Mandatory BIS Certification of Input Material for Importing Steel and Steel Products

The Bureau of Indian Standards acts in a central role to ensure the safety, quality, and performance of Steel raw materials and products in India. The Ministry of Steel instituted the Steel and Steel Products QCO 2024, which took effect on June 16th, 2025. Materials used for manufacturing steel products must conform to Indian Standards (IS).  At present, 151 Indian Standards for steel and steel raw products have been incorporated within Chapters 72 and 73 of the ITC(HS) Codes major step towards impeding imports and ensuring quality compliance.

It is to be understood that the input materials for these steel products, which form part of the QCO, also have BIS certification in India. A mapping of Indian Standards for input materials against steel and steel products as defined has been provided. Let’s delve deeper into the blog and know more.

Understanding New BIS Certification Rules for Steel Input Materials and Products

Quality Control Order (QCO), also known as the Steel and Steel Products (Quality Control) Order, 2024, addresses 151 Indian Standards for steel Raw products , which under codes 72 and 73 of the ITC(HS) comprise steel and steel products that must have ISI Certification. However, it is an unprecedented crisis for manufacturing and import firms both locally and internationally as they face the real risk of a disrupted supply chain, compliance overload, and losses and delays risks of factory closure.

This requirement will apply to all imports with Bills of Lading dated June 16, 2025, or later. Any imported shipment that is not compliant with the requirements above (even if it was ordered and shipped months earlier) will be deemed rejected and non-compliant for any QCO-bound manufacturing. It should also be able to be traced back through the Steel Import Monitoring System (SIMS) facility.  CBIC has directed all customs authorities to inform their officers about the new requirements and also inform the Board of any issues with implementation.

Click here to Check BIS Certification process for Steel and Steel products

What Are the ITC(HS) Codes of Steel Products?

ITC(HS) Codes means Indian Trade Classification (Harmonized System), which is kept by the Directorate General of Foreign Trade (DGFT). They are used to classify the product when importing and exporting.

• Chapter 72: Iron and Steel
• Chapter 73: Articles of Iron and Steel

The inclusion of Indian Standards under the Bureau of Indian Standards Certificate in these chapters indicates that the product being imported does meet the quality requirements outlined above.

Click Here to know the Process for BIS Certification India

What is the ‘Traceability Trap’ in India’s New Steel QCO Regulations?

The recent BIS mandate for steel is also known as the Traceability Trap, as it requires BIS Certification for both finished steel products and any component materials that go into making the products. Let’s go through the important points: 

• The QCO expands the scope of BIS Certification to include finished steel products and raw materials used in the production
• Many small and medium enterprises (MSMEs) depend on imported raw materials due to pricing and availability. 
• The rule was implemented with little notice, putting businesses with in-transit shipments and prepaid orders at risk of being rejected for non-compliance.
• However, obtaining an FMCS license for foreign suppliers, particularly those providing raw materials, can take anywhere from six to nine months.

Click here on the FMCS BIS certification Process if you are a Foreign manufacturer and want to sell Steel products in the Indian Market

Significance of Incorporating 151 Indian Standards

By incorporating these 151 Indian Standards into the ITC(HS) classification, we will see the following benefits:

• Ensures quality control of imported steel and steel products
• Facilitates implementing the Make in India initiative by requiring domestic manufacturers to meet BIS standards 
• Prevents substandard goods from entering the Indian market
• Indian BIS increase consumer safety and product reliability

Impact of New QCO for Steel Raw Materials and Products

The new QCO has various positive and negative impacts on steel raw materials and products; let’s explore each point in detail:

• Manufacturers and importers will be facing very high costs to meet compliance requirements, as all raw materials must have BIS marking in addition to the requirement for final finished steel products to be certified.

• Imports will likely become increasingly limited- there are various stricter regulations and filtered procedures to enter the Indian market through passing numerous benchmarks and market standards.

• Compliance costs will not only skyrocket for manufacturers and importers, but raw material prices will also skyrocket, and this will make it expensive for the final consumer.
  Furthermore, supply chain disturbance is a concern because increased levels of compliance puller density will only delay and disrupt.

• Imported raw materials that are lying dormant in warehouses will become scrap. Orders that are relying on a certain grade of imported steel may come to a standstill.
  Shipments that were compliant when they were shipped may be held or refused clearance at ports, providing excessive hassle for businesses.

• Foreign Parties exporting to India are made to comply with Indian specifications. If they do not comply with applicable specifications, they will be rejected at customs.

Upcoming BIS Certification Mandates for Steel Inputs Under QCO 2025

The implementation of 151 Indian Standards (IS) for steel products under Chapters 72 and 73 of the ITC(HS) Code represents a major regulatory shift. Going forward, this has the potential for massive repercussions for manufacturers, importers, exporters, and the larger steel sector and ecosystems in India.

BIS registration in India mandates that the quality of steel and steel products consumed by the infrastructure, automotive, construction, and manufacturing sectors will improve. The steel ecology in India will continue to match international quality standards. With a greater focus on infrastructure and manufacturing in India, the number of Indian Standards coming under a regulatory regime is likely to increase. This effort will continue to support domestic production and sustain high-quality manufacturing practices.

Conclusion

The implementation of 151 Indian Standards for steel and steel products, coming into force on 16th June 2025, starts a process of transformation towards standardisation, quality, and safety in the Indian steel sector. Manufacturers, importers, and exporters will see this as a challenge and an opportunity to embrace a BIS-certified future, invest in traceability systems, and turn, strengthen a more self-reliant and robust India. ERCS Pvt. Ltd., as a BIS Agent, gives you the complete details of the new QCO. As India’s steel ecosystem changes, ERCS Pvt. Ltd. will be your partner in ensuring quality, compliance, and growth.