The Indian government has taken a significant step toward regulating the quality and traceability of steel products by enforcing BIS Certification for both finished steel goods and their raw input materials. The Ministry of Steel, under the Steel and Steel Products (Quality Control) Order, 2024 (QCO), has mandated compliance with 151 Indian Standards (IS). These standards officially came into effect on June 16, 2025, and cover a wide spectrum of steel materials classified under Chapters 72 and 73 of the ITC(HS) Codes.
With this move, the Bureau of Indian Standards (BIS) strengthens its position as the central authority for ensuring safety, quality, and reliability in the steel supply chain. Whether you’re a manufacturer, importer, exporter, or supplier—non-compliance is no longer an option.
Understanding the BIS Mandate for Steel Input Materials
Under the newly enforced QCO 2024, steel products and their input materials must conform to Indian Standards (IS) and have proper BIS certification. Even if raw materials are sourced internationally, they must be BIS-certified before being used for manufacturing in India.
The QCO doesn’t just apply to finished steel goods. It extends to the very input materials used to produce them—meaning that even intermediate steel products must comply.
Key highlights:
Applies to all imports with Bills of Lading dated June 16, 2025, or later
Non-compliant goods will be rejected at customs, regardless of prior purchase or shipment
All entries will be traceable via the Steel Import Monitoring System (SIMS)
Customs authorities have been alerted and will actively enforce these rules
What Are the ITC(HS) Codes for Steel Products?
The Indian Trade Classification (Harmonized System)—ITC(HS) Codes—is a classification system maintained by the DGFT (Directorate General of Foreign Trade).
Chapter 72: Iron and Steel
Chapter 73: Articles of Iron and Steel
These chapters now incorporate 151 Indian Standards, and products under these codes must carry ISI marks issued by BIS to be legally imported, sold, or used in India.
The 'Traceability Trap': A Double-Edged Sword
This new QCO has introduced what many in the industry call the “Traceability Trap”. Not only must the finished product be certified, but so must every input used in production. This sudden implementation has sent shockwaves through the supply chain.
Key concerns include:
Small and medium manufacturers (MSMEs) rely on affordable foreign raw materials and now face long delays and high compliance costs.
Foreign suppliers must obtain a BIS license (FMCS), which takes 6–9 months.
Existing inventory or in-transit shipments risk rejection even if ordered months ago.
This chain reaction threatens to cripple production, cause factory shutdowns, and inflate costs for end consumers.
Significance of Mapping 151 Indian Standards
Mapping these standards under ITC (HS) classification aims to:
Prevent substandard imports
Strengthen the Make in India initiative by enforcing local quality compliance
Ensure consumer safety and improve the lifespan of steel products
Enhance global competitiveness of India’s manufacturing sector
It creates a benchmark system for Indian industries to align with international steel quality norms.
Impact on Industry Stakeholders
The QCO and BIS Certification for Steel mandate will have sweeping effects across various levels of the supply chain:
1. Manufacturers
Need to restructure their supply chain around BIS-approved suppliers
Face increased compliance-related costs
Must maintain traceability records of all raw inputs
2. Importers
Will need to ensure that foreign vendors have valid FMCS licenses
Are at risk of product seizure at ports if proper documentation is missing
Must track imports via SIMS and BIS portals
3. Exporters to India
Must align product specifications with Indian Standards
Will require in-country representation and licensing through BIS India
May face long delays in certification if unfamiliar with the Indian process
4. End Consumers
Will experience a rise in prices due to higher compliance costs
Can expect improved product quality and durability
Upcoming Challenges and Opportunities
While the implementation seems sudden, this regulatory move also opens doors:
Forces modernization of quality processes
Encourages domestic R&D and innovation in steel manufacturing
Offers global manufacturers a chance to build credibility by complying with BIS
However, without adequate support structures, such as expedited FMCS licensing, dedicated customs desks, and increased testing lab capacity, disruptions are inevitable in the short term.
Navigating BIS Certification: A Partner You Can Trust
For manufacturers and importers, navigating the BIS certification maze is daunting. You need clarity on:
FMCS licensing timelines
Testing report formats
Application procedures via the Manakonline portal
Lab recognition and test validity
This is where expert consultants like ERCS Pvt. Ltd. can play a vital role. From document preparation to application submission and liaison with BIS authorities, we help you achieve full certification compliance—without delay or penalties.
Conclusion
The enforcement of 151 Indian Standards under steel QCO 2025, effective from June 16, 2025, is a transformative moment for the Indian steel sector. While it poses challenges in terms of compliance and cost, it also promises a future of safer, standardized, and traceable steel products.
The responsibility now lies with stakeholders across the supply chain to understand the new BIS norms, act swiftly, and align their operations. Those who do will not only avoid losses and disruptions but also become part of India’s quality-driven growth story.
Partner with ERCS Pvt. Ltd. today to ensure BIS compliance for your steel products and input materials—because in the world of regulatory enforcement, compliance isn't optional—it's critical.
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