The move is aimed at ensuring that steel products that have already been contracted or are in the process of shipment can be processed without getting stuck at ports.
The Quality Control Order (QCO) requires all imported finished steel products to be approved by the Bureau of Indian Standards (BIS). This regulation was to be introduced as part of the government's effort to improve quality in the steel sector and prevent the entry of substandard products. However, in response to concerns from industry representatives, the effective date has been temporarily postponed.
The Steel Ministry granted the flexibility on July 7 after consultations, recognizing that the process of obtaining BIS certification would be time-consuming and that small importers in particular could face financial and logistical difficulties.
An expanded version of the regulations published in August last year covered raw materials used in steel production. However, with the latest regulation, input materials from steel mills abroad were excluded from this scope.
Industry representatives stated that the sudden changes in the decision put financial pressure on small and medium-sized enterprises (SMEs). The Federation of Associations of Maharashtra (FAM) stated that import transactions worth about INR 150 crore (about USD 18 million) were at risk and demanded a postponement of the implementation.
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