QUALITY CONTROL & CERTIFICATION FOR FACILITATING EXPORTS EIC January 2008

COVERAGE Export Quality Control – A background EIC/EIA Structure EIC – role in exports Equivalence Agreements/ MoUs/ MRAs Steps to enhance credibility of EIC certification EIC- Important contributions Vision Cooperation in Conformity Assessment Activities – EIC focus

Q- IMPORTANCE FOR EXPORT Demand for quality by consumers, both domestic & overseas With globalization - WTO - dismantling of barriers for free flow of trade-creation of global market with equal access to all countries Strong need to focus on quality for overseas consumer Additionally governments realized their role to protect health & safety of populations Quality, safety issues have acquired centrestage in global trade Both role of industry & government important Government role in facilitation is twofold - building up capabilities of industry and Quality certification

BENEFITS OF Q CERTIFICATION Help to build image of country as ensures that inferior quality product not exported Minimizes trade impediments by reducing time for testing at importing end Minimize/eliminate rejections at importing end More cost effective as cost of recall, destruction & diversion of consignments minimized Reduce variation in Q due to production by small enterprises Helps in capacity building in country Provides protection to consumers of importing country as broad objective is to meet importing requirements

EXPORT QUALITY CONTROL SCENARIO The importance of quality control for exports recognized as early as 1963 & GoI enacted the Export (QC&I) Act, 1963 – an umbrella Act governing quality of exports EIC set up to advise Government on measures for sound development of exports through Quality Control & inspection to include notification of standards certification systems (CWI/Systems Approach) Agencies for QC & I established/ recognised EIC operates certification through 5 EIAs at Mumbai, Kochi, Kolkata, Delhi & Chennai; 38 Sub-offices & labs & other designated CABs

EIC / EIA Network

EIC-ROLE IN EXPORT Inspection & Certification to address health & safety concerns of importing countries mandatory – 6 items (marine, dairy, egg, poultry, meat products and honey) Voluntary – tea, spices, basmati rice, herbal, Voluntary food scheme, HACCP, organic, feeds Issue of all types of export certificates-GMO, health, etc Recognition/ Designation Activities Equivalence Agreements/MOUs with trading partners for recognition of EIC’s certification Addressing Non-tariff Issues through dialogue with overseas governments on concerns & taking up at various international fora Capacity Building - training

EXPORT CONTROL SYSTEMS IN INDIA 1 Legislative Framework Order Lays down minimum standards-recognizes International, importing country & contractual standards Refers to Rules for type of QC, inspection & monitoring Prohibits Exports – unless product conforms to standard & accompanied by certificate stating that unit approved & monitored by CA Rules Laid down for implementation of Order Lay down systems of certification for implementation of Order ie reqts for hygienic handling of products including HACCP if specified Lay down the basis of compliance - Responsibility of processor & EIC

EXPORT CONTROL SYSTEMS IN INDIA 2 Control Programmes & Operations Systems of Certification Consignment wise inspection Systems approach (Food Safety Mgmt Systems Based Certification) Basis of compliance Primary responsibility on processor – plan & implement in-process controls, develop own-check systems, maintain records EIC to approve & ensure compliance Approval of units – through a 2 level process – conditional & final - IDP conducts two assessments Period of Approval – 2 years

EXPORT CONTROL SYSTEMS IN INDIA 3 Aspects covered - GMP/GHP/HACCP - Minimum test facilities - Waste disposal/Effluent treatment mechanism,pest control - Record keeping mechanism - Competence of technical manpower - Conformance of products to standards Compliance ensured through 3-tier surveillance system Testing as per latest technology & systems requirements Residue monitoring and control Complaint handling system including dealing with returned consignments

TESTING Laboratory Testing - Purpose Support for Export Inspection & Certification Commercial testing (facilities extended to industry) Import testing of food items-EIA Labs identified by MoH&FW Pesticide residues for National RMP by MoA Parameters tested - Pesticide residues, antibiotic residues, heavy metals, microbiological parameters, water as per EC directives Total laboratory infrastructure – 5 labs at EIAs, 13 SO labs for microbiological testing, 11 recognized labs Accreditation Status – Koch accredited; Mumbai, Chennai & Kolkatta in process

UNITS APPROVED Marine : 368 (189 EU) Dairy : 55 egg : 3 Poultry : 4 Honey : 2 Rice : 6 black pepper : 8 others- ice plants, cold storages, etc : 70 (23 CS for EU), Engineering : 22 Footwear : 2 Chemicals :8

3-TIER SURVEILLANCE SYSTEM MONITORING BY EIA OFFICIALS TO VERIFY Sanitation & Hygiene Process controls Implementation of HACCP plan Records Observe testing by laboratories Draw samples of raw materials, water , ice, finished products, swabs of workers hands and work places SUPERVISORY VISITS TO CHECK Compliance to norms by processors Quality and correctness of monitoring by EIA officers. CORPORATE AUDITS Independent audit by EIC to verify operation of scheme by EIAs as per documented systems.

COMPLAINT HANDLING PROCEDURE Complaints received Unit placed on Alert ( increase monitoring; 10 consignments tested) Investigation – visit to unit/information from processor Satisfactory – ‘on alert’ continues Unsatisfactory - consignments contaminated/ unsatisfactory hygienic conditions/ samples fail Prodn & export stopped till corrective actions taken Show cause why approval not withdrawn Corrective actions taken and verified Satisfactory; resume production and exports Officer deputed for10-30 days; 10 consignments tested If unsatisfactory, then approval withdrawn

RECOGNITION/DESIGNATION ACTIVITIES Streamline Inspection/ Certification/ Testing For Export Approving inspection Agencies as per latest international standards ISO 17020 for iron ore Recognizing labs as per international criteria (ISO 17025) for export testing to supplement own capabilities – 11 recognized EIC Central Monitoring Authority for coordinating and monitoring certification in area of meat and meat products – procedure recently developed Role of Designating Authority under Singapore MRA for electrical & electronics products EU countries also taking services of designated bodies including private – accreditation not pre-requisite

EQUIVALENCE AGREEMENTS/MOUS/MRAS -1 EC - Designated CA for marine products & basmati rice; dialogue on for dairy, egg, poultry meat, honey USA (USFDA) - recognized for Black Pepper – no detention if accompanied by EIC certificate; started dialogue for poultry Singapore – MRA in area of food & agri, electrical & electronics, drugs, telecommunication Australia (AQIS) - recognized for marine products – seeking for dairy, spices, honey, etc Sri Lanka (SLSI) - recognized for 85 regulated prods (food, cement, engineering/electrical, etc)

EQUIVALENCE AGREEMENTS/MOUs/MRAs -2 Italy – fish & fishery products Japan – recognized EIC certification for poultry products wef 13 October 2005 Turkey – recognized EIA health certificates for all food items, stainless steel utensils & packaging material for foods S.Korea (KFDA)- recognised for food/ agriculture prods China – Agreement on Iron ore finalized Nepal – all agriculture & food products Others - EU (France), Mexico, Bangladesh, Saudi Arabia, Libya, Pakistan, Mauritius, Thailand, JapanIndonesia, Malaysia

STEPS TO ENHANCE CREDIBILITY OF EIC CERTIFICATION Upgraded to bring certification in line with int standards Streamlined existing schemes in line with int reqts Developed RMPs in line with reqts of importing countries Monitoring based on risk-based inspection & certification Upgrading Conformity Assessment Infrastructure Legislative framework Infrastructural facilities Laboratories (State-of-the-art equipment - parameters include pesticide/ antibiotic residues, heavy metals, microbiology, water as per EC; systems as per ISO 17025) Computerization - Streamlining CoO activity, providing online services to exporters Upgrading Manpower: Trainings – 10th Plan Exporters : 48 Programs; 3211 participants Own manpower :58 Programs; 1187 participants EU TIDP Projects

STEPS TO ENHANCE CREDIBILITY OF EIC CERTIFICATION Systems Upgradation Streamlined existing schemes in line with int reqts Developed RMPs in line with reqts of importing countries Monitoring risk-based Upgrading CA Infrastructure Legislative framework Infrastructural facilities Laboratories (equipment/methods/systems, manpower) Computerization Upgrading Manpower: Trainings – 10th Plan Exporters : 48 Programs; 3211 participants Own manpower :58 Programs; 1187 participants,

IMPORTANT CONTRIBUTIONS OF EIC Increase in exports Year 2005-06 2006-07 marine products Value (cr Rs) 6646 8000 Quantity (lakh mt) 4.61 5.16 Access of Indian products in foreign markets – Poultry products in Japan, egg products in Singapore, marine products in EC Reductions in rejections by EC – fish & fishery prods Streamlining exports through MRA/ Equivalence Agreements Helping industry build up facilities indirectly through constant monitoring of requirements of infrastructure, HACCP,

VISION FOR EIC Facilitate worldwide access for Indian Exports through a credible and efficient inspection and certification system and earn global recognition of EIC as India’s premier organization for certifying quality and safety to meet international norms

Cooperation in Conformity Assessment Activities – EIC focus Work towards acceptance by USA of products exported from India based on implementation of registration & certification programs (voluntary & mandatory) as per US requirements with minimal import checks Work out joint systems for dealing with rejections including joint testing, strengthening registration & certification systems Work out information sharing mechanisms especially on legislative & regulatory requirements; inspection, sampling & test methods & procedures Cooperation in areas of manpower upgradation & exchange of technical expertise Input US regulatory requirements productwise on existing EIC portal on food products

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