India Defends Quality Control Orders at WTO

January 9, 2024
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India has defended quality control orders at the World Trade Organisation (WTO) amid concerns raised by various countries for non-compliance.

India has told the World Trade Organization (WTO) that the purpose of restricting the imports of various products in the view of recent orders of quality control orders is to collect trade statistics or market surveillance, prevent deceptive practices, project human, animal or plant life or health.

The administrative purpose of the measure is to “protect public morals, quota administration regulate imports of arms, ammunition or fissionable materials and safeguard national security,” beside above.

Protection of patents, trademarks and copyrights, and the prevention of deceptive practices was the other purpose of this measure.

CONCERNS OF OTHER COUNTRIES	INDIA’S RESPONSE
The USA, Canada, and 17 other members have raised 35 specific trade concerns (STCs) about India’s quality control orders over the years. Members criticize India’s responses as not entirely responsive to their concerns.	India has positively engaged both at a bilateral and multilateral level on all the STCs raised. Under the Technical Barriers to Trade (TBT) Agreement, India stressed the measures were necessary to ensure product quality, health protection, and prevention of deceptive practices.
The countries asked India to provide greater clarity and transparency regarding the steps laboratories can take to obtain recognition from the Bureau of Indian Standards (BIS). They also urged India to accept foreign lab results from International Laboratory Accreditation Cooperation (ILAC)-accredited labs.	India maintained that most of the standards formulated by the BIS, are based on international standards. The minor variations that exist are due to the specific climatic or environmental conditions and technological development in the country. India also said that it had used accreditation by ILAC as a conformity assessment procedure where appropriate.
In the case of toys, a total halt in exports by US and Canadian companies occurred. India continues to require testing of every import shipment of toys in addition to on-site sampling and in-country testing. Situations like these not only add to the cost of the importation process but also lead to delays. To date, no US or Canadian Toy Company has secured an inspection of a manufacturing facility.	India countered that no application for toys had been received from these countries. In cases where the process has not been completed, it is due to various reasons, such as non-payment of fees, and no application for inspection, or no visa approval from the country where the manufacturer is located.

Specific trade concerns (STCS):

STCs are issues raised at the WTO by exporting countries affected by Sanitary and Phytosanitary measures (SPS) that they consider unjustified and particularly restrictive.

Raising an STC is a formal mechanism by which a country can introduce a complaint against another country’s SPS policies regulating imports.

Technical Barriers to Trade (TBT):

They result from legal requirements that countries enact to ensure that products are safe, to protect the environment, and to inform consumers, or for reasons of national security.

If these legal requirements are used arbitrarily, they may represent hidden restrictions to international trade.

TBT Agreement (1995) at WTO aims to ensure that technical regulations, standards, and conformity assessment procedures are non-discriminatory and do not create unnecessary obstacles to trade.