While certain BIS certifications remain voluntary, a number of high-impact goods ‘inter alia’ including electronics, machinery, chemicals, and construction materials, require mandatory certification, given their direct impact on consumer health and safety. The BIS Act and the Foreign Trade Policy 2023 also establish that imported goods must adhere to the same compliance standards as domestically produced goods, say Krishna M Barad, Director and Sai Siddha, Senior Consultant, Ernst & Young LLP, India.

As global trade evolves, imports have become essential in meeting the complex needs of diverse markets. India, as one of the world's largest and fastest-growing economies, relies on imports to meet its consumer demands and augment domestic production. But this expansion brings the challenge of ensuring that all goods entering India comply with stringent standards for safety, quality, and reliability. The Bureau of Indian Standards (‘BIS’) emerges as the regulatory anchor for such compliance which requires imported products to meet Indian to ensure that sub-standard goods having potential impact on the consumers is not entering the Indian market thereby instilling confidence in the goods imported, manufactured and sold in the India.

Established in 1987 under the Bureau of Indian Standards Act, BIS was created to bring consistency, safety, and quality across all manufactured goods in India. It operates under a mandate to create, regulate, and maintain standards that support Indian industry’s growth both locally and internationally, while protecting consumer interests.

BIS functions as India’s national standards authority, charged with developing and promoting standards for a broad spectrum of products, processes, and services. As India's market grows and diversifies, maintaining rigorous standards has become vital for consumer safety and industry competitiveness. This article explores the BIS’s pivotal role in regulating imports and its implications for international businesses looking to enter the Indian market.

BIS regulations are mandated through the BIS Act, 2016, as well as various Quality Control Orders (‘QCO’) or Compulsory Registration Order (‘CRO’) issued by India’s key ministries, including those responsible for steel, consumer affairs, electronics, and IT. While certain BIS certifications remain voluntary, a number of high-impact goods ‘inter alia’ including electronics, machinery, chemicals, and construction materials, require mandatory certification, given their direct impact on consumer health and safety. The BIS Act and the Foreign Trade Policy 2023 also establish that imported goods must adhere to the same compliance standards as domestically produced goods.

Mandatory BIS licensing extends across sectors critical to consumer safety and industrial application, including:

a. Toys: Non-electric and electric toys

b. Food and related products:  Processed cereal based complementary foods, milk-powder, condensed milk, plastic and glass feeding bottles, etc.

c. Steel and iron products: Indented wire for pre-stressed concrete, stainless steel plate, sheets and strips, tool and die steels, steels for pneumatic tools, etc.

d. Chemical & fertiliser: Caustic soda, boric acid, acetic acid, polyester spun grey and white yarn, polyester continuous filament fully drawn yarn, etc.

e. Metal and alloys: copper, nickel powder, aluminium alloy ingots, etc.

f. Electronics &IT: Electronic games, laptop, notebook, tablets, mobile phones, scanners, power adaptors for IT equipment, SMPS, etc.

g. Solar photovoltaics, systems & devices: Crystalline Silicon Terrestrial Photovoltaic (PV) modules, power converters for use in photovoltaic power system, storage battery, etc. 

h. Machinery and electrical equipment including their assemblies/sub-assemblies, etc.: Compressors, machinery for filling/closing/sealing, etc., metal cutting machines, diesel generators, etc.

BIS has developed structured schemes to facilitate easier navigation of the compliance process:

a. ISI mark scheme: Governed by the BIS (Conformity Assessment) Regulations, 2018, this scheme covers over 600 goods, including cement, steel, and chemicals. Applicants submit technical documentation, and products undergo inspection and testing to receive the ISI mark

b. Compulsory Registration Scheme (CRS): This scheme mandates compliance for 74 electronic and IT products, including laptops and video monitors. Products are certified after accredited testing, with approved goods bearing the CRS mark.

c. Foreign Manufacturers Certification Scheme (FMCS): The products subject to mandatory licensing requirement under this category when imported into India are required to be accompanied by license issued by the BIS in terms of the Foreign Manufacturers Certification Scheme (‘FMCS’). As such products are manufactured at a foreign manufacturer’s premise the said license may be obtained through appointment of Authorised Indian Representative (‘AIR’) who is resident of India. Accordingly, basis application submitted to the BIS along with information with respect to manufacturing facilities available at the overseas premises, on-site visit to the foreign manufacturer’s premises for inspection, drawl of samples for testing to ensure conformity of the manufactured goods, etc. the BIS issues the license to the foreign manufacturer enabling entry of such goods with appropriate standard marks into India.

Goods imported into India under the Advance Authorization (‘AA’) license or in an Export Oriented Unit (‘EOU’) or in a Special Economic Zone (‘SEZ’) for the purpose of physical exports outside India are exempted from the mandatory applicability of QCOs notified by the line ministries as mentioned under Appendix- 2Y of the Foreign Trade Policy, 2023 (‘FTP’) which ‘inter alia’ include Ministry of Steel, Department for Promotion of Industry and Internal Trade, Ministry of Heavy Industries, etc. The finished products manufactured using such exempted imported inputs or such imported inputs, as the case may be, are prohibited for DTA clearance. It may be noted that the said exemption to goods imported into India for the purpose of utilisation in export production is also applicable to the DTA entity importing such goods falling under the ambit of QCOs issued by the line ministries mentioned under Appendix 2Y. 

In addition to non-compliant goods being subject to re-export or destruction at the port of import, the importer may also attract fines and penalties upto 500,000 and imprisonment which may extend upto 1 year in terms of the BIS Act, 2016.

While BIS regulations are foundational to ensuring quality and safety, they also present hurdles such as compliance costs and procedural intricacies. Importers should conduct thorough reviews and engage with BIS-licensed manufacturers to streamline the import process. 

In order to mitigate the above complexities and time constraints, the following may be considered before import of goods into India:

1. Undertake detailed review of products to identify applicability to BIS regulations

2. Once applicability to BIS regulations is identified, industries to ensure that such products are procured from BIS licensed foreign manufacturers

3. In case the foreign manufacturer is not a BIS license holder, appraise the foreign supplier/manufacturer about the requirement for obtaining the license and ensure compliance

The BIS stands as a pivotal institution in the international trade arena, championing quality and innovation while protecting consumer and industry interests. Compliance with BIS standards is increasingly vital for importers to successfully enter the Indian market. By embodying the tenets of quality, safety, and reliability, BIS enhances trust in Indian products and solidifies India's status as a key player in global trade.

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Krishna M Barad, Director, Ernst & Young LLP, India.

Sai Siddha, Senior Consultant, Ernst & Young LLP, India.