The steel industry has received a temporary reprieve from the BIS rule , which had forced importers to obtain certificates for both finished steel products and raw materials .
The October 6 exemption puts a stay on the earlier certification order introduced on June 13.
It applies to three Indian Standards: IS 6911, IS 5522, and IS 15997, covering 200- and 300-series stainless steel flat products.
It comes as a short-term relief to MSMEs and traders struggling with supply shortages. Importers who had already paid advances can now receive raw materials without waiting for additional certifications.
Why did the June 13 order face criticism?
The rule, which was introduced on June 13 with just a day’s notice, resulted in a “double certification trap” that paralysed imports, left shipments stranded, and forced factories to halt production.
After months of supply disruptions and legal challenges, the ministry of steel has now temporarily eased its strict dual certification rule, giving the stainless-steel sector relief until December 31, 2025.
Previously, under the foreign manufacturers certification scheme (FMCS), only finished products required BIS certification.
However, the June 13 rule extended this requirement to foreign raw material suppliers, many without a presence in India. The certification process can take six to 18 months and involves audits, performance guarantees, and high costs, making it unviable for smaller mills. India already imports over 30% of its stainless steel, consuming 1.5 million tonnes more than it produces.
The policy faced legal scrutiny. On July 17, the Madras High Court issued an interim stay, citing lack of consultation. The Supreme Court lifted the stay on 30 July but directed a speedy final ruling.
What do analysts say ?
Industry representatives warn that reinstating the dual certification could squeeze smaller firms and distort competition. GTRI analysts said, “If other countries demand similar certifications from Indian suppliers, our exports could face the same bottlenecks.”
While the October 6 exemption is seen as temporary relief, industry groups and analysts are urging the government to withdraw the June 13 rule permanently, warning that the current fix is only a short reprieve, not a long-term solution to supply challenges.
The October 6 exemption puts a stay on the earlier certification order introduced on June 13.
It applies to three Indian Standards: IS 6911, IS 5522, and IS 15997, covering 200- and 300-series stainless steel flat products.
It comes as a short-term relief to MSMEs and traders struggling with supply shortages. Importers who had already paid advances can now receive raw materials without waiting for additional certifications.
Why did the June 13 order face criticism?
The rule, which was introduced on June 13 with just a day’s notice, resulted in a “double certification trap” that paralysed imports, left shipments stranded, and forced factories to halt production.
After months of supply disruptions and legal challenges, the ministry of steel has now temporarily eased its strict dual certification rule, giving the stainless-steel sector relief until December 31, 2025.
Previously, under the foreign manufacturers certification scheme (FMCS), only finished products required BIS certification.
However, the June 13 rule extended this requirement to foreign raw material suppliers, many without a presence in India. The certification process can take six to 18 months and involves audits, performance guarantees, and high costs, making it unviable for smaller mills. India already imports over 30% of its stainless steel, consuming 1.5 million tonnes more than it produces.
The policy faced legal scrutiny. On July 17, the Madras High Court issued an interim stay, citing lack of consultation. The Supreme Court lifted the stay on 30 July but directed a speedy final ruling.
What do analysts say ?
Industry representatives warn that reinstating the dual certification could squeeze smaller firms and distort competition. GTRI analysts said, “If other countries demand similar certifications from Indian suppliers, our exports could face the same bottlenecks.”
While the October 6 exemption is seen as temporary relief, industry groups and analysts are urging the government to withdraw the June 13 rule permanently, warning that the current fix is only a short reprieve, not a long-term solution to supply challenges.
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