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Export Quality Control and Inspection Act

Last updated : December 9th, 2022 11:20 am

Export Quality Control and Inspection Act

The Export Quality Control and Inspection Act were enacted in the year 1963 to improve the overseas trade of India through quality management, assessment, and other matters. This Act has undergone many changes as per the need of the policies as and when required. This Act is applicable throughout India.

Functions of the Council

• We are taking measures to enforce quality control and inspect commodities intended for export.
• Scheduling programs on granting aid to the exporting agencies deemed fit for quality control and inspection.
• It is adding a workforce with specialized knowledge and practical experience in matters of trade and commodity.
• The Council may also have specialist committees to investigate issues relevant to its roles.

Following are the orders or directions given by the Central Government from time to time.

Quality Control and Inspection

The Central Government, after discussions and agreement with the Council, will publish in the Official Gazette on:

• It notifies exporters of commodities/materials that must go through quality control, inspection, or both processes before export.
• You specify the quality control or inspection processes applied to a notified commodity/material.
• I am setting up one or more standard specifications for an informed commodity/material.
• They prohibit the international export of a commodity if a certificate of approval by the Central Government does not accompany it.

Rules

The Central Government makes the rules and is notified in the Official Gazette. These rules are framed without bias. Regulations may provide for the following:

• Travelling and DA are payable to members of the Council.
• Persons co-opted under this Act.
• Functions of the Council
• Appointment of officers and other employees of the Council
• Procedure to be followed for various types of quality control and inspection
• Conditions that a testing house, surveyor, or sampler should satisfy for purposes of approval by the Central Government
• Fees are chargeable for examination and issue of approval export certificates.
• Standard in which accounts of the Council need to be maintained and audited

Recognize Marks to Denote Conformity with Standard Specifications

• The Central Government may accept any mark concerning a notified commodity to signify that such merchandise/products conform to standard specifications.
• This above mentioned applies to:
  • Any mark/seal applied to a notified commodity
• Any covering containing or label attached to it
• Officers or customs may check goods or merchandise if they have any questions about the genuineness of the seal.

Obtain Information from Exporters

• The Central Government or any officer can notify exporters to furnish information on products, individuals involved in the manufacture of products, individuals dealing in commodities for exports

To Enter, Inspect, and Seize Commodities, etc

The appointed officer can enter the premises if:

• Any export material has been changed after inspection by an authority.
• Any book or valuable document to this Act is believed to be concealed. The authority in such cases can carry out an inspection.
• If an authority suspects something is wrong with the packed product, or if the product is mixed with other goods or materials, then that commodity mixed up with the other contents is liable to be confiscated under this Act.
• If the authority confiscates he/she/they give a commodity and no notification, then that commodity is returned to the owner within six months of confiscation.
• An officer may confiscate any document or material relevant to this Act if they find them useful to investigate. However, the owner can take photocopies of seized documents in the presence of officers.

Power to Seize Conveyances and Confiscate

• If any animal is used or believed to be used for the transportation of goods, or if the owner may have contravened the provision of this Act, then the authority may confiscate those goods and the animal.
• This applies to other means of transport (air, vehicle, vessel).
• The authority may conduct a thorough inspection of goods in the vehicles, other transports, or animals used to transport goods.
• If it is necessary to stop such an animal or other conveyance, then lawful means can be used by the authority to stop them or fire at them if they refuse to comply.
• If a commodity is altered or mixed with other goods, or a certificate is obtained by misrepresentation or fraudulently, or provisions of this Act contravened by wrong actions. Items and other products or documents are liable to be confiscated.
• Other punishments are not prevented by confiscation or penalty imposed on an individual.
• The Director of Inspection and Quality Controler appointed officer adjudicates confiscation or penalty.
• Confiscation or penalty should not be imposed on the concerned person without notice. The notice also provides a timeline for the person to state his case against seizure or forfeiture.

Petition against Confiscation

• An owner can apply to the Central Govt regarding confiscating his documents by officers. The application should mention on:
  • Reasons for objecting to confiscation
  • Requesting for the return of his entitled documents or things
• The Central Govt, after the receipt of the application, may reverse the decision of confiscation after finding it clean based on the following:
  • The owner’s legitimate documents – signature, attestation, and handwriting wherever applicable.
  • The owner’s legitimate document was authenticated by the foreign authority and received from abroad.

Option to Pay Fine instead of Confiscation

A penalty can be paid by the owner or any person where the amount does not exceed the commodity value. Any person who contravenes the Act by not paying the penalty, or assists in denying, acquires possessions of the commodity by carrying, selling, removing, or depositing. That person must pay a fine less than five times the commodity value or Rs.5000.

Option for Appeal

• Suppose a person is aggrieved by the confiscation of his commodity or penalty imposed by the Director-General or appointed authority. In that case, an appeal can be made within 45 days of the order being issued.
• If a person is prevented from appealing, then the appellate can grant an extension of another 45 days to that person if the appellate authority is satisfied with the information about this matter.
• An appeal can be entertained if the penalty is deposited.
• Suppose the appellate authority finds that the deposited penalty may cause financial difficulty for that person. In that case, the decision may be revered by the administration on that person unconditionally or on a conditional basis.

Continuance of Proceedings in the event of Death or Insolvency

If a person or an appellant dies or is in a state of bankruptcy, then legal representatives can appeal on the appellant’s behalf.

Penalty

• If a certificate is obtained fraudulently or fraudulently puts a seal on the commodity, then that person is:
• It is punished for the first offense with an imprisonment of 2 years, a penalty that may extend to 5000 INR or both.
• Punished for the subsequent or second offense with imprisonment for a term which may extend to three years is also accompanied by a penalty that may extend to 5000 INR. Without adequate or special reasons from the person, imprisonment is not less than three months.
• If a fine is not paid by the person as imposed by the appellate authority, then they are punishable with imprisonment for a term that may extend to 2 years or with a fine, or both.

Offenses by Officers and Employees of the Agency

• Suppose any surveyor, sampler, or appointed authority commits an offense or contravenes their duties. In that case, they are punished with imprisonment for a term that may be extended to 2 years, a fine opening to five thousand rupees, or both.
• If any officer searches or authorizes other officers to search a place without good reasons to believe that commodity, account books, documents, or things are concealed, they are punishable with imprisonment for a term that is extendable to six months or a fine that may go up to1000, or with both.
• Suppose any of the officers discloses any information regarding a commodity. In that case, they are punished with imprisonment for a term extending to six months, a fine opening to 1000, or both.

Offenses by Companies

• Suppose offenses committed by a company, the person in charge at the time of offense saved, or the company as a whole is deemed guilty. These entities are liable to be punished accordingly. However, the concerned individual will not be penalized if the offense was committed without his knowledge.
• Besides, he cannot be punished if he takes responsibility for preventing such an offense from happening.
• Concerned individuals who are negligent on their part or encourage such offenses are also liable to be punished. Those may include – a manager, director, secretary, or any other officer.

Procedure for Prosecution

Prosecuting guilty parties can only happen with the consent of an officer authorized by the Central Government, Director General, or special orders.

Protection of Action taken in Good Faith

• No legal action, prosecution, or other legal proceedings can be taken against the Council/any officer/employee of the Government for anything intended to be done under this Act that is in good faith.
• This may include damages caused or likely to be caused at the time of carrying out duties under this Act which is done in good faith.

Suspension of Duties under the Provisions of the Act

• Operations or duties performed can be relaxed or suspended by the Central Govt by notification concerning certain commodities.
• This suspension notification is made official only after the meeting in the Parliament (both houses) within 30 days in one or different sessions. However, this annulment is done without partiality.

Act to Override other Enactments

When an export commodity is notified under this Act, the provisions of this Act are official and notified. Other Acts with quality control and inspection requirements before the export of such commodities do not come on par with the Act framed by the Central Government.

The PDF form of this Act can be accessed from the below link:

Export-Quality-Control-and-Inspection-Act