing services for Azerbaijani organizations. This department complies with minimal requirement yet. In addition temperature laboratory and electricity measurement laboratories meet the requirements either. The last participated in the key comparison of standards held within the framework of regional organization. Two projects were held in this direction – German-Georgian cooperation project and EU EC TACIS project. Both of them served the aim of quality infrastructure development. EU project budget amounts million Euros and it is considered for two years. It covers accreditation, standardization and metrology fields. The German project is financed with 600 000 Euros by German party, while Georgia co-investment amounts 120 000 GEL. German project is accentuated on metrology. Within the framework of the mentioned project mass standard laboratory will be established. Georgian party assigned 120 000 GEL for laboratory building preparation works. This is very important project – as no laboratorial inspection can be carried out without internationally recognized mass standard in the country. We suppose that laboratory building preparation works will be finished in April and the laboratory will be equipped afterwards. The next step will be international recognition procedures of the laboratory that is quite a long process and therefore it is necessary to work to schedule. It is important to show to donor countries, World Bank and other organizations that state is actually interested and it is willing to encourage the field. In this case the mentioned organizations will be ready to cooperate. Quality infrastructure development – the field that encourages export development and small and average business service – should be of first-priority for the state. In Georgia there are not many small and average businesses that are oriented on export. Our main aim should be to encourage export of finished production instead of semi-finished products. It will be quite difficult to increase employment level and create additional working places without quality national infrastructure functioning according to international requirements.