Importers and BIS
In common perception, the standards of Bureau of Indian Standards (BIS) are applicable to the manufacturers and the importers are not supposed to comply with these standards. To a large extent, this is true! However, the importers may be importing the products which are under the BIS compulsory licensing scheme and then, the importers are asked by the Indian Customs to show the license or an NOC from the relevant authority to clear the goods. The problem becomes acute when the import consignment has already reached the port and if not cleared within, say 3 days, the demurrage starts which may add up to huge cost. In this article, let us explore various dimensions and way forward:
Importer and BIS Compliance: At the discussion stage of the products being imported, the importer must do a hygiene check. Let us assume that the product falls under the BIS Compulsory licensing requirement.
1. Check Applicability –Identify if the proposed product falls under CRS or QCO.
- Compulsory Registration Scheme (CRS):
- Applies to: Electronics & IT products.
- Requirement: Manufacturer must test in a BIS-approved lab and register.
- Certification: BIS Registration Number.
- Marking: Standard Mark + Registration Number.
- Example: Mobile phones, laptops, LED lights, power banks, USB drives, LED TVs.
- Quality Control Orders (QCOs):
- Applies to: Industrial, engineering, chemical & consumer goods.
- Requirement: Must obtain BIS Licence (ISI Mark) under Scheme-I.
- Certification: ISI Licence.
- Marking: ISI Mark with licence number.
- Example: Helmets, cement, pressure cookers, steel, toys, copper wires, appliances.
2. FMCS: Foreign Manufacturer Certification Scheme: In case the importer is importing on regular basis from the same exporter and same products, he may contemplate to obtain FMCS license for the foreign manufacturer.
3. Steps for obtaining FMCS:
- Check the product’s coverage under BIS/QCO.
- Prior to Filing application:
- Adequate equipment in factory area
- Earmarking of testing area
- Appoint Authorized Indian Representative (AIR)
- Application Stage:
- Fill Form V
- Agreement between BIS and Foreign manufacturer in Form IX
- Indemnity Bond in Form X
- Performance Bank Guarantee in Form XI of USD 10,000 by a bank having branch in India
- Scheduling of Visit of the officer: If forms are in order, then BIS will issue letters for visit of factory.
- BIS issues letter for payment of fees
- Actual visit of 2 days by the officer.
- Two samples are taken
- One sample is sent to Indian laboratory as advised by the officer and at the cost and care of foreign manufacturer
- Second set of samples is tested at factory premises. Test report is prepared and Top management must be present there.
- Marking fees are separately paid in advance to be adjusted on actual basis at year-end.
- License is issued if everything is in order and in compliance with BIS.
4. If the product does not fall under any BIS standards, then there is no requirement of BIS compliance. However, the Indian customs does not get convinced, and asks the importer to produce an NOC from the relevant Ministry. For example, in case of steel product, the importer needs apply to the Ministry of Steel. There is dedicated portal on which the importer needs to file the application along with other documents. The Ministry may issue NOC or it may say the importer to approach DPIIT for NOC. Here again, the application goes from DPIIT to BIS to state that no existing standard applies to the product. The whole process takes 35 to 60 days. In between, the importer faces huge demurrage.
5. Other Product-Specific Compliances:
- Food Safety and Standards Authority of India (FSSAI) License: Mandatory for food, beverages, health supplements.
- (Central Drugs Standard Control Organization) CDSCO Approval: Required for drugs, cosmetics, and medical devices.
- WPC (Wireless Planning & Coordination): For Wi-Fi, Bluetooth, and wireless products.
- Plant/Animal Quarantine Clearance: For agricultural and livestock products.
- Environmental Clearance (MoEFCC): For hazardous substances and e-waste.
For the BIS compliances, the relevant regulations is BIS (Conformity Assessment) Regulations, 2018 which have been amended several times in recent past.
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In case, you are an importer seeking NOC or a foreign manufacturer planning for enter Indian market and need any support or have any query, you may like to connect with us.
Abhinarayan Mishra FCA, FCS, LL. B, IP, RV; Partner, KPAM & Associates, Chartered Accountants, New Delhi; +91 9910744992; ca.abhimishra@gmail.com; samlawassociates18@gmail.com
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