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Chapter 6


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Chapter 6

  1. 1. Chapter-6 Quality Control and Preshipment InspectionIntroduction Inspection Agencies (EIAs) located at Chennai, Kochi, Kolkata, Delhi and Mumbai having a networkWith the establishment of the World Trade of 35 sub-offices and laboratories to back up theOrganisation in 1995 and implementation of pre-shipment inspection and certification activity.Agreement on Sanitary and Phyto-sanitary (SPS) In addition, EIC also designates inspection agenciesmeasures, countries all over the world started and laboratories to supplement its own activitiesenforcing stricter measures to protect health as required.and safety of their consumers by introducingregulatory import controls, especially in the food The main functions of EIC are (i) to advise the centralsector. Introduction of regulatory import controls government regarding measures to be taken forhas been causing problems to the Indian exporters enforcement of quality control and inspection inin terms of multiple inspections, rejections and relation to commodities intended for export andrecall/destruction of consignments found not (ii) to draw up programmes for quality control andconforming to their requirements. This has made inspection of commodities for exports.the role of Export Inspection Council (EIC) and The inspection and certification activities are carriedExport Inspection Agencies (EIA) more relevant out through the EIAs following either a Consignment-in the context of India’s efforts to set ambitious wise Inspection or a Systems Approach to includeexport targets and to achieve them. In-process Quality Control (IPQC), Self-CertificationExport Inspection Council of India (EIC) and Food Safety Management Systems based Certification (FSMSC).The Export Inspection Council of India (EIC) was setup by the Government of India under Section 3 of In the changing global scenario, as India’s tradingthe Export (Quality Control & Inspection) Act, 1963 partners are installing regulatory import controls,as an apex body to provide for sound development the EIC has re-fashioned its role to develop voluntaryof export trade through quality control and pre- certification programmes besides regulatoryshipment inspection. The Act empowers the export control, especially in the food sector. TheCentral Government to notify commodities and Council is seeking recognition for its certificationtheir minimum standards for exports, generally by official import control agencies of its tradinginternational standards or standards of the partners, as per provisions of WTO agreements, toimporting countries, and to set up suitable facilitate easier access to their markets for Indianmachinery for inspection and quality control. exporters.The EIC is assisted in its functions by the Export 82
  2. 2. CHAPTER-6 Quality Control and Preshipment InspectionActivities and Achievements which was signed in March 2006 and implemented w.e.f August 2007. During the year 2009-10, theExport Certification EIAs issued 9,35,126 preferential tariff certificatesCertification continued to be mandatory in the under various preferential tariff schemes. Duringareas of fish & fishery products, milk products, April-November 2010, the number of certificatespoultry products, egg products, meat & meat issued by the EIAs under various preferential tariffproducts and honey. The EIAs also continued to schemes were 5,21,134.certify other notified products such as basmati rice, Strengthening Laboratory Capabilitiesblack pepper, chemicals, footwear, engineeringitems, etc and non-notified products such as tea, EIC is also concentrating on strengthening of itsstainless steel utensils, ceramic, etc. Steps were laboratory capabilities. The laboratories at Mumbai,taken to bring some more areas/products under the Kochi, Chennai, Bhubaneswar, Veraval and Kollamcertification regime of EIC. These included products were upgraded with new equipment includingsuch as crushed bones, gelatine, ayurvedic, siddha Atomic Absorption Spectrophotometer (AAS),and unani products; sesame seeds; hops and hop High Performance Liquid Chromatography (HPLC),products; animal feeds and non-basmati rice. Inductively Coupled Plasma Mass Spectrometry (ICPMS), Gas Chromatography Mass SpectrometryResidue Monitoring (GCMS), Gas Chromatography High ResolutionImplementation of ‘residue monitoring’ continues Mass Spectrometry (GCHRMS) etc. depending onto be an important area. Residue Monitoring the requirements. Laboratories of EIC and EIAsPlans have been implemented in the fisheries, at Chennai, Mumbai, Kochi and Kolkata havedairy, poultry, honey and egg sectors. During implemented the system of ISO 17025 and have2009-10, a total number of 477 samples were been accredited by the National Accreditationtested. During April-November 2010, 274 samples Board for Testing and Calibration Laboratorieshave been tested for the entire range of residues (NABL).relating to pesticides, antibiotics, heavy metals EIC also has labs at 13 sub offices for doing routineand other chemicals as required by the European microbiological and some heavy metal testing.Commission. These EIAs’ sub-office laboratories were alsoCertificates of Origin prepared for implementation of ISO 17025 andEIC/EIAs have continued to issue Certificates of basic documents have been developed. A total ofOrigin under various preferential tariff schemes, 24,314 samples have been tested in EIA labs up tonamely Generalized System of Preferences (GSP), November 2010.Global System of Trade Preferences (GSTP), Strengthening ManpowerSAARC Preferential Trading Arrangement (SAPTA), EIC continued its efforts to train both the internalSouth Asian Free Trade Area (SAFTA), India- manpower as well as have awareness programmesAfghanistan Preferential Trade Agreement (IAPTA), for the industry. Till March 2010, 25 programmesIndo Sri Lanka Free Trade Agreement (ISFTA), were held for internal manpower in which 512Comprehensive Economic Cooperation Agreement persons were given exposure and 18 programmes(CECA)-Singapore and Early Harvest Scheme under were held for industry in which 639 persons wereIndo-Thailand have been issued. A new preferential given exposure. The basic areas which were coveredtariff scheme was introduced under Indo-Chile PTA 83
  3. 3. Annual Report 2010-11included Certificate of Origin, dairy products, fish 2002-03 (Net 1.0 & SQL 2000). As the application& fishery products, Hazard Analysis Critical Control and supporting infrastructure has completed its lifePoint (HACCP), computerisation, laboratory testing and as the current market requirements demandetc. digital certification besides more efficient and userComputerization and Modernization friendly approach, the EIC has decided to revamp the modules taking advantage of the technologicalUnder the Integrated Computerization Project innovations currently available in the IT Sector.(ICP) software, all activities performed by the Accordingly, it is in the process of selection of aorganisation were divided into 19 modules, which suitable Software Service Provider for undertakingwere further divided into Part A and Part B. Part the job.A modules of the software contain main areas ofwork of the organisation like Certificate of Origin, Agreements with Other CountriesExport Inspection and Certification and Testing Continued efforts were made towards entering intoLaboratories. Part B modules of the software Memoranda of Understanding (MoUs)/ Mutualprimarily contained back-office operations like Recognition Agreements (MRAs)/ EquivalenceTraining, Payroll, Vigilance, Legal cell etc. System Agreements with the major trading partners so thatRequirements Specifications and Design documents EIC’s certification is accepted by these countries.for 19 modules of the software covering all major Effective steps were taken towards negotiatingactivities of the organisation and back-office agreements with Italy for sesame seeds, Israeloperation were studied and finalized. for food & agricultural items, Brazil for fisheryAutomation of business processes of EIC/EIAs was products, Malaysia for groundnuts and Australiastarted with the development of a module for for egg products. Further discussions were alsoprocessing and issuance of Certificate of Origin. held to enter into similar agreements with Japan,Other modules were added subsequently to cover Thailand, Mauritius and Sri Lanka. The Agreementother activities, such as Inspection and Certification, with Singapore in the electrical and electronicsLaboratory Testing, Training, Payroll etc. sector was further streamlined. The status of the existing MoUs/ MRAs/equivalence agreements isThe application modules developed by EIC were given in Table 6.1.based on the technology available in the year Table: 6.1 Existing Agreements/Recognitions on EIC certificationCountry Products covered Year of Agreement/ RecognitionUSA Black Pepper 1988European Fish and Fishery Products, Basmati Rice 1997 CommissionAustralia Fish & Fishery Products 2002Korea Frozen marine products, processed spice goods, processed nuts, 2004 tea, honey, jam, preserved goods, sauce, sugar    84
  4. 4. CHAPTER-6 Quality Control and Preshipment Inspection Turkey Food products, food packaging materials and stainless steel 2004  utensils. Sri Lanka More than 100 products under the Import Inspection Scheme 2005 of Sri Lanka namely milk products, edible oils, packaged water,   preserved food, toiletries, bicycle tyres & tubes, steel section & wires, electric goods & PVC cables & cords etc.      Singapore Food & Agriculture (egg products, dairy products, drinking 2005 water), Electric & electronic products, Telecommunication equipments and drugs & Pharmaceuticals. Japan Poultry & marine products 2005 Italy Marine sector (Technical cooperation) 2005 China Iron ore. 2006 Russia Fish & Fishery Products 2009 Brazil Fish & Fishery Products 2010Source: Department of CommerceExports During April-November 2010, the value of ex-The value of exports certified by the EIAs dur- ports certified by the EIAs was Rs. 56,090.9ing the year 2009-10 was Rs 10667.80 crore. millions as given in Table 6.2. Table: 6.2 Fees and Revenue Generation Products Certified for Exports The basic source of revenue of EIC/EIAs continues (Rs crore) to be from monitoring and inspection fees realized Group/Product Name Value of products for different notified and non notified products certified as well as certification under GSP and other Fish & fishery products 4038.54 preferential tariff schemes. The fee charged is at a Basmati rice 448.72 level of 0.4% of FOB value for products inspected Black pepper 92.55 under consignment wise inspection, while it is Egg products 106.57 0.2% of FOB value for products under systems Milk & milk products 800.97 certification. Poultry 4.48 Testing is mostly carried out for samples collected Honey 64.50 for the purpose of inspection & certification and Chemical & allied 5.04 are generally not charged, while some samples products are tested for other government departments and Engineering 19.63 industry on cost basis. Others schemes 28.09 Total 5609.09 The total revenue generated in 2009-10 by theSource: Department of Commerce organization was to the tune of Rs. 49.47 crore. The revenue realized between April-NovemberThe EIAs have also been authorized to issue various 2010 is Rs. 21.14 crores. The break-up of actualtypes of certificates such as health, authenticity, fees realised under various schemes and activitiesnon-genetically modified organism, etc. for during April-November 2010 is given in Table 6.3.consignments export. 85
  5. 5. Annual Report 2010-11 Table: 6.3 Break-up of Revenue realised under various SchemesSchemes/ Activities Actual Fees Realized till 30th Nov 2010Inspection & certification Fish & fishery products 760.03 Basmati rice 97.02 Black pepper 42.58 Egg products 32.81 Milk & milk products 94.83 Poultry 1.53 Honey 20.05 Chemical & allied products 2.16 Engineering 6.25Other Schemes 40.52Others Certification Schemes Total from Inspection & Certification 1097.78Certificate of Origin 997.17Other Income 20.00 Total 2114.95 86