National Regulator for Compulsory Specifications Act, 2008 (No. 5 of 2008)

2. Purpose of Act ESTABLISHMENT OF NATIONAL REGULATOR FOR COMPULSORY SPECIFICATIONS OF SOUTH AFRICA AS PUBLIC ENTITY

3. Establishment of National Regulator IO

4. Powers of National Regulator

5. Objects of National Regulator BOARD OF NATIONAL REGULATOR FOR COMPULSORY SPECIFICATIONS OF SOUTH AFRICA

6. Appointment of members and Chairperson of Board of National Regulator 15

7. Term of office

8. Disqualification

9. Conditions of appointment I 0. Operating procedures of Board Creamer Media Pty Ltd +27 11 622 3744 polity@creamermedia.co.za www.polity.org.za Polity~ 4 No. 31216 GOVERNMENT GAZETTE, 4 JULY 2008 Act No. 5, 2008 NATIONAL REGULATOR FOR COMPULSORY SPECIFICATIONS ACT. 2008

11. Committees

12. Advisory Forum COMPULSORY SPECIFICATIONS

13. Compulsory specifica1ions

14. Effect of declaration as compulsory specification 5

15. Non-conformance to compulsory specifica1ion

16. Appointment of market surveillance in specwrs

17. Powers of entry

18. Identification prior to entry and co-operation with inspectors

19. Powers to question and do market surveillance inspections 10

20. Samples and information EXECUTIVE MANAGEMENT

21. Appointment of Chief Executive Officer

22. Employment contract and performance agreement

23. Appointment of staff 15

24. Services by non-employees

25. Delegation and assignment FINANCIAL MANAGEMENT

26. Funding and investments

27. Application of Pub Iic Finance Management Act 20

28. Financial year and accounting GENERAL PROVISIONS

29. Disclosure of certain infonnation in public interest

30. Presumption

31. Cettain acts not interpreted as assurances or guarantees 25

32. Confidentiality of certain information

33. Liabili1y of National Regulator

34. Offences and penalties

35. Transitional provisions

36. Regulations 30

37. Shon title and commencement INTERPRETATION AND PURPOSE Definitions

1. In this Act, unless the conlext indicates otherwisc- "amendment", with regard to a compulsory specification, includes the complete 35 or panial substitution of one or more of the provisions of a compulsory specification; "Board" means the Board of the National Regulator for Compulsory Specifica• tions appointed in terms of section 6: "commodity" includes any substance or any element or characteristic of a 40 commodity or a category or system of commodities: "compulsory specification" means a compulsory specification contemplated in section 13; "conformity assessment" means the procedure used to determine. directly or indirectly, that the relevant requirement in technical regulations, standards or any 45 olher relevant and validated documentation has been fulfilled; "distinctive mark" means a mark prescribed in terms of this Act which is applied to a commodity; "examine" means to inspect or analyse a product or service closely in order to determine compliance of the product or service with the requirements of a 50 compulsory specification; Creamer Media Pty Ltd +27 11 622 3744 polity@creamermedia.co.za www.polity.org.za Polity~ Polity~ a 6 No. 31216 GOVERNMENT GAZETTE, 4 JULY 2008 Ari No, :i, 2008 NATIONAL REGULATOR FOR COMPULSORY SPECIFICATIONS ACT, 2008 "importer" means an importer as dcfi ncd in section 1(I) of the Customs and Excise Act, 1964 (Act No. 91 of 1964); "inspector" means a person appointed as an inspector in terms of section 16(1 ); "issue" with regard to a compulsory specification, includes making available by means of electronic, photographic or another medium; 5 "letter of authority certificate" means a letter of authority issued to a manufacturer or importer in terms of section 5(2)(j): "manufacture" includes produce, assemble, alter, modify, adapt, convert, process or treat; "market surveillance inspection" means any a<.:tivi1y of the National Regulator, IO other than testing, concerned with determining, either directly or indirectly, whether any or all of the requirements of a compulsory specification are met: "Minister" means the Minister responsible for trade and industry: "National Regulator'' means the National Regulator for Compulsory Specifica- tions of South Africa established by section 3(1 ): 15 "premises" means any land or any building or other structure, and includes any train, boat, ship, aircraft or other vehicle; "prescribed" means prescribed by regulation or notice in tenns of this Act; "product" means any commodity that is manufactured or any agricultural proouct, including fish and fish products; 20 "Public Finance Management Act" means the Public Finance Management Act, 1999 (Act No. I of 1999); "regulation" means a regulation made under section 36; "SABS" means the South African Bureau of Standards; "sales permit" means a permit issued under section 14(4): 25 "SANS" means a South African National Standard approved by the South African Bureau of Standards in accordance with the Standards Act, 2008; "sell" includes- (i) display, offer or advertise for sale: or (ii) export from the Republic for or in pursuance of a sale; 30 (iii) having in possession for the purposes of sale, trade, manufacture or export from the Republic; (iv) exchange, donate, lease or offer or display for leasing; "system", with regard to a commodity, means a system which is designed to achieve a particular purpose or co perfonn a specific function; 35 "this Act" includes a regulation made under section 36. Purpose of Act

2. The purpose of the Act is- ( a)to provide a legal framework for the administration and maintenance of compulsory specificacions in the interests of public safety and health or for 40 environmental protection in the Republic; and (b) to establish the National Regulator to admini~tcr compulsory specifications. ESTABLISHMENT OF NATIONAL REGULATOR AS PUBLIC ENTITY Establishment of National Regulator as public entity

3. (I) The National Regulator is hereby established as a public entity. 45 (2) The National Regulator is a juristic person and must operate and perform its functions in accordance with this Act. Creamer Media Pty Ltd +27 11 622 3744 polity@creamermedia.co.za www.polity.org.za Polity~ a Polity~ a 8 No.31216 GOVERNMENT GAZETTE, 4 JULY 2008 Act No. 5, 2008 NATIONAL REGULATOR FOR COMPULSORY SPECIFICATIONS ACT, 2008 (3) The establishment of the National Regulator does not affect the validity of any action taken by the SABS prior to the commencement of this Act. POWERS AND OBJECTS OF NATIONAL REGULATOR Powers of National Regulator

4. ( I) The National Regulator may do all that is necessary or 1.!X pedient to perform its 5 functions, including- (aJ acquiring or disposing of property or any right in respect thereof, but ownership in immovable property may be acquired or disposed of only with the consent of the Minister in concurrence with the Minister of Finance; (b) opening and operating banking accounts in the name of the National 10 Regulator; (c) investing any of the money of the National Regulator; (d) insuring the National Regulator- (i) against any loss, damage or risk: or (ii) against any liability it may incur in the application of this Act; 15 (e) performing legal acts, including acts in association with or on behalf of any other person or organ of state; (j) subject to subsection (2), concluding agreements with organs of state and other persons; or (g) instituting or defending any legal action. 20 ( 2) An agreement cone luded in tenns of subsection ( I )(j) may not conflict with any international requirement that is binding on the National Regulator. Objects of National Regulator

5. ( 1) The objects of the National Regulator are to- (a) make recommendations to the Minister with regard to compulsory specifica- 25 tions; (b) administer and maintain compulsory specifications; ( c) carry out market surveillance through inspection in order to monitor compliance with compulsory specifications; and (d) enforce compliance with compulsory specifications. 30 (2) In order to achieve its objects, the National Regulator may- ( a) acquire and maintain the equipment required for market surveillance inspection purposes; (b) infonn the South African commerce, industry and the public about compul- sory specifications: 35 ( c) establish and maintain the necessary expertise on an internationally accept- able level; ( d) obtain membership of, participate in or develop relationships with, foreign or international bodies having any objects similar to those of the National Regulator; 40 (e) perform, in so far as it is not contrary to or inconsistent with any Act, such functions as the Minister may assign to the National Regulator; (j) issue a letter of authority certificate which permits commodities or products to be sold or services to be supplied; (g) obtain the cooperation of government departments, local authorities or other 45 public bodies, and enter into agreements with them ; (h) enter into agreemenls with conformity assessment services providers to inspect, examine, test or analyse samples on behalf of the Nationa1 Regulator; and Creamer Media Pty Ltd +27 11 622 3744 polity@creamermedia.co.za www.polity.org.za Polity~ a Polity~ a 10 No. 31216 GOVERNMENT GAZETTE, 4 JULY 2008 Act No. 5, 2008 NATIONAL REGULATOR FOR COMPULSORY SPECIFICATIONS ACT. 2008 (i) establish specialist consultative committees to provide input into the process to interpret and implement compulsory specifications. BOARD OF NATIONAL REGULATOR FOR COMPULSORY SPECIFICATIONS Appointment of members and chairperson of Board of National Regulator 5

6. ( I ) TI1e Board consists of not less 1han seven, and not more than nine members, and is made up as follows: (a) The Chief Executive Officer of the National Regulator by vi flue of his or her office; ( b) the rest of the mem hers, who are non-cxccuti ve members and arc appointed by I0 the Minister. (2) When appointing the members of the Board, the Minister must ensure that such members- ( a) are broadly representative of the demographics of the country ; and (b) have sufficient knowledge, experience or qualifications relating to the 15 functions of the National Regulator and the responsibilities of the Board . ( 3) The Mini seer must designate a member of the Board as chairperson. Term of office

7. (I) Non-executive members of the Board hold office for a period not exceeding five years and are eligible for reappointment . 20 (2) A person appointed to fill a vacancy holds office for the remaining portion of the term of the vacating member. (3) A member of the Board may resign by giving at least one month's written notice. Disqualification

8. (I) A person may not be appointed or continue to serve ac; a member of the Boal'd 25 ifhe or she- (a) is an unrehabilitated insolvent; (b) has at any time been convicted of an offence involving dishonesty: ( c) has, as a result of improper conduct, been removed from an office of trust; or (d) has been declared by a court to be mentally ill or unfit. 30 (2) A member of the Board must vacate his or her office if he or she is absent from three consecutive meetings of the Board without the prior leave of the chairperson. (3) Subject to the Promotion of Administrative Justice Act, 2000 (Act No. 3 of 2000), the Minister may at any time after consulting the Board terminate the term of office of any member of the Board if there arc good reasons for doing so. 35 Conditions of appointment

9. (I) The conditions of appointment of members of the Board who are not in the employ of an organ of state, are determined by the Minister, after consultation with the Minister of Finance. (2) The conditions of appointment may include remuneration and any allowance 40 payable by the Board. (3) Members who are employed by an organ of state are not enti!led to remuneration, or any allowance, but must be reimbursed for our-of-pocket expenses by the Board. Operating procedures of Board

10. (I) The Board must meet at least four times a year. 45 (2) The chairperson of the Board decides when and where the Board will meet, but a majority of Board members may request the chairperson in writing to convene a meeting at a time set out in the request. Creamer Media Pty Ltd +27 11 622 3744 polity@creamermedia.co.za www.polity.org.za Polity~ a Polity~ 12 No. ] 1216 GOVERNMENT GAZETTE, 4 JULY 2008 Act No. S, 2008 NATIONAL REGULATOR FOR COMPULSORY SPECIFICATIONS ACT. 2008 0) If the chairperson and the vice-chairperson are absent from a meeting, the Board may elect a member from among their number to preside at that meeting. (4) A majority of the mem hers of the Board constitutes a quorum for a mccti ng of the Board. (5) Decisions of the Board require the supporting vote of a majority of members 5 present at a meeting. (6) The Board must keep minutes of its proceedings and decisions. (7) The Board may, by resolution, make rules to further regulate its proceedings. Committees

11. (I) The Board may establish committees 10 assist it in the perfom1ance of its JO functions . (2) The Board must determine the composition, rules and procedures of committees established in terms of this section . (3) The Board may from time to lime dissolve or reconstitute a committee. (4) Any decision taken by a committee established under this section muse be ratified 15 by the Board. Advisory Forum

12. (l) The Board mus, establish an Advisory Forum with a balance of interests consisting of representatives of organisations who have an interest in the matters contemplated in this Act. 20 (2) The Advisory Forum must advise the Board on- ( a) matters in respect of which the National Regulator could play a role; and (b) any other matter on which the Board requests advice . (3) The Board must establish a constitution and, if necessary, rules for the Advisory Forum. 25 COMPULSORY SPECIFICATIONS Compulsory spedfications

13. ( 1) The Minister may, on the recommendation of the Board, in respect of any commodity, product or service which may affect public safety, health or the environment, by notice in the Gazette- 30 (a) declare a SANS or a provision of a SANS to be a compulsory specification- (i) by referring co the title and the number of that standard only, without indicating the year or edition number. and if that SANS is amended, the amended SANS is deemed to have been incorporated: or (ii) by referring to the title, number and year or edition number of that 35 SANS; (b) declare an amended SANS or an amended provision of a SANS to be a compulsory specification if the original declaration was made in terms of subsection (I)( a)(ii); (c) declare or amend a compulsory specification if a SANS or a provision of a 40 SANS is not available in terms of paragraphs fa) and (b); or (d) withdraw a compulsory specification. ( 2) A notice under subsection ( I )(a), ( b) or (c ~ (a) must contain full particulars of the specification, provision or amendment; ( b) comes into operation on a date fixed in the notice, which date may not be less 45 than cwo months after the date of publication of the notice; (c) may fix different dates on which different provisions of a compulsory specification come into operation . (3) The Minister may alter a date referred LO in subsection 2(b) or (c) by notice in lhe Gazette. 50 (4) The Minister may not publish a notice under subsecfion (l)(a), (b) or (c), unless a preliminary notice has been published in the Gazerte- ( a) setting out full particulars of the proposed compulsory specification or amendment; and Creamer Media Pty Ltd +27 11 622 3744 polity@creamermedia.co.za www.polity.org.za Polity~ Polity~ a 14 No. 3 !216 GOVERNMENT GAZETTE, 4 JULY 2008 Al'1 No. 5, 2008 NATIONAL REGULATOR FOR COMPULSORY SPECIFICATIONS ACT. 2008 (b)in which imerested persons are invited to comment on lhe proposed compulsory specification in writing by not less than two months after the date of the publication of the preliminary notice. (5) The Minister must consult with the Minister responsible for administering any Act or regulations that regulale the import, sale or supply of any commodity, product or 5 service. or any process, that is the subject of a preliminary notice in terms of subsection (4)(a). (6) A notice under subsection ( l)(a), (b) or (c) may- (a) require that a commodity or product to which a compulsory specificalion applies be marked in the prescribed manner with a distinctive mark, which JO constitutes a declaration of conformity to the requirements of a compulsory specification: (b) require that importers and manufacturers lahcl a commodity or pf()duct to which a compulsory specification applies in accordance with its origin , hatch, date of manufacture, characteristics or other particu Jars of the article; I5 (c) require that importers and manufacturers be in possession of a letter of authority certificate issued by the National Regulator. in tenns of section 5(2)({); (d)amend a requirement referred to in paragraph (b) ; and (e)withdraw a requirement referred to in paragraph (a), (b) , (c) or (d) . 20 (7) The Minister may give effect 10 subsections ( l ) and (6) in the same notice. (8) The Minister may make regulations in terms of section 36 that set out the consultation process which must precede the declara1ion or amendment contemplated in subsection (l)(c) . Effect of declaration as compulsory specification 25

14. (I) No pen;on may import, sell or supply a commodity, product or service to which a compulsory specification applies, except in accordance with that specification. (2) No person may import, sell or supply a commodity, product or service to which a compulsory specification applies, unless- ( a) the commodity, product or service complies with, or ha<; heen manufactured in 30 accordance with, the compulsory specification, or both: and (b) if applicable, the distinctive mark referred to in section n(6)(a) has been applied to the commodity, product or service in the prescribed manner and the commodity, product or service has been marked in accordance with any requirements in terms of section 13(6)(b). 35 (3) Any person who imports, sells or supplies a commodity, product or service to which a compulsory specification applies, must- ( a) keep or supply to the National Regulator such records as may he prescribed by the Minister. (b) pay such fees to the National Regulator as may be prescribed by the Minister 40 after consultation with the Minister of Finance. (4) The National Regulator may issue a sales permit exempting the person to whom ii has been issued from complying with subsection (2)(a). (5) The National Regulator may issue a permit exempting the person to whom it has been issued from complying with subsection (2)(a) for an experimental type approval 45 commodity or product to which a compulsory specification applies. (6) The Minister may make regulations in terms of section 36 to prescribe the process for the issuing of a permit contemplated in subsection (4) or (5). Creamer Media Pty Ltd +27 11 622 3744 polity@creamermedia.co.za www.polity.org.za Polity~ a 16 No. 31216 GOVERNMENT GAZETTE, 4 JULY 2008 Art No. 5, 2008 NATIONAL REGULATOR FOR COMPULSORY SPECIFICATIONS ACT. 2008 Non-conformance to compulsory specification

15. (I) If the Chief Exccuti ve Officer on reasonable grounds suspects that a commodity or product, or a consignment or batch of a commodity or product, does not conform to or has not been manufactured in accordance with a compulsory specification that applies to it the Chief Exe<:utive Officer may issue a directive to ensure that any 5 person who is in possession or control of the commodity or product, consignment or batch, keeps ii in his or her possession or under his or her control at or on any premises specified in the directive, and does not tamper with or dispose of it, until the directive is withdrawn by the Chief Executive Officer in writing. (2) The Minister may make regulations in tenns of section 36 to set time limits for the 10 withdrawal of the directive referred to in subsection (1 ). (3) If the National Regulator finds that a commodity or product referred to in subsection (1) does not conform to the compulsory specification concerned, the Board may- ( a) take ace ion to ensure the recall of a commodity or product ; I5 (b) direct in writing that the importer of the consignment returns it co its country of origin; or (c) direct in writing that the consignment or batch of the article concerned be confiscated, destroyed or dealt with in such other manner as the Board may consider fit. 20 (4) The Board muse inform the Minister in writing on action taken in terms of subsection (3) within 21 days. Appointment of market surveillance inspectors

16. (I) In order to ensure compliance with this Ac!, 1he Chief Executive Officer may in general or for a specific purpose appoint suitably qualified employees of the National 25 Regulator as inspectors. (2) The Chief Executive Officer may withdraw an appointment referred to in subsection (I). (3) An inspector must be furnished with a certificate stating that he or she has been appointed as an inspector in general or for a specific purpose, as the case may be, for the 30 purposes of this Act. (4) The certificate referred to in subsection (3) must be signed by the Chief Executive Officer. Powers of inspector to enter, inspect, search and seize

17. ( 1) In order to monitor and enforce comp] iance with this Act and, subject to the 35 conditions of his or her appointment, an inspector may at any reasonable time and without prior notice enter any premises, other than a private dwelling, in or upon which~ (a) an article in respect of which there is a compulsory specification is- (i) manufactured or sold; 40 (ii) stored or used in the course of any business; or (iii) stored for any purpose in connection with the import or export of the commodity or product; (b) any manufacture, sale, use or storage is reasonably suspected; or (c) any records with regard to the import, manufacture or sale of an article 45 referred to in paragraph (a) or (b) are kept. (2) An inspector may enter a private dwelling or any place other than a place referred to in subsection (]) only- (a) with the consent of the owner or occupier; or Creamer Media Pty Ltd +27 11 622 3744 polity@creamermedia.co.za www.polity.org.za Polity~ a Polity~ 18 No. 31216 GOVERNMENT GAZETTE, 4 JULY 2008 Act No. S, 2008 NATIONAL REGULATOR FOR COMPULSORY SPECIF-'ICATIONS ACT. 2008 ( b) if authorised to do so by a warrant issued in tenns of subsection (3 ). (3)A warrant contemplated in subsection (2) may he issued by a judge or a magistrate if it appears from written information given by the inspector on oath or affirmation lhat there are reasonable grounds for believing that a contravention of this Act has been or is being com mined within the area of jurisdiction of that judge or magistrate. 5 (4) The warrant contemplated in subsection (3) must specify the parameters within which 1he inspector may perform an entry, search or seizure. (5) An inspector entering any premises referred lo in subsections (I) and (2) may be accompanied by an interpreter. (6) An inspector who enters and inspects any premises under this section must 10 conduct the entry and inspection with strict regard for decency and order, and with regard to each person's right to dignity, freedom, security and privacy; (7) An inspector who removes anything from premises being searched, must- (a) issue a receipt for it to the owner or person in concrol of the premises; and (b) return it as soon as practicable af1er it has served 1he purpose for which it was 15 removed. Identification prior to entry and co-operation with inspectors

18. (I) An inspector must immediately before entering premises in accordanctl with section 17- (a) audibly identify himself or herself and demand admission to the premises ; 20 ( b) notify the person in control of the premises of the purpose of the entry, unless there are reasonable grounds to believe that such notification might defeat the purpose of the search; and ( c) on request of the person in charge of such premises, produce the certificate referred to in section 16(3) to that person. 25 (2) Any person who is in charge of premises referred to in section 17( 1) and (2) must at all reasonable times co-operate with and furnish such assistance as an inspector may require in the exercise of his or her powers under this Act. (3) In the event of resistance to an entry and search, an inspector may call the police to use such force as is reasonably necessary, including the breaking of a door or window 30 of the premises. Powers to question and do market surveillance inspections

19. ( I ) In order to monitor and enforce compliance with this Act, an inspector may- ( a) examine and take samples of an article referred to in section 17(1) or any component, material or substance in or upon the premises concerned used or 35 suspected to be intended for use in the manufacture of such an article; ( b) open and examine the contents of any package or container which comai ns or is suspected to contain an article referred to in sec1ion 17(1) or any component, material or substance in or upon the premises concerned used or suspected to be intended for use in the manufacture of such an article; 40 ( c) examine any operation or process carried out in or upon the premises referred to in section 17( I) in connection with the manufacture or supply of any commodity, product or service, for which a compulsory specification is applicable in terms of this Act; (d) at any time demand from any person that he or she at a time and place fixed by 45 the inspector produce to him or her any hook, notice, record, list or other document which is in the possession or custody or under the control of that person or any other person on his or her behalf; Creamer Media Pty Ltd +27 11 622 3744 polity@creamermedia.co.za www.polity.org.za Polity~ a Polity~ 20 No. 31216 GOVERNMENT GAZETTE, 4 JULY 2008 Act No, S, 2008 NATIONAL REGULATOR FOR COMPULSORY SPECIFICATIONS ACT. 2003 ( e) examine a book, notice, record, list or other document referred to in paragraph (d) and make copies thereof or extracts therefrom or request that 1hey be made, if it i-elates to an article referred to in section 17( I)( a) or (b ); (j) require from a person in charge of any records referred to in section 17(I)( c) an explanation of any record or entry therein, and seize such record if it may 5 afford evidence of any offence in terms of this Act; (g) require any person who is the owner or in control of the premises referred to in section 17 (I ) to appear at a time and place fixed by the inspector, and question that person with regard to any matter which the inspector is investigating; or I0 (h) examine any relevant document of a manufacturer or importer of a commodity, or product or the supplier of a service in respect of which a compulsory specification is in force. to determine whether that manufacturer or importer has paid the prescribed fees referred to in section 14(3)(b). (2) A person questioned by an inspector conducting an investigation in terms of this 15 section must answer each question truthfully and to the best of his or her ability. (3) No self-incriminating answer given or statement made to an inspector is admissible as evidence in criminal proceedings against the person who gave the answer or made the statement, except in criminal proceedings where the person concerned stands trial on a charge contemplated in section 34( l )( i). (j) or (k). 20 Samples and information

20. ( 1) Notwithstanding anything to the contrary in this Act, any person who imports, sells or supplies any commodity or product or supplies any service for which a compulsory specification is in force, must at the w1itten request of the National Regulator. within a period stated in the request, and at that person's own cost- 25 (a) submit or make available, tn the National Regulator any sample as may be specified in the request, for examination, testing or analysis; or (b) furnish to the National Regulator such information as may be specified with regard to the article concerned or its manufacture or the service supplied; and ( c) comply with the sampling requirements of the compulsory specification that is 30 in force. (2) The National Regulator may examine any sample obtained in terms of this Act, or have it tested or analysed, in order to d.::tcrm ine whether the article, component, material or substance concerned complies with or has the characteristics of or has been manufactured in accordance with the requirements of any rnmpulsory specification 35 applicable in terms of this Act. (3) If any sample obtained in terms of this Act is damaged or destroyed during the process of examining, testing or analysing such sample, the National Regulator is not liable for the damage to or destruction of that sample, except where the damage is due to negligence of the National Regulator. 40 (4) The resuh of any examination, test or analysis of any sample of a commodity, product manufactured or service supplied in respect of which a compulsory specification is in force, is regarded to be valid for the whole consignment or batch from which the sample was obtained or to the similar services by the supplier, until the contrary is proved, or unless otherwise specified in the compulsory specification that is in force. 45 Creamer Media Pty Ltd +27 11 622 3744 polity@creamermedia.co.za www.polity.org.za Polity~ a 22 No. 31216 GOVERNMENT GAZFTTE, 4 JULY 2008 Act No. S, 2008 NATIONAL REGULATOR FOR COMPULSORY SPECIFICATIONS ACT. 2008 EXECUTIVE MANAGEMENT Appointment or Chief Executive Officer

21. (]) The Board, with the concurrence of the Minister, must appoim a suitably qualified person as the Chief Executive Officer. (2) The Chief Executive Officer is an employee of the National Regulator and is 5 accountable to the Board. (3) The Chief Executive Officer is responsible for the efficient management of the National Regulator and must perform any function assigned or delegated to him or her by the Board. (4) The Chief Executive Officer holds office for an agreed tenn not exceeding five 10 years and may be reappointed upon the expiry of that term of office. (5) If the Chief Executive Officer is unable to fulfil his or her functions , the Board must appoint an acting Chief Executive Officer to exercise the powers and perform the functions of the Chief Executive Officer. Employment contract and performance agreement 15

22. (1) The Board must conclude a wrinl!n performance agreement with the Chief Executive Officer- ( a) within a reasonable time after the appointment of the Chief Executive Officer; and (b) thereafter, annually within one month of the commencement of each financial 20 year. (2) The performance agreement must include- (a) measurable performance objectives and targets that must be met, and must provide for the time-frames within which those performance objectives and targets must be met; 25 (b) standards and procedures for evaluating performance and intervals for evaluation; and ( c) the consequences of substandard performance. (3) The employment contract of the Chief Executive Officer must incorporate in an appropriate fonn section 57 of the Public Finance Management Act. 30 Appointment o[ staff

23. ( 1) The Chief Executive Officer may, after consultation with the Board, appoint staff to assist the National Regulator in carrying out its functions. (2) The Minister may, after consultation with the Minister for the Public Service and Administration and the Minister of Finance- 35 (a) approve a human resource policy for the National Regulator; (b) approve the remuneration, allowances, benefits and other terms and condi- tions of appointment of members of staff, taking into account the Public Service Act, 1994 (Proclamation No. 103 of 1994). Services by non-employees 40

24. The National Regulator may contract for the services of any person, other than an employee, to perform any specific act or funcrion. Delegation and assignment

25. (1) The Board may delegate or assign any of its powers and duties to the Chief Executive Officer in accordance with this section. 45 Creamer Media Pty Ltd +27 11 622 3744 polity@creamermedia.co.za www.polity.org.za Polity~ a 24 No. 31216 GOVERNMENT GAZETTE, 4 JULY 2008 Act No. S, 2008 NATIONAL REGULATOR FOR COMPULSORY SPECIFICATIONS ACT, 2008 (2) The Chief Executive Officer may delegate any power or assign any duty conferred or imposed upon the Chief Executive Officer by or under this Act to- ( a) any other person with appropriate knowledge and experience who is under the control of the Chief Executive Officer; or (b) any 01her person, after consulting the Board. 5 (3) A delegation or assignment under subsections (I) and (2) must be in writing and- (a) may be subject to any conditions or restrictions determined by the Board or the Chief Executive Officer; ( b) does not prevent the exercise of that power or the perfonnance of that duty by the Board or the Chief Executive Officer; and I0 ( c) may be withdrawn or amended by the Board or the Chief Executive Officer. FINANCIAL MANAGEMENT Funding and investments

26. (I) The funds of lhe N ationa\ Regulator consist of- ( a) moneys appropriated by Parliament for that purpose; IS (b) income derived by the National Regulator from its investmen1s; (c) fees charged in tcnns of section 14(3)(b); and (d) money received from any other source. (2) The National Regulator may invest any of its funds not immediately required- ( a) subject to any investment policy that may be prescribed in terms of section 20 7(4) of the Public Finance Management Act; and (b) in such manner as may be approved by the Minister in consultation with the Minister of Finance. Application of Public Finance Management Act

27. (I) The National Regulator is a national public entity and must comply with the 25 Public Finance Managemeni Act. (2) For the purposes of the Public Finance Managemeni Act- ( a) the Board is the accounting authority as contemplated by section 49(2)(a) of that Act; (b) the Minister is the executive authority as contemplated by section 52 of the 30 Public Finance Management Act; and (c) any delegation or assignment of the Board's powers and duties must be in accordance wilh section 56 of the Public Finance Management Act. Financial year and accounting

28. The financial year of the National Regulator is from I April in any year to 31 35 March in the following year, except that the first financial year of the National Regulator begins on the date that this Act comes into operation. and ends on 31 March next following that date. GENERAL PROVISIONS Disclosure of certain information in public interest 40

29. (I) The Chief Executive Officer may, notwithstanding section 32, if it is necessary in the public interest, reveal- ( a) any information which he or she considers necessary to prevent the public from being misled concerning any aspect regulated by this Act: Creamer Media Pty Ltd +27 11 622 3744 polity@creamermedia.co.za www.polity.org.za Polity~ a Polity~ 26 No. 31216 GOVERNMENT GAZETTE, 4 JULY 2008 Act No. 5, 2008 NATIONAL REGULATOR FOR COMPULSORY SPECIFICATIONS ACT. 2008 (b) the fact that a commodity is not in compliance with a compulsory specification; or ( c> the name of a person who does not comply with or does not comply fu Hy with a provision of this Act or any aspect regulated by this Ac1. (2) The disclosure referred to in subsection (I) may include the trade name and trade 5 mark of a commodity or product. Presumption

30. If it is necessary for the purposes of this Act to determine the importer of an article, the person who is indicated on the documents concerning the import transaction as the importer is, in the absence of evidence to the contrary which raises reasonable 10 doubt, presumed to be the importer of that article. Certain acts not interpreted as assurances or guarantees

31. The fact that anything has been done under this Act by the Minister, the National Regulator, the Board, a mem her of the Board, a committee referred to in section l l or a member of such committee, the Chief Executive Officer or an employee of the National 15 Regulator in connection with any article, material, substance, act or matter, may not be interpreted as an assurance or a guarantee of any nature in respect of that article, material. substance, act or matter. Confidentiality of certain information

32. Any person who is or was concerned in the performance of any function in terms 20 of this Act, may not disclose any information which he or she obtained in the performance of such a function, excepl- ( a) to lhe Minister; (b) to any person who of necessity requires it for lhe performance of his or her functions in lerms of this Act; 25 ( c) if he or she is a person who of necessity suppl ics it in lhe performance of his or her functions in terms of this Act; (d) if such information is required in terms of any law or as evidence in any court of law: or (e) to any competent authority which requires it for the institution, or an 30 investigation with a view to the institution, of any criminal prosecution. Liability of National Regulator

33. (I) The State Liability Act, 1957 (Act No. 20 of 1957), applies in respect of the National Regulator, and in such application a reference in that Act to a Minister of a department must be construed as a reference to the Chief Executive of the National 35 Regulator. (2) No person is liable for anything done or omitted in good faith when performing a function in 1erms of this Act. Offences and penalties

34. (I) A person is guilty of an offence and liable on conviction to a fine or to 40 imprisonment for a period not exceeding one year if that person- (a) contravenes or fails to comply with section 14(1 ), (2) or (3), 19(2) or 20(1 )( a), (b> or (c); (b) fails to keep a commodity or product or consignment or batch in his or her possession or under his or her control at or on specified premises as 45 comemplated in section 15( I); Creamer Media Pty Ltd +27 11 622 3744 polity@creamermedia.co.za www.polity.org.za Poli~.a Polity~ a 28 No. 31216 GOVERNMENT GAZETTE, 4 JULY 2008 Act No. S, 2008 NATIONAL REGULATOR FOR COMPULSORY SPECIFICATIONS ACT. 2008 ( c)tampers with or disposes of a commodity or product or consignment or batch in contravention of a directive issued under section 19( I)(g ); (d) fails to co-operate and furnish assistance to an inspector as contemplated in section I 8(2 ); (e) fails to appear before an inspector for questioning as contemplated in section 5 19(1 )( g); (/) discloses any information in contravention of section 32; (g) falsely represents any material or substance to be reference material supplied by the National Regulator; ( h) falsely holds himself or herself out to be an inspector for the purposes of this I0 Act; (i) makes any relevant statement Lo an inspector which is false in any material respect, knowing it to he false; (j) refuses or fails to answer to the hest of his or her knowledge any relevant question which an inspector has in the exercise of his or her powers put to him 15 or her; ( k) refuses or fails to comply to the best of his or her ability with any lawful requirement, demand or order of an inspector; or ({) hinders or obstructs an inspector in the exercise of his or her powers. (2) If any person is again convicted of an offence in terms of this Act, whether it he 20 for the same or some other offence. that person is for the second or subsequent conviction liable lo a fine or imprisonment for a pl.!riod not exceeding four years. (3) A court convicting any person of an offence in terms of this Act may, in addition to any penalty imposed in respect of that offencc- (aJ and subject to the provisions of subsection (4), order that a commodity or a 25 consignment or batch of a commodity, any other article, or any material or substance in respect of which that offence was committed, be forfei1ed to the State ; and (b) summarily enquire into and assess the monetary value of any advantage gained or likely to be gained by such person in consequence of that offence 30 and impose on that person a fine to a maximum equal to the amount so assessed and, in default of payment. imprisonment for a period not exceeding one year. (4) The Board must generally or in a particular case determine the manner in which the forfeited goods reterred to in subsection (3)( a) shall be dealt with. 35 (5) Section 35( 4) of the Criminal Procedure Act, 1977 (Act 51 of 1977). applies with the necessary changes in the case of a forfeiture referred to in subsection (3)( a). (6) Notwithstanding anything to the contrary in any other law contained, a magistrate's court is competent to impose any penalty provided for in this Act. Transitional provisions 40

35. (I) For purposes of this section, "effective date'' means the date on which the National Regulator is established as a public entity. (2) As from the effective date: (a) All assets, liabilities, rights and obligations of the regulatory depar1ment of SABS are transferred to the National Regulator; 45 (b) all employees of SABS employed in the regulatory department and administrative staff responsible for administrative support with regard to compulsory specifications are transferred to the National Regulator in terms of section 197 of the Labour Relations Act, 1995 (Act No. 66 of 1995 ): ( c) all notices, designations and certificates issued in terms of the Standards Act, 50 1993 (Act No. 29 of 1993), in respect of any mailer dealt with in this Act are deemed to have been issued in tenns of this Act: and Creamer Media Pty Ltd +27 11 622 3744 polity@creamermedia.co.za www.polity.org.za Polity~ Polity~ a 30 No. 31216 GOVERNMENT GAZETTE, 4 JULY 2008 Act No. 5, 2008 NATIONAL REGULATOR FOR COMPULSORY SPECIFICATIONS ACT. 2008 (d) all regu lalions promulgated in terms oft he Standards Act, 1993 (Act No. 29 of 1993 ), in respect of any matter dealt with in this Act are deemed to have been issued in terms of this Act. (3) For the purposes of the application of subsection (2), the Minister may with the concurrence of the Minister of Finance, make a binding written determination- 5 (a) that an asset, liability, right or obligation is an asset, liability, right or obligation of the regulatory department of the SABS; ( bJ that an employee of the SA BS is employed in the regulatory department of the SABS. (4) A compulsory specification referred to in section 22 of the Standards Act, 1993 10 (Act No. 29 of 1993 ), which is in force in terms of the provisions of that Act immediately before the commencement of this Act, is deemed to be a compulsory specification declared in terms of this Act. ( 5) If a compulsory specification contemplated in subsection (4) is amended in terms of this Act, any reference to that compulsory specification must be construed as a 15 reference to the compulsory specification as amended. (6) Any notice issued in terms of section 22(6)(a) to (c) of the Standards Act, 1993 (Act No. 29 of 1993), which is in force at the commencement of lhis Act, is deemed to be a notice issued in terms of section 13( 6) of this Act. Regulations 20

36. (I) The Minister may, after consultation with the Board, make regulations, that are not inconsistent with this Act- ( a) regarding any matter that may or must be prescribed in terms of this Act; (b) regulating- (i) the process for the issuing of a permit; or 25 (ii) Lime limits for the withdrawal of directives issued by the Chief Executive Ofticer; and ( c) regarding any other ancillary or incidental administrative or procedural matter that is necessary to prescribe for the proper implementation or administration of this Act. 30 (2) The power to make regulations under subsection (I) includes the power conditionally or unconditionalty to restrict or prohibit any matter referred to in that subsection and to grant exemptions from, or to allow deviations with regard 10, 1he payment of the prescribed fees contemplated in section 14(3)(b). (3) Regulations which differ in such respects as may be necessary in the 35 circumstances may, subject to the provisions of this Act, be made under subsection ( 1) in respect of different areas in the Republic or different commodities. Short title and commencement

37. This Act is called the National Regulator for Compulsory Specifications Act, 2008, and comes into operation on a date determined by the President by proclamation 40 in the Gazette. Creamer Media Pty Ltd +27 11 622 3744 polity@creamermedia.co.za www.polity.org.za Polity~ a