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An important aspect about the goods to be exported is compulsory quality control and pre-shipment inspection. Quality control and pre-shipment inspection are prerequisite for exporting goods. Under the Export (Quality Control and Inspection) Act, 1963, about 1000 commodities under the major group of: Food and Agriculture, Fishery, Minerals, Organic Chemicals, Rubber Products, Refractories, Ceramic Products, Pesticides, Light Engineering Steel Product, Jute Products, Coir and Coir Products, Footwear and Footwear Products/Components are subject to compulsory pre-shipment inspection.
Sometimes overseas buyers lay their own standards/specifications which may or may not be in consonance with the Indian standards. They may also insist upon inspection by their own nominated agencies. These issues should be sorted out before confirmation of order.
Specific provision have also been made for compulsory inspection of textile goods. Products having ISI Certification mark or Agmark are not required to be inspected by any agency. These products do not fall within the purview of the export inspection agencies network. The Customs Authorities allow shipment of such goods without inspection certificate, provided they are otherwise satisfied that the goods carry ISI Certification Mark or the Agmark. For other goods inspection can be made in the following manner:
Consignment to consignment inspection-under this scheme the application (in duplicate) for inspection for goods has to be submitted well in advance, in the new prescribed form ‘intimation for inspection’, before the expected date of shipment of the consignment. Inspection of the consignment is generally carried out either at the premises of the exporter, provided adequate facilities exist therein for inspection, or at the port of shipment.
After satisfying itself that the consignment of exportable goods meets the requirements stipulated in the export contract/order, the inspection agency issues, generally within four days of receipt of intimation for inspection, the necessary certificate of inspection to the exporter in the prescribed proforma in five copies.
The certificate is issued in the standardised form which is aligned pre-shipment export document. (Three copies for exporter, original copy for customs use, the second copy for the use of the foreign buyer and the third copy for the exporter's use, fourth copy for Data Bank, Export Inspection Council, New Delhi and the fifth copy is retained with the agency for their own office record).
EXPORT (QUALITY CONTROL & INSPECTION) ACT, 1963:
The Export Inspection Council is responsible for the operation of this Act. Under the Act, a large number of exportable commodities have been notified for compulsory pre-shipment inspection. The quality control and inspection of various export products is administered through a network of more than fifty offices located around major production centres and ports of shipment. In addition, organizations may be recognized as agencies for inspection and /or quality control. Recently, the government has exempted agriculture and food products, fruit products and fish and fishery products from compulsory pre-shipment inspections, provided that the exporter has a firm letter from the overseas buyer stating that the overseas buyer does not require pre-shipment inspection from official Indian inspection agencies.
To be concluded...
IN-PROCESS QUALITY CONTROL:
Certain products like chemicals or engineering goods are subject to this control. The inspection is done at various stages of production. The exporter has to get his unit registered as "Export worthy" and keep record of processing and production. Under this system, export is allowed on the basis of adequacy of IPQC and inspection measures exercised by the manufacturing units themselves. Units approved under this system may themselves issue the certificate of inspection, but only for the products for which they have been granted IPQC facilities. However, these units have the option either to get the certificate from the export inspection agencies (EIAs) or issue the same themselves.
SELF-CERTIFICATION SCHEME:
Large manufacturing/exporters, export houses /trading houses are allowed the facility of self-certification on the theory that the exporter himself is the best judge of the quality of his products.
The industrial units having proven reputation and adequate testing facilities have to apply to the Director (Inspection and Quality Control), Export Inspection Council of India, 11th floor, Pragati Tower, 26 Rajendra Place, New Delhi-110 008. It grants a certificate valid for a period of one year, to allow manufacturers of engineering products, chemical and allied products and marine products. The approval of an industrial unit under this scheme is notified in the Gazette of India and the exporter has to pay a lump sum fee to the export inspection agencies depending upon his export turnover.
Discussion on Quality Control and preshipment inspection will be incomplete without saying a few words about ISO 9000.
The International Organisation for Standardisation (ISO) is the specialised International Agency in formulating the norms of Standardisation, Presently 91 Countries including India are members of the national Standard Body Various Technical Committees were formed who looked into and considered the different areas of specialisation and formulated the International Standard.
To be concluded...
There are certain forms and documents that are necessary for quality control and pre-shipment inspection. The following documents need to be submitted along with the application:
(i) Particulars of the consignment intended to be exported
(ii) A crossed cheque/draft for the amount of requisite inspection fees or an Indian Postal Order.
(iii) Copy of commercial invoice
(iv) Copy of Letter of Credit
(v) Details of packing specifications
(vi) Copy of the export order/contract, indicating inter alia the buyer’s requirement that goods are strictly according to the prescribed specifications or as per samples
Really good initiative taken by you in order to educate the newbie to enter into export market. Heads off to you.
Free Member, Joined :10/04/2005
No of Topics Posted : 16
Reply/Comments : 54
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