AC Manufacturers Get Respite as QCO Norms Relaxed for Import of Hermetic Compressors Till March 2027

·         The Central Government has issued the Air Conditioner and its related Parts, Hermetic Compressor and Temperature Sensing Controls (Quality Control) Amendment Order, 2026 under the Bureau of Indian Standards Act, 2016.

·         The amendment modifies the existing 2019 Quality Control Order (QCO) for air conditioners, compressors and related components.

·         The new provisions exempt specified hermetic compressors imported by manufacturers for their own manufacturing purposes from QCO requirements up to 31 March 2027.

·         The relaxation applies only to manufacturers of air-conditioning and refrigeration equipment and related parts.

·         Import limits are linked to the quantity imported during FY 2024–25.

Import Relaxation Limits

·         Reciprocating hermetic compressors below 2 TR capacity for refrigerators and similar appliances:

o    Permitted up to 40% of FY 2024–25 import quantity.

·         Rotary hermetic compressors below 2 TR capacity for air conditioners and heat pumps:

o    Permitted up to 30% of FY 2024–25 import quantity.

·         Scroll and rotary hermetic compressors of 2 TR and above for refrigeration, AC and heat pump applications:

o    Permitted up to 90% of FY 2024–25 import quantity.

·         Rotary hermetic compressors of 2 TR and above for Variable Refrigerant Flow (VRF) air-conditioning systems:

o    Permitted up to 100% of FY 2024–25 import quantity.

Compliance Requirements

·         Manufacturers must maintain monthly records of imported goods covered under the exemption.

·         The records must be submitted to the concerned authorities on company letterhead and signed by an authorised signatory.

·         Companies are also required to submit an indigenisation plan for these goods to the Central Government.

·         The amendment comes into force immediately from the date of publication in the Official Gazette.

 

[DPIIT Order S.O. 2324(E) dated 08 May, 2026]

S.O. 2324(E).— In exercise of the powers conferred by sub-sections (1) and (2) of section 16 read with sub- section (3) of section 25 of the Bureau of Indian Standards Act, 2016 (11 of 2016), the Central Government is of the opinion that it is necessary so to do in the public interest and after consulting the Bureau, hereby makes the following Order further to amend the Air Conditioner and its related Parts, Hermetic Compressor and Temperature Sensing Controls (Quality Control) Order, 2019, namely:–

1. (1) This Order may be called the Air Conditioner and its related Parts, Hermetic Compressor and Temperature Sensing Controls (Quality Control) Amendment Order, 2026.

(2) It shall come into force from the date of its publication in the Official Gazette.

2. In the Air Conditioner and its related Parts, Hermetic Compressor and Temperature Sensing Controls (Quality Control) Order, 2019, in paragraph 2, after the eighth proviso, the following provisos shall be inserted, namely: –

“Provided also that this Order shall not apply to Goods or articles specified in column (1) of the TABLE below, imported by a manufacturer of air conditioning and refrigeration equipment and related parts for the purposes of its own manufacturing, up to 31st March, 2027, to the volume specified in column (2) of the said TABLE, from the date of publication of the Air Conditioner and its related Parts, Hermetic Compressor and Temperature Sensing Controls (Quality Control) Amendment Order, 2026, namely:–


 

Table

Goods or articles

Financial Year 2026-27

(1)

(2)

Reciprocating hermetic compressors of fixed speed and variable speed (inverter), of rated capacity less than two tons of refrigeration, intended for use in refrigerators and similar refrigeration appliances.

Up to 40 per cent. of the total quantity of goods or articles imported during the financial year 2024–25.

Rotary hermetic compressors of fixed speed and variable speed (inverter), of rated capacity less than two tons of refrigeration, intended for use in air conditioners and heat pump applications.

Up to 30 per cent. of the total quantity of goods or articles imported during the financial year 2024–25.

Scroll and rotary hermetic compressors of fixed speed and variable speed (inverter) having a rated capacity of two tons of refrigeration and above, intended for use in refrigeration, air-conditioning, and heat pump applications.

Up to 90 per cent. of the total quantity of goods or articles imported during the financial year 2024–25.

Rotary hermetic compressor of rated capacity two tons of refrigeration and above for variable refrigerant flow air conditioning system.

Up to 100 per cent. of the total quantity of goods or articles imported during the financial year 2024–25.

Note: - The manufacturer shall maintain monthly record of Goods or articles specified in column (1) of the TABLE and furnish the same to the authorities concerned in their letter head signed by its authorised signatory and shall also submit a plan for indigenisation of Goods or articles to the Central Government.

[F. No. P-29014/63/2017-LEI]