SMEDA Legal Services Cell

GUIDE OF PAKISTAN STANDARDS & QUALITY CONTROL LICENSING REQUIREMENT

LEGAL SERVICES CELL, BDS

June 30, 2008 Small and Medium Enterprise Development Authority Government of Pakistan www.smeda.org.pk HEAD OFFICE
6th Floor, LDA Plaza, Egerton Road, Lahore

PREPARED BY:

Tel: (042) 111-111-456, Fax(042) 6304926-7 legal@smeda.org.pk

HEAD OFFICE REGIONAL OFFICE SINDH REGIONAL OFFICE NWFP REGIONAL OFFICE BALOCHISTAN Bungalow No. 15-A Chaman Housing Scheme Airport Road, Quetta Tel: (081) 2831702/2831623 Fax: (081) 2831922 helpdesk-qta@smeda.org.pk

LAHORE
6th Floor, L.D.A Plaza, Egerton Road Lahore-54792 Tel: (042) 111-111-456 Fax: (042) 6304926 helpdesk@smeda.org.pk

5th Floor, Baharia Complex-II, Ground floor M.T. Khan Road, State Life Building Karachi The Mall, Peshawar Tel: (021) 111-111-456 Tel: (091) 9213046-47 Fax: (021) 5610572 Fax: (091) 286908 helpdesk-khi@smeda.org.pk helpdesk-pew@smeda.org.pk

SMEDA Legal Services Cell

INTRODUCTION OF SMEDA
The Small and Medium Enterprise Development Authority (SMEDA) was established with the objective to provide fresh impetus to the economy through the launch of an aggressive SME development strategy. Since its inception in October 1998, SMEDA had adopted a sectoral SME development approach. A few priority sectors were selected on the criterion of SME presence. In depth research was conducted and comprehensive development plans were formulated after identification of impediments and retardants. The all-encompassing sectoral development strategy involved overhauling of the regulatory environment by taking into consideration other important aspects including finance, marketing, technology and human resource development. After successfully qualifying in the first phase of sector development SMEDA reorganized its operations in January 2001 with the task of SME development at a broader scale and enhanced outreach in terms of SMEDAs areas of operation. Currently, SMEDA along with sectoral focus offers a range of services to SMEs including over the counter support systems, exclusive business development facilities, training and development and information dissemination through a wide range of publications. SMEDAs activities can now be classified into the three following broad areas: 1. 2. 3. Creating a Conducive Environment; includes collaboration with policy makers to devise facilitating mechanisms for SMEs by removing regulatory impediments across numerous policy areas Cluster/Sector Development; comprises formulation and implementation of projects for SME clusters/sectors in collaboration with industry/trade associations and chambers Enhancing Access to Business Development Services; development and provision of services to meet the business management, strategic and operational requirements of SMEs.

SMEDA has so far successfully formulated strategies for sectors, including fruits and vegetables, marble and granite, gems and jewellery, marine fisheries, leather and footwear, textiles, surgical instruments, transport and dairy. Whereas the task of SME development at a broader scale still requires more coverage and enhanced reach in terms of SMEDAs areas of operation. Along with the sectoral focus a broad spectrum of services are now being offered to the SMEs by SMEDA, which are driven by factors like enhanced interaction amongst the stakeholders, need based sectoral research, over the counter support systems, exclusive business development facilities, training and development for SMEs and information dissemination through wide range of publications. -2-

SMEDA Legal Services Cell

ROLE OF SMEDA LEGAL SERVICES CELL

The Legal Services Cell (LSC) is a part of Business Development Division of SMEDA and plays a key role in providing an overall facilitation and support to SMEs. The LSC provides guidance based on field realities pertaining to SMEs in Pakistan and other parts of the world. LSC believes that information dissemination among the SMEs on the existing regulatory environment is of paramount importance and it can play a pivotal role in their sustainable development. In order to facilitate SMEs at the Micro Level LSC has developed user-friendly systems, which provide them detail description of the Laws, and Regulations including the process and steps required for compliance. The purpose of this document is to provide SMEs either individuals or companies with information pertaining to PSQC licensing requirements which a business entity has to comply with. Entrepreneurs interested in enhancing their understanding about the procedures and rights can also use the document. For convenience of the readers sample of various forms, instructions how fill up the forms and important addresses are also included.

DISCLAIMER
Information in this document is provided only for general information purpose and on an "as is" basis without any warranties of any kind. Use of this information is at the user's sole risk. SMEDA assume no responsibility for the accuracy or completeness of this information and shall not be liable for any damages arising from its uses."

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SMEDA Legal Services Cell

INDEX
Page#
1. Applicable Law & Relevant Authority 2. Licensing Requirements 3. Procedure to Obtain License Preliminary Inspection General Sampling Procedure Periodical Inspections Laboratory Tests Grant of C.M. License Fees to Be Paid By Licensees 5 5 8 9 9 9 9 10 10 10 11 12 13

4. Punishment 5. Flow Chart of Licensing Procedure 6. Important Addresses 7. Table of Fees for Sample Testing

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SMEDA Legal Services Cell 1- Applicable Law & Relevant Authority The Pakistan Standards and Quality Control Authority (PSQCA), under the Ministry of Science and Technology, is the national standardization body. PSQCA is governed by the PSQCA Act No. VI of 1996. 2- Licensing Requirements As per the act items notified in the official gazette under Compulsory Certification are required to put the PS Mark of Quality on the Certificates issued in conformity to Pakistan Standards. The manufacture, keeping in stock and sale of items fall under Compulsory Certification Marks Scheme/without C.M. Licence is prohibited. So every item falling under Compulsory Certification should have the below mark on it:

Below is the list of items with the relevant SROs which fall under Compulsory Certification so should have PS Mark on it:
S. No. 1 1 Name of Items 2 Asbestos Cement Corrugated 430 Sheets for roofing & cladding Asbestos Flat Sheets Methods for measuring the performance of Electric Kettles jugs for house holds and similar purposes. Ballast for fluorescent Lamps Methods for measuring the performance of Electric Toaster for house hold and similar purpose Mild Steel Oil Pressure Utility 579 Relevant PS:NO 3 S.R.O NO 4 223(1/76)-S 818(1/82)-M --do-Issue Date 5 Date of Date of Notification Enforcement 6 7 31-05-1976 01-11-1982 --do--

08-03-1976 08-03-1976 29-08-1982 29-08-1982 --do---do--

253

--do--

--do--

--do--

--do--

497

--do--

--do--

--do--

--do--

661

--do--

--do--

--do--

--do--

797

--do--

--do--

--do--

--do--

SMEDA Legal Services Cell

Stoves Oil Pressure Stoves Brass Type Non-Pressure Oil stoves Banaspati Ghee

7 8 9 10

682 928 221

--do---do-795(1/81)-S 818(1/82)-M --do-1203(1/83)-S 979(1/87)-M --do---do-945(1/86)-S 979(1/87)-M --do---do---do---do---do---do---do-267(1/88)S/M

--do---do--

--do---do--

--do---do-25-09-1981 .01-11-1982 --do-01-03-1984 01-01-1988 --do---do-15-12-1986 01-01-1988 --do---do---do---do---do---do---do-16-06-1988

18-07-1981 18-07-1981 29-08-1982 29-08-1982 --do---do--

Portland Cement (Ordinary & Rapid 232 hardening) Cotton Seed Oil Cake Expeller Type Poultry Feed Balanced Feed Mixture for live stock. Palm Oil Edible 96 233 234 1561

11 12 13 14 15 16 17 18 19 20 21 22

31-12-1983 31-12-1983 17-12-1987 19-12-1987 --do---do---do---do--

08-10-1986 16-10-1986 17-12-1987 19-12-1987 --do---do---do---do---do---do---do---do---do---do---do---do---do---do--

Refined Sunflower 1564 Oil Refined Maize (Corn) Oil Mustard Oil Sesame Oil Cotton Seed Oil Coconut Oil (Expelled) 1562 25 98 21 99

Refined Soyabean 1563 Oil Mild Steel Bar's structural use 231

13-04-1988 16-04-1988

23

Cold worked Steel deformed bars for 1612 the reinforcement of concrete. Deformed plain Billets-Steel bars for the concrete re-enforcement (metric) Induction Motor Safety Razor Blade Reciprocating

--do--

--do--

--do--

--do--

24

1879

--do--

--do--

--do--

--do--

25 26 27

186 219 1806

983(1/88)S/M --do---do--

29-10-1988 30-10-1988 --do---do---do---do--

01-01-1989 --do---do--

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Internal Combustion Engine. Tubular Fluorescent Lamps for General Lighting Services Tungsten Filament Lamps for General Services

28

292

--do--

--do--

--do--

--do--

29

17

--do--

--do--

--do--

--do--

30 31

Biscuits (Excluding Wafers 383 Biscuits) Wafers Biscuits PVC Insulated Cable (Non Armoured) for Electric Power & Lighting 614

--do---do--

--do---do--

--do---do--

--do---do--

32

714

--do--

--do--

--do--

--do--

33 34

Sulphate Resisting Portland 612 Cement type-A Asbestos Cement 428 pressure Pipes. Portland Blast Furnace Cement not Exceeding 65% blast furnace Slag Margarines Single & Twin Blade Plastic bounded Disposable Razor's Cooking Oil PVC Pressure Pipes for Cold Portable Water

--do-157(KE/92)S/M

--do--

--do--

--do-01-10-1992

29-06-1992 06-08-1992

35

1631

--do--

--do--

--do--

--do--

36

1653

--do--

--do--

--do--

--do--

37

2002

--do--

--do--

--do--

--do--

38 39

2858 3051

--do-453(1)/93)S/M --do--

--do--

--do--

--do-01-09-1993

26-05-1993 05-06-1993

40.

Asbestos Cement Building and 429 Sanitary Pipes Asbestos Cement pipe fittings for 2035 building and Sanitary purposes. Natural Mineral Water 2102

--do--

--do--

--do--

41

--do--

--do--

--do--

--do--

42

638(1)/2001

12-09-2001 12-09-2001

01-12-2001

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43 44 45 46 Bottled Drinking Water Carbonated Beverage 4639 1654 638(1)/2001 705(1)/2001 6(1)/2002 6(1)/2002 12-09-2001 12-09-2001 10-10-2001 10-10-2001 04-01-2002 04-01-2002 04-01-2002 04-01-2002 01-12-2001 01-12-2001 31-01-2002 31-01-2002

Two Wheeler Auto 4707 Vehicles Three Wheeler Auto Vehicle 4708

47

Polypropylene Woven Sacks for Packing (Sugar)

3128

13(2)/2006ATA-II

16.02.2007 16.02.2007

15.04.2007

48 49

A.C. Watt Hour 60521 Meters Lead Acid Starter Batteries 206-1 (for motorcar) Lead Acid Batteries (for motorcycle) Iodized Salt 4082 1669

50 51

3- Procedure to Obtain License 1) Standard Development Centre (SDC) working under PSQCA is license issuing authority. Below is the procedure to obtain license: i. To obtain license application should be submitted, accompanying a cross cheque of Rs.100/= payable to the Director, SDC/PSQCA as an application fee for each article, either to the SDC office at 39-Garden Road, Saddar, Karachi or SDC Regional Office at Provisional Head Quarters. The receipt of the application shall be duly acknowledged by the SDC Certification Marks Division. The application when received from the manufacturers shall be given a Registration number after making necessary entry in the register maintained for the purpose. The Certification Marks Division of SDC then prepare an Inspection Schedule and send an Inspector with a copy of Application Form-1 to the factory concerned for inspection and report.

ii. iii. iv.

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SMEDA Legal Services Cell During the Preliminary Inspection, the Inspector shall:

1. Verify the statement made in application. 2. Verify the laboratory facilities available for the quality test relating to the relevant article/process. 3. Verify the test records of routine test and Inspection if Laboratory facilities existing. In the absence of testing facilities what are the alternate arrangements available for the control of the quality of the product. 4. Check up the quality of an article at various stages starting from raw material, during processing, at the stage of final finish of the article. 5. Carry out tests within the factory to examine the capability of the manufacturing unit if they are in a position to meet the quality control requirements. 6. Draw random samples of the raw materials, intermediate, semi finished and finished product for tests in the independent laboratories to examine the effectiveness of the quality control process of the manufacturing unit. In case if their quality control process found not effective then technical guidance is provided to improve it. General Sampling Procedure: The random samples shall consist of three sets. The first Set bearing the seal of the Inspector should be left with the manufacturing unit and second set also bearing Inspector seal shall be sent by the manufacturing units for tests to independent Laboratories as directed by the Inspector. The third set bearing the seals of both the manufacturer and the Inspector shall constitute the reference sample to be used in case of dispute and shall be under the custody of SDC. Periodical Inspections: SDC in addition to preliminary inspection shall also arrange at least two periodical inspections of each license, besides taking random samples from open market, godowns or otherwise for continuous checking the quality of the product whether it may be sold in the open market or manufactured within the factory. By these checks SDC ensures that the manufacturer may establish a set up quality control system for the production of quality end products. Laboratory Tests: The laboratory shall be required to test the samples as per test sheet prepared by SDC. For this purpose laboratories are also working under -9-

SMEDA Legal Services Cell Quality Control Centre (QCC) of PSQCA. The Head Office and main laboratories of this Centre are located at Karachi with a Branch Office at Lahore and a Liaison Office at Peshawar. The laboratory concerned shall furnish the test report in test sheet within the specified date. SDC shall retain one copy of the test report with them and send one copy of the report to the manufacturer for information and in case sample fails to meet the requirement of relevant PSS, for rectifying the defect. The laboratories shall under intimation to the SDC send their bill of testing fee to the manufacturer concerned who shall be required to make the necessary payment of testing fee to the laboratories concerned (Schedule of testing fee is attached herewith). Grant of C.M. License: On the recommendations of director, SDC shall issue C.M. License after having satisfied itself with inspection and test reports from laboratory. When the license is granted to a manufacturing unit, he shall be held responsible for proper use of the Certification Marks. Fees to Be Paid By Licensees: i. Licensees will be required to pay annual license fee at the rate of Rs.250/= per year per license. ii. Licensees are required to mark their products with PS Standard Mark as a token that product conforms to the relevant PSS. The licensee is also required to pay nominal marking fee on the quantum of annual production value. 4- Punishment A licensed manufacturer could display relevant Pakistan Standards number and the mark on the packing. No person shall use authority mark except under a license issued from PSQCA. Any person contravening the provisions of authority under various sections could be punished by imprisonment to one year of fine of Rs. 50,000/- or both. 5- Flow Chart of Licensing Procedure Below licensing Process Flow Chart for easy understanding of the licensing procedure

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SMEDA Legal Services Cell

SMEDA Legal Services Cell

6- IMPORTANT ADDRESSES
Standards Development Centre - Regional Offices:

Regional office (Punjab)

PITAC Compound, Ferozpur Road, Lahore. Ph: 9230495 , 9230496, Fax: 9230347 E-mail: pakqlty@brain.net.pk

Regional Office (Sindh)

39 Garden Road, Saddar, Karachi. Ph: 9215380, Fax: 9215370

Regional Office (NWFP)

Sarhad Chamber of Commerce G.T. Road, Peshawar. Ph: 9213317, Fax: 9213317

Regional Office (Balochistan)

Usman Complex, Room No. 14 & 15, Hali Road, Model Town, Quetta. Ph: 9202780, Fax: 9202780

SMEDA Legal Services Cell

QCC FEES FOR TESTING SAMPLES IN LABORATORY

Testing Fee - Received through Standard Development Center Chemical Section
No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Banaspati Ghee Edible Oil Sun Flower Oil Maize Oil Mustard Oil Sesame Oil Cotton Seed Oil Coconut Oil Soyabean Oil Cooking Oil Margarine Castor Oil (Cake) Palm Oil (Edible Grade) Biscuits Soaps/Detergent Cement Vitamin A Nickel Content Name of Sample Rates (Rs.) 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 1500 2000 3000 500 500 Remarks

Physical & Engineering/Building Material

No. 1 Name of Sample Razor and Shaving Blades Length of Blade Width of Blade Thickness of Blade Flexibility Test Shaving Perfumes Test Nick Test Straightness Tube light (Except colour coordinate) Bulb Pressure Bar Needle Bar Pressure Foot Ballant Electric Fan (Completed) Cement (Physical Complete Testing) including Rates (Rs) 1000 Remarks

2 3 4

5000 3000 1500

5 6 7

1500 3000 3000

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SMEDA Legal Services Cell

preparation of samples, curing and sand) 8 9 10 Non-pressure Oil stove (Physical & textile) Pressure Oil Stove Hook & Dead end (Clamp) Proof Load Breaking Load Impact Test/Charpy Flattering Test Pressure Cookers Pipes M.S Pipes G.I Pipes U P.V.C Pipes as per P.S.S P.V.C Cables (Non Armourd) Complete Testing of Cable Over all Dia Single Conductor Dia Insulation Thickness Resistance of Conductor Insulation of Resistance High Voltage Test Insulation of Resistance High Voltage Test Insulation Resistance at 70 Centigrade Area of cross section Heat shock Test Colour fastness Test No of Wires Identification of P.V.C Colour Elongation Marking 2000 1500 1000

11 12

5000

2000 2000 3000

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Note

1. 1. Testing fee per test will be Rs 500/- except where indicated or where complete testing is not required. 2. 2. 3. 3. Full Testing fee will be charged for sample submitted for re testing. The charges will be doubled for urgent reporting.

4. 4. The testing charges for samples not included in the above schedule will be at the discretion of the Director/Incharge of the Centre. 5. 5. The tariff will be provided at the time of submission of sample and will depend on the nature number of tests etc. 6. 6. The payment on account of testing fee will be accepted in advance through pay orders from authorized Bank. The Director/Incharge of the Centre could, however, permit testing of samples against bill or cash payment in rare and urgent cases. 7. The samples for testing are also provided by SDC for items under Compulsory Certification Marks Scheme and charges for these are paid by the industries from which these samples periodically picked up by Field Officers of SDC for quality control. As these industries pay marking fees also to PSQCA (through SDC), therefore the charges for these samples (received through SDC) or samples, to be tested for developing standards by SDC, are recommended at the discounted rates as shown in Received through Standard Development Center . The rates for samples from organizations, other than SDC, will be normal, as shown in Received Directly from Manufacturers/Pvt. Parties.

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