Govt eases QCO hurdles in imports for furniture

In a significant relief to manufacturers of various products including furniture the government allowed an alternative way to ensure quality standards without the rigours of following the quality control orders (QCOs) applicable to those sectors, in a notification issued late on 25th June.

Basically, the notification allows selected domestic companies to procure supplies from manufacturers holding licences under the less rigorous Scheme II of Schedule II of the Bureau of Indian Standards (BIS) regulations, instead of the more rigorous Scheme I.

Scheme II allows manufacturers to supply products based on self-declaration of compliance with Indian standards, while Scheme I requires factory inspections, surveillance, and the grant of an ISI Mark licence by BIS.

The new liberal scheme is a transition arrangement until the manufacturers comply with the QCOs, and is available for five years. However, licences issued under the scheme will apply for two years initially, which could be renewed.

The new scheme covering 10 specific segments of the industry is also available to furniture and electrical appliances such as washing machines and water heating, showed the order.

The move comes in the context of government’s realisation that QCOs should not disrupt production, delay import of components and affect downstream industries. Indian businesses import components and raw materials from China in a big way.

Since imports have to compulsorily meet India’s quality control norms, the alternative scheme offers relief to businesses that meet certain conditions, the relaxations in using imported products in manufacturing process.

Under the framework, the manufacturing companies will file an application with special committee for the license. The special committee, which will be formed by the DPIIT, would also have representatives from the Department of Consumer Affairs, the Directorate General of Foreign Trade (DGFT), and the Bureau of Indian Standards (BIS).

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