The Export (Quality Control and Inspection) Act was enacted in the year 1963 to strengthening the export trade through quality control and pre-shipment inspection. The act empowers the government not only to notify the commodities which may be subjected to compulsory quality monitoring and inspection before export but also specify the type of quality control or inspection. The Act prohibits the export of substandard goods as well as the products which do not fulfill the requirements as laid down under the Act. However, the following categories of export are exempted:
- Star Export Houses;
- Export Oriented Units (EOUs) and units set up in FTZs, etc.;
- Exports made against a letter from the foreign buyer stating that he does not require pre-shipment inspection from any official inspection agency;
- Products bearing ISI mark/AGMARK.
For smooth operation of the Export (Quality Control and Inspection) Act, 1963 the Government of India established the Export Inspection Council (EIC) on January 1, 1964, and the Export Inspection Agencies (EIAs). While the EIC acts as an advisory body to the government on matters related to quality control and inspection, the EIAs are the actual agencies which inspect goods and issue the export-worthiness certificates.
All out encouragement is given to the trade and industry for upgrading the quality of products under the current Foreign Trade Policy to project the image of the country as a producer and exporter of world-class quality products.
Other regulations: All imported goods are also subjected to domestic laws, rules, orders, regulations, technical specifications, environmental and safety norms as applicable to domestically produced goods.