2. TAIEX How the PED Applies to Pre-Owned Pressure Equipment – The UK View February 2007

3. TAIEX – February 2007 – PED and Pre-Used Goods Main Points How Is The PED managed in the UK? Does the PED apply? When does the PED apply? How do I apply the PED? What problems might I encounter and where can I get help? Sustainable development issues Main Messages Q & A

4. TAIEX – February 2007 – PED and Pre-Used Goods How Is the PED Managed in The UK? SDRD Rick Holyomes Safety Unit Steve Shaw Regulation and overall responsibility Enforcement and inspections

5. TAIEX – February 2007 – PED and Pre-Used Goods DTI Staff Responsible for PED Mike Dodds – Assistant Director Engineering Directives (Lifts, Pressure Equipment, Machinery and ATEX) Rick Holyomes – Senior Policy Adviser & Denis Clarke – Policy Adviser (Pressure Equipment and ATEX Directives)

6. TAIEX – February 2007 – PED and Pre-Used Goods When does the PED apply? THE PED ONLY APPLIES TO NEW PRESSURE EQUIPMENT LA FIN?

7. TAIEX – February 2007 – PED and Pre-Used Goods When does the PED apply? Yes : when are goods new in terms of the Directive. Q. So the PED can apply to used goods?

8. TAIEX – February 2007 – PED and Pre-Used Goods When does the PED apply? Q Why is this the case? A. Because the PED is a trade Directive and does not address matters of each Member States domestic safety or in use regimes.

9. TAIEX – February 2007 – PED and Pre-Used Goods When does the PED apply? Q. So just exactly when does it apply? A1. When goods have undergone major modification; or A2. When goods are placed on the European market for the first time

10. TAIEX – February 2007 – PED and Pre-Used Goods When does the PED apply? 1. Major Modification Q. So just what is amajor modification? A. Not easy to answer – but the end-user/modifier are in a better position than anyone else to answer this!

11. TAIEX – February 2007 – PED and Pre-Used Goods When does the PED apply? 1. Major Modification Q. Sounds complicated! Does it apply for other categories than equipment? A. Yes – this principle also applies to assemblies. NB If the assembly is modified enough to be considered a new product then the whole assembly must comply – even if it didnt need to before!

12. TAIEX – February 2007 – PED and Pre-Used Goods When does the PED apply? 1. Major Modification 2 POSSIBLE SCENARIOS A A(B) ABB NEEDS TO COMPLY C DOES NOT NEED TO COMPLY

13. TAIEX – February 2007 – PED and Pre-Used Goods When does the PED apply? 1. Major Modification Q. Now Im just confused!! Where can I get advice? A. Guideline 1/3 attempts to set the boundary between a repair/slightly modifying and transforming the product – but there is no easy solution Blue Guide also gives general advice for all New Approach Directives.

14. TAIEX – February 2007 – PED and Pre-Used Goods When does the PED apply? 1. Major Modification Guideline 1/3[Original version as adopted on: 28 Jan 1999 and modified on 17 Mar 2004]Pressure equipment directive 97/23/EC Commissions Working Group "Pressure" Guideline related to: Article 1, Annex I Section 3.4Article 1Annex I Section 3.4 Question: Are replacements, repairs or modifications of pressure equipment in use covered by the Pressure Equipment Directive (PED) ? Answer:1) Entire change: the complete replacement of an item of pressure equipment by a new one is covered by the PED. 2) Repairs are not covered by the PED but are covered by national regulations (if any). 3) Pressure equipment which has been subject to important modifications that change its original characteristics, purpose and/or type after it has been put into service has to be considered as a new product covered by the directive. This has to be assessed on a case by case basis. Note 1: Operating instructions in the sense of the PED (see guideline 8/3) cover documentation concerning safe operation including maintenance, but not necessarily detailed information concerning repair or modification of the equipment (e.g. material certificates or qualification of welding procedures). Such information may be provided by a specific contractual agreement between manufacturer and user. Note 2 : The directive applies only to the first placing on the market and putting into service. See blue guide chapter 2.1 Accepted by WPG on: 24 Feb 2004 Accepted by Working Group "pressure": 17 Mar 20048/3

15. TAIEX – February 2007 – PED and Pre-Used Goods When does the PED apply? 1. Major Modification Q. So why is there this requirement? It just seems to complicate matters! A. The need to order to protect the integrity of the Single Market by drawing a line between repairing/slightly modifying and complete modification

16. TAIEX – February 2007 – PED and Pre-Used Goods When does the PED apply? 2. On the market for the first time Q. When does this apply? A. Quite simply, when goods are imported from outside the EU and placed on the market or put into service for the first time.

17. TAIEX – February 2007 – PED and Pre-Used Goods When does the PED apply? 2. On the market for the first time Q. That sound simpler than the modifying issue, is there a catch? A. Theres no catch as such but there are some issues with retrospective conformity assessment that can cause problems. (But this isnt just true of the PED, its the same across all the New Approach Directives.)

18. TAIEX – February 2007 – PED and Pre-Used Goods When does the PED apply? 2. On the market for the first time Q. Can you be more specific? A. The two main issues are when: dealing with materials traceability & testing; and assemblies.

19. TAIEX – February 2007 – PED and Pre-Used Goods When does the PED apply? 2. On the market for the first time Q So whats so difficult with materials traceability and testing? VS A. There can be some difficulty when using non- European Global codes (e.g. ASME) when trying to reconcile the requirements long after manufacture

20. TAIEX – February 2007 – PED and Pre-Used Goods When does the PED apply? 2. On the market for the first time Q And for assemblies? A (ALREADY ON MARKET) B (NEW TO MARKET) C (NEW ASSEMBLY) A. A, B & C : DUE TO GLOBAL CONFORMITY ASSESSMENT Q WHICH ITEMS NEED TO COMPLY?

21. TAIEX – February 2007 – PED and Pre-Used Goods When does the PED apply? 2. On the market for the first time Guideline 3/11[Original version as adopted on: 07 Nov 2000]Pressure equipment directive 97/23/EC Commissions Working Group "Pressure" Guideline related to: Article 3 Paragraph 2, Article 10 Paragraph 2, Article 20Article 3 Paragraph 2 Article 10 Paragraph 2Article 20 Question: If an item of pressure equipment complies with national pre-PED Regulations and is placed on the market on, or before, 29 May 2002, is it possible for it to be subsequently included in an assembly which is placed on the market after 29 May 2002? Answer: Only if it is shown that such pre-PED item of pressure equipment also complies with the requirements of the directive. If an assembly, as referred to in Article 3, section 2, is placed on the market after 29 May 2002 then it must comply with the Directive. This requirement can only be met if the individual items of pressure equipment which form the assembly also comply with the Directive. This is achieved by using the global conformity assessment procedure as per Article 10.2a, where required (see also guideline 3/7).3/7 Accepted by WPG on: 02 Oct 2000 Accepted by Working Group "pressure": 07 Nov 2000 Remarks:

22. TAIEX – February 2007 – PED and Pre-Used Goods When does the PED apply? 2. On the market for the first time Q Anything else I need to be aware of? A. The are sometimes issues with using non- European codes to meet the ESRs for Sections 4 (Materials) & 7 (Quantitative Requirements) GOOD NEWS! There is excellent and robust guidance available!

23. TAIEX – February 2007 – PED and Pre-Used Goods The Future: Sustainability Q So whats this all got to do with sustainability? A. Its all about thinking about the future Rising energy prices Rising raw material prices Increasing scarcity of raw materials Government green taxes & subsidies = Pre-used goods more attractive?

24. TAIEX – February 2007 – PED and Pre-Used Goods Main Messages The PED can apply to pre-used goods under certain circumstances End-users are generally in a better position to judge applicability There are some issues but there is robust guidance Potential to become a more common occurrence due to sustainability considerations

25. TAIEX – February 2007 – PED and Pre-Used Goods /EC) Thank you for your attention Q&A