Pre- Shipment Inspection and Quality

Control Act, 1963

ESTABLISHMENT & ROLE
The Export Inspection Council of India (EIC) was set up by the Government of
India under Section 3 of the Export (Quality Control & Inspection) Act, 1963 as
an apex body to provide for sound development of export trade through quality
control and pre-shipment inspection. The Act empowers the Central
Government to notify commodities and their minimum standards for exports,
generally international standards or standards of the importing countries and to
set up a suitable machinery for inspection and quality control. EIC is assisted in
its functions by the Export Inspection Agencies (EIAs) located at Chennai,
Kochi, Kolkata, Delhi and Mumbai having a network of 42 sub-offices and
laboratories to back up the pre-shipment inspection and certification activity.
The main functions of EIC are to advise the Central Government regarding
measures to be taken for enforcement of quality control and inspection in
relation to commodities intended for export and to draw up programmes for
quality control and inspection of commodities for exports. EIC, either directly
or through Export Inspection Agencies, its field organisations, renders services
in the areas of Certification of quality of export commodities through
installation of quality assurance systems (In-process Quality Control and Self-
Certification) in the exporting units as well as consignment-wise inspection and
Food Safety Management Systems in the food processing units as per
international standards, Issue of Certificates of Health and Certificates of
Authenticity to exporters, Issue of Certificate of Origin to exporters under
various preferential tariff schemes, Laboratory testing and Training and
technical assistance to the industry in installation of Quality and Safety
Management Systems based on principles of HACCP, ISO-9001: 2000,
ISO:17025 and other related areas.
In the WTO regime, as India's trading partners are installing regulatory import
controls, EIC has refashioned its role to introduce voluntary certification
programmes besides regulatory export control, especially in food sector, and is
seeking recognition for EIC's certification by official import control agencies of
its trading partners, as per provisions of WTO agreements, to facilitate easier
access to their markets for Indian exporters.
EIC has a Chairman and 17 members nominated by the Central Government
with Director (Inspection & Quality Control), EIC as Member Secretary, who is
also the Chief Executive of the organisation. EIC is located at YMCA Cultural
Centre Building at New Delhi while the EIAs and sub-offices are located all
over the country. During the year, a ready built space was procured for the EIA-
Chennai office and plots of land at Delhi and Kochi for construction of the
offices of respective EIAs.
NOTIFICATION OF COMMODITIES
Final Notification on export of Bivalve Molluscs was published as also
amendments to Notifications on fish and fishery products, egg products and
honey to incorporate provisions for maximum residue limits. A Notification
amending the standard on basmati rice was also published.
EXPORT CERTIFICATION SYSTEMS
The main systems of export inspection and certification being followed by EIC
include Consignmentwise inspection (CWI), In-process quality control (IPQC),
Self-certification (SC), and Food Safety Management Systems based
Certification (FSMSC).
Food Safety Management Systems based Certification has been aligned with
international standards on Hazard Analysis Critical Control Point (HACCP) /
Good Management Practices (GMP) / General Health Practices (GHP) in the
areas of fish & fishery products, egg products, milk products, poultry products
and honey. Under CWI samples, based on a laid down sampling plan are drawn
from the consignment, offered for inspection and tested against the specified
standards. The other three schemes follow a systems approach, which involves
approval of the units followed by periodic surveillance by EIAs.
The value of exports certified under each of the above systems is given below:

IMPLEMENTATION OF CERTIFICATION IN THE FOOD SECTOR

Fish & Fishery Products
In this area, 393 Fish and fishery products processing units (145 for EU and 217 for Non-EU
and 31 live fish processing units for Non EU) were on the approved list. All consignments of
shrimps meant for export to EU were issued health certificate only after testing and clearance
for banned antibiotics.

Egg Products & Honey

Under the system, four units of egg were approved by EIC/EIAs. Amendment to the Export
of Egg Product (Quality Control, Inspection and Monitoring) Rules, 1997 was published on
19 Dec 2003 by Govt of India banning usage of certain unauthorised substances, veterinary
drugs & pharmacologically active substances at all stages of production and export of egg
products. The amendments also give powers to the Council to take assistance of APEDA or
any other organisation approved by it for residue monitoring. Govt. of India issued a similar
final notification to include MRLs for veterinary drugs, other substances, environmental &
other contaminants in honey also on 19 December 2003.

Milk Products
During 2003-2004, 42 units were on the approved list. Further, a Residue Monitoring Plan
(RMP), prepared to monitor the residue status of milk products was implemented by EIC
through the Export Inspection Agencies (EIAs). The RMP as forwarded to EC is being
implemented on yearly basis for the Milk units approved under the notification. The testing
data under the RMP is under compilation.

RAW (chilled/frozen) Meat, Processed Meat and Animal Casings

EIC/EIAs are proposing to initiate certification in the area of Raw (chilled/ frozen) Meat,
Processed Meat and Animal Casings and have developed a scheme based on a system of
approval of Units. In the area of Poultry Meat and Meat Products, two units applied for
approval of which one unit was approved.

Other Schemes
Work has been initiated to develop voluntary schemes in the areas of Quality Control and
Inspection for Fresh Fruits and Vegetables for Exports, HACCP and Organic Certification
Schemes.

CERTIFICATES OF ORIGIN
Certificates of Origin are non-contractual instruments through which tariff concessions are
extended to goods originating in specific countries. There are six Schemes under which
goods originating in India are accorded preferential duty treatment by importing countries
namely Generalised System of Preferences (GSP), Generalised System of Trade Preferences
(GSTP), Bangkok Agreement, SAARC Preferential Trading Agreement (SAPTA), Indo-Sri
Lanka Free Trade Agreement (ISFTA) and Indo Afghanistan Free Trade Agreement
(IAFTA).
EIC, through EIAs, continued to issue a major share of Certificates of Origin under various
preferential tariff schemes in India. Around 8 lakhs Certificates of Origin were issued, during
the current financial year which is around 1 lakh more than in the previous year.
In this area the officials of European Court of Auditors visited India from 18 to 22 Dec 2003
to examine the norms laid down and procedures being followed in issuance of GSP
certificates for European Union. The team expressed satisfaction with regard to
implementation of the system in India.

LAB TESTING ACTIVITIES

In order to ensure acceptability of test results of EIA laboratories internationally, it is
essential that the international standard for quality system for laboratories i.e. ISO:17025 is
implemented. EIAs have prepared the basic document i.e. Quality Manual, Standard
Operating Procedures (SOP's) etc. and are in a phase of stabilising these. In the next financial
year, all documentation work as required under this standard would be completed and EIA
laboratories could go for accreditation under National Accreditation Board for Testing and
Calibration Laboratories (NABL).
The statistics in respect of number of samples tested are as given below:
2002-03 2003-04
58042 52201
To supplement the test facilities of EIAs, 5 labs have been approved by EIC namely SGS-
Chennai, SIIR-Bangalore and Delhi, Geochem-Mumbai and CIPET Chennai for various
products /parameters. During the year, Tea Board has enlisted Thoppumpady Laboratory,
EIA-Kochi for Quality Assurance of Tea on voluntary basis. Ministry of Health & Family
Welfare, has initiated a project on Networking of Food Laboratories to cope with the work
load of testing of imported food items. Based on an on-site assessment, EIA's labs at
Chennai, Kochi and Kolkata as well as PTH were identified for such testing. The supervisory
officers as well as analysts from these labs were given training in Central Food Laboratories
in Kolkata, Mysore and Pune during the year 2002-03 and 2003-04. Pilot Test House
continued its recognition by the Bureau of Indian Standards under its Laboratory Recognition
Scheme for testing of five electrical products as per relevant Indian Standards.

EIC Inspection Agency Recognition Scheme

EIC continues to recognize Inspection Agencies under the provisions of Section 7(1) of
Export (Quality Control and Inspection) Act, 1963. The Scheme has been aligned with the
international standard on acceptance of inspection bodies, ISO/IEC 17020:1998, to make the
same internationally acceptable w.e.f. 1 February 2002. 51 inspection agencies have applied
for recognition as per fresh norms out of which 18 Agencies have been audited and 7
recognised and for the others, the exercise is in progress.

HUMAN RESOURCE DEVELOPMENT

Training is an important component of building up human resources, both of the industry as
well as within the organisation. This aspect is being taken care of by the Human Resources
and Quality Development Centre (HR&QDC), which was set up in the organisation in May
2000. EIC has organised training programmes and seminars for its own personnel as well as
industry. For its own personnel training was organised in the areas of Certificate of Origin.
Refresher Training Programmes for Fish & Fishery certifying officers, Quality Management
Systems, besides rice certification, milk quality control and testing, computerisation,
administration, accounts and vigilance. More than 500 officials were given training in above
areas.
14 Programmes were organised during the year for exporters on Quality Certification and
Certificates of Origin to make them aware about the provisions of various Preferential Tariff
Schemes, the Rules of Origin and the procedure for issue of such certificates by EIC/EIAs, as
also certification activities. Two programmes were also organised in educational institutions
namely Haryana Agriculture University, Hissar and Fortune Institute of International
Business, New Delhi.
Officials were trained in Basmati Rice, HACCP & Milk Products for Certifying/ Monitoring
and Testing activities including, Quality Management Systems, Administrative, Vigilance
and Accounts functions and Computer.

INTERNATIONAL ACTIVITIES
Participation in International Events
EIC/EIAs officials participated in "Second International Workshop on Microbiological risk
Assessment and Mitigation" from 19-23 May 2003 at Paris, France, "5th World Fish
Inspection & Quality Control Congress" from 19-23 October 2003 at The Hague,
Netherlands and Codex meetings including 26th Session of Codex Committee on Fish &
Fishery Products held from 11-17 October 2003, Aluesund, Norway; Drafting Group
Meeting of Principals for Microbiological Risk Management, from 3-6 June 2003 at
Brussels, Drafting Group meeting for revision of document relating to exchange of
information in food safety emergency situations held in Brussels in August 2003, 12th
session of the Codex Committee on food Import and Export Inspection & Certification
Systems held in Brisbane from 1 to 5 December 2003, HPLC MSMS training in USA from
1-4 December, 2003 & Sanitation Control Procedure and HACCP training in Thailand,
Bangkok from 27-30 January, 2004

Assessment by EC & USFDA teams

A team comprising 4 inspectors from Food and Veterinary office of European Commission
visited India from 14 to 22 October 2003 to assess the adequacy of implementation of the
Residue-Monitoring Plan (RMP) in aquaculture farms, egg and Honey processing areas. The
team visited fish processing plants, egg processing plants, layer hen farms, aquaculture
farms, feed mixing plants, a honey collection centre and veterinary drugs outlets and also
interacted with private veterinary practitioners . The team also visited various laboratories of
CIFT-Kochi, EIA-Chennai and MPEDA-Kochi besides two privately owned laboratories at
Bangalore and Delhi.
Assessment report of the team with recommendation had been received and the same has
been circulated for compliance by all concerned including EIAs and processing units and is
being monitored by the Competent Authority regularly.
A team comprising 3 delegates from USFDA visited India from 5 to 28 September, 2003 to
assess the approved Fish & Fishery Products (F&FP) establishments with a view to ensure
that HACCP is being properly implemented. The team visited 10 approved plants located at
Mumbai, Chennai and Kochi have given their observations/suggestions which are being
implemented by the units.

MOUs/ Agreements with Overseas Bodies

EIC continued its activities towards working with overseas governments for negotiating
Agreements in the area of Conformity Assessments. Some significant highlights relating to
MOUs on which actions have been initiated by EIC during the year are given below:
(i) Mutual Recognition Agreement with Singapore : Under this Mutual Recognition
Agreement (MRA), significant progress has been made during the year. The Sectors
identified include food & agricultural products; electric and electronic products;
telecommunication equipment and drugs & pharmaceuticals;
(ii) MOU with Nepal
EIC has initiated dialogue with Nepal Department of Commerce, both for recognition of EIC
certification by their relevant authorities and also for implementing an export certification
scheme in their country and working with the Indian Health and other authorities for
acceptance of the products under such certification without re-inspecting and testing at
importing end. Some discussions with the Nepal authorities and trade have been already held
by Director, EIC who visited Nepal in November and during the Commerce Secretary level
ICC talks. The Nepalese side also visited India form 22-24 March 2004 to assess EIC's
certification system specifically for dairy sector.
(iii) MOU with Sri Lanka Standards Institution (SLSI), Sri Lanka.
A team from SLSI, Sri Lanka visited India to assess EIC's system of certification in May
2003, the formal report of which is still awaited. In the meantime, Secretary level talks were
held between the two countries on 18-19 July 2003, wherein the Sri Lankan side confirmed
that the report has been accepted and the Sri Lankan side agreed to send the same. Thereafter
the MOU would be made operational. It was also agreed that a reciprocal MOU would be
signed for recognition of their export certification to meet Indian import requirements. This
would however require SLSI to set up an export certification scheme, which India would
recognise.

Others
Further, MOUs on Conformity Assessment with Korea, Bangladesh, Libya, Thailand,
Mexico, Israel, New Zealand, Ethiopia, Australia for extension of scope etc. have been under
discussion.

Corporate Audit
A system of corporate audit of all activities EIAs by EIC is in existence with the twin
objectives of checking compliance to and effectiveness of our systems as well as building
accountability. During the year, Corporate Audits were carried out at EIA-Kochi for Fish &
Fish Products scheme and of Sub office Banglore for issue of Certificates of Origin, EIA
Chennai for Fish & Fish Products, Milk and Egg Products scheme, EIA Mumbai for issue of
Certificate of Origin and a comprehensive audit of EIA-Delhi for Milk and Rice Schemes
including laboratory activities and for issue of Certificates of Origin.

COMPUTERIZATION ACTIVITIES
Under the Integrated Computerisation Project (ICP), System Requirements Specifications
and Design documents for 19 modules have been studied and finalised. Software
development work for web based centralised solution is in progress and is expected to be put
in place very shortly.
VISIT OF RAJYA SABHA COMMITTEE ON SUBORDINATE LEGISLATION
A committee on subordinate legislation, Rajya Sabha discussed various matters on the export
of milk products (Quality Control Inspection and Monitoring) Rules 2000 with the senior
officials of MOC & I and representatives of the Export Inspection Council of India at
Mumbai on 4th 5th July, 2003.