DPIIT Amends Copper Product QCO: Temporary Exemption for Air Conditioning and Refrigeration Manufacturers

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Dated: 01.07.2026

DPIIT Amends Copper Product QCO: Temporary Exemption for Air Conditioning and Refrigeration Manufacturers

The Indian Ministry of Commerce and Industry has issued a significant amendment to the Copper Products (Quality Control) Order, 2024, impacting manufacturers in the air conditioning and refrigeration sector. This article provides a comprehensive overview of the new regulations, their implications, and actionable steps for compliance.

Background: Ensuring Quality in Copper Products

The Copper Products (Quality Control) Order, 2024, was established to regulate the quality of copper products in India, ensuring safety, reliability, and standardization across industries. The order is enforced under the Bureau of Indian Standards Act, 2016, empowering the government to set and amend quality norms as needed.

Key Highlights of the 2026 Amendment

On June 30, 2026, the Central Government issued an amendment specifically addressing the import of copper products for air conditioning and refrigeration manufacturing. Here are the main points:

Temporary Exemption for Certain Imports
- From the commencement of the amendment until November 30, 2026, the order does not apply to goods or articles imported by manufacturers for use in air conditioning and refrigeration equipment, products, sub-assemblies, or components.
Scope of Exemption
- The exemption is limited to Inner Grooved Copper Tubes falling under IS 10773:2025, intended for use in air conditioning and refrigeration equipment.
- The quantity imported under this exemption must not exceed 50% of the average quantity imported during the financial years 2024–25 and 2025–26.
Record-Keeping Requirements
- Manufacturers must maintain month-wise records of such imports.
- These records must be furnished to government authorities on the manufacturer’s letterhead, signed by an authorized signatory, upon request.

Practical Implications for Manufacturers

Supply Chain Flexibility: The amendment provides temporary relief for manufacturers who rely on imported copper tubes, allowing them to adjust to new quality control norms without disrupting production.
Import Planning: Manufacturers should calculate their average imports for 2024–25 and 2025–26 to determine the maximum allowable quantity under the exemption.
Compliance Documentation: Accurate and timely record-keeping is essential. Non-compliance could result in penalties or loss of exemption.

Example Implementation Steps

Calculate Import Limits:
- Add the total quantity of Inner Grooved Copper Tubes imported in 2024–25 and 2025–26.
- Divide by 2 to get the average.
- Multiply by 0.5 (50%) to determine the maximum import allowed under the exemption.
Maintain Records:
- Set up a tracking system for monthly imports.
- Prepare a template on company letterhead for reporting to authorities.
Communicate with Suppliers:
- Inform suppliers about the new limits and documentation requirements to ensure smooth customs clearance.

Regulatory Timeline

Order Effective Date: Upon publication in the Official Gazette (June 30, 2026)
Exemption Period: From commencement until November 30, 2026

Conclusion

This amendment offers a transitional period for manufacturers in the air conditioning and refrigeration sector to adapt to evolving quality control standards. By understanding the new requirements and implementing robust compliance processes, businesses can ensure uninterrupted operations and regulatory adherence.

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Source: DPIIT

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