New Quality Control Orders in India

I. Introduction

Recently, the Central Government introduced Quality Control Orders (“QCO”) for 220 products in the market, and 219 of these products are required to comply with specified standards by the end of 2024. The government has also set a target to bring over 2,000 products from different sectors under the QCOs by May 2027.  This move aims to improve India’s position in the international market to become a global player by decreasing imports and promoting the growth of domestic industries. This regulatory move will help to position India competitively on the international stage, particularly as it engages in negotiations for free trade agreements with multiple nations.

QCOs are mandates introduced by various ministries functioning under the government of India for regulating particular products or any particular category of products. These QCOs serve as crucial regulatory measures for protecting consumer rights, promoting public healthcare, and maintaining market integrity. This note analyses the QCOs recently issued by the government and deals with the importance and consequence of non-compliance with such regulatory orders.

II. Newly Issued QCOs

The newly propounded QCOs are formulated for 220 products by several departments such as: a) Department for Promotion of Industry and Internal Trade for products like head bolts, screws and nuts (b) Ministry of Steel for cookware (c) Department of Chemicals and Petrochemicals for acetic acid (d) Ministry of Textiles for products like bedsheets, and sanitary napkins, (e) Ministry of Electronics and Information Technology for electrical appliances, (f) Department of Heavy Industry for switchgear and controlgear, (g) Ministry of Mines for copper and nickel powder and (h) Ministry of Environment, Forest and Climate Change of India for reverse osmosis based water treatment system.  These QCOs have been facing resistance from several industries as the implementation date of the QCOs is a short deadline for complying with the standards.

III. Importance of QCOs

India is strategically enhancing its position as a global manufacturing and supply chain leader by intensifying its focus on elevating quality control standards. This strategic move aims to position India competitively on the international stage, particularly as it engages in negotiations for free trade agreements with multiple nations. The main objective of the recent implementation of QCOs is to curb the influx of substandard goods through import into the country. This initiative aligns with the government’s vision of fostering a “make in India, make for the world” ethos.

A product falling under a QCO requires compliance with a specified Indian Standard. For example, a sanitary napkin in India is required to comply with Indian Standard 5405:2019. The product would also require obtaining a valid license of conformity from the Bureau of Indian Standards and bearing of the standard mark on it before it is supplied in the Indian market.

IV. Consequences of Non-Compliance of QCOs

Section 29 of the Bureau of Indian Standards Act, 2016 (“BIS Act”) prescribes penalties for contravention of the provisions of the Quality Control Order which has the following consequences.

S. No.Description of offencePenalty
 Usage of standard mark, including hallmark, by an institution not recognized by Bureau of International Standards;Usage of standard mark, including hallmark by a recognized institution on a non-conforming product; orImport, sell, exhibit for sale or distribute precious metal articles without obtainment of hallmark from BIS.A fine ranging from INR 1,00,000 to 5 times the value of precious metal; or imprisonment of up to 1 year.
 Manufacture, import, distribution, sale, storage or exhibition for sale of non-conforming items for which standards have been prescribed.In the first instance: A fine of at least INR 2,00,000 and imprisonment of up to 2 years.   On subsequent instances: Fine ranging from INR 5,00,000 to 10 times the value of goods sold.
 Offences by companies under the BIS Act.Every director/ manager/ company secretary/ other authorized officer is held personally liable irrespective of their cognizance or active involvement in the offence.