Bureau of Indian Standards (BIS) and its Role in Imports and Exports.

[YAGAY andSUN]

In India, the import and export of goods are governed by a range of regulations, including those set by the Bureau of Indian Standards (BIS) and the Customs Authorities. These regulations ensure that goods meet safety, quality, and environmental standards while facilitating smooth cross-border trade. Let's look at how BIS and Customs regulations interact in the context of imports and exports.

1. Bureau of Indian Standards (BIS) and its Role in Imports and Exports

The Bureau of Indian Standards (BIS) is the national standards body of India, responsible for formulating standards for products and services to ensure quality, safety, and environmental protection. BIS certification is mandatory for several goods before they can be imported or sold in India.

BIS Certification for Imports

• Mandatory Certification Scheme: For certain products, the BIS requires compulsory certification under the BIS (Compulsory Registration) Order, 2012 or BIS (Certification) Regulations, 2001. This applies to products that pose safety or health risks if substandard. Examples include electrical appliances, certain types of electronics, food products, construction materials, and more.
  • Products Requiring BIS Certification:
    • Electronics: Items like mobile phones, refrigerators, and other consumer electronics.
    • Electrical Goods: Switches, cables, and transformers.
    • Food Products: Packaged food, bottled water, and edible oils.
    • Automobile Components: Tires, batteries, and auto parts.
• Importers' Responsibility: If an importer brings goods that fall under BIS’s compulsory certification list, they must ensure that the goods are certified by BIS before they can clear customs. This is done by obtaining a BIS certificate or compulsory registration for the product.
  • Registration Process: The manufacturer or importer needs to apply for registration with BIS. This can be done by providing the necessary documents, including product specifications, manufacturing process details, and samples for testing. BIS will conduct inspections and tests before issuing the certificate.

Exemptions from BIS Certification

Some products may be exempted from compulsory BIS certification but may still be required to conform to standards under other government rules or specific licensing requirements.

Product Conformity and Inspection

• Testing and Inspection: BIS carries out testing and inspection of imported products to ensure compliance with Indian standards. These tests ensure that products meet safety, environmental, and quality requirements.
• Product Traceability: Once products are certified by BIS, importers are required to mark the BIS standard mark on the product. This ensures traceability and accountability in case of faulty goods.

BIS Standards for Exports

While BIS certification is primarily focused on the domestic market, it can also play a role in exports. Indian exporters may need to comply with international standards for certain products to ensure they meet the requirements of importing countries. BIS helps facilitate the development of standards that align with international norms.

• Standards Alignment: BIS helps Indian exporters by developing standards that are internationally accepted, facilitating smoother entry into foreign markets.

2. Customs Regulations for Import and Export

The Customs Department plays a key role in regulating the movement of goods across India’s borders, including enforcing compliance with BIS standards for imports.

Import Process under Customs

• Bill of Entry (BoE): When importing goods into India, a Bill of Entry (BoE) must be filed with Customs. The BoE contains details about the product, including its value, classification, and country of origin.
• Customs Duties: Customs authorities assess the appropriate customs duties based on the tariff classification and value of the goods. Customs duties are typically divided into:
  • Basic Customs Duty (BCD): The standard duty on goods imported into India.
  • Additional Customs Duties: Includes Countervailing Duty (CVD) and Special Additional Duty (SAD), which may apply to certain goods.
  • Integrated Goods and Services Tax (IGST): Goods imported into India are subject to IGST, which is typically paid at the time of customs clearance.
• Clearance and Compliance: Goods that require BIS certification must meet these standards before being cleared through customs. Customs authorities will check the product details and certification before allowing it to enter India.

Exemptions and Concessions

Some goods, such as those imported for recycling, special economic zones (SEZs), or under Export Promotion Schemes (e.g., Advance Authorization Scheme or Duty Drawback Scheme), may benefit from duty exemptions or concessions. However, even in such cases, the goods must meet BIS standards if they fall under mandatory certification rules.

Documentation and Compliance for Exports

For exports, the Customs Department ensures that:

• Export Declarations are submitted.
• Packaging and labeling requirements are met, especially if the goods are subject to BIS standards.
• Goods that are exported must not violate any export restrictions and must comply with international standards.

3. Interaction Between BIS and Customs

BIS certification and Customs regulations are closely related, as BIS standards must be adhered to before goods can be imported into India. Customs authorities play an important role in verifying that imports meet these standards before allowing clearance.

Customs Role in BIS Compliance

Customs officers may:

• Verify the BIS certificate or registration of the imported product.
• Ensure that goods are accompanied by test reports or certification from BIS, especially for products falling under compulsory certification.
• Seize or reject goods that do not meet BIS standards, in line with Indian regulations.

BIS Marking on Goods

For goods imported into India, a BIS standard mark (ISI mark) may be required, which must be visible on the product or packaging. This ensures that only certified goods are sold in the Indian market, providing quality assurance to consumers.

• BIS Marking on Packaging: In some cases, the BIS certification is not limited to the product itself but extends to the packaging of the product, ensuring that it also meets safety and environmental standards.

4. Procedures for Importers

For smooth import and export processes, importers must:

• Register with BIS: For products requiring mandatory certification, apply for BIS registration before importing.
• Ensure Conformity: Ensure that all imported products meet BIS quality standards.
• Pay Customs Duties: Pay any applicable Customs duties and IGST before the goods are released.
• Obtain Required Documents: Provide BIS certificates, test reports, and other required documentation during customs clearance.

5. Penalties for Non-Compliance

Failure to comply with BIS standards can result in the following:

• Rejection of the goods at the customs point.
• Seizure of the goods by customs authorities.
• Fines or penalties for non-compliance with import regulations.
• Legal action against the importer or exporter.

Conclusion

The Bureau of Indian Standards (BIS) plays a key role in ensuring that imported goods meet India’s quality, safety, and environmental standards. For goods that require BIS certification, compliance with these standards is mandatory before customs clearance. Customs authorities ensure that imports and exports are in line with both BIS standards and Customs regulations. For businesses engaged in international trade, understanding and adhering to both BIS and Customs regulations is crucial for smooth import and export processes, preventing delays, fines, or rejections.