» Pre Shipment Inspection

The Government of India had enacted export (quality control and inspection) act, 1963, which came into force from January 1, 1964. The Government of India had set up export inspection councils (EIC) to provide the sound development of the export trade through quality control and pre shipment inspection. The Government has prescribed standard of quality and inspection of various commodities meant for export.

The Government of India notified 1057 items under the compulsory quality control and pre shipment inspection. These items related to the product group of

* Engineering products
* Chemical and allied products
* Food and agricultural products
* Jute and jute products
* Coir and coir products
* Footwear and footwear components
* Cashew
* Fish and fish products

System of inspection

There are three systems of inspection. These are

* Consignment inspection
* In - process quality control
* self- certification scheme.

Consignment inspection

Under the Consignment wise inspection system, each export consignment is inspected and tested by the recognized inspection agencies. The selection of the items is made on the basis of statistical plan to satisfy conformity of the product with the prescribed standard. After inspection, the recognizes inspection agency issue the pre shipment inspection certificate to the exporter.
The exporter giving the detail of the shipment to the ispection agency along with the following documents atleast 7 days in advance of the expected date of shipment/dispatch should make application for pre shipment inspection.

* Copy of contact
* Detail of packing specification
* Commercial invoice giving evidence of the FOB valve
* Fee of inspection by check/Demand draft

. The inspection fee is generally 0.4% of FOB value of shipment. the ispection agency will depute an inspector to conduct the pre shipment inspection at the expoter factory or warehouse.
After the satisfactory completion of the inspection a certificate of inspection is issued to the exporter, which he has to submit to the export department of custom, for the clearance of export cargo.

In - process quality control

In - process quality control units are issued pre shipment inspection certificate on request by EIA. Such units have to submit a statement of certificate issued in respect of various shipments during a months. the statement must be submitted by 15 day of the following months. the inspection fee is 0.2% of FOB value of each consignment and is to be remitted along with monthly statements

In - self- certification scheme

The manufacturing units which have proven record of maintenance of quality are given have record of maintenance of quality are given of self-certification so that they can issue pre shipment inspection certificate themselves. The unit will be well equipped with testing facilities. The unit indenting to avail of this facility should apply to the director (inspection and quality control). The director, while considering the application, will inspect the manufacturing unit for proper maintenance and testing facilities provided in the units, these units are required to pay a fee at the rate of 0.1% of FOB value subject to a minimum of Rs 2500 and maximum of Rs 1 lacks in 1 year and the recognition may be extended if the manufacturing unit continues to fulfill the recognized norms.

Fumigation

The export of goods prone to infestation in storage and transit are subjected to compulsory fumigation to ensure that the goods reach their destination in safe condition. Such goods include de-oiled rice bran, crushed bones, hooves and horns.

ISI/AGMARK Units

ISI/AGMARK are invariable recognized as a mark of adequate quality foe export purpose. Products manufactured by the units, which are allowed to use ISI/AGMARK, are not required to be inspected by any inspection agency. The custom authorities will allow the export of product of purpose marked ISI or AGMARK without any pre shipment inspection certificate.

ISI/Appeal against rejection

If the consignment is not approved for export, the concerned EIA will issue a rejection note. An exporter can file an appeal against rejection within 10 days of the receipt of rejection note to the EIA. The EIA will convene the meeting of the application panel to examine the consignment, if deemed necessary. The decision of panel will be final.

Exemption from pre shipment inspection

* Export house, star export house, trading house, star trading house, premier trading house have been exempted from the preview of compulsory pre shipment inspection.
* 100% EOUs and units set up in EPZ/FTZ/SEZ are exempt from pre shipment inspection.