Steel Ministry Likely to Offer 15–20 Days Relief to Clear Non-BIS Compliant Imports

The country is most likely to grant a grace period of 15-20 days for clearing steel intermediates that do not comply with BIS before stricter Quality Control Orders or QCOs become applicable. This follows an industry concern that the time granted for compliance was insufficient.

The high-level meeting was called in by the Ministry of Steel on the Monday that just passed for concern to be raised by various interested parties, especially from the MSME sector, on the short timelines that were enforced. The enhanced QCO published on June 13 was made to apply to all imports whose bill of lading is dated June 16 or later.

“A formal notification on this temporary relief is expected shortly,” a senior official told ET, adding that “companies will be given additional time to clear existing non-BIS-compliant inventory.”

To inspect how substandard steel imports are admitted in India despite checks already existing, the ministry also formed a technical committee under its auspices. Attention is on imports coming from Vietnam of which officials claim are considered a “backdoor” for the introduction of steel coming from China into India, given the existence of the ASEAN Free Trade Agreement, which abolishes import duties.

“Most of the cast iron and stainless steel products being imported from Vietnam are actually of Chinese origin, produced in facilities owned by Chinese companies in Vietnam,” said the official. “This poses a serious risk of cheap, low-quality steel flooding into the Indian market.”

Under the reformed QCO, even intermediate materials used for making final products in conjunction with steel should comply with the BIS standard. Resistance has, however, been voiced by smaller local producers, arguing that the transition is too abrupt.

As such, the QCO will enforce that all such products not complying with BIS quality—imported or homegrownwill not be sold within India. The ministry has emphasized that enforcing BIS standards across the entire steel supply chain is crucial lest the end-users be defrauded or made victims to an increase in substandard steel flooding into India.