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AVERAGE QUANTITY SYSTEM BACKGROUND 1 The method of determining a deficiency in packaged goods is at present administered by what is known as a minimum quantity system. In general, a package marked with a statement of the quantity which the package contains must contain at least that quantity. This applies throughout the distribution process, from the time the goods are packed to the time the goods are sold. 2 In any method of establishing `fill' levels for the contents of packages there will be variations. The current legislation in Australia recognises this by allowing deficiencies of no more than 5 percent in any one package provided the contents of that package and eleven other randomly selected packages of the same kind and stated quantity show no aggregate deficiency. Due to the inevitable variation in package-contents which occurs during the filling process, packers usually set their target fill quantity high enough to ensure insignificantly few packages are under the stated contents. The greater the likely variation, the greater the degree of overfill necessary to comply with the minimum quantity system requirement. 3 The method of determining what is a "deficiency" needs to be fair to both consumers and packers. The method needs to ensure that the statement of the quantity contained in packaged goods is meaningful to consumers and allows them to make informed decisions when they select and purchase goods. The trade measurement provisions in Australia does not always give such meaningful information to consumers. In Australia, the Uniform Trade Measurement Legislation provides for variations greater than 5 percent on the day after packing on some goods. 4 Trade in packaged goods has changed greatly over the past 30 years. Goods are more easily imported into Australia. Hence the markets of Australia are worldwide. Australia has commitments to:
5 Given these substantial changes in our trading arrangements there is a need to harmonise international standards in an effort to reduce technical barriers to trade. In the area of determining the quantity of packaged goods there is an international standard. It is known as the Average Quantity System. What is the Average Quantity System (AQS)? 6 The AQS is a system for the labelling of packaged goods with constant nominal content. It is a system which has gained broad international support. It provides for the verification of goods sold by weight, measure or number by utilising sampling standards based on those developed by the International Organisation for Standardisation (ISO) and others such as the U.S Military Specification (MILSPEC). How does it work? 7 There are three rules, all of which are necessary for the correct application of AQS. Rule 1: The declared quantity on a package should accurately reflect the quantity being supplied, so the average net contents of the packages in a lot (production run) may not be less than the declared quantity. AND Rule 2: No more than 2.5 percent of the packages in a lot (production run) may have negative errors more than the prescribed tolerable negative error. AND Rule 3: No package shall have a negative error by more than twice the prescribed tolerable negative error. What are the benefits? 8 Production techniques are neither perfect nor ideal. Therefore it is appropriate to ensure that on average the packages contain the declared quantity. The average requirement provides protection to consumers who purchase more than one package of a particular product. Generally a deficient package will be averaged out by an overfilled one. 9 A lot (production run) of packages will not meet the requirements if the number of non-acceptable packages in a sample is more than; 0 in a sample from 2 to 8 1 in a sample from 9 to 20 2 in a sample from 21 to 32 3 in a sample from 33 to 50 4 in a sample from 51 to 65 5 in a sample from 66 to 80 6 in a sample from 81 to 102 7 in a sample from 103 to 125 A non-acceptable package is one that contains less than the declared net quantity by more than the prescribed tolerable negative error. 10 AQS recognises that occasionally a rogue package will appear in any sample of packages. However no rogue package should exceed twice the prescribed tolerable negative error. The sample size is set to statistically reflect a true representation of the lot (production run). Sample sizes are: Number of packages Minimum number of packages in the lot (production run) sampled From 2 to 10 All packages From 11 to 128 25 percent of all packages (rounded up to the next whole number but never less than 10) From 129 too 4,000 32 From 4,001 to 8,000 64 From 8,001 to 12,000 96 From 12,000 125 11 For consumers AQS gives an assurance that 97.5 percent of the time a consumer will receive the declared quantity within the prescribed tolerance limit. What are the prescribed tolerance limits? 12 The most commonly used and internationally accepted are: Stated Quantity on Package Limits of error grams or % millilitres grams or millilitres
13 The prescribed tolerances reflect the difficulty manufacturers/packers have in packaging small quantities. Therefore the tolerances for small packages with a quantity below 100g/ml are larger than presently provided generally in Australia. However for those packages with a quantity of more than 100g/ml the prescribed tolerances get progressively tighter. This reflects the ability to pack to tighter limits with modern packaging equipment. 14 The benefits to manufacturers/packers are that the tolerances are proportional to the product size and are appropriate to the degree of difficulty in obtaining correct fill. As indicated the system has broad international acceptance, and its adoption by Australia will reduce technical barriers to trade. Adoption of the scheme is in line with the Governments' commitments to the World Trade Organisation and towards accepting international measurement standards. Where is it accepted? 15 A number of countries and international organisations have adopted AQS. These include:
Who else is considering AQS? 16 Both Australia and New Zealand are considering the merits of AQS. The nearest trade block to Australia and New Zealand is the Asia Pacific Economic Cooperation. The issue of harmonising legal metrology provisions including packaging provisions within APEC is on the agenda of the Asia Pacific Legal Metrology Forum (APLMF). APLMF is an APEC specialist regional body. Interestingly the USA and Canada are member economies within APEC. Why change? 17 The manufacture, sale and export of package goods with a declared quantity statement is becoming increasingly sophisticated. In the past we have had within Australia various ad hoc requirements for packaged goods. Requirements varied to suit different environments. 18 With the move to global markets, the removal of technical barriers to trade, our commitment to WTO, regional cooperation within international groupings and international cooperation between regional groupings, the need for an international standard in packaging is becoming increasingly necessary. 19 Confidence must be maintained in the goods produced and exported. The Australian national measurement system and the integrity of the system is central to maintaining and increasing this confidence. The key to maintaining this confidence is the adoption of internationally recognised standards. 20 In Australia consumer confidence must be maintained in the goods we produce and trade internally. The confidence of consumers in our own national measurement system is vital both in maintaining a dynamic production base and in maximising consumer confidence and choice. 21 Therefore it is vital that our own national practices represent the highest standards possible. Such practices need to reflect the best international practices, the best outcome for consumers and the best practices for packers. In short everyone must be in a `win-win' situation. The Average Quantity System for packaged goods meets these requirements. 22 The present requirement allows for any package to be deficient of its stated quantity by not more than 5 percent provided that the aggregate of 12 similar packages shows no deficiency. This means on face value that 8.3 percent of packages can be deficient by not more than 5 percent. However it is probable that more than one package in any selection of 12 packages could be deficient by not more than 5 percent provided the number of overweight packages compensate for the deficient ones. For example if 12 x 1kg packages are selected and if 6 are deficient by 50 grams each and 6 are overweight by 50 grams each, it can be argued that no offence has occurred. In the AQS this cannot happen as in the example stated rules 2 and 3 would be breached. 23 Clearly limiting the number of deficient packages in any lot (production run) has major gains for consumers. It also has major benefits for packers in that they know precisely the limits, both in quantity terms on each package and numerically in the numbers within any production run, which are acceptable. AQS is a standard which is fair to both consumers and packers. Effect of proposed change 24 The rules on the standard of quantity statements will be clearer for both packers and consumers. Both will know there is a clear and precise standard. Packers can easily adopt the rules into their quality management systems and have more confidence in the compliance of their goods with the Weights and Measures/Trade Measurement legislation worldwide. They will know and be able to judge precisely whether a lot (production run) complies. This will provide extra confidence in their packaging practices. 25 In most cases packers will not need to re-tool to meet the requirements of AQS. There will be some lines of goods where qualifying statements such as `net weight when packed' or `net weight at standard condition' are not appropriate under AQS. In these cases packers will have a duty to ensure that on average the consumer receives the quantity stated on the package. 26 Consumers will know on average that they have a 97.5 percent chance of receiving the stated quantity within the prescribed tolerance. This assurance is not contained within the system currently operating within Australia. Summary 27 AQS provides
Acknowledgment 28 TMAC wishes to acknowledge source information from:
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© Commonwealth of Australia 2000 Ministerial Council on Consumer Affairs www.consumer.gov.au
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