Govt Eases Steel Supply Rules, Waives BIS Certification for 202 Foreign Licences

In a move to ease raw material bottlenecks for domestic steelmakers, the steel ministry has exempted 202 foreign steel licences from mandatory Bureau of Indian Standards (BIS) quality certification.

The order, issued on 8 August, applies to manufacturers from 17 countries, led by Japan (80+ licences) and South Korea (50+), followed by Germany, Italy, France, Russia, and the US. These nations supply high-grade steel used in automotive, engineering, and specialised industrial applications—grades not manufactured locally.

The exemption, granted under the Steel Import Monitoring System (SIMS), follows a 11 July directive allowing self-declaration by companies, subject to BIS verification. The ministry said the measure will ensure uninterrupted access to quality inputs for integrated steel plants (ISPs) without certification delays.

“This is a continuous exercise and additional licences may be exempted as and when requests are received,” the order stated.

The BIS certification rule, introduced to curb substandard imports, has been flagged by industry as an obstacle for specialised steel grades. The relaxation is expected to benefit major global players like Nippon Steel, JFE Steel, Posco, and Hyundai Steel, potentially helping ISPs manage costs amid volatile global prices.

Ajay Srivastava, founder of Global Trade Research Initiative (GTRI), called the move temporary relief, noting that BIS certification at the final rolling stage already ensures compliance. “MSMEs relying on small, flexible orders from rolling mills cannot source directly from large ISPs, making such upstream restrictions impractical,” he said.

In a related step, the ministry will hold an ‘Open House’ on 19 August to address industry concerns over SIMS, Quality Control Orders (QCOs), and No Objection Certificates (NOCs) for imports. Companies and industry associations can present issues directly to officials.

Provisional government data shows India’s finished steel imports fell 27.6% in April–May from a year earlier, to 0.9 million metric tonnes. Shipments from China dropped 47.7% and from Japan 65.6%, while South Korea rose 8.2% to 0.4 million tonnes, making it the top exporter. Imports from these three countries accounted for 74.4% of India’s total, with hot-rolled coils/strips leading the list.