Quality Control Orders | 17 Sep 2025

Source: IE

Why in News? 

The rapid increase in Quality Control Orders (QCOs) issued by the Bureau of Indian Standards (BIS) over the past three years has drawn criticism from micro, small and medium enterprises (MSMEs), which view these mandatory QCOs regulations as costly and restrictive to their operations.

What are Quality Control Orders (QCOs)?

• About: BIS certification is voluntary by default but becomes mandatory for certain products when required in the public interest, such as for health, environment, national security, or to prevent unfair trade practices. 
  • For these products, mandatory compliance with Indian Standards is enforced through Quality Control Orders (QCOs), which direct the use of the BIS Standard Mark under a valid BIS licence.
• Objective: Aligned with Technical Barriers to Trade (TBT) Agreement of World Trade Organization (WTO), QCOs aim to ensure product safety, curb substandard goods, attract investment, and protect consumers, while helping manufacturers detect defects early and improve quality.
• Legal Provisions: Based on BIS Act, 2016, QCOs are issued by the relevant Line Ministries or Regulators of the Central Government for specific products or categories after consultation with BIS.
  • Products under QCOs are governed by BIS (Conformity Assessment) Regulations, 2018.
  • Violating a QCO is punishable under BIS Act, 2016 with imprisonment, fine, or both.
  • QCOs cannot be challenged at the WTO if they are imposed on the grounds of health, safety, environment and deceptive trade practices, or national security.
• Prohibition Orders: After a QCO comes into effect, no one can manufacture, import, sell, or handle the covered products without a BIS Standard Mark under a valid Licence.
• Applicability to Imported Goods: Domestic rules apply equally to imports. Foreign manufacturers must obtain Licence/Certificate of Conformity (CoC) under Foreign Manufacturers Certification Scheme (FMCS).

What are the Challenges Related to Quality Control Orders (QCOs)?

• High Compliance Costs: QCOs make BIS certification compulsory, with penalties for non-compliance. Producers of intermediate goods generally support them, but downstream industries worry that the added certification costs will push up production expenses and eventually increase consumer prices, leading to disputes.
  • Smaller enterprises often struggle to comply compared to larger companies, affecting competitiveness.
• Non-Tariff Barrier Effect: QCOs can restrict imports of certain goods, limiting access to cheaper raw materials.
  • QCOs can complicate India’s trade negotiations, as mandatory compliance requirements may be perceived as non-tariff barriers by partner countries, potentially affecting agreements with the US, EU, and other trade partners.
• Limited Coverage and Industry Pushback: Of over 23,000 BIS standards, only 187 have QCOs, mostly in steel and electronics, showing narrow reach and challenges in wider enforcement.
• Implementation Challenges: Delays or difficulties in obtaining BIS certification can disrupt production and sales.

What Measures are Needed to Ensure Effective Implementation of QCOs?

• Recognition of Cluster-Based Testing Facilities: Promoting industry clusters with shared testing infrastructure helps small enterprises access quality certification at lower cost without duplicating resources.
• Technical Assistance and Training: Providing hands-on training programs on Indian Standards, product testing, and documentation ensures smoother certification compliance.
• Market Linkages and Export Support:  Linking certified MSME products with government procurement schemes, e-commerce platforms, and export promotion programs incentivizes compliance and enhances market reach.
• Leveraging Certification Bodies and Trade Agreements: Utilizing accredited certification bodies for low- and medium-risk products to reduce BIS workload and improve processing times.
  • Pursuing mutual recognition agreements (MRAs) in trade negotiations can streamline compliance for exports and foster international market access.
• Feedback Mechanism for Continuous Improvement: Creating a real-time grievance redressal and suggestion system allows MSMEs to report bottlenecks and helps regulators refine QCO procedures dynamically.

Conclusion

Effective QCO implementation requires a synergy of regulatory clarity, digital facilitation, financial relief, and active engagement with MSMEs. These measures not only reduce compliance burdens but also strengthen the domestic quality ecosystem, boost consumer trust, and support the objectives of Atmanirbhar Bharat.