GTRI Urges DPIIT to Clarify New Quality Certification Guidelines

The Global Trade Research Initiative (GTRI) has called upon the Department for Promotion of Industry and Internal Trade (DPIIT) to provide clear operational guidelines for the newly notified quality certification mechanism. While the reform aims to streamline compliance, industry experts warn that without transparency, it could create new bureaucratic bottlenecks.

Addressing the Transition Facilitation Order

The DPIIT recently notified the Transition Facilitation (Quality Control) Order, 2026, which introduces an alternative compliance pathway for 10 specific Quality Control Orders (QCOs). This mechanism covers a wide range of essential products, including toys, footwear, furniture, air conditioners, compressors, personal protective equipment, hinges, and various domestic electrical appliances.

The primary goal of this reform is to address the persistent delays in obtaining mandatory Bureau of Indian Standards (BIS) certification—a major pain point for manufacturers. However, GTRI Founder Ajay Srivastava emphasizes that the success of this reform hinges on the issuance of detailed guidelines regarding eligibility criteria, documentation, and evaluation methodologies to reduce industry uncertainty.

Risks of a "QCO Plus" System

A significant concern raised by GTRI is that the new mechanism might replace technical hurdles with administrative ones. Currently, applications will be reviewed by an Implementation Committee comprising representatives from the BIS, Department of Commerce, Consumer Affairs, and the DGFT.

Unlike the standard BIS process, which focuses on technical conformity, this committee's assessment is expected to include factors such as localization, supply-chain development, and broader industrial policy. GTRI has termed this a "QCO Plus" system, noting that because the committee will exercise broad discretionary powers, market access may become as much about fulfilling industrial policy objectives as it is about product quality.

Potential Barriers for Foreign Manufacturers

The eligibility criteria for the new mechanism appear restrictive, potentially limiting its impact on the global supply chain. Currently, only companies incorporated under the Companies Act, 2013, are eligible to apply.

This implies that foreign manufacturers can only utilize this scheme if they have a registered Indian representative company. Experts suggest this requirement might discourage many overseas firms from seeking streamlined compliance, thereby limiting the reform's ability to facilitate smoother trade.

Recommendations for Transparent Implementation

To ensure the regime does not become a new regulatory bottleneck, GTRI has proposed several structural improvements:

  • Digitalization: Adopting a fully digital application and tracking system with defined service-level timelines, ideally aiming for decisions within 60–90 days.
  • Accountability: Establishing a mechanism for the appeal or review of rejected applications to build industry confidence.
  • Data Transparency: Periodically publishing anonymized data on the number of applications received, approval rates, average processing times, and specific reasons for rejections.

Key Takeaways

  • The new QCO framework aims to bypass BIS factory inspection delays but introduces an inter-ministerial committee with broad discretionary powers.
  • There is a risk of the regime becoming a "QCO Plus" system, where compliance depends on localization and industrial policy rather than just technical standards.
  • Clearer guidelines on eligibility and a digital, time-bound approval process (60–90 days) are essential to prevent new administrative hurdles.