CBIC Enforces Mandatory BIS Compliance for Steel FG and steel input raw materials imports

“Indirect Tax I Indirect Tax Litigation I Customs & FTP I Central Licensing I Arbitration I Advisory”

Dated: 19.06.2025

CBIC Enforces Mandatory BIS Compliance for Steel FG and steel input raw materials imports

The Central Board of Indirect Taxes and Customs (CBIC) has issued Instruction No. 16/2025-Customs, dated 18th June 2025. This instruction mandates strict adherence to the Bureau of Indian Standards (BIS) for not just finished steel products but also the input materials used in their manufacture. The directive stems from the Ministry of Steel’s Quality Control Order (QCO), 2024, and is enforceable for imports with a Bill of Lading dated on or after 16th June 2025.

Regulatory Background

The Ministry of Steel, vide its Order dated 13.06.2025, clarified that 151 Indian Standards (IS) related to steel and steel products falling under Chapters 72 and 73 of the ITC(HS) Code are now part of the QCO framework. These standards are notified through S.O. 3716(E) dated 29.08.2024 and are mapped against their respective input materials.

CBIC’s Instruction No. 16/2025 operationalizes this directive by mandating that Customs authorities verify not only the compliance of finished steel imports with applicable BIS standards but also ensure conformity of input steel materials with their corresponding IS specifications.

Key Features of Instruction No. 16/2025-Customs

1. Scope of Application

Applies to all steel and steel product imports under Chapters 72 and 73.
Focuses on the input steel material used for manufacturing products covered under BIS standards.
Enforced through QCO notified under the Steel and Steel Products (Quality Control) Order, 2024.

2. Enforcement Date

Effective for all consignments with Bill of Lading dated on or after 16th June 2025.

3. Mapping of Input Standards

A detailed mapping has been provided matching final product IS standards with corresponding input material standards.
For example:
- Finished product IS 1786:2008 (High strength deformed bars) maps to input IS 14650:2023 (Carbon Steel Cast Billets for Re-rolling).
- IS 6003:2010 (Indented Wire for Prestressed Concrete) links to IS 7904:2018 (High Carbon Steel Wire Rods).

4. Mandatory SIMS Registration

Importers must register their shipments under the Steel Import Monitoring System (SIMS), ensuring IS compliance is declared upfront.

5. Responsibility of Customs Field Officers

Officers are required to verify input standard compliance at the clearance stage.
Officers are directed to be sensitized regarding these requirements to ensure uniform enforcement across customs formations.

Implications for Importers and Traders

Immediate Compliance Actions Required

Importers must ensure BIS certification not just for final goods but also for the raw materials used.
All shipments should be registered on the SIMS portal with correct IS details.
Suppliers must be vetted for their BIS compliance status for both products and input steel materials.

Consequences of Non-Compliance

Risk of detention or rejection of consignments at Indian ports.
Potential invocation of penalties under the Customs Act, 1962 and BIS Act, 2016.
Supply chain disruptions if sourcing continues from uncertified foreign manufacturers.

Strategic Industry Impact

Promoting Domestic Standards

This initiative ensures that imported inputs meet the same quality benchmarks as those mandated for Indian manufacturers.
It also prevents circumvention of QCO through misclassification of raw materials or intermediate products.

Boost for Domestic BIS Ecosystem

Encourages global suppliers to obtain BIS certification for inputs, strengthening India’s quality compliance ecosystem.
Promotes a level playing field for domestic producers adhering to BIS norms.

Conclusion

Instruction No. 16/2025-Customs is a critical enforcement measure aimed at bolstering India’s regulatory framework on steel quality. By mandating BIS compliance at the input material level, the Government ensures that the integrity of the supply chain—from raw material to finished product—is maintained under stringent quality parameters.

Importers, customs brokers, and international suppliers are advised to undertake an immediate audit of their compliance mechanisms and adopt BIS standards in line with the Steel QCO 2024 and this CBIC instruction.

Listen to this on our #YouTube Channel

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!

Source: CBIC, Ministry of Finance, Govt. of India

Disclaimer

Handy Download:

Customs InstructionDownload

Connect with us for more-

@ Team S J EXIM SERVICES, New Delhi, IN

CP: Ms. Shubhra Jha, Founder

Tel: +91-11-4999 2707 I +91-9999005693

Web: www.sjexim.services

EMAIL: operations@sjexim.services I shubhra@sjexim.services

Facebook: www.facebook.com/sjeximservices

LinkedIn: https://www.linkedin.com/company/90794255/admin/feed/posts/