BIS: Discussion on Issues and Procedures

Episode Duration:
80 minutes

Episode Background:
While the law relating to Quality Control Orders (QCOs) has been in place in India for more than four decades now, its effective implementation by ensuring strict enforcement and wide application is something that has been experienced more recently than ever before. Being a regulation that protects consumer interests, the non-compliance or violation thereof has dire consequences and implications for manufacturers of certain products in India and abroad. There are direct implications on Indian manufacturers importing raw materials covered under QCO, as well as the manufacturers of these raw materials operating in India. The QCO also results in several complications and concerns for a manufacturer located outside India, requiring such a manufacturer to comply with and follow Indian legislations as well as requiring them to undergo a scrutiny and verification by Indian authorities of their premises. 

In this regard, it is essential for such manufacturers to ensure the following:

• Determination of scope of coverage by the QCO
• Where necessary, determination of goods on which it is applicable and exclusion thereof,
• Determination of procedures to be carried out to ensure appropriate compliance under relevant legislations
• Keeping in mind certain practical aspects making compliance more effective and efficient for companies

What shall the episode cover?
In this context, with a view to spread awareness and enlighten readers on the aforesaid subject, Taxsutra and Economic Laws Practice (ELP) present a special episode on “Quality Control Orders: Issues and Challenges” In this episode, ELP Partners Mr. Nishant Shah and Ms. Stella Joseph have deliberated on the challenges and issues faced by the businesses as regards to the compliances under QCOs. The discussion has covered the following aspects:

Key Highlights:

1. The legislative framework of the BIS and QCOs, also covering:

• Obligations on various stakeholders in the supply chain including manufacturers, brand owners, importers, traders and distributors
• Specific requirements for foreign manufacturers as covered under the Foreign manufacturers certification scheme
• Penalties and other consequences prescribed under law and the possibility of compounding

2. The process of applying and obtaining licenses from BIS, the typical challenges/bottlenecks faced during this process and certain practical inputs in this regard                             

3. Interpretational issues concerning QCO, including relation to their applicability to stock in hand, raw materials, components and exclusions thereof.  

4. Discussion as regards the QCOs on the anvil and possible issues that may arise

5. Avenues for representation in relation to QCOs