A free trade zone (FTZ) or export processing zone (EPZ) is an area of a country where some

normal trade barriers such as tariffs and quotas are eliminated and bureaucratic requirements are
lowered in hopes of attracting new business and foreign investments. It is a region where a group
of countries has agreed to reduce or eliminate trade barriers.[1] Free trade zones can be defined as
labor intensive manufacturing centers that involve the import of raw materials or components
and the export of factory products.

Most FTZs are located in developing countries: Brazil, China, the Philippines, Malaysia,
Pakistan, Mexico, Costa Rica, Honduras, and Madagascar have EPZ programs.[2] In 1997, 93
countries had set up export processing zones (EPZs) employing 22.5 million people, and five
years later, in 2003, EPZs in 116 countries employed 43 million people.[2]

Corporations setting up in a zone may be given tax breaks as an incentive. Usually, these zones
are set up in underdeveloped parts of the host country; the rationale is that the zones will attract
employers and thus reduce poverty and unemployment, and stimulate the area's economy. These
zones are often used by multinational corporations to set up factories to produce goods (such as
clothing or shoes).

Free trade zones in Latin America date back to the early decades of the 20th century. The first
free trade regulations in this region were enacted in Argentina and Uruguay in the 1920s.
However, the rapid development of free trade zones across the region dates from the late 1960s
and the early 1970s.

Free Trade Zones are also known as Special Economic Zones in some countries. Special
Economic Zones (SEZs) have been established in many countries as testing grounds for the
implementation of liberal market economy principles. SEZs are viewed as instruments to
enhance the acceptability and the credibility of the transformation policies and to attract
domestic and foreign investment.

In 1999, there were 43 million people working in about 3000 FTZs spanning 116 countries
producing clothes, shoes, sneakers, electronics, and toys. The basic objectives of EPZs are to
enhance foreign exchange earnings, develop export-oriented industries and to generate
employment opportunities.

Contents
[hide]

• 1 Criticism
• 2 List of Free Trade Zones
• 3 See also

• 4 References

[edit] Criticism
Free trade zones are domestically criticized for encouraging businesses to set up operations
under the influence of other governments, and for giving foreign corporations more economic
liberty than is given indigenous employers who face large and sometimes insurmountable
"regulatory" hurdles in developing nations. However, many countries are increasingly allowing
local entrepreneurs to locate inside FTZs in order to access export-based incentives. Because the
multinational corporation is able to choose between a wide range of underdeveloped or
depressed nations in setting up overseas factories, and most of these countries do not have
limited governments, bidding wars (or 'races to the bottom') sometimes erupt between competing
governments.

Sometimes the domestic government pays part of the initial cost of factory setup, loosens
environmental protections and rules regarding negligence and the treatment of workers, and
promises not to ask payment of taxes for the next few years. When the taxation-free years are
over, the corporation that set up the factory without fully assuming its costs is often able to set up
operations elsewhere for less expense than the taxes to be paid, giving it leverage to take the host
government to the bargaining table with more demands, but parent companies in the United
States are rarely held accountable.[3]

The widespread use of free trade zones by companies such as Nike has received criticism from
numerous writers such as Naomi Klein in her book No Logo.

[edit] List of Free Trade Zones

This list is incomplete; you can help by expanding it.

• Aras Free Zone

• Bahrain Logistics Zone, Kingdom of Bahrain
• Batam Free Trade Zone
• Freeport, Grand Bahama
• Inspira Pharma and Renewable Energy Park, Aurangabad, Maharashtra, India
• Maquiladoras, Mexico
• Port Klang Free Zone
• Pacífico
• Sricity Multi product SEZ, part of Sricity which is a developing satellite city in the
epicentre of Andhra Pradesh & Tamil Nadu.
• Walvis Bay Export Processing Zone, Namibia
• CentrePort Canada Winnipeg
• Slobodna Zona Pirot - Srbija / Free Zone
• Free Trade Zone, popularly known as FTZ, is an area where goods may be traded without any
barriers imposed by customs authorities like quotas and tariffs. Free Trade Zone (FTZ) is a special
designated area within a country where normal trade barriers like quotas, tariffs are removed and
the bureaucratic necessities are narrowed in order to attract new business and foreign investments.
• Free trade zones are developed in places that are geographically advantageous for trade. Places
near international airports, seaports, and the like are preferred for developing free trade zones.

The Free Trade Zone can be defined as a labor-intensive manufacturing hub, which involves the
import of components and raw materials, and the produced goods are exported to different
countries.
 The Free trade zones are located in the developing countries. Outsourcing the zone to the FTZ
operator minimizes the bureaucracy and the businesses established in that zone may be given tax
benefits. One of the main purposes of the free trade zones is to develop the economy of that
location by providing more job opportunities, business options, manufacturing options, etc.

These zones are mostly used by transnational corporations for establishing factories for the
manufacturing of several goods. The goods depend on the availability of the raw material, skilled
labor, and well-equipped technical staff. Some of the oldest Free Trade Zones in the world are found
in South America. Free trade regulations were endorsed in Uruguay and Argentina, as early as
1920. During the 60s and the 70s there was a rapid surge in the development of FTZs across the
world.

There were around 3000 free trade zones across 116 countries in the year 1999, where nearly 43
million people were working. These FTZs produce various goods such as shoes, clothes, sneakers,
toys, convenient foods items, electronic goods, etc. The other important purposes of such trade
zones are the development of export-oriented units, increase in the foreign exchange earnings, and
generation of employment opportunities.

• Purpose of International Free Trade Zones

• The main idea behind creation of free trade zones is to facilitate cross-border trade by removing
obstacles imposed by customs regulations. Free trade zones ensure faster turnaround of planes and
ships by lowering custom related formalities. FTZs prove to be beneficial both for the importers and
exporters, as these zones are designed to reduce labor cost and tax related expenditures. Free
trade zones help the traders to utilize the available business opportunities in the best possible way.
FTZs promote export-oriented industries. These zones also help to increase foreign exchange
earnings. Employment opportunities created by free trade zones help to reduce unemployment
problem in the less developed economies.

• International Free Trade Zones

• International free trade zones are placed mostly in developing countries. It was in the initial
decades of the 20th century that the free trade zones in Latin America came into prominence.
International FTZs are spread over 116 countries across the world. Among the major products that
are produced in free trade zones electronics goods, cloths, toys, and shoes are worth mentioning.
• The setting up of Free trade zones have also been criticized, for encouraging commercial activities
sometimes under the influence of corrupt governments, and for providing the multinational
corporations with more economic liberty. A number of developing countries have allowed the local
industrialist to set up units located within the free trade zones, in order to exploit the
export-based incentives.

The governments of these countries provide relaxation of the rules pertaining to environmental
protection and negligence to the workers, tax holiday for the first five years, and sometimes the
initial cost of setting up of the production unit.

• Major FTZs
• Some of the major free trade zones, which have gained considerable importance over the years, are
as follows:
•  Port Klang Free Zone
•  Aras Free Zone
•  The Miami Free Zone
•  Calabar Free Trade Zone
•  Mauritius Export Processing Zone
•  Cavite Free Trade Zone, Philippines
•  Bangladesh Export Processing Zone
•  Zona Franca de Manaus, Brazil
•  Colón Free Trade Zone
•  Jamaican Free Zones
•  Jebel Ali Free Zone
 •  Shannon Free Zone
•  Kish Island Free Zone
•  Saipan Free Zone
•  Taiwan Free Zone
•  Qeshm Island Free Zone
•  Doraleh free zone, Djibouti

I. ELIGIBILITY CRITERIA
• Who is eligible to become an EOU?
• An EOU can be set up by any entrepreneur for manufacturing of goods and also for rendering
services. An EOU can be set up for repair, reconditioning, re-making and re-engineering also.
• Trading activity is not allowed in the EOU Scheme.
• EOU unit is required to achieve only positive Net Foreign Exchange (NFE) over a period of 5
years.
• Policy for EOU is given in Chapter-6 Foreign Trade Policy and Chapter 6 of Handbook of
Procedure (Vol. – I)
• EOU can also be set up in the following sectors: -
• Agriculture
Animal Husbandry
Aquaculture
Floriculture
Horticulture
Pisciculture
Viticulture
Poultry or
Sericulture
• Conversion of existing DTA/EPCG (Export Promotion Capital Goods) units to EOU
Scheme
• Existing DTA units or EPCG units are permitted for conversion into EOU Scheme as one time
option. In case there is an outstanding export commitment under the EPCG Scheme, it will be
sub summed in the export performance (EP) of the unit. If the unit is having outstanding
export commitment under the Advance Licensing Scheme, it will discharge the same as well,
as per its conditions before conversion into EOU Scheme. However, duties of Customs and
Central Excise already suffered shall not be refunded on conversion into EOU.
II.PRIOR TO APPROVAL
• 1) Planning your venture:
• Is it your own or
Is it with foreign participation and, if so, nature of participation (foreign investment allowed
100%)
• 2) What process do you intend to do i.e. Manufacturing, rendering and export of
services or: -
• Agriculture
Animal Husbandry
Aquaculture
Floriculture
Horticulture
Pisciculture
Viticulture
 Poultry or
Sericulture
Repair, reconditioning, re-making, re-engineering etc.
• 3) Technology to be used:
• Indigenous/ foreign
Related cost and conditions
• 4) Feasibility report:
• On your own or with help of consultant
• 5) The finances involved:
• Land, structure, buildings etc.(Please note, building construction material is not exempted
from duty).
Capital Goods, machinery etc.
Payment for royalties etc.
Administration and establishment
Others : like interest on loans, related taxes and levies etc.
• 6) The current competition overseas:
• Main competitors
Demand and price levels.
• 7) The import laws and other requirements in target markets:
• Any fiscal/ non-fiscal barriers, like anti-dumping laws.
Quota restrictions.
Preferential treatment to competitor countries.
• 8) Location of the Unit:
• The first thing before setting up an EOU the entrepreneur has to decide the location of unit: -
• i. close to port or rail/ road.
ii. availability of raw material and
iii. Environment clearance needed if unit is located within 25 kms of an urban town
• Accordingly the application will be submitted to the concerned Development Commissioner
under whose jurisdiction that state comes.
• 9) Capital goods, machinery and equipment to be used:
• Indigenous or foreign (allowed duty free)
Related cost
• 10) The raw materials and other inputs, like consumables etc. that would be
required:
• Source (allowed duty free)
Cost
Monthly, quarterly and annual requirements.
• 11) The production process:
• Whether production process requires air-conditioning plant, special furnaces or kilns etc.
Details and cost. (Please note, air-conditioning equipment permitted duty free only if it is
essential for production process).
• 12) The production capacity and spare capacity:
• Do you intend to utilize the same by doing sub-contracting work for other export units in DTA
or Export Oriented Units.
Whether you want to get job work done outside the EOU.
Details of sub-contractors.
Related costs.
• 13) Any by-products turned out in the production process:
 • Details of by-products
Whether these would be exported or sold in Domestic Tariff Area (DTA)
• 14) Effluents or waste-material:
• How do you propose to treat these or discharge them.
• 15) Packaging
• Details of packaging (packaging material allowed without payment of duty)
Source
Cost
• 16) Power:
• Whether the normal grid could supply adequate power.
Or there would be a need for a captive power plant.
Cost of power plant
Fuel required for captive power plant (e.g. furnace oil, LPG, HSD, coal etc.) (allowed duty
free)
• 17) Other information:
• Firm/company should be duly registered and details about Proprietor/Partner/ Directors etc.
A current account with the bank authorized to deal in foreign exchange should be opened.
Sale tax registration to be obtained from the Sale Tax Department.
Investment details
• 18) Mandatory clearances from State Government: -
• Pollution clearance certificate.
Approvals of building plan in cases where building is proposed to be constructed.
Registration as a small scale industrial unit, if applicable
Registration under Factories Act.
III. HOW TO APPLY
• All applications are to be filed with the concerned Development Commissioner of Special
Economic Zone (For jurisdiction of Development Commissioner) Appendix 14-I- K
• The unit/ promoter has to apply in the application form, to be given in triplicate given in
Handbook of Procedures in Appendix 14-1A (Please click here)

Project Report including a write up on the background of the promoters establishing their
credentials and standing.
• Please see Appendix 14-1B (Please click here) for documents required by the Development
Commissioner for approval.
• For sector specific conditions Please see Appendix 14-1C (Please click here)
• DD for Rs. 5,000/- drawn in favour of The Pay & Accounts Officer, Ministry of Commerce and
Industry, Department of Commerce, payable at the Central Bank of India, Udyog Bhavan, New
Delhi.
• Registration –cum-Membership Certificate (RCMC) should be obtained from the office of the
concerned Development Commissioner.
• Import Export Code: If the unit does not have an Import Export code (IEC), it will apply in the
prescribed form (Appendix 18-B) to the Zone Administration for the same.
IV. APPROVAL PROCEDURE
• Letter of Permission (LOP)
• After submitting the application form and if every thing is in order, Letter of Permission (LOP)
is issued by the Zone Administration within 2 weeks after interview of the promoter by the
Approval Committee. For format of LOP please see Appendix 14-IE (Please click here)
• Legal undertaking (LUT)
 • A legal undertaking in the prescribed form undertaking to abide by the terms and conditions of
the LOP has to be executed by the unit in format given at Appendix 14-1F (Please click here ).
• A Green Card will be issued to the unit by the Zone Administration on request.
• Approval from State Government Agencies:
V. AFTER APPROVAL
• After the approval from the Development Commissioner concerned, the manufacturing and
other activities have to be undertaken under customs bond for which formal application is to
be made to the jurisdictional Assistant Commissioner/ Deputy Commissioner of the Customs/
Central Excise for issuance of a Private Custom Bonded Warehouse Licence under section 58
and 65 of the Customs Act, 1962. The application shall be accompanied by the following
documents/information: -
• Copy of notification whereunder the place (proposed location of unit) has been declared as
warehousing station under section 9 of the Customs Act. In case the approved place is not a
notified warehousing station, a separate application for issuance of such notification is to be
submitted to the Commissioner of Customs through the jurisdictional Assistant Commissioner/
Deputy Commissioner.
• Copy of LOI/LOP issued by Development Commissioner concerned and LUT accepted by the
Development Commissioner.
• Details of the premises including ground plan, purchase/rent/lease deed, allotment letter from
Industrial Development Corporation/ Authority (if any)
• Details about the constitution of the firm/company including its Proprietor/Partners/Directors
etc.
• Project Report indicating stage wise manufacturing process.
• List of raw material, consumables and capital goods etc. required.
• Undertaking that cost recovery and other charges shall be paid.
• After verification of the premises and relevant documents, the requisite licence under
section 58 and 65 of the Customs Act will be issued by the Assistant Commissioner/ Deputy
Commissioner Customs/ Central Excise on priority basis.
• B-17 Bond:
• B-17 bond is a multi – purpose surety bond which the unit has to execute with the
Jurisdictional Assistant/ Deputy Commissioner Customs/ Central Excise on a non-judicial
stamp paper of Rs. 300/-. Format of the Bond is prescribed under Notification No. 6/98 CE
(N.T) dt. 2-3-98.
• B-17 Bond is a surety bond and in case valid surety cannot be arranged security @5% of the
bond amount has to be furnished. The bond amount shall be equal to 25% of the duty
foregone on the capital goods required in the next 5 years plus duty foregone on the value of
raw material for a period of 3 months.
• B-17- Bond covers the following activities:-
• Duty free import/ procurement of goods as per relevant notification and warehousing/storage
in the unit and their utilization.
• Transhipment of import/ export of goods duty free between port of import/ export and units
premises.
• Movement of duty free goods for job work and return.
• Temporary clearance for repair and display in exhibitions, testing/ approval etc.
• However it dose not cover differential duty amount against advance DTA sale for which a
separate bond is to be executed.
• The unit has also to take a Central Excise Manufacture Code No. from the Superintendent,
Central Excise to enable them to sell in the domestic market.
 • The Development Commissioner is empowered to grant approvals on the following
matters: -
• Import of additional capital goods
Enhancement of production capacity
Broad-banding/diversification
Change in name/ constitutions
Change of location/expansion
Extension of validity of LOP/LOI/LOA:
Import of Office equipment:
Merger of two or more EOU/SEZ Units
Import of spares and accessories of DG sets
Eligibility certificates for grant of employment visa to low level foreign technicians to be
engaged by EOUs as per Ministry of Home Affairs Letter No. 250227/7/99-F-1 dated 20-9-
1999 (Annexure-XI).
Sale of goods in DTA.
De-bonding/ Exit from EOU scheme.
• Approval from State Government Agencies:
• The unit has to secure approval for its wiring and electrical plan from the Electrical authorities.
• It has also to secure power allocation and wiring approval from the State Electricity Board.
• The industrial water supply is undertaken by the
• The unit has to take a registration under the State Government Sales Tax Act and Central
Sales Tax Act.
• In case the unit already has a registration with the State Sale Tax Department the address of
the additional premises should also be endorsed in the registration certificate.
• The unit has also to take Small Scale Industry (SSI) Registration from the District Industries
Center to apply for State Government’s Investment Subsidy.
• In case there are effluents or emissions the unit has to secure approval form the Pollution
Control Board.

Every Zone has a statutory Single Window Clearance Board.

Introduction

The Export Oriented Units (EOUs) scheme, introduced in early 1981, is

complementary to the SEZ scheme. It adopts the same production regime but offers
a wide option in locations with reference to factors like source of raw materials,
ports of export, hinterland facilities, availability of technological skills, existence of
an industrial base and the need for a larger area of land for the project. As on 31st
December 2005, 1924 units are in operation under the EOU scheme.

Objectives of the Export oriented unit:

The main objectives of the EOU scheme is to increase exports, earn foreign
exchange to the country, transfer of latest technologies stimulate direct foreign
investment and to generate additional employment.
Major Sectors in EOUs:

GRANITE

TEXTILES / GARMENTS

FOOD PROCESSING

CHEMICALS

COMPUTER SOFTWARE

COFFEE

PHARMACEUTICALS

GEM & JEWELLERY

ENGINEERING GOODS

ELECTRICAL & ELECTRONICS

AQUA & PEARL CULTURE

Export from EOU

Exports from EOUs during 2004-2005 were of the order of Rs.36806.17 crores as
compared to the export of Rs.28827.58 crores achieved during 2003-2004,
registering a growth of 27.68%.

EOU Activities

Initially, EOUs were mainly concentrated in Textiles and Yarn, Food Processing,
Electronics, Chemicals, Plastics, Granites and Minerals/Ores. But now a day, EOU
has extended it area of work which includes functions like manufacturing, servicing,
development of software, trading, repair, remaking, reconditioning, re-engineering
including making of gold/silver/platinum jewellery and articles thereof, agriculture
including agro-processing, aquaculture, animal husbandry, bio-technology,
floriculture, horticulture, pisiculture, viticulture, poultry, sericulture and granites.

Need for Special License

To set up an EOU for the following sectors, an EOU owner needs a special license.

Arms and ammunition,

Explosives and allied items of defense equipment,

Defense aircraft and warships,

Atomic substances,

Narcotics and psychotropic substances and hazardous chemicals,

Distillation and brewing of alcoholic drinks,

Cigarettes/cigars and manufactured tobacco substitutes.

In the above mention cases, EOU owner are required to submit the application form
to the Development Commissioner who will then put them up to the Board of
Approvals (BOA).

Choosing the Location for EOU

EOUs can be set up anywhere in the country and may be engaged in the
manufacture and production of software, floriculture, horticulture, agriculture,
aquaculture, animal husbandry, pisciculture, poultry and sericulture or other similar
activities.

However, it should be noted that in case of large cities where the population is more
than one million, such as Bangalore and Cochin, the proposed location should be at
least 25 km away from the Standard Urban Area limits of that city unless, it is to be
located in an area designated as an "industrial area" before the 25th July, 1991.
Non-polluting EOUs such as electronics, computer software and printing are exempt
from such restriction while choosing the area.

Apart from local zonal office and state government, setting up of an EOU is also
strictly guided by the environmental rules and regulations. Therefore, an even if the
EOU unit has fulfilled all locational policy but not suitable from environmental point
of view then the Ministry of Environment, Government of India has right to cancel
the proposal. In such situation industrialist would be required to abide by that
decision.

EOU Unit Obligations

The EOUs are required to achieve the minimum NFEP (Net Foreign Exchange
Earning as a Percentage of Exports) and the minimum EP (Export Performance) as
per the provisions of EXIM Policy which vary from sector to sector. As for instance,
the units with investment in plant and machinery of Rs.5 crore and above are
required to achieve positive NFEP and export US$ 3.5 million or 3 times the CIF
value of imported capital goods, whichever is higher, for 5 years. For electronics
hardware sector, minimum NFEP has to be ‘positive’ and minimum EP for 5 years is
US$ 1 million or 3 times the CIF value of imported capital goods, whichever is
higher. NFEP is calculated cumulatively for a period of 5 years from the
commencement of commercial production according to a prescribed formula.

Bonding Period of EOU

The EOUs are licensed to manufacture goods within the bonded time period for the
purpose of export. As per the Exim Policy, the period of bonding is initially for five
years, which is extendable to another five years by the Development Commissioner.
However on a request of EOU Unit, time period can also be extended for another
five year by the Commissioner / Chief Commissioner of Customs.

EOU in Exim Policy

Currently EOU scheme is mentioned in the Chapter 9 of the Foreign Trade Policy
(1997-2002) and Chapter 9 of the Handbook of Procedures, Volume-I (HOP). The
EOUs can export all products except prohibited items of exports in ITC (HS).

Recent Policy Changes in the EOUs Scheme (w.e.f. 7th April, 2006)

The export of goods up to one and half percent of the FOB value.

In order to facilitate the smooth functioning of the EOU units, the Development
Commissioners will fix time limits for finalizing the disposal of matters relating to
EOUs.

New units engaged in export of Agriculture/Horticulture/Aqua-Culture products have

been now allowed to remove capital goods inputs to the DTA on producing bank
guarantee equivalent to the duty foregone on the capital goods/input proposed to
be taken out.

The EOU units in Textile Sector are allowed to dispose off the left over
material/fabrics up to 2 per cent of Cost Insurance Freight (CIF) value of imports, on
consignment basis. Recognizing that settling the accounts for every consignment is
complex and time consuming it has been decided to allow disposal of left over
material on the basis of previous year's imports.

100% EOU SCHEME

1) Units undertaking to export their entire production of goods and
service, except permissible sales in the DTA, as per the Export –
Import Policy are referred to as Export Oriented Units (EOU). The
Electronic Hardware Technology Park (EHTP) Scheme and the Software
Technology Park (STP) Schemes are two special variants of the general
EOU scheme. These units can undertake manufacture of goods
including repair, remaking, reconditioning, re-engineering, rendering of
services like development of software data processing & conversion,
data management and call center activities. The purpose of EOU
scheme is to boost exports by creating additional production capacity.

2) The EOUs basically function under the administrative control of the

concerned Development Commissioner of Export Processing Zones i.e.,
under the Commerce Ministry, Government of India. Powers of the
Development Commissioner are delegated to the Director, STPI under
the Ministry of Communication and Information Technology,
Government of India in respect of EHTP & STP units. These units can
be an individual STP / EHTP units by themselves or in an area
designated so by the Ministry of Information Technology.

3) EOU scheme is governed under the provisions of Chapter VI of EXIM policy and
Appendix 14-I under para 6.1 of Hand Book of Procedures, Ministry of Finance,
Department of Revenue have, vide their Customs Notification NO.52/2003 – Cus. dated
31.3.2003 as amended and Central Excise Notification No.22/2003 – CE dated 31.3.2003
as amended, prescribe the eligibility, limitations and guidelines for the EOUs. In
addition, the provisions of Chapter IX of the Customs Act, 1962 pertaining to
warehousing read with Manufacture and Other Operations in Warehouse Regulations,
1966 are also applicable to all EOUs. The salient features of these notifications / legal
provisions are as follows:

(i) All goods specified in the notifications (including capital goods, raw materials,
spares / consumables, office equipment, material handling equipment, computer
furniture, security system, pollution and quality control equipment, etc.) are exempt
from payment of all the customs / central excise duties when imported or procured
indigenously for manufacture or development of software or any other activity as
mentioned above.

(ii) The EOU unit is to be licensed as a bonded warehouse under Section 58 of the
CA’1962. The entire EOU premises will be a customs bonded and all the duty free
goods brought in the EOU unit are required to be bonded therein.

(iii) EOU unit is obliged to export their entire production, except as may be permitted
by the CSEZ / STPI (Cochin Special Economic Zone & STPI, Bangalore Zone cover the
are under Bangalore Customs) for DTA sales. Prior to 1.4.2003, an EOU Unit was
obliged (a) to achieve 10% NFEP (net foreign exchange earning as a percentage of
export) and (b) to discharge export obligation equal to 3 or 5 times the CIF value of
imported capital goods or US $ 0.25 million whichever is higher. However w.e.f.
About ISO
ISO (International Organization for Standardization) is the world's largest developer and publisher of
International Standards.

ISO is a network of the national standards institutes of 159 countries, one member per country, with a
Central Secretariat in Geneva, Switzerland, that coordinates the system.

ISO is a non-governmental organization that forms a bridge between the public and private sectors. On
the one hand, many of its member institutes are part of the governmental structure of their countries, or are
mandated by their government. On the other hand, other members have their roots uniquely in the private
sector, having been set up by national partnerships of industry associations.

Therefore, ISO enables a consensus to be reached on solutions that meet both the requirements of
business and the broader needs of society.

Discover ISO
ISO's name

Because "International Organization for Standardization" would have different acronyms in different
languages ("IOS" in English, "OIN" in French for Organisation internationale de normalisation), its founders
decided to give it also a short, all-purpose name. They chose "ISO", derived from the Greek isos, meaning
"equal". Whatever the country, whatever the language, the short form of the organization's name is always
ISO.

Why standards matter

Standards make an enormous and positive contribution to most aspects of our lives.

Standards ensure desirable characteristics of products and services such as quality, environmental
friendliness, safety, reliability, efficiency and interchangeability - and at an economical cost.

When products and services meet our expectations, we tend to take this for granted and be unaware of the
role of standards. However, when standards are absent, we soon notice. We soon care when products turn
out to be of poor quality, do not fit, are incompatible with equipment that we already have, are unreliable or
dangerous.

When products, systems, machinery and devices work well and safely, it is often because they meet
standards. And the organization responsible for many thousands of the standards which benefit the world
is ISO.

What standards do
 ISO standards:

 make the development, manufacturing and supply of products and services more efficient, safer and
cleaner
 facilitate trade between countries and make it fairer
 provide governments with a technical base for health, safety and environmental legislation, and
conformity assessment
 share technological advances and good management practice
 disseminate innovation
 safeguard consumers, and users in general, of products and services
 make life simpler by providing solutions to common problems
 What's different about ISO 9001 and ISO 14001

 The vast majority of ISO standards are highly specific to a particular product, material, or process.
However, ISO 9001 (quality) and ISO 14001 (environment) are "generic management system standards".
"Generic" means that the same standard can be applied to any organization, large or small, whatever its product
or service, in any sector of activity, and whether it is a business enterprise, a public administration, or a
government department. ISO 9001 contains a generic set of requirements for implementing a quality
management system and ISO 14001 for an environmental management system.

 Generic standards can be applied to any organization.

 How ISO standards are developed

 The national delegations of experts of a technical committee meet to discuss, debate and argue until
they reach consensus on a draft agreement. This is circulated as a Draft International Standard (DIS) to ISO's
membership as a whole for comment and balloting.

 Many members have public review procedures for making draft standards known and available to
interested parties and to the general public. The ISO members then take account of any feedback they receive in
formulating their position on the draft standard.

 If the voting is in favour, the document, with eventual modifications, is circulated to the ISO members
as a Final Draft International Standard (FDIS). If that vote is positive, the document is then published as an
International Standard.

 Every working day of the year, an average of eight ISO meetings are taking place somewhere in the
world. In between meetings, the experts continue the standards' development work by correspondence.
Increasingly, their contacts are made by electronic means and some ISO technical bodies have already gone
over entirely to working electronically, which speeds up the development of standards and cuts travel
costs.

 What "international standardization" means

 When the large majority of products or services in a particular business or industry sector conform to
International Standards, a state of industry-wide standardization exists. The economic stakeholders concerned
agree on specifications and criteria to be applied consistently in the classification of materials, in the manufacture
and supply of products, in testing and analysis, in terminology and in the provision of services. In this way,
International Standards provide a reference framework, or a common technological language, between
suppliers and their customers. This facilitates trade and the transfer of technology.

Who can join ISO

Membership of ISO is open to national standards institutes most representative of standardization in their
country (one member in each country).

 Full members, known as member bodies, each have one vote, whatever the size or strength of the
economy of the country concerned.
 Correspondent members pay reduced membership fees. They are entitled to participate in any policy or
technical body as observers, with no voting rights.
 Subscriber members also pay reduced membership fees. They are institutes from countries with very
small economies that nevertheless wish to maintain contact with international standardization.

Although individuals or enterprises are not eligible for membership, both have a range of opportunities for
taking part in ISO's work:

 Individuals may be selected by national member institutes to serve as experts on national delegations
participating in ISO technical committees
 Individuals and enterprises may provide their input during the process of developing a national
consensus for presentation by the delegation. This may done through national mirror committees to the
corresponding ISO technical committee
 International organizations and associations, both non-governmental and representing industry sectors,
can apply for liaison status to a technical committee. They do not vote, but can participate in the debates
and the development of consensus.

There is a range of opportunities for taking part in ISO's work.

INDIAN STANDARDS INSTITUTION (ISI)

According to ISI there are following systems for product certification

CERTIFICATION SYSTEM

The BIS product certification scheme is essentially voluntary in nature, and is largely based on ISO Guide 28,
which provides general rules for third party certification system of determining conformity with product standards
through initial testing and assessment of a factory quality management system and its acceptance followed by
surveillance that takes into account the factory Quality management system and the testing of samples from the
factory and the open market. All BIS certifications are carried out in accordance with Indian Standards, which are
amenable to certification. A large number of operational elements of the BIS product certification scheme
correspond with the requirements of ISO Guide 65.

OPERATIONAL AREAS

The BIS Product Certification Scheme is open to manufacturers in all countries without discrimination. While a
licence can be granted for any Indian Standard specifying product characteristics, which is amenable to
certification, the broad areas of technologies now under certification are:

• Textiles
• Chemicals and Pesticides
• Rubber and Plastic products
• Cement and concrete products
• Building materials
• Pumping, irrigation, drainage and sewage equipment
• Pipes and fittings for water supply
• Basic metals and fabricated metal products
• Machinery and equipment
• Electrical, electronics and optical equipment
• Automotive components
• Agriculture, food and tobaccos
• Black tea and beverages
• Packaged drinking water and Natural mineral water
• Leather products
• Wood products
• Paper and pulp products
• Testing instruments
• D.P. GARG & COMPANY aims to manufacture its
products viz. Hinges, as per customer requirements.
• The Company operates in a very competitive
market, where customer satisfaction is crucial for their
success and continued growth of the business. The
Company shall, therefore, strive to manufacture and
deliver products on time, meeting customer's
requirement.
• It is the established policy of the company and all its
employees to ensure customer satisfaction at all times.
• Mr. S.M. Garg, partner is responsible for ensuring
that the quality system as per ISO - 9001 is fully
implemented, monitored and maintained by its total
workforce, awareness of which is established during
relevant phases of company's training programmes.

• Adherence to company's Quality Policy is a

mandatory requirement for all personnel.

Bureau of Indian Standards (BIS) formerly known as Indian Standards Institution (ISI) is a
statutory organisation established under the Bureau of Indian Standards Act. 1986 to promote
harmonious development of the activities of standardization, marking and quality certification
of goods.
 British Standards Institution, England Incorporated by Royal Charter in 1929, works with
manufacturing & service industries to put in place the Standards, products testing and
certification, Quality Management System and training in an organization established by
British Governments.

In the year 2004, D. P. GARG & CO. introduced first time in India CE 13 Stainless Steel Ball
Bearing Hinges as per BSEN 1935 Standard for 4" x 3" x 3.0mm, 4" x 3.5" x 3.0mm, 4" x
4" x 3.0mm, 5" x 3" x 3.0mm & 6" x 3" x 3.0mm sizes.

Our products are durable, high quality and competitively priced. These qualities have won us
favourable response from clients both in domestic as well as international market. More than 15 kinds
of finishing technologies have been developed and all are well monitored to excel its class on each and
every product that is rolled out of the factory. The total quality management is strictly being
maintained by the in house quality control cell of the company by experienced professionals. Director,
Mr. S.M. Garg's personal supervision in maintaining quality standards ensures continuous upgradation,
addition of new techniques and finishes to meet every demand of customers.

ISO 9000 is a family of standards for quality management systems. ISO 9000 is maintained by
ISO, the International Organization for Standardization and is administered by accreditation and
certification bodies. The rules are updated, as the requirements motivate changes over time.
Some of the requirements in ISO 9001:2008 (which is one of the standards in the ISO 9000
family) include

• a set of procedures that cover all key processes in the business;

• monitoring processes to ensure they are effective;
• keeping adequate records;
• checking output for defects, with appropriate and corrective action where necessary;
• regularly reviewing individual processes and the quality system itself for effectiveness;
and
• facilitating continual improvement

A company or organization that has been independently audited and certified to be in

conformance with ISO 9001 may publicly state that it is "ISO 9001 certified" or "ISO 9001
registered". Certification to an ISO 9001 standard does not guarantee any quality of end products
and services; rather, it certifies that formalized business processes are being applied.

Marketing departments take advantage of public confusion and ignorance about ISO 9000.
Goods and services outstanding proclaim their ISO 9000 STATUS. Most consumers suppose
that ISO 9000 is the same as ISO 9001.

Although the standards originated in manufacturing, they are now employed across several types
of organizations. A "product", in ISO vocabulary, can mean a physical object, services, or
software.

Quality is a "culture" - ISO 9001 "Quality" is an important accreditation to achieve, it is also

essential for maximum benefit that information is shared so that the culture of the business
ensures that the Quality culture is embedded
What is the difference between ISO 9000 and ISO 14000?

ISO 9000 is an international standard for the development of quality management systems that can
potentially be adopted by any business. Its purpose: to enable companies to demonstrate that they are in a
position to provide products or services that meet customer expectations and are focused on total customer
satisfaction.

ISO 14000 is an international standard for environmental management systems that can also be potentially
adopted by any organization. It serves as a tool for defining and implementing activities that meet
environmental business concerns.

The Relationship between ISO 9000 and ISO 14000

ISO 9000 and ISO 14000 are known as generic management system standards because they
are not specific to a particular product, resource, or process. They refer to families of standards
consisting of management systems and related supporting tools that can be applied equally to
private industry and public sector organizations of any size, that offer any product, activity, or
service. The standards provide an organization with a model for setting up and operating a
management system.

Similarities Between ISO 9000 and ISO 14000

ISO 9000 is concerned with quality management and meeting customer quality requirements,
achieving control of processes, and encouraging continuous improvement while ISO 14000 is
concerned with environmental management. Both standards outline a solid, traditional
management approach. The ISO 14001 standard uses the same fundamental systems as ISO
9000 such as document control, management system auditing, operational controls,
recordkeeping controls, management policies, audits, training, and corrective and preventive
actions. ISO 9000 and ISO 14000 require senior management support and commitment for
success, and require organizations to have a system for establishing and reviewing objectives
and targets, whether they be quality or environmentally related. Both require organizations to
provide on-going management review of the management system and its objectives.

Some ISO 9000 quality management processes can be referenced for an ISO 14001 EMS to
avoid duplication of efforts. In fact, the ISO technical committee (TC 207) purposely
developed the newer ISO 14000 standards to be in conformance with the basic philosophy and
structure of the previously issued ISO 9000 standards. For those implementing an ISO 14001
EMS, previous experience with ISO 9000 will be of great value. The many similarities
between ISO 9000 and ISO 14001 philosophies suggest that one fully integrated management
system for all business and operational activities is most effective. An ISO 14001 EMS can be
developed separately and integrated with ISO 9000 in the future, or can be overlaid within the
existing ISO 9001 quality management system. Integrating ISO 14001 with ISO 9000 will
increase the efficiency and reduce the time and costs necessary for full implementation.

Differences Between ISO 9000 and ISO 14000

While there are some overlaps and similarities in the requirements for the two standards, there
are also differences. The ISO 9000 standards have been developed specifically to address
customer requirements and expectations regarding product quality. ISO 9001 sets out the
requirements for organizations whose business processes range from design and development,
to production, installation and servicing. ISO 9002 is applicable for organizations that are not
involved with design and development. ISO 9003 is the appropriate standard for organizations
whose business processes do not include design control, process control, purchasing or
servicing, but rather use inspection and testing to ensure that final products and services meet
specified requirements. With ISO 14000, organizations respond to much more than just
customer requirements. Multiple external stakeholders who influence the environmental
aspects of an organization often must be satisfied. Examples of external stakeholders under
ISO 14000 include: Federal, State and local regulators; the surrounding community; and
special interest groups.

ISO 9000 and ISO 14000 Compatibility

Because of the close relationship between ISO 9000 and ISO 14000, ISO commissioned a
year-long study to investigate the compatibility between the two standards. Technical advisory
group 12 (TAG 12) was established to investigate how a better interface can be achieved for
users who wish to implement both standards TAG 12 recommended the following actions to
enhance standards compatibility:

• Relevant terms and definitions should be identical, and there should be

consistent use of terminology in both families of standards;
• Management system standards in the two families should be compatible
and, as far as possible, aligned; and
• Auditing standards in the two families should be integrated to consist of a
common core document with separate modules on quality and the
environment.

The TAG 12 recommendations highlight the importance ISO places on coordinated

development among the standards. Results of ISO implementation of the recommendations
should be visible when the next revisions to the standards are published; a deadline has been
set for 2000/2001. TAG 12 also suggested that ISO work closely with accreditors and
certifiers to ensure transition to the revised documents is as smooth as possible.
1) ISI MARK: - Indian Standards Institution
2) Function:-1. Formulation of Indian Standards for products and services
by bringing together and coordinating various interest groups like
manufacturers, consumers, technical experts, testing personnel and
others interested. The standards so prepared are known as Indian
Standards (IS) and are considered as legal documents. The first Indian
Standard formulated was for the National Flag (IS 1). So far BIS has
published about 18000 Indian Standards covering various products, codes
of practices, terminology, etc for various industrial and economic sectors.
The Indian Standards are used not only by the industry but also by the
Government, students, consumers and regulatory authorities. The
standards are priced publications and are available from all the offices of
the Bureau.
2. Certification Schemes

Product Certification Scheme is a scheme whereby manufacturers of products

interested in producing their products as per relevant Indian Standards are permitted to
use the Standard Mark of the Bureau (the popular ISI mark) on their products after
obtaining a licence from the Bureau. The pre-requisites for obtaining a licence are that
the manufacturer has the necessary manufacturing and testing facility for the product
and agrees to follow the quality assurance scheme of the Bureau in addition to payment
of necessary fees as stipulated. The licence is initially granted for a period of one year
which is renewable for subsequent periods based on satisfactory operation of the
scheme. The scheme is voluntary in nature for most products. However, the
government has insisted on ISI marking of about 136 products which affect the health
and safety of consumers or are products of mass consumption like LPG Cylinders, Food
Colours and Additives, Cement, Packaged Drinking Water, etc.
Certification for Indian Importers is a similar scheme operated for importers who are
desirous of using the standard mark (ISI Mark) on imported products. The Government
of India has also stipulated that some of the products be imported into the country only
after approval of BIS is obtained.
Certification for Foreign Manufacturers is another scheme again operated on the same
lines whereby manufacturers located in foreign countries are permitted to use the
Standard (ISI) mark on their products.
ECO MARK BIS grants licences to environment friendly products under this special
scheme. For obtaining the ECO Mark Certificate the products should conform to
additional requirements specified in the Indian Standards.
IECEE & IECQ Certification BIS is a National Certifying Body (issuing and recognizing)
under the International Electrotechnical Commission (IEC) System for Conformity
Testing and Certification of Electrical Equipment (IECEE). The product categories for
which BIS has IECEE acceptance are Cables and Chords, Capacitors as components, Low
voltage high power switching equipment, Installation of protective equipment and
Electronics entertainment. BIS is also the National Authorised Institution and the
National Standards Organization under the IEC System of Quality Assessment of
Electronic Components (IECQ).
3. Management System Certifications : Under the Management System Certifications,
the Bureau operates the following four Certification Schemes:

Quality Management System Certification (ISO 9001 Certification) : The Bureau operates
the Quality Management System Certification for organizations based on the ISO
9001:2000 Standard published by the International Organization of Standardization
(ISO). Being a member of ISO the standards of ISO can be adopted in-toto by the Bureau
and can be published as IS/ISO standards. Accordingly, the ISO 9000 series of standards
have been adopted and are published as the IS/ISO 9000 series of standards. The
certification is for the systems implemented by an organization and not for the product
or service provided by them. The Standard requires implementation of systems a ...less

1) Answered by GOPI KUMAR, 07 Jun '07 01:49 pm

BBB Copyright and Reporting Policy

As a matter of policy, BBB does not endorse any product, service or business.BBB
Reliability Reports are provided solely to assist you in exercising your own best
judgment. Information in this BBB Reliability Report is believed reliable, but not
guaranteed as to accuracy.BBB Reliability Reports generally cover a three-year
reporting period. BBB Reliability Reports are subject to change at any time.
If you choose to do business with this business, please let the business know that
you contacted BBB for a BBB Reliability Report

Posted by BPO Services at 3:07 PM 5 comments

Products and Services

ISI Commercial Refrigeration provides sales, installation, and service of commercial,
ice makers and dispensers, refrigeration equipment, walk-in coolers and freezers,
bar equipment, beverage equipment, cooking equipment, food preparation
equipment, kitchen equipment, storage units, tables and sinks, concession
equipment, ice cream equipment, water filtration and air filtration systems.

Posted by BPO Services at 3:04 PM 0 comments

Friday, October 31, 2008

Consumer Complaint Why and How?
Consumer who complain allow themselves to be brainwashed into believing that
they are trouble-makers. Manufactures and retailers Fob off dissatisfied consumers
with a bland:"We have had no complaints." Consumer must not hestite to complain
 about adulteration, sub-standard drugs and cosmetics, shoddy product quality,
unsatisfactory after-sales service, etc. Indian consumers are fortunate to be covered
by the Consumer Protection Act 1986, Special Consumer Courts and a Directorate to
implement the Act. There is also the Package Commodities Act which insists that
weights, price, date of manufacture and ingredients are marked on all packages.
This Act, as well as "Agmark" and the "ISI" mark, can be of substantial assistance in
the fight for consumer's rights. Vigilant consumerism can put teeth into their
Function.

Posted by BPO Services at 4:04 PM 0 comments

Certification Schemes for Imported Goods

BIS also operates two Certification Schemes for imported goods; one for the foreign
manufacturers and the other for Indian importers. The Schemes are essentially
similar to BIS Product Certification Schemes for domestic industry barring slight
modifications necessary for operation of such schemes. The schemes for foreign
manufacturer at present are being centrally operated through Central Marks
Department at Headquarters and schemes for Indian importers are operated by
respective ROs/BOs under whose jurisdiction Indian importer falls. It may, however,
be noted that in case of 133 products covered under mandatory certification, only
foreign manufacturers can seek BIS license and for products other than 133
products both foreign manufacturer and Indian importers can seek BIS licence.

Posted by BPO Services at 1:28 PM 0 comments

BIS quality standards important for processed food

There are two organisations, the Bureau of Indian Standards (BIS) and the
Directorate of Marketing and Inspection (DMI), currently dealing with the voluntary
standardisation and certification systems in the food sector in India. The activities of
the Bureau of Indian Standards (BIS) are two fold - formulation of Indian Standards
in the processed food sector and their implementation by promotion and through
voluntary and third party certification system. The Directorate of Marketing and
Inspection (DMI) enforces the Agricultural Produce (Grading and Marking) Act 1937.
Under this Act, Grade Standards are prescribed for agricultural and allied
commodities which are known as 'Agmark' Standards.
According to industry sources, for the processed food sector BIS certification is more
important than DMI certification.
BIS has on record, standards for most of the processed foods. These standards in
general cover raw materials permitted and their quality parameters, hygienic
conditions under which the product is manufactured and packaging and labelling
requirements. Manufacturers complying with the standards laid down by BIS can
obtain an ISI mark which can be exhibited on their product packages. BIS has
 identified certain items like food colours/additives, vanaspati and containers for
their packing, milk powder and condensed milk for compulsory certification.
According to sources, BIS empowered through a legislative Act of the Indian
Parliament known as the Bureau of Indian Standards Act, 1986, operates a product
certification scheme. The product certification scheme is basically voluntary and
aims at providing quality, safety and dependability to the ultimate customer.
Presence of certification mark known as Standard Mark on a product is an assurance
of conformity to the specifications. The conformity is ensured by regular
surveillance of the licensee's performance by surprise inspections and testing of
samples, drawn both from the factory and the market. BIS has granted more than
30,000 licences to manufacturers covering practically every industrial discipline.
The certification allows the licensees to use the popular ISI Mark, which has become
synonymous with quality products for the Indian and neighbouring markets over the
past more than 40 years.

Posted by BPO Services at 1:17 PM 0 comments

ISI MARKING....
During the pre independence period, standardization activity was sporadic and
confined mainly to a few Government purchasing organization. However,
immediately after independence, economic development through coordinated
utilization of resources was called for and the government recognized the …… role
for standardization in gearing industry to competitive efficiency and quality
production. The Indian Standards Institution (ISI) was, therefore, set up in 1947 as a
registered society, under a Government of India resolution. The Indian Standards
Institution gave the nation the standards it needed for nationalization, orderly
industrial and commercial growth, quality production and competitive efficiency.
However, in 1986 the government recognized the need for strengthening this
National Standards Body due to fast changing socio-economic scenario and
according it a statutory status. Thus came the Bureau of Indian Standards Act 1986
and on 1 April 1987, newly formed BIS took over staff assets, liabilities and
functions of erstwhile ISI. Through this change over, the Government envisaged
building of the climate of quality culture and consciousness and greater
participation of consumers in formulation and implementation of National
Standards.

Posted by BPO Services at 12:53 PM 1 comments

What is the procedure for Grant of Recognition to Hallmarking

Centers?
The recognition of the Hallmarking Centre is done by BIS after ensuring that the
Hallmarking Centre follows BIS guidelines which are in line with international norms
 for sampling and testing and also have adequate Test Facilities as per IS 1418,
trained and competent manpower.

Posted by BPO Services at 12:01 PM 0 comments

Who operates the Hallmarking Scheme?

It is a voluntary scheme being operated by BIS under the BIS Act 1986. As per this
scheme the licence is granted to a jeweller for certification of purity of gold
jewellery in accordance with IS 1417.BIS is operating the scheme through its
network of Regional/ Branch Offices all over the country. Alicensee jeweller has to
go to get the jewellery hallmarked through any of the recognized Assaying
andhallmarking centres.

Posted by BPO Services at 11:52 AM 0 comments

What does "international standardization" mean?

When the large majority of products or services in a particular business or industry
sector conform to International Standards, a state of industry-wide standardization
can be said to exist. This is achieved through consensus agreements between
national delegations representing all the economic stakeholders concerned -
suppliers, users and, often, governments. They agree on specifications and criteria
to be applied consistently in the classification of materials, the manufacture of
products and the provision of services. In this way, International Standards provide
a reference framework, or a common technological language, between suppliers
and their customers - which facilitates trade and the transfer of technology.

Posted by BPO Services at 11:27 AM 0 comments

What is the difference between ISO 9001 & ISI mark?

ISO 9001 is a quality management system standard which standardizes and
documents the various activities of the organization like purchase, stores, sales,
processing, it focuses on customer needs and fulfilling the same hence enhancing
the satisfaction levels and laying and implementing the systems for continual
improvement. However ISI mark means the product conforms to respective national
product standard the customer has to accept the same.

Posted by BPO Services at 11:24 AM 1 comments

Tuesday, October 21, 2008

 What is ISI Standard Mark?
With the objective of satisfying the consumer in terms of product quality, the BIS
has undertaken various quality certification activities. The domestic consumer is
familiar with the ISI mark on a product which is an assurance that the product
conforms to the requirements as laid down in the specification. Conformity to the
standard is ensured through regular surveillance of the manufacturing process,
surprise inspections and testing of samples drawn from the factory as well as from
the market. Fraudulent and unauthorized use of the ISI mark is a violation of the law
punishable under the BIS Act.

Posted by BPO Services at 4:31 PM 0 comments

Monday, January 7, 2008

Purpose of ISI?
During the pre independence period, standardization activity was sporadic and
confined mainly to a few Government purchasing organizations. But after
independence, economic development through coordinated utilization of resources
was called for and the government recognized the role for standardization in
gearing industry to competitive efficiency and quality production.
The Indian Standards Institution (ISI) was, therefore, set up in 1947 as a registered
society, under a Government of India resolution.

Posted by BPO Services at 1:59 PM 0 comments

Objective of ISI Mark

Harmonious development of standardization, marking and quality certification
To provide new thrust to standardization and quality control
To evolve a national strategy for according recognition to standards and integrating
them with growth and development of production and exports

Posted by BPO Services at 1:58 PM 0 comments

What are the Functions of Bureau of Indian Standards?

1. Formulation of Indian Standards for products and services by bringing together
and coordinating various interest groups like manufacturers, consumers, technical
experts, testing personnel and others interested.

2. Certification Schemes
3. Management System Certifications
4. Hall Marking of Gold Jewellery
 Posted by BPO Services at 1:58 PM 0 comments

Hall Marking of Gold Jewellery

The Hall Marking of Gold Jewellery indented to ensure that the consumer gets gold
jewellery of the purity declared was launched on 11 April 2000 at the behest of the
Government of India. The certification of purity of Gold Jewellery is done in
accordance with the Indian Standard IS:1417 (Specification for Gold and Gold Alloys,
Jewellery/Artefacts - Fineness and Marking). The Standard is equivalent to the
International Standard ISO 9202:1991-Jewellery – Fineness of Precious Metal Alloys.

Product adaptation in new markets

Modifications of the product itself are often required to make the product appeal more to the
market this is the so called product adaptation. It can also be necessary to make the
product safer, more up to date or more useful for a different target audience, especially on
domestic markets. Product adaptation on international markets it is important to adapt the
product to the culture.

Things that can differ in different cultures are the taste of the product, the style, the colour,
or symbols, language, but also more specific like differences in technology, environmental
differences, religion etc. The taste of a product is very important for the food, drinks and
cigarette industry. Style is more important in car and fashion industry, which also includes
the colour and symbols. The meaning of a colour or a symbol can differ from culture to
culture.

The package of the product can also need adaptations. Special symbols and the language
need to adapt to the country/culture. Some symbols can be offensive in one culture and be
normal symbols in another culture. There is also a possibility that a symbol is not commonly
used in a culture and will be misinterpreted. Language differs of course, many things can go
wrong concerning languages or translations. The packaging also has to be adapted to the
conditions of a country; storage conditions (size of the product), climate, moisture, etc.

Technology can also make a difference if the product is going to be successful on a new
market or not. Measurement systems vary between countries and often components need
to be modified to adhere to local standards, which can also include the size of the product.
Environmental differences are probably more logic; selling ski jackets in warm countries is
not likely to be profitable. Some products may malfunction, when they are exposed to
extreme heat or cold. Religion or special norms and values can also make a product fail.

Fast Food Chains

Most fast food chains are known for their ability to modify easily, when entering new
markets. McDonalds, for example, adjusts its menu for each foreign market; beer in
Germany, wine in France, mutton pot pies in Australia, and McSpaghetti in the Philippines.
Burger King, Wendys, Kentucky Fried Chicken, they all adapt to the market they are in
'Product adaptation'.
An exception of this successful trend in fast food chains has been Pop-Tarts, toaster pastries
that have been quite a success in the U.S.. When entering the British market, they could
not set ground there, because the taste was considered to sweet and most people did not
have toasters 'Lack of product adaptation' .

Coca Cola's two liter bottle

When Coca Cola tried to introduce their two liter bottle in Spain, they found out that market
entry was difficult. This was due to local storage conditions; few Spaniards have refrigerator
doors with compartments large enough to accommodate the large-size bottle.

29-inch tables in Japan

One American company tried to sell 29-inch tables in Japan when the average table height
is 21 inches due to fact that the Japanese sit on the floor at the table and do not use chairs.

More blunders in relation to product adaptation can be found @ blunders

Author: Amanda

Send a comment
private?

From: remco 2008-03-23 02:15:58

An other interesting blunder General Motors introduced the Nova in Latin America. Nova means, "it doesn't
go"ﾝ in Spanish. The car had terrible sales. G.M. finally figured out the problem, renamed the car Caribe,
and the sales increased to the company's expectations.

Navigation

• Blog
• About us
• Seo news
• Seo articles
• Php seo tutorials
• Informative links
• Online marketing
• Google optimization
• Seo glossary
• Marketing
•
• Register
• Login

login
user_name

password

login

Tag cloud

adaptation
culture
market

markets

product

© 2010 Amanda van Ditshuizen, Remco Verton | Design by: Amanda

Rss feed