Key Takeaways
- The new compliance mechanism reduces delays in the quality certification process
- A flexible sourcing option allows procurement under a BIS registration scheme
- A 3 year compliance record enables benefits for eligible manufacturers
The government on Thursday introduced a risk-based compliance mechanism aimed at easing industry transition under quality control orders while maintaining product standards. The move seeks to address concerns raised by industries regarding challenges in obtaining Bureau of Indian Standards certification and ensuring uninterrupted operations.
Flexible Compliance Framework For Industry Transition
The mechanism has been implemented through the Transition Facilitation Quality Control Order, 2026. It enables businesses to adopt an alternative compliance pathway that allows sourcing from manufacturers registered under Scheme II of the BIS Conformity Assessment Regulations, 2018.
Under Scheme II, manufacturers can supply products based on a self-declaration of conformity with Indian standards. This differs from Scheme I, which requires a full BIS licence with ISI mark certification, including factory inspections and ongoing surveillance.
Industry participants have often preferred Scheme II due to its faster approval timelines and lower compliance burden. The new order allows domestic companies to procure inputs from such registered suppliers, thereby improving operational flexibility while maintaining adherence to quality standards.
The Department for Promotion of Industry and Internal Trade stated that the framework has been designed to ensure continuity in supply chains while addressing compliance challenges faced by manufacturers across sectors. The order also ensures that consumer protection and product quality remain central to the compliance structure.
Eligibility Criteria and Long-Term Industry Impact
Permissions under the new mechanism will be granted based on defined parameters. These include technical capability, past compliance record, and demonstrated commitment to technology adoption, innovation, and development of research and design capabilities.
The framework also extends benefits to manufacturers that have maintained compliance mechanism with quality control orders for a continuous period of 3 years without any default. This provision recognises sustained adherence to standards and aims to encourage consistent quality practices within the industry.
The initiative is expected to reduce compliance bottlenecks and improve efficiency in manufacturing processes. By enabling easier sourcing options and faster regulatory approvals, businesses can focus on scaling operations and enhancing production capabilities.
In addition, the policy is designed to support technology advancement and strengthen domestic value chains. By encouraging innovation and improving access to compliant suppliers, the framework aims to enhance India’s manufacturing competitiveness in global markets.
The government noted that the reform will also contribute to better integration with global supply chains. As companies align with quality standards while maintaining operational flexibility, the overall ecosystem is expected to become more resilient and efficient.
The introduction of a risk-based compliance mechanism approach reflects a shift toward balancing regulatory oversight with ease of doing business. With structured eligibility criteria and defined compliance pathways, the framework provides clarity for manufacturers while ensuring that product quality and safety remain uncompromised.
Stay informed with the newest leadership and tech news from Business Viewpoint Magazine.
