The certification process for factories in China, producing items falling under quality control orders (QCOs), has slowed down, prompting companies like Nike, Mitsubishi, and Carrier to feel the heat as they face challenges in obtaining Bureau of Indian Standards (BIS) certification. Government sources revealed that these companies have approached the government, seeking certification for their manufacturing units in other Asian countries. However, the government is hesitant to certify factories in certain ASEAN countries, such as Thailand and Vietnam, out of concerns that it may lead to a "backdoor entry" of Chinese products without significant value addition.

Under the QCO rules, products covered by these orders and their components must be manufactured in BIS-certified factories, whether located in India or abroad. Despite requests from companies like Carrier Midea India and Nike to certify factories in Indonesia and Vietnam, the government remains cautious about granting certification to factories in certain countries.

The fear of companies importing Chinese products indirectly through other nations has led the government to scrutinise certification requests for factories located in ASEAN countries. The QCO covers over 500 products, including footwear, toys, and air conditioners, indicating an increased focus on quality control. Companies are navigating these challenges, with some, like Carrier Midea India, highlighting compliance in certain product categories but facing obstacles due to the absence of manufacturing facilities for specific components in India. Nike has specifically requested timely certification for overseas factories in Vietnam and Indonesia to sustain its imports from these locations. However, responses from Nike and Mitsubishi to these challenges remain pending as of the latest available information.

Source: Indiatimes