Latest Order of Ministry of Steel: Big jolt for steel imports
Ministry of Steel, GOI has issued an office order F.no.S-20011/15/2024-TECH, Dated: 13 June , 2025, which was effective from 16th June 2025. This new order covers input materials used in steel and steel products. This order has caused commotion and uncertainty in steel industry. Let us explore the ramifications in this article:
1. The new Order of 13th June, 2025 covers the input materials to be used in steel and steel products as covered under Chapter 72 and Chapter 73 of ITC codes. The main steel and steel products are covered under the Steel and Steel Products (Quality Control) Order, 2024.
2. As per the new Order, each product is mapped with their respective input materials.
3. The finished products of steel and steel products are already coming with the compliance of BIS certification. The foreign manufacturer has to comply with BIS requirements of FMCS and must have obtained the certification. Only then, the Indian importer can import from such manufacturer.
4. There is a very elaborate mechanism for obtaining BIS certification for a foreign manufacturer. It takes approximately 6 to 9 months’ time. The minimum compliances include appointment of AR, Performance Bank Guarantee of USD 10,000/-, Regular Product Testing, cost of BIS officers’ visit, travel and stay and others.
5. The new Order dated 13th June, 2025 requires the input materials suppliers to get BIS certification within 3 days effective 16th June, 2025. How could somebody imagine the certification within 3 days including Saturday on 14th June, 2025 and Sunday on 15th June, 2025? Does the BIS or for that matter the government machinery has the infrastructure to issue certificates and ensure compliance?
6. Impact of this Orde will be pervasive across the steel industry. The cost and time will increase several fold. In near terms, the imports will be stalled and will impact so many other dependent industries.
7. The impact of the new Order will be severe on the MSME sectors, because they import the raw materials and supplies to big steel manufactures in India or manufacture the value-added products.
8. There is chance of India importing finished value-added products which are exempt, at the same time the MSMEs importing raw materials for value added products will be subject to the further rigors. This will also be against the Make In India policy of the government.
Hope the Indian government at the top political and decision-making levels must be evaluating the various implications of this Order and we expect some changes in near future.
In case you are planning for import of steel/ steel products or their raw materials and need any DPIIT NOC/BIS 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; abhi.mishra@kpam.in
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