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Q 266: We plan to import steel wire rods from Japan having HSN 72139190. As per the BIS List, this comes under Mandatory BIS certification. However, our Japanese manufacturer is not willing to obtain BIS since they do not want to go through the cumbersome process of BIS documentation. So, do we require BIS for imports under HSN 72139190? If we import for export purpose under Advance Authorisation, is BIS still required?
A:1. When any goods are imported and certain conditions are applicable to the import of the goods, an assumption is that the imported goods will be consumed in India and also finished product will also be sold/consumed in India. This is generally referred to as “Home Consumption”.
2. There are certain restrictions/rules which are exempted/relaxed if imported goods are used in manufacturing of final products which will be exported.
3. The logic of this relaxation is that the imported inputs and the final product will not be consumed/used in India. It is logical.
4. However, this basic principle is not upfront applicable to all inputs under Advance Authorisation.
5. It is not clearly/specifically mentioned on authorised source that the provision of BIS will not be applicable if import is under Advance Authorisation.
6. Under the circumstances, we suggest importer to approach Bureau of Indian Standards: 9 Bahadur Shah Zafar Marg, New Delhi-110002, India, Tel: +91 11 23230131, / Email: info@bis.gov.in for necessary clarification prior to import.
7. BIS certification is a means for providing third party guarantee of quality, safety and reliability of products to the customer.
8.The Government of India has made BIS certification mandatory for certain products taking into consideration:
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Public Interest
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Protection of Human Life
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Animal Health |
Safety of Environment |
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Plant Health |
National Security |
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Prevention of Unfair Trade Practices
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Other Social Causes |
9. While planning import of products that require mandatory BIS License or BIS Certificate, consider that compliance will be required.
10. We understand that you propose to import steel wire rods (HSN 72139190).
11. The status of your import item under schedule 1 is as shown in the table below.
12. The corresponding BIS requirements are as in the bottom box.
13. Complete details of product manual (about 10 pages) for Hot Rolled Medium and High Tensile Structural Steel according to IS 2062:2011 is available on the website of BIS - https://bis.gov.in
14. This product manual is to be used as reference material.
15. If the foreign manufacturers of steel wire rods are mandatorily required to obtain a license from BIS for exporting this product to India, then your Japanese supplier has no option but to comply with this condition.
16. BIS operates a Foreign Manufacturers Certification Scheme (FMCS).
17. Under FMCS, license is granted to a foreign manufacturer for use of Standard Mark (ISI mark) on a product that conforms to an Indian Standard.
18. Import of steel products requires compliance with the requirement under Steel Import Monitoring System (SIMS) as per Policy Condition No. 5 of Chapter-72.
19. Also refer DGFT Notification 33/2015-20 Dated 28-09-2020 on the same matter.
20. Steel Import Monitoring System (SIMS) requires importers to submit advance information in an online system for import of items and obtain an automatic registration number by paying registration fee of Rs 1 per thousand subject to minimum of Rs 500 and maximum of Rs 1 lakh on CIF value.
21. The importer can apply for registration not earlier than 60th day before the expected date of arrival of import consignment. The automatic registration number thus granted shall remain valid for a period of 75 days. The requirement of advance registration of minimum 15 days from the expected date of arrival of import consignment under SIMS has been abolished (refer DGFT Notification No.19/2015-20 dated 07-07-2022).
22. Testing of the goods/submission of test report will be required.
23. A BIS certificate confirms that the product is safe, reliable and of good quality.
24. As per WTO guideline “Equal Treatment to all”, goods will have same regulations in domestic market as well as for import goods.