bill ro 13 ~ tjff  the export (quality control and inspectioh) bill,i963to "ooide lor the iouftd development 01 the e:rpor1 trade of 1, tlwough qutditll control und inspection und fw matter cofimctecj therewith bb i~ ebacted· by parliament in the founeanth year of the republic of india as follows:-1 (1) th'is act may be called the export (quahty control ad ata   lnipection) act, 1963 j (z) it extendj to the whole of india (3) it shan come into force on such date as the central governmeni may, by notification in the ofticial gazette, appoint i in this act, unless the context otherwise requlres,-(u) "council" means the export inbpection council established under section 3; 10 (l») "export", witi! its grammatical vanatiods and' ~ expressions, means taking out of india to a place out8lde incur, (c) "inspection", in relation to a commodity, meana tmt process of determining whether a batch of goodaj in that com-is modity complies with the standard specifications appl1c~ble to it or ~ other specifications stipulated in the export contract generauy by inspecting either the whole batch or a -elected sample or samples which purport to represent the whole batch; 3207 (b) lsa-l (d) "notified commodity" means any commodity notified under clause (a) of section 6; (e) "prescribed" means prescribed by rules made under thia act; (f) "quality control" mean:; any activity having for its 5 object the determination of the quality of a commodity (whether during the process of manufacture or production or subsequently) in order to ascertain whether it satisfies the standard speciflcations applicable to it or any o:her specifications stipulated in the export contract and whether it may be accepted for pur- 10 poses of export jiiiablitb-3 (1) the central government may, by notiftcation in the =- i  0ildid gdette, establish, with effect from such date as may ite = speeiied in the notifieation, a council to be known as the export 0iiidl iaipeetlon couneil, which sball consist of-is (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' 00\,-emment of india and director of indian standards institution 20 ex officio; (d) the agricultural marketing adviser to the government of india, ex ofjicie; (e) the director-general of commercial intelligence and statistics, ex officio; :as (f) eleven other members nominated by the central govermnent three of whom shall be persons representing the agencies referred to in section 7 (2) the council shall be a body corporate by the name aforesaid, having perpetual succession and a common seal, with power to ae- 30 quire, hold and dispose of property and to contract, and shall by the said name sue and be sued (3) the term of otdce of, and the manner of fuling casaal vaeaades amoa" the m,embers of the councu referred to in claulel '(4) and (i) of sub-section (1) and the travelling and dauy allow- 3s aaces payable to the members of the council and the procedure to be followed in the djscharge of its functions by! the council shall ite iiich as may he prescribed (4) no act or proceeding of the council shall be invalidated merely' by reason of any vacancy ~n, or any defect in the constltu- 40 tlon of, the council corrigenda to  the export (quality control and inspection) bill, 1963 (to be/as introduced in lok sabha) 1 page 1, in the marginal heading to clause 2,-for "definiriions" read "definitions" --2 page 2, line l7,~ " n , after "control" insert 3 page 3, line 8,-for "to be" read "be to" 4 page 6, line 39,-after "and" insert "shall" 5 correct line numbers on pages 5, 6 and 7 new deijii, api'il i, 1963 cfllllt!'a ii, 1885 (saka) (5) subject to such rules as may be made by the ceatral got-emment in this behalf, the council may appoint such o8leen and other employees as it considers necessary for the purpose of discharging its functions under this act s 4 the central govemment shall appoint a director of idapee- dinc:far ii tion and quality control to exercise such powers and perform  ~~ duties under this act as may be prescribed c:::ctbl 5 (1) the functions of the council shall generally to be advise ptjdclioiiiaf the central government regarding measures for the enforeement of the 0mmcii 10 quality control and inspection in relation to commodities intended for export and to draw up programmes therefor, to make, with the concul'l'ellee of the central govemment, grants-in-aid to the agend estabushed or recognised under section 7 a  d to perform such other functions as may be assigned to it by or under this act 15 (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 an4 practical experience in matters relating to any commcdity or trade therein and any such person shall have the right to take part in the discussions of the council but shall not ;ao have the right to vote and shall not be a member for any other purpose (3) the council may also constitute specialist committees for conducting investigations on special problems connected with its functions a5 (4) in the performance of its functions under this act, the council shan be bound by such directions as the central governmedt may give to it in writing from time to time • if the central government, after consulting the council, i of powers 01 opinion that it is necessary or expedient so to do for the developinent ~~= 30 of'the export trade of india, it may, by order published in the ~ to official gazette,- control aod (a) notify commodities which shall be subject to quality impecdoa 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; 3s (c) establish, adopt or recognise one or more standard specifications for a notified commodity; (d) prohibit the export in the course of intemationaltrade of it notified commodity unless it is accompanied by a cerwlcate i~eq ~nder sectt~1! ! that the; ~~~~it~ ~tisft8f ~~ ~  - 1iopa rel~ting to quality cqdtrol or inspection, or it ];las ~xed of wlifjd ~ i\ a mark or seal recognised 'bythe centr,al (;9  -~ent ~ ~cating that it conforms to the standard specijie,ationa applicable to it under clause (c) =,~~::::l, t (1) the central government may, ~y nomeahod id the s = ~ 'oftidai gazette, estabhsh, or recopise subject to lmieh coldlition& as  it may' deem at,  neies for quality control or inspediod or beth: frq:vi4~ th-t if the central government is of opinion that any  ~~op eranwd to any agency under this sub-section should, in ",e wbilc interest, be withdrawn, the central government ~ay, 10 ~~r'ji~g a re~sonable opportunity to that agency to ma"e re-~~:qtp,~ione in the :roatter, withdraw, by like notiftcatl~, the recognition aran~ to it ~) any agency referred to in su~ection (1) may, on awlica, t;fpn ma~ t,q it or otherwise, hold or cause to be held auch examt-i, ~  it ~ fit relating to quau-tr cootrol or mspction of· ~tiii\ ~~, either at t~e time qf export o~ earuer, id ajlch ~; ~ ~ by _h surv:eyo~s q1' samplerw as are ap~ 'by "" ~ ~t in t~ behalf and may cqarse ailcll fees, as may be prescribed for the purpose of such examination ~ (j) " aer the examination, the asency i of opinion ~at the ~i1/y aausftes ij)e ~ard s~ci1icationa laid dpwn ~ reapect of it under section 8 or, as the case may be, any other specm\qa~ ti~ula~d in the export contract, it may issue a certificate that the eominoctity satiiftes the conditions relating to quality contrel and'  35 mspeticm  '  (4) any person agrleved by the refusal of any apiley referred told  tidd (i) to __ a eerti8cate may pna 811  wlthid  '  may be ~to s1ieb &1itkarity  e ~i aov  -,y by aoti8eatlod ia the oiildai 6azeite,eoititae 30 for the purpom of bearing appeals  , • (i) subject to the provisioas of sub-sectioo (6~, the decision of the agency where no appeal is filed, and t~e decision of the appellate ~j:it¥ where an appeal t ftled, shall be ftnaj _ thau not be questioned in any court of law ss  (e) tile central government may, at any time, ~ for and examine the record of any proceeding relating to any decilioll of an' ~ or appellate authority under this 5i8ctian ~ the purpose ofj  ~g itself as to the legality or propriety of 1\1~ ~ and_ ~ ~ 5\loii oiw tbemm as it thipk, at ~4q , -  (1) the central government may, by dotificatioll in the fewer to n-oftlcial gazette, recognise or establish any mark or aeal in relation coi:~shr to a n,otifled commodity for the purpose of denoting tha,t such com- :us to demodity conforms to a standard specification applicable to it :~ c:::l0rs (2) any such mark or seal affixed or applied to a noti,fled com- =~ciodl modity or to any covering containing, or label attached \0, such commodity shall be deemed to be evidence of the commodity being in conformity with the standard specifications applicable to it under ws act: ' 10 provided that nothing in this sub-section shall prevent 8jly officer of customs from examining any consignment of a notified commodity lntend~ for export if he has reason to believe that the seal 01' ma:rk is not genuine or has been afftxed or applied tr,udulently or if such an 'examination is necessary for the purpose of any i s other law for the time being in force i the central government or any officer or authority authorised :~:: i:torby it in this behalf may, by notice published in the oftici~ guette, matiod from require-::orten, (0 person' manufacturing, dealing in or export~g notified ao comm04ities; anfl (ii) such other persons as may be prescribed, to f~ any infordj,ation, return or report waich the central govemment 01' such ·ofticer or authmifiy idiiy coneid« ~ary for ~ar;ryiq wt the purposes of this act 25 10 (1) for the purpose of enabling the co~ii _ ,ieckargel! its! === and fu:netiods udder this act, the central government may, att d_ audit  - jpropria~n made by parliament by •• w in this behalf, pay to the coimeil sum sums of money as that government, considers _-; sary by way of grants, loans or otherwise 30 (2) for the purpose of discharging its functions under this act, tbe counell may receive grants or dc:matiods from bodies and i~i­tutions approved by the central government in this bebalf (3) the council shall have its own fund to which shall bf: credited the sums of money referred to in suh-sections (1) and (2) and - _ the moneys in the fund shall be applied for-35 ' , (a) meetidg the pay and allowances of the ofilcers ad other employees of the couacil and other admini$trative ~eiliies of the cquncil;  -  (b) carrying out the functions of the council under this act(4) the council shall prepare, before the commencemedt of each flnancial year, a statement of programme of its activities during that year as well as a financial estimate in respect thereof (5) a statement prepared under sub-section (4) shall, not later' than three months before the commencement of each financial year, be submitted for approval to the central government (6) the council shan maintain such accounts and prepare the balance-sheet in such form as may, in consultation with the comptroller and auditor-general of india, be prescribed 10 (7) the accounts of the council shall be audited in such !d8lljh!!" and at such times as may, in consultation with the comptroller and auditor-general of india, be prescribed 11 (1) if any person contravenes any order under clause (d) of section 6, or fraudulently obtains a certificate under section 7, or i, fraudulently aftixes 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 8 term which may extend to two years, or with fine which may extend to five 20 thousand rupees, or with both; (ii) for the second or subsequent offence, with imprisonment for a term which may extend to two years and also with fine which may extend 'to ftve 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 the commwsion of an offence punishable under sub-section (1) shall be deemed to have committed such offence 30 (3) if any person contravenes or attempts to contravene or abets the contravention of any other provision of this act or any rules or orders made the:t:'eunder, he shall be punishable with flne which may extend to one thousand rupees 0ffedae1 by 12 (1) where an offence under this act has been committed by 35 _pm a cmnpany, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for tm, ccaduct of the business of the company, as well as tim company, shall be cieiemed to be guilty of the offence and ~1? be liable to be pro-'cie4 8iainst and puni$hect accordingly: 40 ' - provided that nothing contained in this sub--section shall redder any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he exerci8ed all due diligence to prevent the commission of sucb offence s (2) notwith9tanding 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 bas been committed with the conlent or connivance of, or is attributable to any negligence on the part of, any director, manager, secretary or other officer of the com-10 pany, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be pr0-ceeded against and punished accordingly ezpzcmation-for the purposes of this section-(a) "company" means a body corporate and includes a firm is or other association of individuals; and (b) "director", in relation to a firm, means a partner in the ftrm 13 the central government may, by notification in the oftlcial ~tioil gazette, direct that any power exercisable by it under this act shall, powera ao in relation to such matters and subject to such conditions, if any, as may be specifted in the direction, be exercisable also by-(a) the council; (b) such oflicer or aut~ority subordinate to the central government, or such state government or such oflicer 011' authority subordinate to a state government as may be specified in the direction u no prosecution for an offence punishable under this act shall proceclure be instituted except by or with the consent of an officer authorised ~~ by the central government by general or special order in this be-30 h8lf 15 all officers and employees of the council or of any agency o~  ci established or recognised under sub-section (1) of section 7 and all !f:;'to surveyors, samplers and employees of testing houses, referred to in == sub-4ection (2) of that section shall, while acting or purporting to  act in pursuance of the provisions of thi's act or any rule or order 3' made thereunder, be deemed to be public servants within the mean ing of section 21 of the indian penal code 18 (1) no suit, prosecution or other legal proceeding shall lie piot~od against the council or any officer or employee of the gov-:: 40 emment or the councilor any agency referred to in sub-lectiod· (1) aooci faith - 01 eeetlon 7 for anything which is in good faith done or intended to be clone in pursuance of this act or any rule or order made there-1iildw (2) no suitor other legal proceeding shall lie against the goftrnmeat 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 thereunder pow_to lllike rules 17 (1) the central government may, by notification in the omcia! gazette, make rules to carry out the purposes of this act (2) in particwar and without prejudice to the generality of the 10 foregoing power, such rules may provide for-(a) the travel1ins and daily allowancea payable to members of the council, persons co-opted under sub-section (2) of sectioh 5, add members of specialist committees referred! to in subsection (3) of that section; is (b) the functions of the council and the procedure to be followed by it; (c) the appomtment of officers and other employees of the cou11ctl; (d) the procedure to be followed for various types of quality 20 control and inspection; (e) the conditions which a testing house, surveyor or sampler should satisfy for purposes of approval by the cenual gov'; ~nt; (t) the fees chargeable for purposes of examination and 25 illsue of certificates under section 7; (9) the 1l1ing of appeals under section 7 and the f~8 payable therefor; (h) the manner in which the accounts of the council shall be maintained and audited: 30 (i) any other matter which is required to be, or maybe, pn!8c1'ibed (3) j!:very rule made by the central government ul'lder thla seetioo shall be laid as soon as may be after it is made before each house of parliament while it is in session for a total period of thirty 3$ days which may be comprised in one session or in two or mote ijuijcessive sessions, and if, before the expiry of the session in wtrich 1t :ill 80 laid or the successive sessions aforesaid, both houses agree iii making any modiftcation in the rule or both houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so however that any such modification or annulment shall be without prejudice to the validity of anything previously done under s that rule 18 aij from the date on which a commodity is notified under ~ct to ovcrclause (4) of section 6, the provisions of this act or anything done ~~::~b or any action taken thereunder shall have effect in relation to that commodlity notwithstandi~g any provisions (relating to quality con-10 trol and inspection prior to the export of such commodity) contained in any en,actment other than this act or in any instrument havln etrect by virtue of any enactment other than this act 3207 (b) lt-2  statement of objects and reasonsthe government of india appoillited an ad hoc comml!ttee on quality control ilnd pre-shipment inspection to examine the question of enforcing quality control and inspection on various goods exported from india the committee, after reviewing the existing statutory provisions relating to the export of goods, recommended tbat aeparate legislation should be undertaken covering all aspects of quality control in respect of export commodities the pr-esent bill seeks to give effect to this recommendation of the committee which has been accepted by the gove:nment 2 the bill provides for the establishment of an export inspection council with a chairman and 15 members to advise the government regardmg the measures to be adopted for the enforcement of quality control and inspection in relation to commodities intended for export and to draw up programmes therefor 3 under the bm, the government will be empowered to notify commodities which shall be subject to quality control or inspection prior to export, specify the type of quality control and inspection to be appiied to the commodities so notified, establish, adopt or recognise standard specifications for such notified commocuties, and prohibit the export in the course of international trade of a notified commodity unless it is accompanied by a certificate issued by an agency, established or recognised by the government for this purpose, that the commodity statisfies the cobditions relating to quality control and inspection 4 the bill also provides for appropriate penalties for contravention of the provlaions of the bill new delhi; the 16th march, 1963 manubhai shah clause 4 of the blll provides for the appointment of a director of inspection and quality control the expenditure on the pay and allowances for the director is estimated to be of the order of rs 30,000 per annum clause 7 (1) of the bill provides for the establiahmant of agencies by the central government for quality control or inspection or both and clause 7 (4) provides for the constitution of authorities for hearing appeals it would not be possible to estimate exactly the expenditu!l'e that may have to be incurred under these provisions at this stage, since this would depend upon the requirements of the various commodities that may be notified from time to time it i8, however, anticipated that a substantial portion of the recurring expenditure that may be incurred on such agencies and authorities will be re--couped by the fees charged under clause 7 (2) and the rules made under clause 17 3 clause 10 of the bill provtdes for the central government making grants to the council after due appropriation made by parliament by law in this behalf so far as can be foreseen for the present the total grant will be in the region of rs 5 lakhs these grants will be utilised by the council for the following purposes:-(a) for the payment of travelling and daily allowances to the members of the export inspection council as provided in clause 3 (3) and the expenditure required for travelling and daily allowances payable to co-opted members and members of specialist committees in terms of the rules to be made under clause 17; (b) for the payment of salary, etc, of the staff which the council may appoint as it thinks fit tol enable it to discharge its functions as provided in clause 3 (5) ; (c) for making grants-in-aid as provided in clause 5(1) to agencies established or recognised under clause 7; (d) for any other administrative expenditure  memorandum regarding delegated legislationclause 6 of the bill empowers the central government to notify commodities which shall be subject to quality control or inspection or both prior to export; to specify the type of quelity control or inspection which will be applied to a notified commodity; to establish, adopt or recognise one or more standard specifications for a notified commodity; and to prohibit the export in the course of international trade of a notified commodity unless it is accompanied by ap appropriate certificate that the commodity satisfies the conditions relating to quality control or inspection, or it has affixed to it a mark recognised by the central government as indicating that it conforms to the standard specifications applicable to it the orders made by the central government under this provision will be based on the requirements of the different commodities which may be notified from time to time 2 clause 17 enables the government to make rules to carry out the pw'}toses of the bill the matters in respect of which rules may be made relate, among others, to the procedure to be followed for quality control and inspection, the fees chargeable for purposes 01 quality control and inspection, the travening and deily allowances payaple to members, and other matters of a procedural and adnunlstrative nature 3 the delegation of powers is thus of a normal character a blll to provide for the sound developm:qt of the export trade or india through quality control and inspect:on and fur mauers coqqccted therewith  (shrl manubhai shah, ministlr of intemation4l trade in the mi"lstry of commerce and industry) 