Misuse of BIS license in Nepal

  • July 11, 2025
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The Federation of Indian Plywood and Panel Industries expressed concern about the BIS license being misused in Nepal. The Director General of the Federation, Dr. MP Singh, demanded Through a letter from the Government of India that it should be investigated.

India has implemented the “Plywood and Wooden Flush Door Shutters (Quality Control) Order, 2024” from 28 February 2025 and the “Wood Based Board (Quality Control) Order, 2024” from 11 February 2025. BIS license has been made mandatory under these orders for foreign plywood manufacturers to export goods to India.

In the financial year 2024-25, about 21 percent (about ₹ 514 crore) of India’s total plywood imports were from Nepal. After the implementation of QCO, only 9 manufacturers from Nepal have been issued BIS licenses so far.

A survey conducted by FIPPI revealed some shocking figures. According to the report, a total of 9 licensed manufacturers exported 807 containers from January to April 2025. But in just one month of May, 1211 containers were exported. This is further clarified in this table:-

Now the question is that when only 9 out of 54 manufacturers in Nepal have got BIS license, then how did the import of plywood increase so rapidly in May 2025?

It can be easily assumed that BIS license is being misused in Nepal from this. Licensed manufacturers are sending non-licensed goods to India in their own name, due to which the purpose of QCO is failing and the domestic companies of the country are in loss.

According to FIPPI, BIS was implemented in India to make available high quality wood products in the country. But the way low quality goods are being sent to the Indian market from Nepal under the guise of this license is a matter of great concern. While this is hampering the efforts of the government, the Indian wood based industry is being deeply hurt by low quality cheap goods imported illegally in the market.

FIPPI, along with other plywood manufacturers organizations demanded from the government, especially BIS, that this issue should be investigated immediately. The BIS licenses of the guilty licensed companies should be cancelled immediately. Along with this, all the goods coming to India from Nepal should be thoroughly investigated. If this does not happen, then the efforts to implement BIS may be hampered.