Steel QCO Exemption extended on selected BIS Standards till 30.09.2026

Dated: 31.03.2026

The Government of India, through the Ministry of Steel (Technical Division), has issued a significant order dated 31st March 2026, granting conditional exemption from mandatory input adherence requirements for stainless steel flat products.

This development carries substantial implications for importers, manufacturers, and compliance professionals dealing with BIS Quality Control Orders (QCOs) and import regulations.

2. Background of the Order

The order titled:

โ€œExemption of input adherence of Stainless Steel flat products โ€“ reg.โ€

was issued in continuation of an earlier order dated 20th November 2025, and is based on representations received from stainless steel importers.

Key Context

  • Stainless steel flat products are subject to mandatory BIS standards under QCO regime.
  • Compliance typically requires adherence to specified Indian Standards (IS) for inputs.
  • Industry stakeholders raised concerns regarding practical challenges in sourcing compliant inputs, especially in global trade scenarios.

3. Scope of Exemption

3.1 Standards Covered

The exemption applies to mandatory input adherence for the following Indian Standards:

  • IS 5522
  • IS 6911
  • IS 15997
IS StandardsIS TitleHSN Codes Listed in Original Steel QCO, 2024
IS 5522: 2014Stainless steel sheets and strips for utensils โ€“ Specification.72191300, 72191400, 72192310, 72192320, 72192390, 72192411, 72192412, 72192413, 72192419, 72192421, 72192422, 72192423, 72192429, 72192490, 72193210, 72193220, 72193290, 72193310, 72193320, 72193390, 72193410, 72193420, 72193490, 72193510, 72193520, 72193590, 72199012, 72199013, 72199090, 72201290, 72202090, 72209090
IS 6911: 2017Stainless steel plate, sheet and strip โ€“ Specification.72191111, 72191112, 72191190, 72191200, 72191300, 72191400, 72192111, 72192112, 72192121, 72192122, 72192131, 72192132, 72192141, 72192142, 72192190, 72192211, 72192212, 72192219, 72192412, 72192413, 72192419, 72192421, 72192422, 72192423, 72192429, 72192490, 72193111, 72193112, 72193121, 72193122, 72193190, 72193210, 72193220, 72193290, 72193310, 72193320, 72199011, 72199012, 72199013, 72199090, 72201110, 72201121, 72201122, 72201129, 72201190, 72201210, 72201221, 72201222, 72201229, 72201290, 72202010, 72202021, 72202022, 72202029, 72192291, 72192292, 72192299, 72192310, 72192320, 72192390, 72192411, 72193390, 72193410, 72193420, 72193490, 72193510, 72193520, 72193590, 72202090, 72209010, 72209021, 72209022, 72209029, 72209090
IS 15997: 2012Low Nickel Austenitic StainlessSteel Sheet and Strip for Utensils and Kitchen Appliances โ€“ Specification.72191300, 72191400, 72192320, 72192390, 72192421, 72192422, 72192423, 72192429, 72192490, 72193220, 72193290, 72193320, 72193390, 72193420, 72193490, 72193520, 72193590, 72199012, 72199013, 72199090, 72201290, 72202090, 72209090

These standards generally relate to:

  • Stainless steel plates, sheets, and strips
  • Hot-rolled and cold-rolled flat products
  • Technical specifications for material composition and quality

3.2 Nature of Exemption

The Ministry has granted:

Exemption from mandatory input adherence requirements

This means:

  • Importers/manufacturers are not required to demonstrate compliance of input materials with the above BIS standards
  • However, this does not automatically waive finished product compliance, unless separately specified

4. Validity & Applicability

4.1 Time-bound Relaxation

The exemption is strictly time-bound:

  • Applicable to imports where:
    • Bill of Lading (B/L) date is on or before 30th September 2026

4.2 Key Interpretation

This creates a cut-off based on shipment date, not clearance date:

ParameterApplicability
Shipment DateMust be โ‰ค 30.09.2026
Clearance DateCan be after 30.09.2026
DocumentationB/L is decisive evidence

5. Legal Framework & Regulatory Context

5.1 BIS QCO Regime

The exemption operates within the framework of:

  • Bureau of Indian Standards Act, 2016
  • Relevant Quality Control Orders (QCOs) issued by Ministry of Steel

Normally:

  • Imports must comply with BIS standards
  • Non-compliance leads to detention/seizure under Customs Act, 1962

5.2 Customs Interface

From a Customs law perspective:

  • Officers often insist on:
    • BIS Certificate
    • Mill test certificates confirming input compliance

This exemption:

  • Reduces compliance burden at assessment stage
  • Limits scope for detention under Section 110 of Customs Act
  • Can be used as a defence in Show Cause Notices

6. Practical Impact on Importers

6.1 Immediate Benefits

  • Faster customs clearance
  • Reduced documentation burden
  • Flexibility in sourcing raw materials globally
  • Avoidance of costly rejections/demurrage

6.2 Operational Relief

Importers dealing in:

  • Stainless steel coils
  • Sheets and plates
  • Flat rolled products

can now:

  • Import without proving input-level BIS compliance
  • Focus on end-product specifications

Conclusion

The 2026 exemption order marks a significant regulatory relaxation in the stainless steel sector, balancing compliance with trade realities.

However, it is not a blanket exemption, and its correct application requires:

  • Careful legal interpretation
  • Strong documentation
  • Strategic handling during customs clearance

For stakeholders, this is both an opportunity and a compliance checkpointโ€”requiring precision in execution and awareness of regulatory boundaries.

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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