ORBIS Compliance

India Strengthens Foreign Trade Policy for Electronics and IT Goods

Published /India

Introduction

The Directorate General of Foreign Trade (DGFT) of India published Notification No. 13/2024-25 on May 20th, 2024, introducing significant amendments to the Foreign Trade Policy, 2023, and the ITC HS 2022 Schedule 1 Import Policy concerning the import of Electronics and IT goods. This notification mandates that any device categorized under Electronics and IT goods must be registered with the Bureau of Indian Standards (BIS) and meet the BIS Labelling Requirements before being allowed entry into the Indian market.

Compliance Requirements

All Electronics and IT goods listed under the revised import policy must obtain BIS registration to ensure products meet India's national standards for safety, quality, and performance. The certification process includes rigorous testing and evaluation of products by BIS-approved laboratories to verify compliance with applicable standards. Products must display a BIS certification mark, indicating compliance with Indian standards. The label must be visible and include detailed information such as the registration number and standard code. These labelling requirements enhance traceability and accountability, making it easier for regulatory authorities to monitor compliance and for consumers to identify certified products.

Importer Responsibilities

Importers must ensure that all necessary documentation, including test reports and compliance certificates, is prepared and submitted to BIS for registration. They may also need to adjust their supply chains to ensure that only BIS-registered and compliant products are sourced from manufacturers. Importers and manufacturers may face increased costs associated with testing, certification, and labelling, and the registration and compliance process can be time-consuming, potentially delaying the entry of new products into the market. Companies must manage their inventories to ensure that non-compliant products are not shipped to India, which could result in delays or rejections at customs. Manufacturers and importers will need to adapt to the new requirements quickly to avoid disruptions in their supply chains.

Benefits of Compliance

The mandatory BIS registration aims to enhance the quality and safety of Electronics and IT goods available in the Indian market, thereby protecting consumers. Compliance with BIS standards could potentially improve the competitiveness of products, as they will be perceived as meeting high-quality benchmarks. Products that meet BIS standards can be marketed as superior in terms of safety and reliability, providing a competitive edge. Compliance with national standards builds consumer trust and can lead to increased brand loyalty. The clear and standardized requirements for BIS registration and labelling simplify the import process, reducing ambiguity and potential legal issues. Over time, as businesses adapt to these requirements, the streamlined compliance process could facilitate smoother and more efficient trade.

Conclusion

Notification No. 13/2024-25 represents a significant step towards strengthening the regulatory framework governing the import of Electronics and IT goods in India. While the new requirements pose challenges in terms of compliance costs and procedural adjustments, they also offer opportunities for enhancing product quality, building consumer trust, and achieving market differentiation. Companies must proactively align their operations with these regulations to ensure uninterrupted market access and leverage the potential benefits of improved regulatory standards.

Regulatory Impact

Impact TypeStatus
Top Priority
Type Certificate
Spectrum Bands
Import Changes (HS Codes)
Standard Changes
Product Changes
Label Changes

India Quick Facts

Regulatory AgencyDepartment of Telecommunications (DoT)
Certification TypeMandatory
License Validity2 Years
Application LanguageEnglish
Legal License HolderRequired
In-country Testing RequirementRequires testing

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