Problems relating to Trade and Investment on India

 
19. Industrial standards, approval of safety standards
Issue
Issue details
Requests
Reference
(1) Indian Own Standard is made a compulsory requirement - On 12 September 2008, Ministry of Steel (MOS) has made IS (Indian standard) on 6-items of steel products, as compulsory standard, mandating its acquisition and marking prior to import and domestic distribution.
- On 12 February 2009, MOS postponed by one year compulsory acquisition of IS on 8-items of steel products (including half finished products, thick steel plate, zinc plated steel plate, tin plate, electromagnetic steel plate, etc., a reduction from the 11-items, originally scheduled.)
- On 12 February 2010, out of the above-mentioned 8-items, MOS enforced compulsory acquisition of IS only on zinc plated steel plate (Specification No.277), while excluding the balance of the 7-items.
- On 20 July 2011, MOS notified WTO its enforcement of its requirement for compulsory acquisition of IS on the 9-Standards, among others whose enforcement had been postponed till then.
- On 10 September 2012, MOS classified the 9-Items (second order 2012) of steel products by specifications (thickness, width, etc.) as of 12 March 2012 as being subject to compulsory quality control standard (CQCS). The enforcement date is from 12 September 2012 as scheduled, excepting a few Indian standards and specifications, whose implementation date is postponed to 31 March 2013 (as published on 17 October on additional amendment regulation).
- On 28 March 2013, MOS promulgated amended regulation, announcing postponement of enforcement until 1 October of 2013.
- On 7 August 2013, MOS promulgated notification, excluding for 2-years application of CQCS on the 9-Items (Second Order 2012), which are used for a project (such as infrastructure) exceeding 10 billion Rupees.
- On 1 October 2013, MOS promulgated amended rules, enforcing some of the IS's subject to Second Order 2012, while postponing enforcement on some until 1 April 2014, and announcing discontinuation of introduction for one IS (IS2831).		 - It is requested that GOI repeals the measures, if not, clarifies/streamlines the procedure (including the exclusionary measures). - Steel and Steel Products (Quality Control) Order
  (Action)
- During 2008-2009, Japan, EU, and South Korea expressed their concern for GOI's introduction of list of steel products under mandatory BIS certification.
  (Improvement)
- On 12 February 2009, GOI reduced from 11-items to 8-items the list of steel products under mandatory BIS certification and deferred its implementation by 1-year. Steel products subject to BIS certification include semi-finished products, thick plate, galvanised steel sheet, tin plate, electromagnetic steel plate, etc.
On 12 February 2010, GOI made acquisition of BIS certification a mandatory requirement only on galvanised steel plate, while excluding the remaining 7-items from the scope of the mandatory requirement.
(2) Non-execution of Industrial Standards, Specifications - Industrial standards and specifications are generally not enforced in India. - Proper execution is required.
(3) Grace Period is too Short for Enforcement of Safety Standard from Date of Promulgation - While minimum 1-year start-up time is allowable in other countries from promulgating date of safety standards to implementation, GOI has granted only half-a-year (from 3 October 2012 to 3 April 2013) this time, inclusive of import, storage and distribution. Half-year start-up time is too short. - It is requested that GOI ensure minimum 1-year from date of promulgation to implementation. - Electronics and Information Technology Goods (Requirements for Compulsory Registration) Order, 2012
(4) Non-Acceptance of the CB Scheme Issued by Overseas Institutions - GOI would not recognise CB report issued by overseas institutions. Moreover, it accepts CB report issued within 3-months only.
- The safety standard enforced from 3rd April 2013 somehow did not reach Japanese enterprises. Why GOI is in such a hurry to start implementation with such a severely demanding time limit against the opposition voiced also by the local Indian industries. Moreover, GOI intends to conduct new tests, instead of accepting CB Report. Why GOI refuses to accept CB report?
- GOI recognises only domestic test laboratories in India. Moreover, GOI does not accept CB report. Due to the congestions from the GOI's refusal of CB report, it takes several months to get the test report issued. Test report contains numerous erroneous entries, which heavily burdens applicants for confirmation work. It takes several weeks for the applicant to get the registration completed, due to the BIS scrutiny on the test report followed by demand for corrections, abrupt suspension amid the registration process, it takes a few weeks for completing the registration.		 - It is requested that GOI:
-- recognises the CB scheme issued by the overseas institution, and
-- rescinds 3-months cap in acceptance of CB Report.
- It is requested that GOI accepts CB report the same as other countries.
- It is requested that GOI:
--expands the test laboratories to include overseas laboratory,
--accepts the CB report, and
--expedites BIS registration work
=>As it stands, it takes one month for adding new factory, two-week for adding product models.		 - Electronics and Information Technology Goods (Requirements for Compulsory Registration) Order, 2012
(5) Unreasonably Only Applicant is qualified for filing Application for the Safety Standard Approval - Safety standard application starts from 3 April 2013. By right, the applicant has been either manufacturer or importer. However, unlike other countries order provides that the applicant must be manufacturer (factory). In the event production is assigned to another factory, it is not possible to file application as the assignee refuses to file application on behalf of our member firm. - It is requested that GOI amends the order so that it allows manufacturer or importer to file application. - Electronics and Information Technology Goods (Requirements for Compulsory Registration) Order, 2012
(6) Complexities of the Compulsion of the Prior Marking Requirement for Registered Electronics and Information Technology Goods - On 7 September 2012, Ministry of Communications and Information Technology promulgated Order, introducing rules for 15-items of household electric products, electronic/information and telecommunications equipment. It has been enforced since 3 January 2013, after two postponements. It provides for compatibility to Indian safety standard, marking of compliance, and model registration. However, due to the following problems, it remains impossible for the concerned parties to take substantive actions:
-- While implementation begins in half a year after the publication date in Gazette of India, its publication date is unclear.
-- Half a year for implementation from publication date of Gazette is insufficient to take proper action.
-- Manufacturers/Importers are unable to take the requisite actions on goods already in distribution after the enforcement date.
-- No grace period is provided when the standard renewal takes place to allow making the products compatible with the new standard and providing the new marking.
-- The Indian standard is not compatible with the latest international standard.
-- The validity of the Test Report (for not more than 90-days from the issuing date) is too short.
-- Precise detailed procedures are unknown.
-- Test Laboratory is restricted to BIS authorised test laboratories in India.
-- The shortage of human resources at the competent authority for the BIS approval has caused the substantial delay in issuance of the registration certificate.
- GOI compels advance registration and marking on the 15-items of home electric appliances and electronic equipment under the domestic safety standard in India. It is quite burdensome to manage the marking on the products, while the procedures are extremely complex. It is a matter of great concern that delays in the examination of registration procedures could cause hiatus of product supplies to the distribution for a certain period.
- Ministry of Communications and Information Technology Product Registration Scheme (Safety Regulation)
In September 2012, Ministry of Communications and Information Technology promulgated "Electronics and Information Technology Goods (requirement for compulsory registration) Order 2012", on 15-items of Home Appliance and Electronic Information Communication Equipment. After two postponements, enforcement date began from 3rd January 2014. The requirements include Confirmation Test based on Indian Safety Standard, Model Registration, Specification Compatibility, and Marking of Registration Number. However, the following problems confront the concerned parties, while cost of product samples, Testing Cost, and the lead-time to the registration date burden the applicants:
-- Despite GOI's own membership in IECEE-CB Scheme, GOI does not accept CB Certificate.
-- Accredited Laboratories are restricted to those domiciled in India.
-- The Registration Work at the authority lags behind by a large margin.
-- Due to the Registration Number Marking Requirement, the Marking of Registration Number is only possible after the registration completion.
- [Status]
(1) On 7 September 2012, ministry of communications and information technology (MCIT) promulgated order, introducing rules for 15-items of household electric products, electronic/information and telecommunications equipment (battery, AC adapter, LED luminary, lamps, etc.). After two postponements, it has been enforced since 3 January 2014. It specifies compatibility to Indian safety standard, marking of compliance, and model registration.
(2) On 13 November 2014, MCIT promulgated "notice on addition of 15-items within the scope of the subject goods".
(3) On 3 December 2014, Bureau of Indian Standards (BIS) renewed the applicable specifications on information equipment (IS 13252) and promulgated notice, instructing to have new as well as registered models of the subject goods additionally tested by BIS accredited laboratories, and before 31 March 2015, submit memorandum addressed to BIS.
[Issues]
-- BIS restrict laboratories only to BIS accredited laboratories, rejecting certification by international certification body
-- Laboratories on batteries and LED luminaries/lamps are not accredited.
-- The increased volume of workload, necessitated by addition of items and renewal of BIS standard, is far beyond the capacity to cope with both BIS accredited laboratories and BIS registration examination to meet the implementation deadline.
-- Products, such as laptop PC, require marking on main unit, AC adaptor, and battery, plus 3-labels on the package.		 - It is requested that GOI:
-- publicly announces the publication date in the Gazette (that specifies the enforcement date),
-- provides the grace period of 1-year,
-- applies the requirement only on products manufactured/imported after the enforcement date,
-- provides 2-year grace period for each renewal of Standard,
-- accepts the latest IEC standard in addition to Indian Standard,
-- removes the expiry requirement of the Test Report,
-- recognises CB certificate under IECEE, and
-- provides the precise procedures of the system.
-- simplifies the BIS registration work.
- It is requested that GOI simplifies the registration documents and the registration procedures.
- It is requested that GOI takes step to:
-- accept Customs Brokers Certificate under the IECEE Scheme
-- simplify the Registration Procedures, and
--repeal the Marking of Registration Number.
- It is requested that MCIT:
-- recognises CB certificate under IECEE,
-- simplifies the work for BIS registration,
-- defers implementation date (13 May 2015) on additional items, implement date (31 May 2015)
-- accepts labeling only on the package box as regards battery and AC adaptor packed together with the main unit
-- excludes registration number from the items subject to the marking requirement.		 - Gazette of the India, Extraordinary, Part 11, Section 3, Sub-section (ii) of dated 7.9.2012
Order of Ministry of Communications and Information Technology
- Gazette of the India dated Novemver 13 with Notification
- Guidelines for Implementation of Amendment 1 to IS 13252(Part1):2010
- The Electronics and Information Technology Goods (Requirements for Compulsory Registration) Order, 2012.
  (Action)
- On 10 February 2016, pursuant to the "Electronics and Information Technology Goods (EIT Goods) (requirements for compulsory registration, amendment order, 2012)", ministry of communications and information technology (department of electronics and information technology) promulgated ORDER concerning amendment of EIT goods (requirements for compulsory registration) amendment order, 2013, making partial amendments on manufacture, storage, sales and distribution of EIT goods. The previous self-compatibility declaration (by Indian standard number and BIS registration number) is replaced by "standard mark" (BIS standard Indian industrial standard) certification logo mark. This "EIT goods (requirements for compulsory registration) amendment order, 2016" is enforced on the date of promulgation with a transition period up-to 30 June, 2016, and will be fully enforced by 1 July, 2016.
(7) Disclosure on the Web of the Registered Products, preceding the Products Release - Simultaneously with the product registration, the model name is disclosed on the web. Disclosure of the new product name preceding the new product release announcement means a fatal blow to the sales strategy. - It is requested that GOI will keep the registration information confidential for a certain period if requested by the enterprise in concern, as they do in some other countries. - Electronics and Information Technology Goods (Requirements for Compulsory Registration) Order, 2012
- Amendment Order, 2013
(8) Double Control and Disunity by 2-Different Certification Authorities - Two certification authorities in the names of Bureau of Indian Standards (BIS) and Department of Electronics & Information Technology (DeitY) implement the certification control, promulgating notices, etc. on and off intermittently, showing up on the internet all of a sudden in the respective home pages, some of them escaping the attention of enterprises in concern. Policies and views differ between BIS and DeitY, causing confusions in the industries in concern. (For example, please refer to "irrational marking requirement" showing up in later pages.) - It is requested that:
-- DeitY that issued "Electronics and Information Technology Goods (requirements for compulsory registration) Order, 2012" integrates all future notices,
-- Should it become necessary for both BIS and DeitY to promulgate notifications, BIS and DeitY will integrate the opinions before releasing notifications,
-- BIS or DeitY discontinues intermittent release of notices.
-- BIS or DeitY ensures to give an ample grace period.		 - Electronics and Information Technology Goods (Requirements for Compulsory Registration) Order, 2012
(9) Inadequate Test and Registration Schemes - Bureau of Indian Standards (BIS) requires applicants' scrutiny and correction on the test report. Moreover, due to the sudden interruption of registration work, etc., it takes a few months for completing the registration. - It is requested that BIS expedites the registration work. - Electronics and Information Technology Goods (Requirements for Compulsory Registration) Order, 2012
- Amendment Order, 2013
(10) Ecomark Scheme and Issues in its Implementation - The eco-mark scheme embodies the following problems over its scheme and enforcement:
-- design problems (the year mark on the label is too small),
-- onus is upon manufacturers to collect or retrieve old labels,
-- the scheme is premised on self-declaration (devoid of credibility),
-- no standard is available for inverter air-conditioners, and
-- the standard for window air-conditioner is less stringent by one rank than split air-conditioners. It is confusing to consumers.		 - It is requested that GOI:
-- improves the eco-mark labeling scheme.
-- defines in precise details a fair accredited laboratories, test methods, global proofreading methods, while ensuring precise systematic refinement by and among institutions such as national accreditation for testing and Calibration laboratories (NABL) bureau of energy efficiency (BEE).
-- avoids abrupt revision or postponement hereafter by carefully providing an ample transition period for information disclosure.
-- works toward harmonisation, the as the case of inverter air-conditioned.
(11) Irrational Marking Requirement - In early December 2013, BIS abruptly promulgated labeling requirement: "self Declaration - conforming to IS.....", on product as well as on its packaging below or above the brand name" regardless of the product dimensions. It heavily burdens MFS.
To begin with, the original requirement under "The BIS Rules, 1987" read: "Every registered user shall display the words 'Self declaration --conforming to IS....' on the article or packaging as the case may be, in a manner so as to be easily visible."
In addition, FAQ issued by DeitY adds: "Registration number, besides self declaration" while it also provides: "It is also okay to display the words on packaging at an appropriate location, in a manner readily visible". Notwithstanding this DeitY's FAQ, a separate requirement abruptly promulgated by BIS has upset and driven the industries into confusion.		 - It is requested that BIS:
-- employs the Compliance Mark, in lieu of Self Declaration clause and IS number, and
-- repeals description of the precise marking location.		 - LABELLING REQUIREMENT
- The Bureau of Indian Standards Rules, 1987
- FAQ on "Electronics and Information Technology Goods (Requirements for Compulsory Registration) Order, 2012"
(12) Irrational Addition of Subject Goods - On 7 November 2014, DeitY announced addition of AC adapter and battery charger to the goods subject to order.
The order compels separate testing, marking and labeling for AC adapter, battery charger, etc. on the products already being subject to order. This is a substantial additional cost to enterprises.
In the first place, despite electric products with AC adapter etc. such as printer has already been tested and registered both of them simultaneously, it is irrational to register its power unit separately.
- Notification of 7 November 2014, it was announced to include secondary battery in the subject goods of the order, despite the absence of any accredited laboratories for secondary battery, it demands responsive action completed by 13 August 2015.
As of now on 26 January 2015, only one laboratory has been accredited. It suggests much difficulty down the road by the rush of test applications to meet the deadline for the compulsory enforcement.		 - It is requested that GOC takes step to:
-- repeal the requirement for additional registration of AC adapter, and battery charger, or
-- confines the registration requirement to AC adapter/battery charger only, while repealing the registration requirement on the main unit.
- It is requested that GOI:
-- holds implementation of the order pending thorough preparation of the domestic infrastructure, and
-- postpones the implementation.		 - Electronics and Information Technology Goods (Requirements for Compulsory Registration) Order, 2012
- Notification dated 7th November 2014
(13) Abrupt Amendment of the Labeling Requirements - In March 2014, out of the blue, the labeling order was abruptly promulgated, stating among others, "effective 1 July 2014, all the manufacturers in addition to displaying the prescribed statement by way of screen printing, embossing or engraving on the products are also permitted to display the prescribed statement by way of metallic labels that are permanently affixed inside a separate label slot provided on the product below or above the brand name, or at a prominent place on the product." The above statement shall be screen printed/embossed/engraved on the product and printed on the product and printed on the packaging material (BIS/DGO/(368)/2014), effective from 1 July 2014" and "It shall be legible, indelible and non-removable. (BIS/DGO/(405)/2014)."
This requirement drove the industry into chaos.
Thanks to the lobbying by concerned parties, by BIS notification of 31 July 2014, use of polyester label, etc. has become permissible. However, the requirement for providing a separate label slot on the product remains. This provision needed only for products destined to India is extraordinarily costly, heavy and burdensome.
The marking in an "indelible, not readily removable manner" has been the internationally, and generally accepted practice.		 - It is requested that GOI:
-- provides opportunity for prior exchange of in-depth dialogues with the industry, and
-- repeals the provisions laying down the precise marking institutions, (in particular the provision: "permanently affixed inside a separate label slot").		 - Electronics and Information Technology Goods (Requirements for Compulsory Registration) Order, 2012
- LABELLING REQUIREMENT (BIS/DGO/(368)/2014) (BIS/DGO/(405)/2014)

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