QUALITY CONTROL & CERTIFICATION FOR

FACILITATING EXPORTS

EICJanuary 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 SCENARIOEXPORT 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 Inspection & Certification to address health & safety address health & safety

concerns of importing countriesconcerns of importing countries mandatory – 6 items (marine, dairy, egg, poultry, meat mandatory – 6 items (marine, dairy, egg, poultry, meat

products and honey)products and honey) Voluntary – tea, spices, basmati rice, herbal, Voluntary Voluntary – tea, spices, basmati rice, herbal, Voluntary

food scheme, HACCP, organic, feedsfood scheme, HACCP, organic, feeds Issue of all types of export certificates-GMO, health, etcIssue of all types of export certificates-GMO, health, etc

• Recognition/ Designation ActivitiesRecognition/ Designation Activities• Equivalence Agreements/MOUs with trading partners for Equivalence Agreements/MOUs with trading partners for

recognition of EIC’s certificationrecognition of EIC’s certification• Addressing Non-tariff Issues through dAddressing 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 Legislative Framework OrderOrder

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

RulesRulesLaid down for implementation of OrderLay 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 & OperationsControl Programmes & Operations• Systems of Certification Systems of Certification

Consignment wise inspectionConsignment wise inspectionSystems approach (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&FWPesticide 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 & HygieneSanitation & Hygiene• Process controlsProcess controls• Implementation of HACCP planImplementation of HACCP plan• RecordsRecords• Observe testing by laboratoriesObserve testing by laboratories• Draw samples of raw materials, water , ice, Draw samples of raw materials, water , ice,

finished products, swabs of workers hands and finished products, swabs of workers hands and work placeswork places

•SUPERVISORY VISITS TO CHECK• Compliance to norms by processorsCompliance to norms by processors• Quality and correctness of monitoring by EIA Quality and correctness of monitoring by EIA

officers.officers.•CORPORATE AUDITS

• Independent audit by EIC to verify operation of Independent audit by EIC to verify operation of scheme by EIAs as per documented systems.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 takenProdn & export stopped till corrective actions taken• Show cause why approval not withdrawnShow cause why approval not withdrawn

•Corrective actions taken and verified• Satisfactory; resume production and exportsSatisfactory; resume production and exports• Officer deputed for10-30 days; 10 consignments tested Officer deputed for10-30 days; 10 consignments tested • If unsatisfactory, then approval withdrawnIf 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 oreRecognizing 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

• ECEC - Designated CA for marine products & - Designated CA for marine products & basmati rice; dialogue on for dairy, egg, poultry basmati rice; dialogue on for dairy, egg, poultry meat, honeymeat, honey

• USA (USFDA)USA (USFDA) - recognized for Black Pepper – no - recognized for Black Pepper – no detention if accompanied by EIC certificate; detention if accompanied by EIC certificate; started dialogue for poultrystarted dialogue for poultry

• SingaporeSingapore – MRA in area of food & agri, electrical – MRA in area of food & agri, electrical & electronics, drugs, telecommunication& electronics, drugs, telecommunication

• Australia (AQIS)Australia (AQIS) - recognized for marine products - recognized for marine products – seeking for dairy, spices, honey, etc – seeking for dairy, spices, honey, etc

• Sri Lanka (SLSI)Sri Lanka (SLSI) - recognized for 85 regulated - recognized for 85 regulated prods (food, cement, engineering/electrical, etc)prods (food, cement, engineering/electrical, etc)

EQUIVALENCE AGREEMENTS/MOUs/MRAs -2

• Italy – Italy – fish & fishery productsfish & fishery products• Japan – Japan – recognized EIC certification for poultry recognized EIC certification for poultry

products wef 13 October 2005products wef 13 October 2005• Turkey – Turkey – recognized EIA health certificates for all recognized EIA health certificates for all

food items, stainless steel utensils & packaging food items, stainless steel utensils & packaging material for foodsmaterial for foods

• S.Korea (KFDA)S.Korea (KFDA)- recognised for food/ agriculture - recognised for food/ agriculture prodsprods

• ChinaChina – Agreement on Iron ore finalized – Agreement on Iron ore finalized• Nepal – Nepal – all agriculture & food productsall agriculture & food products• OthersOthers - EU (France), Mexico, Bangladesh, Saudi - EU (France), Mexico, Bangladesh, Saudi

Arabia, Libya, Pakistan, Mauritius, Thailand, Arabia, Libya, Pakistan, Mauritius, Thailand, JapanIndonesia, MalaysiaJapanIndonesia, Malaysia

STEPS TO ENHANCE CREDIBILITY OF EIC CERTIFICATION

• Upgraded to bring certification in line with int standardsStreamlined existing schemes in line with int reqtsDeveloped RMPs in line with reqts of importing countries Monitoring based on risk-based inspection & certification

• Upgrading Conformity Assessment InfrastructureLegislative 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 PlanExporters : 48 Programs; 3211 participants Own manpower :58 Programs; 1187 participants

• EU TIDP Projects

STEPS TO ENHANCE CREDIBILITY OF EIC CERTIFICATION

• Systems UpgradationStreamlined existing schemes in line with int reqtsDeveloped RMPs in line with reqts of importing

countries Monitoring risk-based

• Upgrading CA InfrastructureLegislative frameworkInfrastructural facilities

Laboratories (equipment/methods/systems, manpower) Computerization

• Upgrading Manpower: Trainings – 10th PlanExporters : 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

THANK YOU