Page 115 - DMGT546_INTERNATIONAL_TRADE_PROCEDURE_AND_DOCUMENTATION

International Trade Procedures and Documentation

Notes

Note ECGC also offers a special scheme called Exchange Fluctuations Risk Cover to
provide protection from exchange rate fluctuations to exporters of capital equipments,
civil engineering contractors, and consultants who have to receive payments over a period
of years for their exports, construction works, or services.

Task 1. Visit ECGC’s website and explore the various credit risk insurance schemes
in greater details.

2. Survey five exporters in your area and find out about their dealings with
ECGC.
3. Visit the website of any general insurance company in India and study the
Marine Insurance options available for exports in detail.

5.6 Quality and Pre-Shipment Inspection

The Export Inspection Council (EIC) was set up by the Government of India under Section 3 of
the Export (Quality Control and Inspection) Act, 1963 (22 of 1963), as an advisory body to the
Central Government, which is empowered to:
Notify commodities which will be subject to quality control and/or inspection prior to
export,
Establish standards of quality for notified commodities,

Specify the type of quality control and/or inspection to be applied to such commodities.
Its main activities include:

Certification of quality of export commodities through installation of quality assurance
systems (in-process quality control and self-certification) in exporting units as well as
consignment-wise inspection.
Issue of different types of certificates such as health, authenticity, etc. to exporters under
various product schemes for export.

Training and technical assistance to the industry in installation of Quality and Safety
Management Systems based on principles of Hazard Analysis Critical Control Point
(HACCP), ISO-9001: 2000, ISO: 17025 and other related international standards, laboratory
testing, etc.

Recognition of Inspection Agencies as per ISO: 17020 and Laboratories as per ISO: 17025
and utilising them for export inspection and testing.

5.6.1 Export Certification Systems

The following Export Certification Systems are available with EIC:
Consignment-wise Inspection- Under this system, each export consignment is inspected and
tested by the recognised inspection agency. Samples are drawn using statistical methods and
the shipment is tested against prescribed standards. These tests may be carried out either in
the field or at any recognised laboratory, depending upon the requirements. If the goods pass

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