General Standards
International Standards in India are used to establish the technical detail and regulations, which allows the legislation to concentrate on long term policy objectives – for example product safety, or environmental protection. In such a way export and import procedures does not influence badly neither economy nor internalization.
India has made efforts to match national standards with international norms. In case when Indian standards are not matched with international ones, the standards-related regulations create barriers to trade and pose challenges to expanding exports in certain sectors.
Because of great influence of consumer rights groups, NGOs, and environmental activists there is a growing emphasis on product standards in India in various industry sectors. In such a way, food quality and purity are subject to strict national and state regulations. This organizations insist on the ban of colouring matter, artificial sweeteners, containers and their marking and labelling.
The two best tools to check international standards in India are Import Tariff and Exemption Notifications (http://www.cbec.gov.in/) and Customs Duty Calculator (www.icegate.gov.in). The last one is going to help importers and exporters determine their import duties.
Standards Organizations
The Bureau of Indian Standards (BIS), established under the Bureau of Indian Standards Act of 1986, is the national standards body of India responsible for development and formulation of international trade standards. BIS is comprised of representatives of industry, consumer organizations, scientific and research bodies, professional organizations, technical institutions, Indian government ministries and members of parliament. Besides development and formulation of Indian Standards, BIS is involved with product certification, quality system certifications and testing, and consumer affairs. Currently, 92 items are under mandatory standards and only products and systems come under them. The bill proposes to "include services, besides articles and processes under the standardization regime." BIS is the only organization in India authorized to operate quality certification plans under an Act of Parliament. It serves as the official member and sets policy for Indian participation in the International Organization for Standardization (ISO) and International Electro technical Commission (IEC). In addition, the Food Safety and Standards Authority of India (FSSAI) was established under the Food Safety and Standards Act, 2006 as a statutory body for laying down standards for articles of food and regulating manufacturing, processing, distribution, sale and import of food.
Inward Trade Strategy
Trade strategies affect the pattern of development, entrepreneurial and business behavior and consumption pattern of the country. Outward oriented and inward oriented are two trade strategies. India follows inward oriented policy.
An inward oriented or inward looking strategy is characterized by the bias of the trade and industrial policies in favor of domestic production and against foreign trade.As import substitution is the key element of the inward oriented strategy, it is often described as the import substitution industrialization strategy.
Main International Standards
In association with technical GOI agencies and NGOs, BIS carries out periodic surveillance inspections of products under mandatory certification. The exporter/importer has to respect the following regulations:
- Labeling. Outer containers should bear consignee and port mark and be numbered (to accord with packing list) unless their contents can be otherwise readily identified. Gross weight must be shown on two faces.
- Packaging. Packing should be strong and should guard against extreme heat and humidity in summer and possible storage in the open and pilferage. Steel strapping is recommended.
- Special certificates. Livestock imports must be accompanied by a sanitary certificate issued and certified by an approved authority in the country of origin. Plants, plant products and leaf tobacco require phytosanitary certificates issued by an approved authority in the country of origin and certified by an approved organisation. Additionally, leaf tobacco must be accompanied by a special certificate stating that the tobacco is free from ephestia elutella or that the pest does not exist in the country of origin. Any shipment of tobacco leaf arriving without the above certificate will be examined by an Indian Government inspector and a fee charged. Used clothing requires a certificate of fumigation issued by an approved authority in the country of origin. Port wine requires a certificate indicating alcoholic content and spirits may need a certificate of maturity.
Methods of quoting and payment
Quotations are usually required to indicate free on board (FOB) or cost, insurance and freight (CIF) prices, with freight and insurance charges separately shown. They should be expressed in US dollars or Indian rupees. Quotes to government purchasing agencies should be both FOB and CIF.
In order to export or import any type of products, you have to prepare and present the following documents:
- Commercial invoice. No prescribed form listed. A minimum of four copies is required and must be signed by the supplier in exporting country. The invoice must show details such as: country of origin; consignee's name; number and date of letter of credit and import licence number; terms of payment; name of carrier; number; description and identifying marks of outer containers, detailed description of the goods including quantity, weight (gross and net), value, shipping charges and insurance.
- Insurance
- Bill of lading. Minimum of two copies normally required. Freight charges must be stated separately and quantities must be indicated in metric terms. Import reference number and letter of credit number are to be shown. It also indicates the name and address of the applicant and the issuing bank.
- Packing list. Not compulsory, but facilitates clearance.
- Certificate of origin. Issued by local Chamber of Commerce (three copies normally required).
Public Health International Requirements
Live animals, plants, and parts of plants must be accompanied by health certificates issued by an approved authority in the country of origin. Plants may be imported only through ports where fumigation and inspection facilities are available. Fruit, vegetables and all foodstuffs are subject to inspection on arrival. Food quality and purity are subject to strict national and state regulations. The requirements also extend over the use of preservatives, colouring matter, artificial sweeteners, containers and their marking and labelling.
Pharmateutical drugs are subject to stringent controls covering import, manufacture, distribution and sale. Imported drugs require prior sampling and testing. Legal standards used for drugs are the British Pharmacopoeia and the US National Formulary.
Food and Agricultural Standards
Before exporting or importing any kind of products, all exporters, as well as importers, are asked to research the relevant laws and regulations, related to their products and be ready to pass through a number of tests, which are going to show the products' provinance.
Laws and international standards connected with food and agricultural product imports into India is strictly controled and followed by multiple Government of India authorities, such as : the Food Safety and Standards Authority of India (FSSAI) of the Ministry of Health; the Office of Legal Metrology of the Ministry of Consumer Affairs, Food, and Public Distribution; the Directorate General of Foreign Trade of the Ministry of Commerce and Industry; and two departments of the Ministry of Agriculture, the Department of Animal Husbandry, Dairying and Fisheries and the Department of Agriculture and Cooperation. That is why, it is very difficult, but extremely necessary to get and present a certificate of quality for all international imports and exports in order to get a permissin to place the products on the market.
Labeling Requirements
Before importing of exporting FMCG and agricultural products, the seller has to present the labeling declaration with a number of requirenments, such as:
1) All the information about the product has to be printed on a label securely affixed to the package or printed on the package itself;
2) All lables on the package have to be printed only in English and not in Hindi. The governance accepts lables in Hindi language with Devanagari script;
3) All the products with only one standard EU or the USA label are not allowed to be placed on the market;
4) All products with false, misleading or deceprive representation are not allowed to be placed on the market;
5) The content on the label has to be clear, prominent, indelible, and readily legible by the consumer.
The governance is sceptic about pre-packaged food. That is why, they have elaborated a number of items which have to be presented on the label before the products' export or import. These are:
1) The name of the food (the name of food shall include trade name or description of food contained in the package);
2) List of ingredients, except for single ingredient foods (the list shall be declared on the label, in descending order of their composition by weight or volume);
3) Nutritional information (all nutritional facts per 100 gram or 100 ml);
4) Declaration regarding vegetarian and non vegetarian (vegetarian food must have a symbol consisting of green color-filled circle inside a square with a green outline prominently displayed on the package; non-vegitarian must have a symbol of a brown color-filled circle inside a square with a brown outline prominently displayed on the package);
5) Declaration of food additives;
6) Name and address of the manufacturer (the label shall carry the name and complete address of the manufacturing or packing or bottling unit and also the name and complete address of the manufacturer or the company for and whose behalf it is manufactured or packed or bottled);
7) Net quantity (by weight or volume or number, shall be declared on every package of food);
8) Lot/code/batch identification (a mark of identification by which the food can be traced in the manufacture and identify in the distribution shall be given on the label);
9) Date of manufacture or packing (the date, month and year in which the commodity is manufactured, packed or pre-packed, shall be given on the label);
10) Best before date or use by date or date of expiry (the month and year in capital letters up to which the product is best for consumption);
11) Country of origin;
12) Instructions for use, if applicable (if necessary, shall be included on the label to ensure correct utilization of the food).
Raw agricultural commodities, spice mixes, condiments, non-nutritive products, alcoholic beverages, fruits and vegetables, processed pre-packaged vegetables and fruits are exempted from nutritional labeling requirements.
Food Packaging
Before exporting or importing any type of product, the person has to take into account a number of important international regulations. According to the FSS Packaging and Labeling Regulation, food packages should carry the following information on the label:
1. Name of food;
2. List of ingredients;
3. Name and complete address of manufacturer;
4. Date of manufacture;
5. Best before date or use by date or date of expiry;
6. Name and address of importer.
The package should not influence badly the country's environment and does not contain any chemical elements, forbiden for peoples' health.
Container Regulations
According to Agricultural and Food International Standards, the exported or imported products must correspond to the following weight measurements:
1) Weaning food may now be packed in 75-, 100-, 125-, 150-, 200-, 250-, 300-, 400-, 500-, 600-, 700-, 800-, 900-gram and 1-, 2-, 5- and 10-kilogram packages.
2) Biscuits may now be packed in 25-, 50-, 75-, 100-, 150-, 200-, 250-, 300-, 350-, and 400-gram packages and thereafter in multiples of 100 grams up to 1 kilogram.
3) Coffee may now be packed in 25-, 50-, 100-, 200-, 250-, 500-, and 750-gram and in 1-kilogram or multiples of 1-kilogram packs.
4) Tea is now permitted to be packed in units smaller than 25 grams with no restriction, and in sizes of 25-, 50-, 75-, 100-, 125-, 150-, 200-, 250-, 500-, 750 grams, as well as 1-, 1.5-, 2-kilogram and larger in multiples of 1 kg.
5) Edible oils, including vegetable oils as well as vanaspati (ghee) and butter oil, may now be
packed in units smaller than 50 grams without restriction, and in sizes of 50-, 100-, 175-, 200-, 300-, 500-, and 750 grams, as well as 1-, 2-, 3- and 5 kilograms or multiples of 5 kilograms.