Stakeholder Consultation Meeting (19-12-24)

Department for Promotion of Industry and Internal Trade

1. A meeting was held on 19th December 2024 at 03:00 PM in reference to representation of Association of Furniture Manufacturers of lndia (AFMI)’s dated 29.11.2024 (which was forwarded by HCIM office) regarding the coverage of entire furniture value chain under the ambit of the Quality Control Order. Above meeting was chaired by Shri Sanjiv, Joint Secretary, Department for Promotion of Industry and Internal Trade (DPlIT) and attended by representatives of the Bureau of Indian Standards (BIS), Furniture and Plywood Industry Associations and Industry Members. The details of the Standards covered under the 3 QCOs are provided in Annexure 1.The summary of representation of AFMI requesting for an extension in the implementation of QCOs based on the following grounds:

• The QCOs covers inputs for the Furniture industry, which may lead to increase in imports of furniture from China.

(DPIIT comments: Already import duty imposed on furniture is 10-25 %.)

• BIS has not carried out inspection in non-China owned units in ASEAN country.

(DPIIT comments: BIS is working on addressing the matter.)

• The Indian Standards for Engineered Wood Panels to be revised to higher quality benchmarks.

(DPIIT comments: Revision of standards is ongoing process, which is being undertaken by BIS.)

• Wood Based Boards QCO, Plywood and Wooden Flush Doors QCO and Furniture QCO to be implemented at same date.

(DPIIT comments: Draft furniture QCO is under process. After finalization of concerned standards of furniture QCO by BIS, the same will be put up.)

2. Similar representations were received from Association of Furniture Manufacturers and Traders (AFMT) (dated 29.11.2024), All India Door Manufacturers Association (dated 10.12.2024), Space wood (dated 13.12.2024), Bonton Furniture Solutions (dated 13.12.2024) and Nilkamal: Limited (dated 16.12.2024), among others. It was mentioned that the extension shall ensure continued raw material availability and prevent the influx of finished furniture imports.

3. Representations were received from the Federation of Indian Plywood and Panel Industry (FIPPl) (dated: 18.12.2024, 03.12.2024 & 02.12.2024), Punjab Plywood Manufacturers Association, Rajasthan Plywood Manufacturers Association (dated 05.12.2024), Haryana Plywood Manufacturers Association (dated 05.12.2024), All India Plywood Manufacturers Association (dated 07.12.2024) and All India MDF Manufacturers Association (dated 17.12.24) requesting for immediate implementation of the QCOs to strengthen the domestic industry.

4. In view of the above representations detailed discussions took place during the meeting which are as under:

• During the discussion it was informed that the above QCOs have already been extended by 1 year based on industry representations. Therefore, no further extension is required.
• BIS was requested to expedite the revision of the concerned Standards in consultation with the relevant stakeholders for Plywood and Wooden Flush Door Shutters (Quality Control) Order, 2024, Wood Based Products (Quality Control) Order, 2024, and Draft Furniture, QCOs, to ensure effective implementation.
• In order to support domestic Plywood, Door and Furniture Industry with steady raw material supply, this department has forwarded to OEA duly recommended for BCD reduction for products under HS 4408 (from 10% to 0%). Further for considering reduction of BCD of Wood logs products falling under HS 4401 and HS 4403 from 5% to 0%” has been forwarded to MoEFCC.

• During meeting, BIS informed that the Standards pertaining to Draft Furniture QCO, would be finalized by Jan-2025. Post the formulation of standards, the process for publication of the Draft furniture QCO may be initiated.
• Further, BIS was informed to expedite the processing of licenses and to speed up the inspection of foreign manufacturers to ensure the timely issuance of licenses for the products covered under the aforementioned QCOs. Additionally, industries and associations were advised to take necessary steps to obtain licenses well in advance of the effective implementation dates of the QCOs.
• The meeting concluded with a vote of thanks.