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Dated: 12.08.2024
Quality Control Orders (QCO) and Mandatory BIS standards enforcement in India
The office of the Directorate General of Foreign Trade (DGFT) issued the Public Notice No 04/2024-2025 dtd 10th May 2024 that clarified which agencies are currently issuing the Quality Control Orders (QCO). They are namely Ministry of Steel, Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Textiles and Ministry of Mines, Govt of India.
The Quality Control Orders (QCO) issued by the above Department/Ministry is a legally binding factor to enforce the Bureau of Indian Standards (BIS) standards in India as per Section 16 (2) of the BIS Act, 2016. The power to Notify is derived from Section 16(1) of the BIS Act, 2016.
The provisions of DPIIT or BIS shall be applicable only on the βscheduled industryβ which shall have the meaning assigned to it in the Industries (Development and Regulation) Act, 1951. A βscheduled industryβ means any of the industries specified in the First Schedule as per sub section (i) of section 3 of the Industries (Development and Regulation) Act, 1951.
It is to be noted here that, BIS standards are βVoluntaryβ in nature as per the proviso sub section (1) of section 24 of The Bureau of Indian Standards Rule, 2018, unless and until enforced through a Quality Control Order.
BIS & its different Schemes in India:
1. Compulsory Registration Scheme (CRS): Mandatorily enforceable in India for Manufacturing, Import, Sale and Storage etc. as per Section 17 of the BIS Act, 2016. To check for the products falling under the CRS Scheme please check at https://www.crsbis.in/BIS/products-bis.do
2. ISI Scheme (Conformity Assessment Regulations, 2018): This scheme is also called as Product Certification Scheme under BIS. This applies on products falling outside the Hallmarking requirements and CRS scheme. To check whether your product falls under the Voluntary Category or Mandatory category you may kindly visit the below link to check further https://manakonline.in/MANAK/BisReportList/1013/SHZMTHlhTitSbUhDRlBKYlltMDhHUVBhMFdHYjdpY1E/SHZMTHlhTitSbUVQT0lXekJOcjZLUlBqQVdObk45V3Q/SHZMTHlhTitSbUdJNHpTT0Qrd0UvY2t4Tk94RXVpdmVNaUZwL3ZLc25Gb1h3WFBqcjhLSDh2T25rWTRYdFlxNG40WFZPcmNuTDFRQ3NFV0VmcXBPZndaK0laSVI5YUZTb09ocWFMM3ZuZ0JyQjRPOFJFb0V4OEVCQ2dLM3VLRjU1S3R5WlVHNnk1ayt2SnFIQmRnTmtVai8wZjBFYVNGZQ/ALL_BRANCHES
3. Hallmarking Scheme: Applies to Gems and Jewellery in India
4. Management Certification Scheme: Quality Management Certification & conformity applies to the process and related metrics.
5. Foreign Manufacturer Certification Scheme (FMCS): It is the Foreign version of the ISI scheme. In this case the Foreign Manufacturers are by default treated as βLargeβ entities and thus requires all testing facilities to be in-house only and not outsourced.
6. Certificate of Conformity (COC): This scheme applies only on Stamping/Laminations of Transformers (with or without windings) and Retro-reflective devices for Bicycles only and no other products for the time being.
Quality Control Orders (QCO) in India:
1. QCOs are issued namely by 4 agencies at this moment e.g. Ministry of Steel, Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Textiles and Ministry of Mines, Govt of India.
2. The QCOs are issued to enforce BIS standards in India under Section 16 (2) of the BIS Act, 2016.
3. The Exemptions, generally notified, in the QCOs are as follows:
a. Goods manufactured in India for Export purposes shall not attract the provisions of QCO and thus shall remain exempted from BIS standards enforcement. Technically not applicable on EOUs/SEZs/FTWZ Units.
b. Extended timelines for enforcement of the QCOs are granted to the Micro, Small and Medium units under the MSME Act, 2006. This timeline extension is granted to support the MSME sector to adhere and comply with the provisions of BIS standards in due course as most of them are very small units and cannot readily enforce BIS quality standards immediately.
c. In the recently issued The Bolts, Nuts and Fasteners (QCO), 2023 dtd 21st July 2023 the exemption has also been granted to goods or articles imported as a part of any finished goods or sub-assembly or component.
d. DGFT has issued Notification No. 69/2023 dtd 07th March 2024 and Notfn. No 71/2023 dtd 11th March 2024, exempting Advance Authorization License Holders and EOUs from the Mandatory QCO compliances.
What if your imported products does not conform to BIS standards or you think that you must be granted an exemption from the QCO in India:
An illustration has been given for Steel Products Import below:
For Steel Products not covered under the Steel Products (QCO), 2024, the importer has to obtain a NOC from the Ministry of Steel for each consignment and thereafter a SIMS Registration also needs to be obtained for each consignment.
How we can assist you:
1. Evaluate your list of products on the applicable BIS standard, if any. Ensuting compliace to QCO & BIS in India.
2. Based on the applicable BIS standard we also evaluate if the QCO is applicable on your products or not.
3. We also give Legal Opinions on the applicability of the QCO and the related BIS standards.
4. Assistance in moving proposals and applications for availing exemptions from the QCO issued by the respective authorities thus allowing an exemption from BIS standards.
5. Giving representations to statutory authorities as to why BIS standard or the QCO is not applicable in certain cases.
Listen to this on our #YouTube Channel
Download the DGFT Public Notice & Notifications below:
Source: DGFT, DPIIT, BIS
In case you face any issues related to Indirect Tax-Customs, GST, Foreign Trade Policy (FTP), Arbitration matters and Central Licensing and related advisory matters in India then please feel free to get in touch with SJ EXIM Services. We offer Legal advice and litigation support in matters related to Indirect Tax-Customs, FTP, other Indirect Tax matters & Arbitration law, all sorts of Central licensing and related matters. Come and explore the new way of doing business with us!
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Disclaimer:
1. The authors view are based on his/her interpretation of the relevant information/documents, applicable law, and government policy and there is no assurance that a court or tribunal or regulatory body or other governmental authority may not interpret it differently.
2. We are not responsible for updating or revising this article on account of any change in law or interpretation thereof or a change in events or circumstances informed or occurring after the date of this article unless specifically requested for it.
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