IMPORTANCE OF QUALITY CONTROL AND PRE SHIPMENT INSPECTION IN INTERNATIONAL TRADE

Goods are not to be shipped unless they are of quality. If quality standards are not maintained, exporter's image gets ruined and further chances of export orders come to a virtual close. Normally, quality brings repeat orders to the exporters and so exporters should not take the slightest chance in respect of goods exported outside the country. Even the image of the country would be at stake and so the Government has taken several measures to maintain high standard of quality in respect of exports. One of the important measures taken by the Government to maintain stringent quality, Export (Quality Control and Inspection) Act, 1963 has been passed. The Act empowers to bring any commodity within its purview. Once notification is made in respect of any commodity under this Act, that commodity can not be exported unless a certificate of export-worthiness is obtained from the Export Inspection Council (EIC) or any other approved authority, authorized in this matter. The Indian Customs authorities require the inspection certificate issued by the designated agency before permitting the goods for shipment.

Inspection of goods may be conducted under

(j) Consignment-wise inspection

(ii) In-process Quality Control and

(iii) Self-Certification

In respect of consignment-wise inspection, before the excise authorities seal the packs, the process of pre-shipment inspection must be completed. Once production is completed, production department should submit an application to the prescribed agency on the prescribed form known as 'Notice of Inspection' with the following documents.

(i) A copy of the Commercial Invoice

(ii) A copy of the Export contract

(iii) Importer's technical specifications and/or approved sample

(iv) Demand draft covering the prescribed fee.

 

After inspection, the Export Inspection Agency gives the Certificate of Inspection, in triplicate. Exporter has to submit the original certificate to the customs authorities for granting approval for shipment of goods. Second copy is sent to the importer along with the documents and the third copy is retained by the exporter for his record.

In respect of those industries which have continuous processing activity and established in-process quality control infrastructure and checks, they can submit their request application to Export Inspection Agency for recognition as Export Worthy Units or Adequacy of IPQC Units. After inspection of the facilities and procedures followed for quality control by a panel of experts appointed by EIA, the manufacturing units are given the approval. After completion of production, the export worthy unit conducts its own inspection and gives a declaration about the quality control. Based on the declaration of the unit, EIA gives the certificate of quality inspection. EIA does not make any separate inspection. ETA makes periodical review of the working of the units and makes suggestions for improvement.

Under the system of Self Certification System, the manufacturing units which have proven record of maintenance of quality can issue pre-shipment inspection certificate themselves. Now specified categories of exporters can avail self-certification scheme.

 

METHODS OF QUALITY CONTROL AND PRE-SHIPMENT INSPECTION

 

There are three methods of quality control and inspection. They are:

CONSIGNMENT-WISE INSPECTION

Under this system, each consignment, in packed condition, is subjected to detailed inspection by the Export Inspection Agencies. They conduct the inspection on the basis of statistical sampling plan. If the goods conform to the stipulated quality, they issue the inspection certificate. The certificate also carries a validity period before which the export consignment must be shipped. In case of consignment-wise inspection, actual export consignment, in packed condition, is taken for inspection.

No consignment of any notified commodity is allowed to be exported without the certificate issued by the recognized inspection agency. This system is applicable to all commodities other than those that undergo in-process quality control. Generally, Small-scale manufacturers who cannot afford to have their own facilities and personnel adopt consignment-wise inspection certificate procedure.

IN-PROCESS QUALITY CONTROL

Certain commodities like paints and allied products, linoleum, ceramics, printing ink, sanitary wares etc. come under the purview of In-process quality control.

In case of continuous process industries, an option is given to them to become approved "export-worthy" unit, as they possess the requisite infrastructure for manufacturing/processing products of standard quality. This status enables them to conduct inspection and give declaration and based on their declaration, they get inspection certificate.

SELF-CERTIFICATION

With the experience gained in operating the compulsory Quality Control and Pre-Shipment Inspection Scheme in India, there has been a qualitative change in the inspection system also. Recently, a self-certification system has been introduced. This is based on the concept that the manufacturing unit which has in-built responsibility for quality control should have the freedom to certify its own product for export.