DPIIT Opens Another Window for Fast Clearance of BIS Affected Industry, No Relief to Foreign Companies

Ø  Transition Facilitation Order Enables Flexible Sourcing Framework for Industry While Upholding Quality Standards

Transition Facilitation (Quality Control) Order, 2026

1.    Notification Issued: The Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, has notified the Transition Facilitation (Quality Control) Order, 2026.

2.    Objective: The Order aims to:

o    Strengthen India's quality ecosystem.

o    Enhance industrial competitiveness.

o    Balance regulatory compliance with innovation, technological advancement and supply chain resilience.

3.    Background: The Government has been issuing Quality Control Orders (QCOs) for critical products to:

o    Protect consumer interests.

o    Ensure safe, reliable and standards-compliant products.

o    Improve product quality and reliability.

o    Enhance competitiveness of domestic industries through standardisation.

4.    Key Reform: The Order introduces an alternative risk-based compliance mechanism to help industries transition smoothly while maintaining quality assurance.

5.    Alternative Procurement Provision: Domestic manufacturers can procure supplies from manufacturers licensed under:

o    Scheme II of Schedule II of the Bureau of Indian Standards (Conformity Assessment) Regulations, 2018,

o    instead of relying only on Scheme I (ISI Mark Scheme) of BIS.

6.    Eligibility for Permission: Permissions under the new mechanism will be granted based on:

o    Technical capability.

o    Proven compliance history.

o    Commitment to technological advancement or adoption.

o    Development of design and research capabilities.

o    Innovation.

o    Strengthening domestic supply chains.

7.    Benefit for Compliant Manufacturers: The Order also benefits manufacturers that have:

o    Maintained continuous compliance with QCO requirements for three years.

o    Recorded no defaults during that period.

8.    Purpose of the Provision: It rewards sustained compliance and encourages industries to continue adhering to prescribed quality standards.

9.    Expected Benefits:

o    Easier industry compliance.

o    Support for technological modernisation.

o    Promotion of innovation.

o    Strengthening of India's manufacturing ecosystem.

10.  Broader Impact:

o    Strengthens domestic value chains.

o    Reduces compliance bottlenecks.

o    Improves integration with global supply chains.

o    Reinforces consumer confidence in the quality and safety of products.

Key Facts for Exams

·         Notifying Department: Department for Promotion of Industry and Internal Trade (DPIIT)

·         Ministry: Ministry of Commerce and Industry

·         Order: Transition Facilitation (Quality Control) Order, 2026

·         Purpose: Risk-based compliance mechanism for Quality Control Orders (QCOs)

·         Relevant BIS Regulations: Bureau of Indian Standards (Conformity Assessment) Regulations, 2018

·         Scheme II: Alternative licensing route permitted under the Order

·         Scheme I: ISI Mark Scheme

·         Compliance Incentive: Benefits for manufacturers with 3 years of uninterrupted QCO compliance and no defaults

·         Expected Outcomes: Better quality ecosystem, technological advancement, stronger domestic supply chains, improved ease of compliance, and enhanced global competitiveness.

 

[ABS News Service/26.06.2026]

In a significant step towards strengthening India's quality ecosystem and enhancing industrial competitiveness, the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, has notified the Transition Facilitation (Quality Control) Order, 2026. The Order introduces a framework aimed at balancing regulatory compliance with innovation, technological advancement and supply chain resilience.

The Government of India is working to build a robust quality ecosystem by ensuring the availability of safe, reliable and standards-compliant products. As part of this effort, DPIIT has notified Quality Control Orders (QCOs) for critical products to safeguard consumer interests, improve product reliability and enhance the competitiveness of domestic industry through standardisation and improved manufacturing practices.

Building upon this objective, the Transition Facilitation (Quality Control) Order, 2026 introduces an alternative risk-based compliance mechanism to facilitate a smooth transition for industry while maintaining quality assurance and consumer protection.

The Order enables domestic industry to procure supplies from manufacturers holding licences under Scheme II of Schedule II of the Bureau of Indian Standards (Conformity Assessment) Regulations, 2018, instead of Scheme I (ISI Mark Scheme) of BIS. Permissions under the mechanism will be granted based on technical capability, demonstrated compliance history and commitment towards technology advancement or adoption, development of design and research capabilities, innovation and strengthening domestic supply chain capabilities.

The Order also extends its benefits to manufacturers that have demonstrated consistent adherence to QCO requirements over a continuous period of three years without any default. The provision recognises sustained compliance with quality requirements and encourages continued adherence to prescribed standards.

The reform seeks to facilitate industry compliance while maintaining quality standards. By providing an alternative compliance mechanism, the Order is expected to support technological modernisation, innovation and the strengthening of India's manufacturing ecosystem.

The initiative is expected to strengthen domestic value chains, promote technology advancement, reduce compliance bottlenecks and enhance India's integration with global supply chains, while reinforcing consumer confidence in the quality and safety of products available in the Indian market.

[DPIIT Order S.O. 3417(E) dated 25 June, 2026]

S.O. 3417(E).— In exercise of the powers conferred by 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, namely:

1. Short title and commencement. - (1) This Order may be called the Transition Facilitation (Quality Control) Order, 2026.

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

2. Application. - This Order shall apply to the goods or articles covered under the Quality Control Orders specified in the Schedule appended to this Order.

3.    Compulsory use of standard mark.- (1) Notwithstanding anything contained in the Quality Control Orders specified in the Schedule, goods or articles covered thereunder shall conform to the corresponding Indian Standards and shall be permitted use of a Standard Mark under a license from Bureau of Indian Standards as per Scheme II of the Schedule II to the Bureau of Indian Standards (Conformity Assessment) Regulations, 2018, subject to the provisions of this Order.

(2)    The license under sub-clause (1) shall be available only to a manufacturer for supplying to the person who has been granted specific permission under clause 4 of this Order.

(3)      The person granted permission shall ensure that the goods or articles permitted under this Order conform to the applicable Indian Standards prescribed under the corresponding Quality Control Orders.

(4)      The Bureau of Indian Standards, in consultation with the Department for Promotion of Industry and Internal Trade, shall either directly or through agencies notified by it, carry out market surveillance of such goods to verify continued conformance with the applicable Indian Standards.

4.    Grant of permission. - (1) Permission under this Order may be granted by the Department for Promotion of Industry and Internal Trade, -

(a)  to a person that is a company incorporated under the Companies Act, 2013; and

(b)  based on the risk assessment of the person by an Implementation Committee constituted under the Order.

(2)     The permission granted under sub-clause (1) shall be subject to such conditions as may be specified therein.

(3)     There shall be an Implementation Committee for the purposes of this Order, and the said Committee shall consist of-

(a)  Additional Secretary or Joint Secretary (I/c Technical Regulations), Department for Promotion of Industry and Internal Trade-Chairperson;

(b)  Additional Secretary or Joint Secretary, Department for Promotion of Industry and Internal Trade of the concerned Product- Member;

(c)  Joint Secretary, Department of Consumer Affairs -Member;

(d)  Joint Secretary, Department of Commerce - Member;

(e)  Representative of Directorate General of Foreign Trade (not below the rank of Joint Secretary level) --Member;

(f)    Representative of Bureau of Indian Standards (not below the rank of Joint Secretary level)-Member;

(g)  Director or Deputy Secretary or equivalent (I/c Technical Regulations), Department for Promotion of Industry and Internal Trade- Convenor; and

(h)  Any other representative not below the rank of Deputy Secretary or Director from other Ministry or Department or Organization invited by the Chairperson;

(4)    The Implementation Committee shall assess the person based on its technical capability, demonstrated experience; manner of ensuring quality assurance across its supply chain including through control over its design and manufacturing; history of conduct and compliance integrity; and its commitment to establish supply chain capabilities in India for the concerned goods and articles by promoting technological adoption/advancement or design capabilities or research and development; or its compliance for the concerned Quality Control Order for a continuous period of three years without any default; and any other relevant factors.

(5)    The Implementation Committee may interact with the person and rely upon documents, declarations, certifications, undertakings, independent assessments, as may be provided by the person, and such other material that it considers appropriate for the purpose of its assessment.

(6)     In case of breach of conditions, misrepresentation of material facts or failure of product to conform to applicable Indian standards, the Central Government may suspend, modify or withdraw any permission granted under this Order, after giving opportunity to be heard.

5.     Application and other modalities. - (1) The applications for permission under the Order shall be accepted within twenty-four months from the date of commencement of this Order.

(2) All relevant details pertaining to this Order in respect of the application process, documentation required, entitlements, monitoring and compliance, etc., shall be specified in guidelines issued by the Department for Promotion of Industry and Internal Trade and be available at the website (https://www.dpiit.gov.in).

6.     Duration and savings. - (1) This Order shall remain in force for a period of five years from the date of its commencement and shall thereafter stand rescinded unless it is extended by the Central Government by notification in the Official Gazette.

(2)     Notwithstanding such rescission, any permission granted under this Order prior to the date of rescission shall continue to remain valid for the period specified therein unless suspended, modified or withdrawn in accordance with the provisions of this Order.

(3)    The rescission of this Order shall not affect any right, obligation, liability, investigation, proceeding or action arising under this Order prior to such rescission.

7.    Interpretation. - If any question arises relating to the interpretation of this Order, the same shall be referred to the Department for Promotion of Industry and Internal Trade for its decision.

SCHEDULE

(See clause 2)

S.No.

Quality Control Orders.

Date of issue.

Date of implementation.

(1)

(2)

(3)

(4)

1.

Toys (Quality Control) Order, 2020.

25.02.2020

01.01.2021

2.

Personal Protective Equipment- Footwear (Quality Control) Order, 2020.

27.10.2020

01.01.2022

3.

Air Conditioner and its related Parts, Hermetic Compressor and Temperature Sensing Controls (Quality Control) Order, 2019.

05.12.2019

01.10.2023

4.

Footwear made from All Rubber and all Polymeric Material and its components (Quality Control) Order, 2024.

27.10.2020

01.08.2024

5.

Footwear made from Leather and other Materials (Quality Control) Order, 2024.

27.10.2020

01.08.2024

6.

Electrical appliance for domestic water heating (Quality Control) Order, 2025.

11.03.2024

01.03.2025

7.

Electrical appliance for domestic clothes washing (Quality Control) Order, 2024.

07.03.2024

01.04.2025

8.

Hinges (Quality Control) Order, 2025.

12.12.2023

01.07.2025

9.

Furniture (Quality Control) Order, 2025.

14.02.2025

13.02.2026

10.

Safety of Household, Commercial and Similar Electrical Appliances (Quality Control) Order, 2026.

20.09.2024

01.10.2026

[F. No. P-29026/1/2026-LEI]