‘Obstructive’ Quality Control Orders to Be Removed

After the intervention of the Cabinet Secretariat, government departments and ministries have become active in reforming the Quality Control Orders (QCOs).

A high-level committee headed by NITI Aayog member Rajiv Gauba had submitted a report on cancelling, suspending, and deferring QCOs.

In its internal report, the committee proposed cancelling, suspending, or deferring QCOs for over 200 products. It expressed concern that these orders had increased the compliance burden and disrupted supply chains, which was adversely affecting India’s manufacturing competitiveness.

The report recommended that, out of these 200 products, the government should reduce pressure on industry by cancelling 27 QCOs covering key materials such as plastics, polymers, base metals, footwear, and electronic components. This action was to be carried out by the concerned ministries, including the Ministry of Textiles, Department of Chemicals and Fertilizers, Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Steel, Ministry of Mines, and other departments.

Some government departments have already started taking action. For example, on November 12, the Ministry of Petroleum and Fertilizers cancelled QCOs for 14 products related to plastics and synthetic fibers.

After that, on November 13, the Ministry of Mines removed QCOs for seven products including tin, aluminium, lead, zinc, nickel, and copper. The Ministry of Steel and DPIIT have also held extensive stakeholder consultations on QCOs in recent weeks.

However, some analysts also expressed apprehension that, “For polymers, fibers, metals, and intermediates where QCOs have been withdrawn, global suppliers may try to send additional inventory at lower prices.

”Meanwhile, the government has imposed an anti-dumping duty on steel imports from Vietnam. The duty has been applied on alloy or non-alloy steel hot-rolled flat products manufactured in Vietnam. The aim is to protect domestic producers from steel imported at unfair prices.

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