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The Export (Quality Control and Inspection)

RULES, 1964

(Corrected upto 30 September, 1986 )

CONTENTS

Rule Page
1. Short title and commencement. 24
2. Definitions 24
3. Term of Office 24
4. Casual vacancies 25
5. Functions of the Council 25
6. Creation of posts and appointment of officers 25
7. Authentication of orders and other instruments of the Council 25
7A. Authority of authentication and the manner of authentication of 25
documents
8. Proceedings of the Council 26
9. Travelling and daily allowances 26
10. Specialist Committees 26
11. Procedure for quality control and inspection 27
11A. Procedure for Amendment, suspension or Cancellation of the 28
Certificate
12. Agency for quality control or inspection or both 29
13. Approval of testing houses, surveyors and samplers 30
14. Fund of the Council and deposit of such fund 31
14A. Powers and duties of the Director (including as Ex-officio 31
Secretary of the Council)
14B. Re-examination of the goods certified by the Agencies recognised 31
under Sub-section (1) of Section 7 of the Act.
15. Preparation of budget estimates, etc. 31
16. Audit of Accounts 31
17. Laying of Annual Reports and Audited Accounts 32

Form No.I 33
(See rule 13 (1)

Form No.II 35
(See rule 13 (6)

Form No.III 36
(See rule 16 (1)

Form No.IV 39
(See rule 16 (1)

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The Export (Quality Control and Inspection) Rules, 1964

(Corrected upto 30 t h September 1986)
NOTIFICATION

S.O. 3317. - In exercise of the powers conferred by section 17 of the Export

(Quality Control and Inspection) Act. 1963 (22 of 1963), the Central Government hereby
makes the following rules, namely:-
(1) Short title and commencement. (1) These rules may be called the
Export (Quality Control and Inspection) Rules, 1964.

(2) They shall come into force on 1st October, 1964.

2. Definitions. - In these rules, unless the context otherwise requires,-

(a) "Act" means the Export (Quality Control and Inspection) Act, 1963 (22 of
1963);

(aa) "Additional Director" means the Additional Director of the Council or

Agency;

(b) "Agency" means any agency for quality control or inspection or both,
established or recognised under section 7;

(bb) "Certificate" means certificate issued under sub-section (3) of section 7 of

the Act stating that the commodity conforms to the condition relating to
Quality Control and Inspection;

(c) "Chairman" means the Chairman of the Council;

(d) "Council" means the Export Inspection Council established under section 3;

(e) "Council Member" means a member of the Council;

(f) "Committee Member" means a member of any specialist committee;

(g) "Director" means the Director of Inspection and Quality Control appointed
under section 4;

(h) "Form" means a form set forth in these rules;

(hh) "Joint Director" means the Joint Director of the Council or Agency;

(i) "Member" means a member of the Council;

(j) "Section" means a section of the Act;

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(k) "Specialist Committee" means a specialist committee constituted by the

Council under sub-section (3) of section 5;

3. Term of office. - (1) The Chairman and the members nominated under clause (f)
of subsection (1) of section 3 shall hold office for a period of [(Two years)]

(2) The membership of any person who becomes a member of the Council
by virtue of an office held by him shall terminate when he ceases to hold that off ice
and the vacancy so caused shall be filled by his successor holding that office.

(3) The Chairman and the members nominated under clause (f) of sub-
section (1) of sections shall be eligible for re-appointment or re-nomination, as the
case may be, on the expiry of his or their term of office.

(4) The Chairman or any member nominated under clause (f) sub-section 3
may resign his office by writing under his own hand addressed to the Central
Government and such resignation shall be effective from the date on which it is
accepted by the Central Government or on the expiry of period of one month from
the date of its receipt by the Central Government, whichever is earlier.

(5) A member nominated or appointed shall cease to be such member if he

dies, resigns, becomes of unsound mind, is adjudicated as an insolvent or is
convicted of a criminal offence involving moral turpitude.

4. Causal vacancies. - Any casual vacancy in the office of the Chairman or of any
member nominated under clause (f) of sub-section (1) of section 3 shall be filled by the
Central Government and the Chairman or the member, as the case may be, appointed
or nominated to fill that vacancy shall hold off ice for so long only as the Chairman or the
member whose place he fills would have been entitled to hold office if the vacancy had
not occurred.

5. Functions of the Council. - Besides the functions entrusted to the Council by

the Act, theCouncil shall –

(i) receive and deal with reports and recommendations of specialist

committee;

(ii). control its finances;

(iii) deal with such other matters as may be necessary for the administration
of its affairs;

(iv) do all such other lawful acts as would be conducive for the purpose of
discharging its functions under the Act.

6. Creation of posts and appointment of officers. - For the purpose of

discharging its functions under the Act, the Council may create such number of posts,
the maximum pay of which does not exceed Rs. 1,800/- per men sum, as it considers
necessary and appoint officers and other employees to such posts.

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7. Authentication of orders and other instruments of the Council. - All orders

and decisions of, and ail other instruments made by, the Council shall be authenticated
by the signature of such officer or officers as may be authorised by the Council in this
behalf.

7.(A) Authority of authentication and the manner of authentication of documents, -

Any document received from any place outside India purporting to have affixed,
impressed or submitted thereon or thereto, the seal and signature of any person who is
authorised by section 3 of the Diplomatic and Consular Officer (Oaths and Fees) Act,
1948 (41 of 1948), to do any no tarial acts shall be deemed to be duly authenticated for
the purpose of section 10? (7) (b) of the Export (Quality Control and Inspection) Act.
1963.

8. Proceedings of the Council. - (1) The Council shall meet at least once in every
four months and all meetings of the Council shall be convened by the Chairman and
called by notice issued under the signature of the Secretary of the Council.

(2) Every notice calling a meeting of the Council shall state the date, time and
place at which such meeting will be held and shall be issued to every member not less
than 15 days before the day appointed for the meeting.

(3) The Chairman shall preside at all meetings of the Council and if at any
meeting the Chairman is absent, the members present at the meeting shall elect one from
among themselves to be the Chairman of that meeting.

(4) Five members shall form the quorum, provided that if any meeting is
adjourned for want of quorum, the subsequent meeting called on the basis of the same
agenda may be held, whether a quorum is present or not.

(5) Each member including the Chairman shall have one vote, but if there
shall bean equality of votes on any question to be decided by the Council, the Chairman
shall in addition, have a casting vote.

9. Travelling and daily allowances. - (1) The Council members and the
Committee members, [including those co-opted under sub-section (2) of section 5 being
employees of the Central Government or any State Government or any quasi-
Governmental Institution, corporate body or Government undertaking, shall not be
eligible to draw any traveling or daily allowance from the funds of the Council but may do
so from the source from which their salaries are drawn.

(2) All other Council members and the Committee members [including those
co-opted under subsection (2) of section shall be entitled to draw their traveling and daily
allowances from the fund of the Council.

(3) The rules governing the payment of traveling and daily allowances to non-
official members of any committee constituted by the Central Government shall apply to
the payment of traveling and daily allowances to those Council members and the
committee members [including those co-opted Under sub-section (2) of section 5] who
are entitled to draw such allowances from the fund of the Council.

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10. Specialist Committees. – (1) The Council may constitute a specialist

committee under subsection (3) of section 5 for any commodity;

(2) The specialist committee may consist wholly of Council members or

wholly of other persons or partly of Council members and partly of other persons, as the
Council thinks fit.

(3) Where a specialist committee consists of persons other than Council

members, the Council shall, as far as possible, give representation to all or any of the
following namely: -

(i) scientific and technical institutions;

(ii) State Governments;

(iii) concerned industries, and

(iv) persons having intimate knowledge about quality control or

inspection.

(4) The Council may nominate a member of the specialist committee as the
Chairman of the specialist committee.

(5) The procedure at meetings of a specialist committee shall be such as

may be determined by the committee.

(6) A specialist committee may co-opt additional members, who, by virtue of

specific attainment, knowledge or interest, in the opinion of the committee will be able to
assist the committee in the discharge of its functions.

(7) A specialist committee may appoint as many sub-committees, panels or

working groups as it thinks necessary for the expeditious disposal of its work.

(8) Every specialist committee shall examine all technical matters referred to
it by the Council relating to the commodity which should he subjected to compulsory
quality control or inspection or both prior to export (including the establishment, adoption
or recognition of standards for that commodity) and make necessary recommendations
to the Council.

(9) Every specialist committee shall also examine and make

recommendations to the Council on the question of recognition and establishment of
agencies and approval of testing houses, surveyors or samplers.

11. Procedure for quality control and Inspection, - (1)Whenever, for the development
of the export trade of India, the Central Government is of opinion that any commodity
should be subjected to quality control or inspection or both, prior to export, it shall
formulate its proposals with respect to the same.

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(2) Where any proposals have been formulated under sub-rule (1), the
Central Government shall forward the proposals to the Council and simultaneously
publish the proposals in the Official Gazette with a direction that any objection or
suggestion which any person may like to offer on the proposals may be sent to the
Council within thirty days of such publication.

(3) After the receipt of the proposals under sub-rule (2), the Council may.
having regard to -

(i) the objections and suggestions received from the public;

(ii) the volume and trend of export of such commodity and the scope for
expansion of its export;

(iii) the extent of competition from other countries;

(iv) the need for enforcing quality control or inspection or both for
increasing the sale of such commodity outside India; and

(v) any other relevant factor,

Consider the proposals either at a periodical meeting or at any special meeting

convened for the purpose

(4) At any such meeting, the Council shall formulate its recommendations
regarding the type of quality control or inspection or both and standard specifications
with respect to the commodity and a marker sea I (together with its design, in cases it is
necessary) to indicate that the commodity conforms to (he standard specifications
applicable to it or may require a specialist committee constituted for the purpose to make
recommendations to it in such matter;

(5) Where a specialist committee has been required to make

recommendations under sub-rule (4), it shall, having regard to the matters specified in
sub-rule (3), make its recommendations to the Council as expeditiously as possible.

(6) The recommendations of the Council or, in a case where the

recommendations have been made by a specialist committee, such recommendations
subject to any modifications made by the Council, shall be forwarded by the Council to the
Central Government.

(7) The Central Government shall, after considering the recommendations of

the Council, issue the necessary notification under section 6 or section 8.

11. A. Procedure for Amendment, suspension or cancellation of the

certificate. - (1) Where the Agency has reason to believe that the certificate issued
under sub-section (3) of section 7 of the Act suffers from any of the defects mentioned in
sub-section (??) of the said section 7, the Agency may carry out re-examination of the
goods-

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(i) during storage, at the premises of exporter or manufacturer or

clearing agent or shipping agent or at warehouses and cold storage;ii.

(ii) during the transportation of good, at any place from the premises
as mentioned in clause (i) to the port of shipment;

(iii) during unloading, at the port of shipment;iv.

(iv) during loading, in vessel or aircraft;

(v). during voyage, in vessel.

(2) The re-examination of goods shall be carried out in the following manner:-

(a) The re-examination shall be authorised by the Additional Director or

the Joint Director by an order, in writing, and on such authorisation, the
certificate of inspection issued for the concerned consignment: shall stand
suspended.

(b) The re-examination shall be carried out by one or more officers of the
Export Inspection Council or Agency who have not inspected the
concerned consignment earlier.

(c) The re-examination shall be carried out in the presence of authorised

representative of theexporter and or manufacturer the re-examination
of the commodity shall be completed within a period of seven days of
the period already prescribed for such commodity or the rules framed
under section 17 of the Act, whichever is later, from the date when
the certificate stands suspended.

(d) After consideration of the results of re-examination, the Additional

Director or the Joint Director may order in writing that:-
(i) the consignment shall be released for export;

(ii) the certificate issued earlier shall be amended to the extent of

the part of the consignment that meets the standard
specifications;

(iii) the certificate issued earlier shall be cancelled;

(iv) any other orders which may be deemed fit.

Provided that before amending, suspending or cancelling any such

certificate the officer authorised to amend, suspend or cancel the certificate shall
furnish the ground which require amendment/suspension and/or cancellation of
certificate to the holder thereof who shall be given an opportunity to represent
against the grounds within 3 days of the receipt of the said notice and the
representation, if any shall be considered by the said officer and thereafter, he
shall pass final order within three days from the receipt of the representation

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12. Agency for quality control or inspection or both. - (1) Any authority or
organisation desiring itself to be recognised as an agency under sub -section (1) of
section 7 may apply to the Central Government furnishing particulars of its constitution
and the resources at its disposal for carrying out the functions of an agency specified in
the Act together with an undertaking that it shall comply with the provisions of the Act
and these rules or of any order, direction or instruction which may, from time to time, be
made, issued or given by the Central Government or the Director.

(2) On receipt of an application from any such authority or organisation, the

Central Government, if it is satisfied after making necessary enquiries that the authority
or organisation is fit to act as an agency may, by notification in the Official Gazette
recognise such authority or organisation as an agency for the purpose of sub-section (1)
of section 7, subject to such conditions, if any, as may be specified in the notification.

(3) The recognition shall be granted for a period of one year and may be
renewed from time to time for periods not exceeding one year at a time)

[Provided that where an authority or organisation has been recognised as an

agency for certifying their own products, such recognition may be granted for a period
not exceeding three years at a time and the same may be renewed from time to time for
periods not exceeding three years at a time.]

13. Approval of testing houses, surveyors and samplers. - (1) For the purpose of
obtaining approval of the Central Government under sub-section (2) of section, the
officer in-charge of the testing house or the surveyor or the sampler shall submit an
application to the Director in Form I, containing a detailed statement of particulars of the
equipment and facilities available in the testing house or of the scheme of inspection or
test which the surveyor or sampler follows for conducting physical and chemical tests,
previous experience, the staff working in the testing unit and a general outlay of the
premises in which the testing and sampling is proposed to be conducted.

(2) After the receipt of the application, the Director may direct the applicant to
furnish any supplementary information or documentary evidence in support of any
statement made by him in the application, within such time as may be specified in the
direction and where the applicant fails to comply with such direction, his application shall
be liable to be rejected.

(3) The Director shall place the application together with the particulars and
other information furnished by the applicant before the Council, which shall, after making
such enquiries as it deems fit in the matter, make recommendations to the Central
Government as to whether approval may be given or not.

(4) While making the recommendations, the Council shall also specify the
amount of cash security or the nature of surety that the applicant shall furnish before
approval is given.

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(5) After considering the recommendations of the Council, the Central

Government may accord approval to the testing house, surveyor or sampler, as the case
may be, and where such approval is accorded, the Central Government shall require the
officer-in-charge of the testing house or the surveyor or the sampler to execute a bond
with such cash security or surety as is necessary for the purpose in the prescribed form.

(6) After the applicant has executed the required bond, the Central
Government shall issue the notification under sub-section (2) of section 7 and also issue
a certificate in Form II to the applicant which shall be valid for such period not exceeding
one year as may be specified therein.

(7) The Central Government may, on an application made in this behalf, at

least one month before the expiry of the period for which a certificate has been granted,
renew the same for a period not exceeding three years at a time.

(8) Every person in charge of a testing house and every surveyor and every
sampler approved under this rule shall, submit to the Directorate a half-yearly statement
containing the following particulars namely: -

(i) number of applications received for testing or sampling or

surveying;

(ii) number of applications attended to;

(iii) number of cases where certificate of quality has been issued;

(iv) quality and value of goods dealt with;

(v) number of cases where certificate of quality has been refused

14. Fund of the Council and deposit of such fund. - (1) The fund of the Council
shall consist of the following, namely: -

(i) such sums of money as may be paid by the Central Government

to the Council by way of grants, loans or otherwise;

(ii) grants or donations from bodies and institutions approved by the

Central Government;

(iii) income and receipts of the Council from other sources.

2. All moneys belonging to the fund of the Council shall be deposited in such
scheduled banks as may be specified by the Central Government and the Council may
authorise any of its officers to operate upon its bank account,

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14 A. Powers and duties of the Director (including as Ex-officio Secretary of the

Council). - The Director shall –

(i) Administer quality control and pre-shipment inspection of the commodities

notified under section 6 and matters connected therewith and co-ordinate various
activities in this behalf.

(ii) exercise general supervision and control over the functions of the
agencies in so far as they relate to quality control and inspection;

(iii) exercise supervision and administrative control over the employees,

accounts and records of the agencies established under section 7;

(iv) subject to the supervision of the Chairman, exercise administrative control

over the employees of the Council and maintain accounts and records of the said
Council

(v) (deleted)

14 B. Re-examination of the goods certified by the Agencies recognised under

sub-section (1) of Section 7 of the Act. - The Director or where he so desires by a
general or special order may authorise any officer not below the rank of a Joint Director
to carry out the re-examination of goods certificate of which has been issued by any of
the Agencies recognised under section 7 of the Act, in the manner as prescribed under
rule 11 A and during such re-examination, a representative of a recognised agency shall
be present.

15. Preparation of budget estimate, etc. - The procedure relating to preparation

and submission of budget estimates, sanction of expenditure, making investments and
such other matters shall be such as may be determined by the Council with the approval
of the Central Government.

16. Audit of accounts. - (1) The Council shall maintain proper books of accounts in
respect to all transactions for all sums of money received and expended and the matter
in respect of which the receipt and expenditure take place, all sales and purchases, the
assets and liabilities so as to give a true and fair view of the state of affairs of the Council
and its off ices and to explain its transactions and prepare Income and Expenditure
Accounts and Balance-sheet as prescribed by the Comptroller and Auditor-General of
India set out in Forms III and IV respectively or as nearer thereto as the circumstances
admit; and such Income and Expenditure Account and Balance-Sheet shall be signed on
behalf of the Council by the Member Secretary and Director of the Council.

(2) The accounts of the Council shall be subject to audit annually by the
Comptroller and Auditor General of India or by any person appointed by him in this
behalf and any expenditure incurred by him in connection with such audit shall be
payable by the Council.

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(3) The Comptroller and Auditor General of India and any person appointed
by him in connection with the audit of the accounts of the Council shall have the same
rights and privileges and authority in connection with such audit as the Comptroller and
Auditor General of India has in connection with the audit of Government accounts and, in
particular, shall have right to demand the production of books, accounts, connected
vouchers and other documents and papers and to inspect the office of the Council.

(4) The accounts of the Council as certified by the Comptroller and Auditor
General of India or any person appointed by him in this behalf together with the audit
report thereon shall be forwarded annually to the Central Government and the
Government shall cause the same to be laid before each House of Parliament.

17. Laying of Annual Reports and Audited Accounts. - The Annual Reports and
Audited Accounts of the Export Inspection Council/Agencies shall be laid before the
House of Parliament nine months from the closing of the accounting year.

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FORM I

Application for recognition as Testing House/Surveyor/Sampler

[See Rule 13 (1)]
PART I
To
The Director of Inspection and Quality Control,
Ministry of Commerce,
Government of India,
New Delhi
Sir,

I/We, the firm known under the name and style desire to be
recognised as approved Testing House/Surveyor(s)/Sampler(s) for the pre- shipment
inspection of the following commodities and furnish the detailed particulars in Part II of
the application.

2. I/We hereby declare that I/We shall when called upon to do so execute a bond in
proper form with such security as may be required binding myself/ourselves to faithfully
carry out the duties prescribed under the Act or the Rules or by any order issued by the
Director on behalf of the Central Government.

3. I/We hereby enclose a crossed bank draft of Rs as

fee (The fee is not refundable whether the applicant is given recognition or not).

4. I/We agree to undertake the work of testing, survey or sampling at the rates
prescribed by the Central Government.
5. I/We have read the rules regarding the pre-shipment inspection, testing, survey and
sampling and undertake to abide by them.

Yours faithfully,

Signature and Seal or Stamp of the Applicant

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FORM NO. II
[See Rule 13 (6)]
GOVERNMENT OF INDIA MINISTRY OF COMMERCE
Certificate of approval of testing house/surveyor/sampler.

In terms of section 7(2) of the Export (Quality Control and Inspection) Act,
1963, the Testing House/Surveyor(s)/Sampler(s) whose particulars are given
below having complied with the prescribed procedure is/are approved by the
Central Government for testing/surveying/sampling, commodities that are
intended for export.

Name
Address

Location of Laboratory/Testing House

II. This approval enables its holder to carry out examination of commodities and
to issue certificate of examination in the matter provided in the Export (Quality
Control and Inspection) Act, 1963, and rules and orders issued thereunder the
further to charge such fee, as is notified by the Central Government, from the
owner whose goods are examined.

III. This approval shall be valid from to and may

be renewed as prescribed in the Export (Quality Control and Inspection) Rules,
1964.

Director of Inspection and Quality Control

for and on behalf of the Government of India

NEW DELHI
DATE

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FORM III
(See Rule 16 (1) )
EXPORT INSPECTION COUNCIL
INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDING

EXPENDITURE INCOME
Figures Figures Figures Figures
for the for the for the for the
previous Particulars current previous Particulars current
year year
year (Rs.) year (Rs.)
(Rs.) (Rs.)
(1) (2) (3) (4) (5) (6)

1. Establishment 1.Income other than

To pay of officers Government Grant
To pay of Staff By Application fee from
To DearnessAllowance Candidates applied for
To Other Allowances various posts
(CCA, HRA). By fees for issuing
To Travelling Allowance certificates of origin
a) Officers under Generalised
b) Staff System of Preferences
c) Council and other By Foreign Service
Committee Members Contribution received
To Medical Assistance By interest
To Assistance for Welfare to By Other Income (To be
employees specified)
To Contribution towards By Miscellaneous
leave salary and pension or
its equivalent for employees
on deputation to the Council 2. Government Grant
To Council's contribution to
Contributory Provident Fund
Other Establishment 3. Grant from
charges (To be specified) marketing
Development Fund
2.Other Charges received from Govt. to
To stationery To printing meet deficit for
and binding operation of various
To postage and telegram To preshipment
rent for Office inspection schemes
accommodation operated by the Export
To electricity charges To inspection Agencies.
telephone To audit fee To
repair and renewals
To advertisement for 4. Excess of
recruitment Expenditure over
To subscriptionss and Income carried over
membership fees to Balance-Sheet.
To local conveyance
charges
To depreciation
To other specified items of

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expenditure To
miscellaneous To publicity
To Marketing Development
Fund-Payment to Export
Inspection Agencies to meet
the deficit for operation of
various preship-ment
inspection
To training programme
abroad
To training programme for
"trainees from abroad
To participation in
committees/council/ other
similar bodies abroad
To participation in 'trade
fair/delegation
To certificate of origin under
Generalised System of
Preferences
To organisation of
seminars/conventions and
such otheractivities
To other specified
expenditure
Excess of Income over
expenditure carried
over to Balance-Sheet

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FORM IV (See Rule 16(1) )

EXPORT INSPECTION COUNCIL Balance Sheet as on

Figures for Figures for Figures for Figures for

the the the the
previous Liabilities current previous Assets current
year (Rs.) year (Rs.) year (Rs.) year (Rs.)
(1) (2) (3) (4) (5) (6)

1. CAPITAL 1. FIXED ASSETS

ACCOUNT Balance of (Distinguishing as far as
Excess of Income possible between
Over expenditure or expenditure upon all items.)
vice-versa transferred
from the Income and 2. INVESTMENT
Expenditure Account )
3. CURRENT ASSETS,
2. RESERVES LOANS AND ADVANCES
AND SURPLUS
(To be specified if A. Current assets,
so created) Interest Accrued on
Investments
3. SECURED LOANS Stock & Stores Sundry
Debtors
4. UNSECURED Cheques/Drafts/ IPO's etc.
LOANS in transit
Cash in Office Bank
5. CURRENT Balances
LIABILITIES AND
PROVISIONS B. Loans and Advances
Interest bearing Advances
A. Current Liabilities to Employees (House
Salary and Other Building, Purchase of
personal claims , Conveyance and other
payable to employees similar advances)
Contributory Provident Interest Free
Fund, Gratuity Fund. advances to Employees
Additional DA. and (Festival, Flood,
Wage Deposits, Travelling,
Security Deposits, Other Pay, Medical, LTC
Deposits (To be and Other- -
Specified) similar advances)
Interest accrued but not Permanent Advance with
due on loans. Regional/Sub offices
(Imprest, Revolving ?? and
other such advances)
B. Provisions, pension Miscellaneus Advances
and other similar Deposit witn-
employees benefit Land lord for office
schemes, accommodation
contingencies Telephone Authority Postal
Other Provisions (To be Authority
specified) Electricity Authority

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Other Deposit (To be

specified)
Pre-paid expenses
(Unexpired portion of rent,
rates, taxes, duties and
insurance)

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