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np

Accreditation Act, 2079 (2022)

Date of Assent and Publication

2079/05/28 (September 13, 2022)

Act No. 22 of the year 2079 (2022) made by Federal Parliament

An Act made for the provision relating to Accreditation

Preamble: Whereas, it is expedient to accredit the equivalency testing institution, to

establish Nepal Accreditation Centre and to make necessary provisions relating to

accreditation,

Be it enacted by the Federal Parliament.

Chapter – 1

Preliminary

1. Short Title and Commencement: (1) This Act shall be called as

“Accreditation Act, 2079 (2022)”.

(2) This Act shall come into force from the thirty first day of the date

of its assent.

2. Definitions: Unless the subject or the context otherwise requires, in this Act,-

(a) “Chairperson” means the Chairperson of the Board;

(b) “Executive Director” means the Executive Director

appointed under Section 23;

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(c) “Centre” means Nepal Accreditation Centre established

under Section 3.

(d) “Fund” means fund established under Section 28.

(e) “Prescribed” or “as prescribed” means prescribed or as

prescribed in the rules made under this Act.

(f) “Inspecting institution” means the institution responsible

for inspecting the design, assembly, or process of goods or

services;

(g) “Process” means the series of steps that need to be

completed at various points, from production to

distribution of goods or services, to uphold the quality of

the goods or services;

(h) “Accreditation” means certification provided by a third

party to assess the competency of an equivalency testing

institution;

(i) “Accreditation Certificate” means the certificate provided

under Section 13;

(j) “Laboratory” means an entity or establishment created in

accordance with the prevailing law to conduct clinical

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sample testing of products or services, as well as testing or

calibration;

(k) “Proficiency test” means the test conducted in accordance

with the established standards and assess the performance

of the laboratory through inter-laboratory comparison

method;

(l) “Ministry” means the Ministry of Industries, Commerce

and Supplies;

(m) “Thematic Committee” means the thematic committee

constituted under Section 9;

(n) “Member” means the member of the Board and the term

also includes chairperson and member-secretary of the

Board;

(o) “Equivalency test” means procedures conducted to verify

whether activities such as laboratory analysis, calibration,

verification of product, service, process, or person's

competence, or inspection of system, production of

certified reference material, proficiency test, are in

accordance with the established standard or not;

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(p) “Equivalency testing institution” means an institution

which is responsible for certifying the competency of

products, services, processes, management systems, or

individuals;

(q) “Board” means the Board of Directors under Section 6.

Chapter – 2

Provision relating to the establishment of the Centre and Board

3. Establishment of Centre: (1) There shall be a Nepal Accreditation Centre to

carry out the works related to accreditation.

(2) The Centre shall be called as “Nepal Accreditation Centre” in

English.

(3) The Centre shall be located in Kathmandu valley.

4. Centre to be autonomous institution: (1) The Centre shall be an autonomous

body corporate with perpetual succession and shall have legal personality.

(2) The Centre, being a legal entity, shall exercise its rights, fulfill its

duties and assume the liability under the prevailing law.

5. Functions, Duties and Powers of Centre: (1) The sole authority to issue

accreditation certificates to equivalency testing institutions under this Act

shall rest exclusively with the Centre.

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(2) Subject to the other sections of this Act, the Centre shall have the

following functions, duties and powers, namely: -

(a) To prepare necessary guidelines, procedures and standards

to enhance the efficiency of the thematic Committee's

operations, and submit the same to the Board for approval;

(b) To implement or cause to be implemented the decisions

made by the Board;

(c) To grant Accreditation Certificate to the equivalency

testing institutions;

(d) To prepare and update a list of experts and examiners of

different sectors;

(e) To conduct capacity building programs regarding

accreditation and equivalency testing;

(f) To carry out awareness and promotional activities related

to accreditation;

(g) To cooperate with concerned regulatory bodies related to

accreditation and equivalency testing;

(h) To represent in national and international conferences and

programs related to accreditation;

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(i) To monitor the processes of the equivalency testing

institutions;

(j) To enter into the equivalency testing and accreditation

agreements with the regional and international equivalent

institutions of other countries, subject to approval of

Government of Nepal; and

(k) To perform such other functions as may be prescribed by

the Board.

6. Formation of the Board: (1) There shall be a Board of Directors consisting

of the officials listed below to oversee the operations of the Centre : -

(a) Secretary, the Ministry - Chairman

(b) Joint Secretary, the Ministry - Member

(c) Joint Secretary, the Ministry of Agriculture - Member

and Livestock Development

(d) Joint Secretary, the Ministry of Health and - Member

Population

(e) Joint Secretary, the Ministry of Education, - Member

Science and Technology

(f) Director General, the Nepal Bureau of - Member

Standards and Metrology

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(g) Two persons with at least one female - Member

nominated by the Ministry from amongst

Professors of the University of related sector

(h) Three persons with at least one female - Member

nominated by the Ministry from amongst

the occupational institutions related to

equivalency testing, one representative from

industry, commerce and private sector

(i) Executive Director -Member-

Secretary

(2) The duration of the term for members appointed under clauses (g)

and (h) of Sub-section (1) shall be two years. The selection of these members

shall be made based on the principle of inclusivity.

(3) Notwithstanding anything contained in Sub-section (2), if the

performance of the nominated member is not satisfactory, the Ministry may

remove such member from the Board.

Provided that, prior to removing him/her from office, such a member

shall be provided an appropriate opportunity to submit his/her clarifications.

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7. Meeting and Decision of Board: (1) The meeting of the Board shall be held

at least twice a year.

(2) The meeting of the Board shall have to be held at the date, time and

place as prescribed by the chairperson, and the meeting of the Board shall be

presided over by the Chairperson.

(3) The Executive Director shall provide the meeting agenda forty-eight

hours prior to the meeting of the Board.

(4) It shall be necessary that more than fifty-one percent of the total

members of the Board be present at the meeting in order for a meeting of the

Board to be considered as having met the quorum.

(5) The decision of majority in the Board meeting shall be final, with

and the Chairperson shall only cast a vote in case of a tie.

(6) The Board may extend an invitation to an official from a relevant

body or subject expert to attend the meeting, if necessary.

(7) The decision of the Board shall be attested by the chairperson and

record shall be maintained.

(8) The Board shall prescribe the other procedures of the Board meeting

on its own.

8. Functions, Duties and Power of the Board: Subject to the provisions of this

Act, the Board shall have the following functions, duties and powers: -

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(a) To advise Government of Nepal in relation to policy issues

related to equivalency testing and accreditation;

(b) To prepare necessary policies to make equivalency testing

processes effective, and recommend it to Government of

Nepal for its approval;

(c) To approve programs and budget of the Centre;

(d) To monitor, or caused to be monitored, the processes

carried out by foreign institutions in Nepal;

(e) To determine service fees of the Centre;

(f) To issue necessary instructions to ensure the independence

and impartiality of the accreditation processes;

(g) To hear grievances related to the accreditation, and take

appropriate decisions;

(h) To study bilateral, multilateral and international treaties,

and agreements, and provide necessary guidance to the

Centre;

(i) To discuss and decide on the proposals submitted by the

Centre.

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9. Thematic Committee: (1) The Board shall constitute various thematic

committees in order to ensure high-quality and efficient accreditation

processes.

(2) The thematic committee constituted under Sub-section (1) shall

consist of a maximum of five members, including one coordinator based on

the principle of inclusivity.

(3) The Board shall, in nominating the member of the thematic

committee under Sub-section (2), nominate a person who holds at least a

master's degree in the relevant subject and have at least 10 years of experience

in the relevant field.

(4) The tenure of office of the members nominated under Sub-section

(3) shall be four years.

(5) Notwithstanding anything contained in Sub-section (4), the Board

may dismiss a member of the thematic committee if they fail to meet

performance expectations, neglect their official duties, or work against the

best interests of the Board.

Provided that, such a member shall be provided with an appropriate

opportunity to submit his/her clarification before removing from the post.

(6) The members of the thematic committee shall get facilities as

specified by the Ministry of Finance.

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(7) Other functions, duties and powers of the thematic committee shall

be as prescribed.

Chapter-3

Provision relating to Accreditation

10. Application to be given to obtain Accreditation Certificate: (1) The

equivalency testing institution desirous of obtaining Accreditation Certificate

for works related to the equivalency test shall make an application in a

prescribed format along with fee as prescribed to the Centre.

(2) Where an application is received under Sub-section (1), the Centre

shall appoint necessary number of Nepali citizens, who have obtained

bachelor's degree in a related subject from a recognized university and has at

least ten years of experience, as examiner, to carry out the necessary

investigation and examination in relation to such an application.

(3) The examiner appointed under Sub-section (2) shall submit a

preliminary report to the Centre in the prescribed format after carrying out

necessary investigations and tests within a period as prescribed by the Centre.

11. Mandate to be given: The Centre shall, based on the report submitted by the

examiner under Sub-section (3) of Section 10, give mandate to the thematic

committee constituted under Section 9 to conduct necessary investigations

and submit a report regarding such institution within the specified period.

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12. Study and Investigation to be conducted: (1) If additional evidence of such

institution is required, the thematic committee, after receiving the mandate

under Section 11, may order the examiner, appointed under Sub-section (2) of

Section 10, to conduct an on-site inspection and submit a report thereof.

(2) The thematic committee shall, based on the on-site inspection report

received from the examiner under Sub-section (1), submit a final report to the

Centre after conducting necessary studies and investigations.

(3) Provisions pertaining to on-site inspections, studies and

investigations to be conducted under Sub-sections (1) and (2), the details to

be stated in the report and the format of the report shall be as prescribed.

13. Accreditation Certificate to be granted: (1) The Executive Director may,

after receiving the report under Section 12, further consult with the relevant

thematic committee regarding the processes of the applicant institution and

issuing of the Accreditation Certificate to that institution.

(2) If it is deemed appropriate to issue an Accreditation Certificate to

the applicant institution based on the final report submitted by the thematic

committee under Section 12, the Executive Director shall grant an

Accreditation Certificate within one month, prescribing terms and conditions

on payment of fee as prescribed.

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(3) The validity of the Accreditation Certificate issued under Sub-

section (2) shall be three years from the date of issuing of the certificate.

(4) Other provisions pertaining to the format of the Accreditation

Certificate shall be as prescribed.

(5) Notwithstanding anything contained in this Section, if it appears

that the decision has been done, on the basis of final report received from the

thematic committee under Section 12, that the Accreditation Certificate

cannot be granted to the applicant institution, the information thereof,

accompanied by the reason shall be given within seven days of such decision.

14. Renewal of Accreditation Certificate: (1) The institution receiving the

Accreditation Certificate under Section 13, shall require to renew the

accreditation certificate every three years on payment of the prescribed fee

prior to the expiry of validity period of the accreditation certificate.

(2) Provided the renewal is not done within the period as per Sub-

section (1), the renewal can be done by paying double the renewal fee within

sixty days after the expiry of such period.

(3) If any institution who fails to renew their accreditation certificate

within the period referred to in Sub-section (2), such accreditation certificate

shall ipso facto be revoked.

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(4) Other procedures pertaining to renewal of the accreditation

certificate shall be as prescribed.

15. Suspension and Revocation of the Certificate: (1) The Centre shall

regularly monitor the institutions that have received the accreditation

certificate.

(2) During the process of monitoring conducted pursuant to Sub-section

(1), in the event that the institution holding the Accreditation Certificate is

discovered to have breached this Act, the regulations made under this Act, or

the terms stipulated by the Centre, it may take the following decisions on this

matter, namely:-

(a) To rebuke;

(b) Suspension of the certificate for a maximum period of six

months if instructions given by the Centre are not followed

despite being rebuked as per clause (a); or

(c) Reduce scope of accreditation.

(3) The Centre shall provide an appropriate opportunity with the

concerned institution to submit clarification prior to the suspension under

clause (b) of subsection (2).

(4) In the event that an institution receiving an Accreditation Certificate

is found to be causing significant harm to individuals through its activities,

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the Centre shall revoke the institution's Accreditation Certificate. Following

this action, the Centre shall publish a notice in a national daily newspaper and

also make it available on the Centre's website.

(5) Other procedures pertaining to the suspension and revocation of the

certificate shall be as prescribed.

16. Approval to be taken for accreditation from foreign institution: (1) The

institution conducting the equivalency test, desiring of obtaining accreditation

from a foreign institution working on accreditation, shall submit an

application to the Centre for approval in the prescribed format along with the

prescribed fee.

(2) The Centre may, upon the receipt of the application under Sub-

section (1), grant approval related to accreditation.

(3) The Centre shall monitor the accreditation activities being carried

out through foreign institution upon the receipt of approval under subsection

(1).

(4) Other procedures pertaining to the approval under this Section shall

be as prescribed.

17. Regulation of the equivalency testing institution: (1) The foreign

equivalency testing institution, desirous to carry out accreditation in Nepal,

shall acquire approval from the Centre.

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(2) Notwithstanding anything contained in the prevailing law, the

Centre may regulate the equivalency testing institution.

(3) Other procedures pertaining to the approval and regulation under

this Section shall be as prescribed.

Chapter-4

Provisions relating to Offense, Punishment and Appeal

18. Offense: Anyone committing any of the following acts shall be deemed to

have committed an offense under this Act: -

(a) In case of using the logo of the accreditation certificate

without obtaining the accreditation certificate or during

the period of suspension of the accreditation certificate.

(b) In case of using the logo in areas other than the one for

which the accreditation certificate has been granted,

(c) In case of acknowledging a low quality or poor-quality

product or service as a quality product or service while

conducting proficiency test by the institution acquiring the

accreditation certificate,

(d) Any other acts done contrary to this Act.

19. Punishment: (1) If any person commits a crime under Section 18, the

Executive Director shall impose a fine as follows:

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(a) A fine up to Rs. one lakh for a person committing the

offense under clause (a) and (c) of Section 18,

(b) A fine up to Rs. seventy-five thousand for a person

committing the offense under clause (b) of Section 18,

(c) A fine up to Rs. fifty thousand for a person committing the

offense under clause (d) of Section 18.

(2) The Centre, based on the gravity of the offense committed by an

institution under Section 18, may revoke the accreditation certificate granted

to such institution.

(3) An appropriate opportunity to submit clarification shall be provided

to concerned institution prior to the imposition of fine or the revocation of the

accreditation certificate.

20. Complaint and Investigation: (1) Any person may file a complaint before

the Centre provided any institution is known to have committed any act

contrary to this Act or the rules, guidelines, procedures, standards or terms

and conditions set forth by the Centre.

(2) The Centre shall immediately initiate an investigation provided any

complaint is registered under Sub-section (1).

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(3) The Centre shall, if found appropriate during investigation under

subsection (2), initiate an action against the concerned institution under this

Act.

(4) Other procedures pertaining to the complaint and investigation shall

be as prescribed.

21. Review Committee: (1) The Ministry shall constitute a review committee

comprising of following officials to review the punishment and decision made

by the Executive Director under Section 19:-

(a) Joint Secretary, Ministry - Chairperson

(b) Undersecretary, Ministry of Law, - Member

Justice and Parliamentary Office

(c) One expert of proficiency test - Member

(2) The party who is not satisfied with the punishment or decision made

by the Executive Director under Section 19 may file an application of review

before review committee under Sub-section (1) within fifteen days.

(3) The review committee shall make decision on the application filed

under Sub-section (2) within thirty days.

(4) Other procedures pertaining to review shall be as prescribed.

22. Appeal: The applicant who is not satisfied with the decision made by the

review committee under Sub-section (3) of Section 21 may make an appeal to

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the concerned District Court within thirty-five days after the date of receipt of

such information.

Chapter-5

Provisions relating to Executive Director and Employees

23. Appointment of Executive Director: (1) An Executive Director shall be

appointed to act as the administrative chief of the Centre.

(2) A three-member recommendation committee shall be constituted

under the co-ordination of Joint Secretary of the Ministry consisting of a

representative of Public Service Commission and an expert in the relevant

subject.

(3) The committee so formed under Sub-section (2) shall recommend

the name of three candidates for the appointment of the post of Executive

Director from among the Nepali citizens holding at least the Master’s Degree

in Science and Technology, Engineering or Medical Science and quality

assessment or certification, calibration, laboratory analysis, inspection,

proficiency testing, production certified reference, quality management or

seven years’ experience on field of quality infrastructure like accreditation

and have completed thirty years of age.

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(4) The Government of Nepal shall appoint an appropriate candidate

for the post of Executive Director from among the candidates recommended

under Sub-section (3).

(5) The tenure of the office of the Executive Director appointed under

Sub-section (4) shall be four years.

(6) Notwithstanding anything contained under Sub-section (5), the

Government of Nepal shall remove the Executive Director from the post at

any time in case s/he does not fulfil his designated duty diligently, or did

anything in contradiction to the Centre’s interest or objective or if corrupt

behavior is found in him/her.

Provided that, an appropriate opportunity to submit clarification shall

be given prior to the removal from the post.

(7) Unless the Executive Director under Sub-section (4) is appointed,

the Government of Nepal may designate any officer of at least Gazetted

Second Class of the Federal Civil Service, who has attained the qualification

under Sub-section (3) to act as the Executive Director.

24. Disqualification of Executive Director: Following person shall not be

eligible to be appointed to, or continue to hold post of the Executive Director:-

(a) not having qualification under Sub-section (3) of Section

23,

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(b) having attained the age of sixty-five years,

(c) one who has been convicted by the court of an offense of

corruption, rape, human trafficking and transportation,

drugs smuggling and transportation, money laundering,

misuse of passport, offense of kidnapping, has been

convicted of a criminal offense involving moral turpitude

or has been convicted of criminal offense involving life

imprisonment or imprisonment for a term of twenty years

or more than twenty years.

(d) one who has been enlisted in blacklist under the prevailing

law.

(e) one who has been declared bankrupt,

(f) one who has acquired residential permit from any other

foreign countries.

Explanation: For the purposes of this clause, “Residence Permit”

means Diversity Immigrant Visa (D.V.), Permanent Resident

Visa (PR) or green card provided to Nepali citizens to reside

permanently in that country with or without condition, and the

term also refers to the permanent residence permit, of any name,

provided to Nepali citizens to live abroad permanently.

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(g) one who is unable to discharge his/her duties because of

physical or mental illness.

25. Service conditions of the Executive Director: The remuneration, service

conditions and facilities of the Executive Director shall be as prescribed.

26. Functions, duties, and powers of the Executive Director: The Executive

Director shall have the following functions, duties and powers:

(a) To prepare guidelines, procedure, and standard related to the

accreditation and submit the same to the Board for approval.

(b) To implement or cause to be implemented the decisions of the

Board, approved plans, programs and budget.

(c) To prepare annual plans, programs and budget of the Centre and

submit the same to the Board for approval.

(d) To supervise and control the fund and to care the movable,

immovable properties of the Centre.

(e) To act as a liaison officer between the Centre and Board.

(f) To issue, suspend or revoke Accreditation Certificate subject to

this Act or rules drafted under this Act, and

(g) To perform other acts as prescribed.

27. Provisions relating to the employees: (1) The Centre shall have required

number of employees as per the organizational structure and positions

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approved by the Government of Nepal in order to smoothly operate the

functions of the Centre.

(2) The Government of Nepal shall provide required employees for the

Centre.

(3) Notwithstanding anything contained in Sub-section (2), the Centre

may appoint the technical expert employees in the contract under the prevailing

laws.

Chapter – 6

Provisions relating to Fund and Account

28. Fund: (1) The Centre shall have its own fund.

(2) The fund under sub-section (1) shall have the following moneys:

(a) Money received from the Government of Nepal,

(b) Money received from services rendered by the Centre,

(c) Money received from national association, organization or

person, and

(d) Money received from foreign governments, institutions,

person, or international associations, institution.

(3) The Centre shall obtain the approval from the Government of Nepal,

Ministry of Finance prior to receipt of money under clause (d) of Sub-section

(1).

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(4) All expenses incurred by the Centre including day-to-day

administration shall be borne by the fund.

29. Account and Audit of the Fund: (1) The Centre shall maintain the account

of the fund according to the accounting system adopted by the Government of

Nepal.

(2) The account of the fund shall be operated by the joint signature of

the Executive Director or the authorized employee appointed by him and the

Head of Accounts of the Centre.

(3) The fund shall be audited by the Auditor General.

(4) The Government of Nepal may, at any time, examine or cause to be

examined the accounts of the fund.

30. Monitoring and Inspection: The Board may monitor and inspect or cause to

be monitored and inspected the functions carried out by the Centre in relation

to whether or not the processes of the Centre is carried out in accordance with

this Act or the rules, guidelines, procedures and standards drafted under this

Act.

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Chapter – 7

Miscellaneous

31. Annual Report: (1) The Centre shall prepare and approve a report on its

processes carried out throughout the year and submit it to Ministry through

the committee within three years of the end of each fiscal year.

(2) Other provisions pertaining to the annual report shall be as

prescribed.

32. Delegation of Power: (1) The Board may, as per necessity, delegate some of

the powers conferred to any chairperson, member, Executive Director or

thematic committee.

(2) The Executive Director may, as per necessity, delegate some of the

powers conferred to him/her or to any officer employees of the Centre.

33. Oath to be taken: The Executive Director and Coordinator and members of

the thematic committee shall be required, prior to assuming their respective

office, to take an oath before the chairperson under the format prescribed in

the schedule.

34. Prosecution of the case under the prevailing law shall not be hindered:

This Act shall not be considered to have hindered the prosecution of the case

according to other law in case the act considered as an offense under this Act

is also considered as an offense under other prevailing laws.

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35. Liaison with the Government of Nepal: The Centre shall liaise with the

government of Nepal through the Ministry.

36. To evaluate enforcement of Act: Within one year after the entry into force

of this Act, and then within one year in every five years, the Ministry shall

evaluate the enforcement of this Act and present a report to the respective

committees of both houses of the Federal Parliament.

37. Power to make rules: The government of Nepal shall make necessary rules

for the implementation of this Act.

38. Power to make guidelines, procedures and standards: (1) The Centre shall

make necessary guidelines, procedures and standards for the easy operation

of processes of the Centre.

(2) The guidelines, procedures and standards made under Sub-section

(1) shall come into force from the date of approval by the Ministry.

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Schedule

(Relating to Section 33)

Oath

I, …………………… , hereby, solemnly swear in the name of God that I,

as the Executive Director/ coordinator of thematic committee/member of

Nepal Accreditation Centre, shall discharge the duties honestly, by being

disciplined and loyal subject to the Accreditation Act, 2079 (2022) and the

laws in force, without fear, solicitation, favoritism, malice or greed, and that

I shall not disclose any fact known to me to anyone except during the

observance of prevailing law.

Oath taking: Oath taking certifying authority’s:

(a) Name: (a) Name:

(b) Signature: (b) Signature:

(c) Date: (c) Date:

(d) Designation: (d) Designation:

(e) Office

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