CONTOURS OF BIS FRAMEWORK
FOR SUPPLY CHAIN MANAGEMENT
January 25, 2023
CONTENTS
Introduction to BIS
Foreign Manufacturers
Certification Scheme
Compulsory Registration Scheme
Recent Developments
Implementing BIS – Business Challenges
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1. INTRODUCTION TO BIS
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OVERVIEW - BIS
The Bureau of Indian Standards (‘BIS’) is India’s statutory national standards body prescribing the qualitative standards for covering goods and services under the standardization regime
- BIS helps in providing safe, reliable and quality goods, minimizing health hazards to consumers, protecting the environment, promoting exports and substitute imports controlling proliferation of varieties etc.
Primary objective of BIS is to formulate and prescribe the standards for products for their certification
BIS carries out various activities like that of standards formulation, product certification, hallmarking, laboratory services, training services etc.
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SIGNIFICANCE Of BIS
FUNCTIONS AS NON-TARIFF BARRIER
PROMOTES ‘MAKE IN INDIA’
NON-ADHERANCE SUPPLY CHAIN DISRUPTION
Leaders have time and again stressed on importance of importing high quality products to build manufacturing ecosystem driven by qualitative parameters
Hon’ble PM has emphasized on “Zero Defect- Zero Effect” Hon’ble Commerce Minister, Mr. Piyush Goyal, focused on the completion of 100 years of BIS and spoke on mantras for BIS to grow in future – Jan, 2020
Hon’ble FM during the Budget2022 focused on implementation of quality standards, mandatory technical standards and their enforcement
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2. FOREIGN MANUFACTURERS CERTIFICATION SCHEME (FMCS)
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Provides certification to foreign manufacturers having a factory location outside India in relation to the products imported into India
License to use the Standard Mark on a product is granted after assessing Manufacturing and Testing Capabilities of the product
Applicable for grant of license for all the products except Electronic & IT Goods notified by the Ministry of Electronics & Information Technology
Applicant manufacturer needs to have complete manufacturing facilities, complete testing equipment as per the Indian Standards and presence of a qualified Quality Control Person
Use or application of Standard Mark is granted for products manufactured in a manufacturing premises and conforming to all the requirements of the relevant Indian standard
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KEY FEATURES OF FMCS PROCESS
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Pre-filing application to be made to the authority along with information such as factory layouts, list of Machinery/ test equipment and details and qualifications of lab in-charge
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Appointment of Authorized Indian Representative (AIR) is required for the foreign manufacturers ONLY
Test Report/ Equipment List are required to be submitted in the specified formats
In-house testing labs to be set-up in the manufacturing premises
Clearance of application by the BIS authorities and appointment of scientist for factory visit
Visit of BIS appointed scientist to manufacturing premises of the Applicant
Sampling of one product under each category and submission of same for testing at BIS approved Labs in India
On issuance of clear test reports by the Labs, the Applicant to submit the test reports along with requisite documents within 90 days from the issuance
Undertaking shall be signed along with Performance Bank Guarantee of USD 10,000 (NA for domestic manufacturer) and Indemnity Bond
Grant of License – License shall be granted for the period of not less than one year and up to two years
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PRODUCTS COVERED UNDER FMCS…
Steel and Iron Products
Eg: Indented wire for pre- stressed concrete
Automobile Accessories
Eg: Automotive Vehicles
Chemicals Products
Eg: Aniline
Electrical motors
Eg: Induction Motors
Batteries
Food & Related Products
Eg: Milk Powder
Eg: Multi - purpose dry batteries
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…PRODUCTS COVERED UNDER FMCS
Cement
Eg: Low heat
Portland Cement
Medical Equipment
Eg: Clinical thermometers
Electrical Transformers
Eg: Transformers
Household Electrical goods
Eg: AC watt-hour meters
Cylinder, Valves & Regulator
Capacitors
Eg: A.C. motor capacitors
Eg: LPG containers for automotive use
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FMCS PROCESS
Filing of applications
STEP 4
STEP - 1
Preliminary approval and appointment of BIS scientist
STEP - 2
Site visit and issue of Test Reports
STEP 3
STEP - 3
Grant of License
STEP - 4
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3. COMPULSORY REGISTRATION SCHEME (CRS)
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CRS For products notified by the Ministry of New and Renewal Energy-products like: Solar Photovoltaic, Systems, Devices and Components etc. 4 For products notified by the Ministry of Electronics and Information Technology (Government of India) in relation to Electronics & IT Goods 3 Products to be properly tested and registered under BIS to ensure public health and safety 4 Compulsory registration for manufacture, storage, import, sale or distribution in India for specified products 2 1 13
KEY FEATURES OF CRS
Online application based on self-declaration
Grant of License for 2 years
Sample testing or feedback from organised buyer
Review of application and test report to be filed within 90 days
Third party laboratory tests
Renewal after 2 years
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PRODUCTS COVERED UNDER CRS
Electronics Circuits Solar Electronics and IT
Goods notified by Ministry of Electronics and Information Technology
E.g.: Audio, video & electrical apparatus
List of Solar Photovoltaics, Systems, Devices and Components under Compulsory Registration Scheme
E.g.: Storage Battery
Low Voltage switchgear and control gear notified by the Ministry of Heavy Industries & Public Enterprises
E.g.: Circuit Breakers
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PROCESS UNDER CRS
16 05 04 03 02 01 Online filing of the application Product testing at certified BIS lab Issue of Test Report Apply on BIS portal using the verified Test Report within 90 days Submission of documents as per checklist
4. IMPLEMENTING BIS – BUSINESS CHALLENGES
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IMPLEMENTING BIS – BUSINESS CHALLENGES
Business Challenges while implementing BIS
Extensions granted through Quality Control
Orders are on the verge of being exhausted
Customs authorities are mapping the imports with BIS
Quality Control Orders (QCO)
• Steel and Steel Products (Quality Control) Order, 2020
• Ductile Iron Pressure Pipes and Fittings (Quality Control) Order, 2009
• Mild Steel Tubes (excluding seamless tube & tubes according to API Specification)
• Malleable Iron Shots and Grits
Disruption of supply chain due to non clearance of imports
Awareness among Importers Awareness among authorities
Quality Control Orders have been given several extensions due to pandemic – however, recent statements by Mr. Piyush Goyal indicates that no further extension shall be granted
BIS certification process is applicable on the final output product (being imported into India), however certain QCO makes BIS applicable even on raw material used for making final product
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5. RECENT DEVELOPMENTS UNDER BIS
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RECENT DEVELOPMENTS UNDER BIS
Central Government in consultation with the BIS has notified Hydrogen Peroxide on August 24, 2022, to extend the date of enforcement of the BIS regulations covering Stabilized Hydrogen Peroxide (IS 2080:2021)
MCA has published dated Dec 12, 2022, the BIS standard to bring ‘online consumer reviews’ within the BIS framework to increase the influence of online reviews on consumer’s purchasing decisions
DIIPT has announced the process on Dec 26, 2022, contemplating to bring about 50 Quality Control Orders including aluminium products, lighters, sports goods etc. under quality control norms of BIS by the second quarter of 2023-24
Vide Press release dated January 09, 2023
Government has notified the standards relating to the imports of USB TypeC cables, connectors and digital TV receptacles to India (IS 18112:2022)
Ministry of Commerce & Industry has issued Press Release dated January 20, 2023, confirming that the Quality Control Orders for leather and non-leather footwears shall be implemented with effect from July 01, 2023
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CONCLUSION & KEY TAKEAWAYS
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OTHER BIS REGISTRATIONS
- Hallmark
- Systems certifications
SIGNIFICANCE
- Make in India
- Non-tariff barrier
- Possible supply chain disruption
- Relevant business functions: Legal, Exim and Tax
COMPLIANCE IS MANDATORY
- Mandatory in nature
- Not Linked with HSN Code (except Steel and Steel products)
- Legal framework must be understood & implemented well
PENAL CONSEQUENCES
- Non-compliance could be a costly affair
- Business/goodwill loss could have farreaching impact
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