Monday Export Class with Dr Godwin Oyefeso

MONDAY EXPORT CLASS

With

DR GODWIN OYEFESO (SUCCESSEDGE EXPORTERS NETWORK)

Topic: Quality Control and Pre-shipment Inspection (Part 2)

PROCEDURE FOR PRE-SHIPMENT INSPECTION

There are different procedures for obtaining pre-shipment inspection certificates.

1. Consignment-wise Inspection

Each consignment is subjected to detailed inspection. The following procedure is applicable to all the notified products by the Export inspection Council, other than those for which the in process quality control system and Self-Certification is applicable.

Application to EIA: The exporter has to apply in the prescribed ‘Intimation for Inspection’, well in advance, to the date of shipment to avoid delays, along with the following documents:
- Copy of export contract;
- Copy of letter of credit;
- Details of packing specifications;
- Commercial invoice giving evidence of FOB value of export consignment;
- Crossed cheque/DD in favour of EIA towards inspection fees and
- Declaration regarding importer’s technical
Deputation of Inspector: After getting the ‘Intimation for Inspection’, EIA deputes an inspector to conduct an inspection of the consignment, in packed conditions, at the factory/warehouse of The exporter should keep the consignment, in packed condition for export, ready for inspection at the appointed place and time.
Inspection and Testing: The inspector conducts inspection on a random He will conduct inspection with reference to the agreed specifications, which should not be inferior to the notified specifications. Samples may be drawn and sent to the laboratory, if required. Where testing facilities are not available at the exporter’s place, sample may be sent to the private independent laboratories. Inspector submits the field report based on his inspection and test results obtained.
Packing and Sealing of Goods: If the inspector is satisfied with the quality of goods, he issues order for packing of goods in his After packing, the consignment is marked and sealed with the official seal of Export Inspection Agency.
Submission of Report to EIA and issue of Inspection Certificate: Based on the field inspection report, the Deputy Director, Export Inspection Agency issues the Inspection Certificate to the exporter, in triplicate, which will be disposed as under:

The original copy is to be submitted to the
The duplicate copy is dispatched to the
The triplicate copy is retained by the exporter for his
- Issue of Rejection Note: If the inspection report is not favourable, the Deputy Director of EIA issues Rejection
- Appeal against Rejection Note: Exporter can file an appeal against the order of the Deputy Director, The appeal is to be made within 10 days from the date of receipt of Rejection Note. On receipt of the appeal, EIC arranges to convene a meeting of the Appellate Panel. The appellate panel reviews the inspection report and examines the consignment again, if necessary. The decision of the Appellate Panel is final and binding on both the parties i.e. Exporter and Export Inspection Agency.

See part 1

2. In Process Quality Control

Manufacturing/processing units, having continuous processing system, are given an option to become “export-worthy” status units so that they get the inspection certificate, based on their own declaration.

These units are highly quality conscious and conduct thorough quality control at each and every stage of production that includes:

Raw materials and bought out components,
Process control,
Product control and
Packing and packaging

Export-worthy Status Units: These units possess the required infrastructure facilities for manufacturing/processing standard quality products. To secure recognition and approval of “export-worthy” status, export-oriented manufacturing/processing units have to submit an application, in the prescribed format, to Export Inspection Agency. After a preliminary visit by the officer of Export Inspection Agency, it appoints a panel of experts to investigate the quality control facilities available in the unit. The panel thoroughly investigates the quality control facilities available from the stage of raw materials to packing. It submits its report to the agency. On the basis of those recommendations, the unit is accorded the status of an “export-worthy” unit. The Export Inspection Council may recognise a manufacturing unit as an “export-worthy”, only after ensuring that the unit is adequately supported with facilities for the enforcement of quality control standards required by the Council.

Such a unit is allowed to inspect and clear the goods for export, without inspection by the Export Inspection Agency. Based on the declaration of the unit that the goods have been manufactured/processed, as required under the prescribed regulations, the agency issues certificate of inspection. The EIC and inspection agencies ensure that adequate controls are exercised by periodic inspection and testing of export consignments, at random.

3. Self Certification

Certain manufacturing units are given the freedom to certify their inspection certificates. The philosophy behind the scheme is that manufacturing units, with proven track record of maintenance of quality, deserve to enjoy the freedom for issuance of pre-shipment inspection certificate themselves. The essential condition is that the unit has not received any complaint during the last three years.

For the purpose of qualifying to become eligible, the reputed manufacturing unit should comply with the prescribed norms that include the following:

Product Quality
Design and Development
Raw materials/Bought out Components
Organisation and personnel for quality control
Process Control
Laboratory
Quality Audit
Packaging
After-sales-service and
House-keeping and Maintenance

After conducting inspection, EIC recognizes the units for issue of self-certification.

The approved unit under this system is recognised by notification under section 7 of the act as the Agency for Quality Control and Inspection of specific products, manufactured in the unit. Validity of such recognition is for a period of one year. Period may be extended provided the unit continues to enjoy the above facilities. This system has removed the need to obtain certificate of inspection from an outside agency. The manufacturing unit certifies its own product and issues the inspection certificate. This has provided an added edge in exportation to the really deserving reputed units.

Exemption from Pre-Shipment Inspection

The following units are exempt from the requirement of compulsory pre-shipment inspection:

Export House, Trading House, Super Trading House and Super Star Trading House;
100% Export oriented unit set up in the Export Processing Zones or Free Trade Zones;
Where the overseas buyer does not want pre-shipment inspection certificate and
Products bearing ISI mark or the AGMARK for

If you have questions on today’s class send them on whatsapp to +2348037163281 for answers to such questions.

Till then, you will succeed