1) The Export Inspection Council of India (EIC) oversees quality control and pre-shipment inspection to facilitate Indian exports and help exporters comply with other countries' import regulations. 2) EIC works with five Export Inspection Agencies located in major Indian cities that conduct inspections using different approaches like consignment-wise, in-process quality control, and food safety certification. 3) EIC is strengthening laboratory capabilities, certification programs, and agreements with other countries to help gain recognition for Indian exporters and easier access to international markets.

1. Chapter-6
Quality Control and Preshipment Inspection
Introduction Inspection Agencies (EIAs) located at Chennai,
Kochi, Kolkata, Delhi and Mumbai having a network
With the establishment of the World Trade
of 35 sub-offices and laboratories to back up the
Organisation in 1995 and implementation of
pre-shipment inspection and certification activity.
Agreement on Sanitary and Phyto-sanitary (SPS)
In addition, EIC also designates inspection agencies
measures, countries all over the world started
and laboratories to supplement its own activities
enforcing stricter measures to protect health
as required.
and safety of their consumers by introducing
regulatory import controls, especially in the food The main functions of EIC are (i) to advise the central
sector. Introduction of regulatory import controls government regarding measures to be taken for
has been causing problems to the Indian exporters enforcement of quality control and inspection in
in terms of multiple inspections, rejections and relation to commodities intended for export and
recall/destruction of consignments found not (ii) to draw up programmes for quality control and
conforming 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 carried
Export 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 include
export targets and to achieve them. In-process Quality Control (IPQC), Self-Certification
Export Inspection Council of India (EIC) and Food Safety Management Systems based
Certification (FSMSC).
The Export Inspection Council of India (EIC) was set
up by the Government of India under Section 3 of In the changing global scenario, as India’s trading
the 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 voluntary
of export trade through quality control and pre- certification programmes besides regulatory
shipment inspection. The Act empowers the export control, especially in the food sector. The
Central Government to notify commodities and Council is seeking recognition for its certification
their minimum standards for exports, generally by official import control agencies of its trading
international standards or standards of the partners, as per provisions of WTO agreements, to
importing countries, and to set up suitable facilitate easier access to their markets for Indian
machinery for inspection and quality control. exporters.
The EIC is assisted in its functions by the Export
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2. CHAPTER-6 Quality Control and Preshipment Inspection
Activities and Achievements which was signed in March 2006 and implemented
w.e.f August 2007. During the year 2009-10, the
Export Certification
EIAs issued 9,35,126 preferential tariff certificates
Certification continued to be mandatory in the under various preferential tariff schemes. During
areas of fish & fishery products, milk products, April-November 2010, the number of certificates
poultry products, egg products, meat & meat issued by the EIAs under various preferential tariff
products and honey. The EIAs also continued to schemes were 5,21,134.
certify other notified products such as basmati rice,
Strengthening Laboratory Capabilities
black pepper, chemicals, footwear, engineering
items, etc and non-notified products such as tea, EIC is also concentrating on strengthening of its
stainless 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 Kollam
certification regime of EIC. These included products were upgraded with new equipment including
such 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 Spectrometry
Residue Monitoring
(GCMS), Gas Chromatography High Resolution
Implementation of ‘residue monitoring’ continues Mass Spectrometry (GCHRMS) etc. depending on
to be an important area. Residue Monitoring the requirements. Laboratories of EIC and EIAs
Plans have been implemented in the fisheries, at Chennai, Mumbai, Kochi and Kolkata have
dairy, poultry, honey and egg sectors. During implemented the system of ISO 17025 and have
2009-10, a total number of 477 samples were been accredited by the National Accreditation
tested. During April-November 2010, 274 samples Board for Testing and Calibration Laboratories
have 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 routine
and other chemicals as required by the European
microbiological and some heavy metal testing.
Commission.
These EIAs’ sub-office laboratories were also
Certificates of Origin prepared for implementation of ISO 17025 and
EIC/EIAs have continued to issue Certificates of basic documents have been developed. A total of
Origin under various preferential tariff schemes, 24,314 samples have been tested in EIA labs up to
namely Generalized System of Preferences (GSP), November 2010.
Global System of Trade Preferences (GSTP), Strengthening Manpower
SAARC Preferential Trading Arrangement (SAPTA),
EIC continued its efforts to train both the internal
South Asian Free Trade Area (SAFTA), India-
manpower as well as have awareness programmes
Afghanistan Preferential Trade Agreement (IAPTA),
for the industry. Till March 2010, 25 programmes
Indo Sri Lanka Free Trade Agreement (ISFTA),
were held for internal manpower in which 512
Comprehensive 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 were
Indo-Thailand have been issued. A new preferential
given exposure. The basic areas which were covered
tariff scheme was introduced under Indo-Chile PTA
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3. Annual Report 2010-11
included 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 life
Point (HACCP), computerisation, laboratory testing and as the current market requirements demand
etc. digital certification besides more efficient and user
Computerization and Modernization friendly approach, the EIC has decided to revamp
the modules taking advantage of the technological
Under 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 a
organisation were divided into 19 modules, which
suitable Software Service Provider for undertaking
were further divided into Part A and Part B. Part
the job.
A modules of the software contain main areas of
work of the organisation like Certificate of Origin, Agreements with Other Countries
Export Inspection and Certification and Testing Continued efforts were made towards entering into
Laboratories. Part B modules of the software Memoranda of Understanding (MoUs)/ Mutual
primarily contained back-office operations like Recognition Agreements (MRAs)/ Equivalence
Training, Payroll, Vigilance, Legal cell etc. System Agreements with the major trading partners so that
Requirements 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 negotiating
activities of the organisation and back-office agreements with Italy for sesame seeds, Israel
operation were studied and finalized. for food & agricultural items, Brazil for fishery
Automation of business processes of EIC/EIAs was products, Malaysia for groundnuts and Australia
started with the development of a module for for egg products. Further discussions were also
processing 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 Agreement
other activities, such as Inspection and Certification, with Singapore in the electrical and electronics
Laboratory Testing, Training, Payroll etc. sector was further streamlined. The status of the
existing MoUs/ MRAs/equivalence agreements is
The 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 certification
Country Products covered Year of Agreement/
Recognition
USA Black Pepper 1988
European Fish and Fishery Products, Basmati Rice 1997
Commission
Australia Fish & Fishery Products 2002
Korea Frozen marine products, processed spice goods, processed nuts, 2004
tea, honey, jam, preserved goods, sauce, sugar
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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 2010
Source: Department of Commerce
Exports During April-November 2010, the value of ex-
The value of exports certified by the EIAs dur- ports certified by the EIAs was Rs. 56,090.9
ing 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 the
Source: Department of Commerce organization was to the tune of Rs. 49.47 crore.
The revenue realized between April-November
The EIAs have also been authorized to issue various
2010 is Rs. 21.14 crores. The break-up of actual
types of certificates such as health, authenticity,
fees realised under various schemes and activities
non-genetically modified organism, etc. for
during April-November 2010 is given in Table 6.3.
consignments export.
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5. Annual Report 2010-11
Table: 6.3
Break-up of Revenue realised under various Schemes
Schemes/ Activities Actual Fees Realized till 30th Nov 2010
Inspection & 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 6.25
Other Schemes 40.52
Others Certification Schemes
Total from Inspection & Certification 1097.78
Certificate of Origin 997.17
Other Income 20.00
Total 2114.95
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