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Introduction: The Ministry of Commerce and Industry, through the Department for Promotion of Industry and Internal Trade, has issued a significant amendment to the Air Conditioner and its related Parts, Hermetic Compressor, and Temperature Sensing Controls (Quality Control) Order, 2019. This order, named the Air Conditioner and its related Parts, Hermetic Compressor and Temperature Sensing Controls (Quality Control) Amendment Order, 2023, brings forth noteworthy changes impacting manufacturers, importers, and the industry as a whole.

Detailed Analysis:

1. Scope Expansion: The amendment introduces a proviso exempting Hermetic Compressors of more than 7000 W (2 TR) capacity from the order for one year. This exemption benefits manufacturers of Air Conditioning and Refrigeration equipment, providing a grace period.

2. Research and Development Exemption: Manufacturers engaged in research and development can import 200 goods or articles per year exempt from the order’s restrictions. These imported items, not for commercial sale, must be disposed of as scrap, with manufacturers maintaining detailed records.

3. Transition Period for Existing Stock: The order allows the sale or display of goods manufactured or imported before the amendment’s commencement date, up to March 31, 2024, subject to Bureau certification or application for certification.

4. Maintenance and Sales Exemption: Manufacturers certified by the Bureau or those in the certification application process can domestically manufacture or import up to 6,000 hermetic compressors and heat exchangers annually for maintenance and sales for three years from the amendment’s commencement date.

5. Export Manufacturing Exemption: The order excludes hermetic compressors and heat exchangers imported by certified domestic manufacturers for export product manufacturing, specifically mentioned in export orders.

Conclusion: The Air Conditioner and its related Parts, Hermetic Compressor and Temperature Sensing Controls (Quality Control) Amendment Order, 2023, brings a series of nuanced exemptions catering to various aspects of the industry. Manufacturers and importers must carefully navigate these changes to ensure compliance and leverage the provided allowances for the specified duration. This amendment reflects the government’s commitment to balance quality control with industry needs, fostering growth and innovation in the air conditioning and refrigeration sector. Stay tuned for further updates and insights into the evolving regulatory landscape.

*****

MINISTRY OF COMMERCE AND INDUSTRY

(Department for Promotion of Industry and Internal Trade)

ORDER

New Delhi, the 29th December, 2023

S.O. 32(E).—In exercise of the powers conferred by section 16 read with sub-section (3) of section 25 of the Bureau of Indian Standards Act, 2016 (11 of 2016), the Central Government, after consulting the Bureau, is of the opinion that it is necessary so to do in the public interest, hereby makes the following order further to amend the Air Conditioner and its related Parts, Hermetic Compressor and Temperature Sensing Controls (Quality Control) Order, 2019, namely:—

1. (1) This order may be called the Air Conditioner and its related Parts, Hermetic Compressor and Temperature Sensing Controls (Quality Control) Amendment Order, 2023.

(2) It shall come into force on the date of its publication in the Official Gazette.

2. In the Air Conditioner and its related Parts, Hermetic Compressor and Temperature Sensing Controls (Quality Control) order, 2019, in paragraph 2, after the proviso, the following proviso shall be inserted, namely: –

“Provided further that nothing in this order shall apply to Hermetic Compressors of more than 7000 W (2 TR) capacity for one year from the date of commencement of the Air Conditioner and its related parts, Hermetic Compressor and Temperature Sensing Controls (Quality Control) Amendment Order, 2023 to the manufacturers of Air conditioning and Refrigeration equipment and related parts:

Provided also that nothing in this order shall apply for 200 numbers of goods or articles imported for the purpose of research and development by manufacturers of air conditioning and refrigeration equipment and related parts per year subject to the condition that such imported goods and articles will not be sold commercially and can be disposed of as a scrap and also the OEMs shall maintain a year-wise record of such goods or articles and furnish the same, if so desired by the Government:

Provided also that nothing in this order shall apply to goods or articles domestically manufactured or imported before the date of commencement of the Air Conditioner and its related Parts, Hermetic Compressor and Temperature Sensing Controls (Quality Control) Amendment Order, 2023 by the manufacturer certified by the Bureau or manufacturer who has applied to the Bureau for certification for the relevant goods and articles and such manufacturer shall be permitted to sell or display or offer to sell such declared stock up to the 31st March 2024 subject to the condition that such manufacturer shall made a declaration to this effect to the Bureau:

Provided also that nothing in this order shall apply to up to 6,000 numbers of hermetic compressors and heat exchangers domestically manufactured or imported for maintenance and sales per year by each of the manufacturers of air conditioning and refrigeration equipment and related parts who are certified by the Bureau or manufacturer who has applied to the Bureau for certification for the relevant goods and articles till three years from the date of commencement of the Air Conditioner and its related Parts, Hermetic Compressor and Temperature Sensing Controls (Quality Control) Amendment Order, 2023 subject to the condition that such manufacturers shall declare its old stock of hermetic compressors and heat exchangers domestically manufactured or imported before the date of commencement of the Air Conditioner and its related Parts, Hermetic Compressor and Temperature Sensing Controls (Quality Control) Amendment Order, 2023 and maintain a year-wise record of such goods or articles and furnish the same to the Central Government with a declaration made to this effect to the Bureau:

Provided also that nothing in this order shall apply to hermetic compressor and heat exchanger imported by domestic manufacturer who are certified by the Bureau or manufacturer who has applied to the Bureau for certification for the relevant goods and articles for manufacturing products for export, if specifically mentioned in the export order”.

[F. No. P-29014/63/2017-LEI]

SANJIV, Jt. Secy.

Note.- The principal order was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii), vide number S.O. 4354 (E), dated the 5th December, 2019 and subsequently amended vide notification number S.O. 1518 (E), dated the 18th May, 2020, S.O. 4671 (E), dated the 22nd December, 2020, S.O. 5095 (E), dated the 8th December, 2021 and S.O. 5972 (E),the dated 21st December, 2022.

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