S.1 Short title, extent and commencement

       (1) This Act may be called the Export (Quality Control and Inspection) Act, 1963.
       (2) It extends to the whole of India.
       (3) It shall come into force on such date1 as the Central Government may, by Notification in the Official Gazette, appoint.
       ________________________
       1. The appointed date is 01.01.1964.

S.2 Definitions

       In this Act, unless the context otherwise requires, -
       1 [(a) "adjudicating authority" means the authority specified in, or under, section 10K;
       (ab) "Appellate authority" means the appellate authority referred to in section 10M;]
       1 [(ac) "Council" means the Export Inspection Council established under section 3;]
       (b) "export", with its grammatical variations and cognate expressions, means taking out of India to a place outside India;
       (c) "inspection", in relation to a commodity, means the process of determining whether a batch of goods in that commodity complies with the standard specifications applicable to it or any other specifications stipulated in the export contract generally by inspecting either the

S.3 Establishment of Export Inspection Council

       (1) The Central Government may by Notification in the Official Gazette, establish, with effect from such date as may be specified in the Notification, a Council to be known as the Export Inspection Council, which shall consist of-
       (a) a Chairman to be appointed by the Central Government;
       (b) the Director of Inspection and Quality Control, ex officio, who shall be the Secretary;
       (c) the Honorary Adviser on Standardization to the Government of India and Director of Indian Standards Institution, ex officio;
       (d) the Agricultural Marketing Advisor to the Government of India, ex officio;
       (e) the Director-General of Commercial Intelligence and Statistics, ex officio;
       

S.4 Director of Inspection and Quality Control

The Central Government shall appoint a Director of Inspection and Quality Control to exercise such powers and perform such duties under this Act as may be prescribed.

S.5 Functions of the Council

       (1) The functions of the Council shall generally be to advise the Central Government regarding measures for the enforcement of quality control and inspection in relation to commodities intended for export and to draw up programmes therefore, to make, with the concurrence of the Central Government, grants-in-aid to the agencies established or recognised under section 7 and to perform such other functions as maybe assigned to it by or under this Act.
       (2) For the purpose of performing its functions, the Council may co-opt as members such number of persons as it thinks fit who have special knowledge and practical experience in matters relating to any commodity or trade therein and any such person shall have the right to take part in the discussions of the Council but shall not have the right to vote and shall not be a member for any other purpose.
      

S.6 Powers of the Central Government in regard to quality control and inspection

       If the Central Government, after consulting the Council, is of opinion that it is necessary or expedient so to do for the development of the export trade of India, it may, by order published in the Official Gazette, -
       (a) notify commodities which shall be subject to quality control or inspection or both prior to export;
       (b) specify the type of quality control or inspection which will be applied to a notified commodity;
       (c) establish, adopt or recognise one or more standard specifications for a notified commodity;
       (d) prohibit the export in the course of international trade of a notified commodity unless it is accompanied by a certificate issued under section 7 that the commodity satisfies the conditions relating to quality control or inspection, or

S.7 Machinery for quality control and inspection

       (1) The Central Government may, by Notification in the Official Gazette, establish, or recognise subject to such conditions as it may deem fit, agencies for quality control or inspection or both:
       PROVIDED that if the Central Government is of opinion that any recognition granted to any agency under this sub-section should, in the public interest, be withdrawn, the Central Government may, after giving a reasonable opportunity to that agency to make representations in the matter, withdraw, by like notification, the recognition granted to it.
       (2) Any agency referred to in sub-section (1) may, on application made to it or otherwise, hold or cause to be held such examination as it thinks fit relating to quality control or inspection of notified commodities, either at the time of export or earlier, in such testing houses or by such surveyors or

S.8 Power to recognise or establish marks to denote conformity with standard specifications

       (1) The Central Government may, by Notification in the Official Gazette, recognise or establish any mark or seal in relation to a notified commodity for the purpose of denoting that such commodity conforms to a standard specification applicable to it.
       (2) Any such mark or seal affixed or applied to a notified commodity or to any covering containing, or label attached to, such commodity shall be deemed to be evidence of the commodity being in conformity with the standard specifications applicable to it under this Act:
       PROVIDED that nothing in this sub-section shall prevent any officer of customs from examining any consignment of a notified commodity intended for export if he has reason to believe that the seal or mark is not genuine or has been affixed or applied fraudulently or if such an examination is necessary for the purpose of any o

S.9 Power to obtain information from exporters, etc.

       The Central Government or any officer or authority authorised by it in this behalf may, by notice published in the Official Gazette, require-
       (i) persons manufacturing, dealing in or exporting notified commodities; and
       (ii) such other persons as may be prescribed; to furnish any information, return or report which the Central Government or such officer or authority may consider necessary for carrying out the purposes of this Act.

S.10 Finance, accounts and audit

       (1) For the purpose of enabling the Council to discharge its functions under this Act, the Central Government may, after due appropriation made by Parliament by law in this behalf, pay to the Council such sums of money as that Government considers necessary by way of grants, loans or otherwise.
       (2) For the purpose of discharging its functions under this Act, the Council may receive grants or donations from bodies and institutions approved by the Central Government in this behalf.
       (3) The Council shall have its own fund to which shall be credited the sums of money referred to in sub-sections (1) and (2) and the moneys in the fund shall be applied for-
       (a) meeting the pay and allowances of the officers and other employees of the Council and other administrative expenses of the Council;
 

S.10(a) Power to enter and inspect

       1 [10A - Power to enter and inspect
       The Director of Inspection and Quality Control or any officer of the Central Government authorised by him in writing in this behalf (hereinafter referred to as the "authorised officer") may enter at any reasonable time, any premises in which-
       (a) any commodity which has been changed after inspection by any agency referred to in sub-section (1) of section 7; or
       (b) any books of account or other documents or things which, in his opinion, will be useful for, or relevant to, any proceeding under this Act are suspected to have been kept or concealed, and inspect such commodity, books of account, other documents or things and may take such notes or extracts from such books of account or, other documents as he may think fit.
      &

S.10(b) Power to search

       If the authorised officer has any reason to believe that-
       (a) any commodity which has been changed after inspection by any agency referred to section-section (1) of section 7; or
       (b) any books of account or other documents or things which, in his opinion, will be useful for, or relevant to, any proceeding under this Act, are secreted in any place, he may enter into and search such place or premises for such commodity, books of account, other documents or things.

S.10(c) Power to seize commodities, etc.

       (1) If the authorised officer has any reason to believe that any commodity is liable to confiscation under this Act, he may seize such commodity together with the package, covering or receptacle, if any, in which such commodity is found and where such commodity is found to have been mixed with any other goods or materials, he may seize such commodity together with the goods or materials with which it is so mixed:
       PROVIDED that where it is not practicable to seize any such commodity, the authorised officer may serve on the owner of the commodity an order that he shall not remove, part with, or otherwise deal with, the commodity except with the previous permission of such authorised officer.
       (2) Where any commodity is seized under sub-section (1) and no notice in respect thereof is given under section 10L within six months of the seizure o

S.10(d) Power to stop and seize conveyances

       Any authorised officer may, if he has any reason to suspect that any conveyance or animal is being, or is about to be, used for the transportation of any commodity which is liable to confiscation under this Act and that by such transportation any provision of this Act has been, is being or is about to be, contravened, at anytime, stop such conveyance or animal or, in the case of an aircraft, compel it to land, and
       (a) rummage and search the conveyance or any part thereof,
       (b) examine and search any goods or materials in the conveyance or on the animal,
       (c) if it becomes necessary to stop any conveyance or animal, he may use all lawful means for stopping it and where such means fail, the conveyance or animal may be fired upon, and where he is satisfied that it is necessary so to do prevent the

S.10(e) Search and seizure to be made in accordance with the Code of Criminal Procedure, 1973

The provisions of the Code of Criminal Procedure, 1973, relating to searches and seizures shall, so far as may be, apply to every search or seizure made under this Act.

S.10(f) Confiscation

       Any commodity in respect of which-
       (a) a certificate has been obtained from an agency referred to in sub-section (1) of section 7 fraudulently or by misrepresentation, or
       (b) any provision of this Act has been, is being, or is attempted to be, contravened, shall, together with any package, covering or receptacle in which such commodity is found, be liable to confiscation and, where such commodity is so mixed with any other goods or materials that it cannot be readily separated, such other goods or materials shall also be liable to confiscation:
       PROVIDED that where it is established to the satisfaction of the adjudicating authority that any commodity, which is liable to confiscation under this Act, belongs to a person other than the person who has, by any act or omission, rendered it liable to

S.10(g) Confiscation of conveyance

       Any conveyance or animal which has been, is being, or is attempted to be, used for the transport of any commodity which is liable to confiscation under this Act, shall be liable to confiscation unless the owner of the conveyance or animal proves that it was, is being, or is about to be, so used without the knowledge or connivance of the owner himself, his agent, if any, and the person in charge of the conveyance or animal and that each of them had taken all reasonable precautions against such use :
       PROVIDED that in the case of a conveyance or animal used for the transport of goods or passengers for hire, the owner of the conveyance or animal shall be given an option to pay, in lieu of confiscation of the conveyance or animal, a fine not exceeding the value of the commodity which has been, is being, or is attempted to be, transported by such conveyance or animal

S.10(h) Option to pay fine in lieu of confiscation

       Whenever confiscation of any commodity is authorised by this Act, the officer adjudging it shall, without prejudice to the provisions of the proviso to section 10G, give to the owner of the commodity an option to pay in lieu of confiscation such fine not exceeding the value of the commodity.

S.10(i) Liability to penalty

       Any person, -
       (a) who, in relation to any commodity, does or omits to do any act which act or omission would render such commodity liable to confiscation under this Act, or abets the doing or omission of such an act; or
       (b) who acquires possession of or is in any way concerned in carrying, removing, depositing, keeping, concealing, selling or purchasing, or in any manner dealing with, any commodity which he knows or has reason to believe is liable to confiscation under this Act, shall be liable to a penalty not exceeding five times the value of the commodity or five thousand rupees, whichever is more, whether or not such commodity has been confiscated or is available for confiscation.

S.10(j) Confiscation or penalty not to interfere with other punishments

No confiscation made or penalty imposed under the foregoing provisions of this Act shall prevent the infliction of any other punishment to which the person affected thereby is liable under the provisions of this Act or under any other law for the time being in force.

S.10(k) Adjudication

Any confiscation may be adjudged or penalty may be imposed under this Act by the Director of Inspection and Quality Control, or, where he so directs, by a general or special order, by any officer subordinate to him.

S.10(l) Giving of opportunity to the owner of goods etc.

       No order of adjudication of confiscation or imposing a penalty shall be made unless the owner of the commodity, conveyance or animal or other person concerned is given a notice in writing-
       (a) informing him of the grounds on which it is proposed to confiscate such commodity, conveyance or animal or to impose a penalty,
       (b) giving him a reasonable opportunity of making a representation in writing within such reasonable time as may be specified in the notice against the confiscation or imposition of penalty mentioned therein, and, if he so desires, of being heard in the matter.

S.10(m) Appeal

       (1) Any person aggrieved by any decision or order made under this Act may prefer an appeal,
       (a) where the decision or order has been made by the Director of Inspection and Quality Control, to the Central Government;
       (b) where the decision or order has been made by any officer subordinate to the Director of Inspection and Quality Control, to the Director of Inspection and Quality Control. within a period of forty-five days from the date on which the decision or order is served on such person: Provided that the appellate authority may if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal within the aforesaid period of forty-five days, allow such appeal to be preferred within a further period of forty-five days. Provided further that in the case of an appeal against an order imposing a penalty, n

S.10(n) Powers of revision

       The Central Government may, on its own motion or otherwise, call for and examine the records of any proceeding in which an order of adjudication of confiscation or imposing any penalty has been made by any officer under this Act and against which no appeal has been preferred, for the purpose of satisfying itself as to the correctness, legality or propriety of such order or decision and pass such orders thereon as it may think fit:
       PROVIDED that no decision or order shall be varied under this section so as to prejudicially affect any person unless such person -
       (a) has, within a period of two years from the date of such decision or order, received a notice to show cause why such decision or order shall not be varied, and
       (b) has been given a reasonable opportunity of making a representation and

S.10(o) Powers of adjudicating and other authorities

       (1) Every authority making any adjudication or hearing any appeal or exercising any powers of revision under this Act shall have all the powers of a civil Court under the Code of Civil Procedure, 1908, while trying a suit, in respect of the following matters, namely: -
       (a) a summoning and enforcing the attendance of witnesses;
       (b) requiring the discovery and production of any document;
       (c) requisitioning any public record or copy thereof from any court or office;
       (d) receiving evidence on affidavits; and
       (e) issuing commissions for the examination of witnesses or documents.
       (2) Every authority making any adjudication or hearing any appeal or exercising any powe

S.10(p) Continuance of proceedings in the event of death or insolvency

       (1) Where a penalty has been imposed by the adjudicating authority and -
       (a) no appeal against the order imposing such penalty has been preferred to the Appellate authority and the person entitled to file such appeal dies or is adjudicated an insolvent before the expiry of the period within which the appeal can be preferred; or
       (b) an appeal has been preferred to the Appellate Authority against the order imposing such penalty but the appellant dies or is adjudicated an insolvent during the pendency of the appeal, then, it shall be lawful for the legal representatives, of such person or the Official Assignee or the Official Receiver, as the case may be, to prefer an appeal to the appellate authority or, as the case may be, to continue the appeal before the Appellate authority, in place of such person and the provisions of section 10M shal

S.11 Penalty

       (1) If any person contravenes any order under clause (d) of section 6, or fraudulently obtains a certificate under section 7, or fraudulently affixes or applies any such mark or seal as is referred to in sub-section (1) of section 8, he shall, on conviction, be punishable -
       (i) for the first offence, with imprisonment for a term which may extend to two years, or with fine which may extend to five thousand rupees, or with both;
       (ii) for the second or subsequent three offence, with imprisonment for a term which may extend to 1 [three years] and also with fine which may extend to five thousand rupees and in the absence of special and adequate reasons to be mentioned in the judgment of the Court, such imprisonment shall not be less than three months.
       (2)Any person who attempts to commit or abets t

S.11(a) Penalty for contravention of order made by adjudicating authority or Appellate authority

       1[11A. Penalty for contravention of order made by adjudicating authority or Appellate authority
       If any person fails to pay the penalty imposed by the adjudicating or the Appellate authority or fails to comply with any direction or order made, or deemed to have been made, under this Act, he shall, on conviction, be punishable with imprisonment for a term which may extend to two years, or with fine, or with both.
       ________________________
       1. Sections 11A to 11C by Export (Quality Control and Inspection) Amendment Act (Act 40 of 1984) w.e.f 02.07.1984.

S.11(b) Offences by officers and employees of agency, etc.

       (1) If any officer or employee of the Council or of any agency referred to in sub-section (1) of section 7, or any surveyor, sampler or employee of any testing house, referred to in sub-section (2) of that section enters into, or acquiesces in, any agreement to do, abstains from doing, permits, conceals or connives at, any act or thing whereby any provision of this Act is or may. be contravened, he shall, on conviction, be punishable with imprisonment for a term which may extend to two years, or with fine which may extend to live thousand rupees, or with both.
       (2) If any officer searches or authorises any other officer of the Central Government to search any place without having reason to believe that any commodity, books of account or documents or things of the nature referred to in section 10B-are secreted in that place, he shall, on conviction, be punishable with imprisonment fo

S.11(c) Correction of clerical or arithmetical mistakes

       Clerical or arithmetical mistakes in any decision or order, or errors arising therein from any accidental slip or omission may, at any time, be corrected by the authority by which the decision or order was made either on its own motion or on the application of the aggrieved person:
       PROVIDED that where any correction proposed to be made under this section will have the effect of prejudicially affecting any person, no such correction shall be made except after giving to that person a reasonable opportunity of making a representation in the matter and no such correction shall be made after the expiry of a period of two years from the date on which such decision or order was made.]

S.12 Offences by companies

       (1) Where an offence under this Act has been committed by a company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly.
       PROVIDED that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
       (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributabl

S.13 Delegation of powers

       The Central Government may, by notification in the Official Gazette, direct that any power exercisable by it under this Act shall, in relation to such matters and subject to such conditions, if any, as may be specified in the direction, be exercisable also by -
       (a) the Council;
       (b) such officer or authority subordinate to the Central Government, or such State Government or such officer or authority subordinate to a State Government as may be specified in the direction.

S.14 Procedure for prosecution

       No prosecution for an offence punishable under this Act shall be instituted except by or with the consent of an officer authorised by the Central Government by general or special order in this behalf.

S.15 Officers and employees of agency to be public servants

All officers and employees of the Council or of any agency established or recognised under sub-section (1) of section 7and all surveyors, samplers and employees of testing houses, referred to in sub-section (2) of that section shall, while acting or purporting to act in pursuance of the provisions of this Act or any rule or order made there under, be deemed to be public servants within the meaning of section 21 of the Indian Penal Code.

S.16 Protection of action taken in good faith

       (1) No suit, prosecution or other legal proceeding shall lie against the Council or any officer or employee of the Government or the Council or any agency referred to in sub-section (1) of section 7 for anything which is in good faith done or intended to be done in pursuance of this Act or any rule or order made hereunder.
       (2) No suit or other legal proceedings shall lie against the Government for any damage caused or likely to be caused by anything which is in good faith done or intended to be done in pursuance of this Act or any rule or order made there under.

S.16(a) Suspension, etc., of operation of the provisions of the Act

       1 Suspension, etc., of operation of the provisions of the Act
       (1) If the Central Government is satisfied that circumstances exist which render it necessary or expedient so to do in the public interest, it may, by notification in the Official Gazette, suspend or relax to a specified extent, the operation of all or any of the provisions of this Act in respect of such notified commodity or commodities generally or in respect of any area and for such period as may be specified in the notification.
       (2) Where the operation of any provision of this Act has, under sub-section (1) been suspended or relaxed, such suspension or relaxation may, at any time be removed by the Central Government by a like notification.
       (3) Every notification issued under this section shall be laid, as soon as may be after it

S.17 Power to make rules

       (1) The Central Government may, by notification in the Official Gazette, make rules' to carry out the purposes of this Act,
       (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for-
       (a) the traveling and daily allowances payable to members of the Council, persons co-opted under sub-section (2) of section 5, and members of specialist committees referred to in sub-section (3) of that section;
       (b) the functions of the Council and the procedure to be followed by it;
       (c) the appointment of officers and other employees of the Council;
       (d) the procedure to be followed for various types of quality control and inspection;
      &n

S.18 Act to override other enactments

As from the date on which a commodity is notified under clause (a) of section 6, the provisions of this Act or anything done or any action taken there under shall have effect in relation to that commodity notwithstanding any provisions (relating to quality control and inspection prior to the export of such commodity contained in any enactment other than this Act or in any instrument having effect by virtue of any enactment other than this Act.