Are you sure engineering is talking about balance tolerance or are they talking about product acceptance tolerance? I can see accepting product in a 5% tolerance range.
No we have a tolerance for the product +/- 5% all across the range. So the answer is they want to implement two tolerances for thecalibration of the balance, i.e wider range for the heavier weight.
In my opinion, the tolerance should be reduced when weight is increased. It means the tolerance range is more stringent for heavy weight than lighter weight.