What Happens If You Import Products Without BIS Certification?

Going after the fast-expanding Indian market is definitely a move toward high profit, but you have to be careful with the regulatory compliance to get to that success. The Bureau of Indian Standards (BIS) certification is arguably one of the strictest Indian import requirements.

Under various Quality Control Orders (QCOs) promulgated by different Indian ministries, hundreds of product categories, from consumer electronics steel toys, chemical compounds, up to medical devices, are required to have a mandatory BIS certification before being imported to India.

Trying to enter the market with non-compliant items will not only result in delayed paperwork but will have many other serious effects. This is the reality of importing goods to India without the valid BIS certification. ​

1. Immediate Port Detention & Customs Rejection

Customs authorities in India closely cooperate with the Bureau of Indian Standards. When the goods arrive to an Indian port or airport, Indian Customs officers check the goods against BIS requirements.

In case when you use QCO that is compulsory for your product and do not hold valid BIS certificate (like CR, FMCS certification), the Customs will hold and detain the consignment immediately. You will not be allowed to clear the customs or move the goods to the domestic warehouse.

2. Steep Financial Losses: Demurrage & Storage Costs

The minute the goods are left in custody at the port, port charges go into effect. Importers get hit by rapidly escalating demurrage, detention, and ground rent charges from the shipping lines and port authorities.

BIS certificate is a tedious process which involves product testing in NABL-accredited Indian laboratories and sometimes factory audits overseas. You cannot get "fast track" certification during this time while the goods are sitting at the port. As a result, the storage costs per day may surpass the whole value of the imported goods very quickly. ​

3. Mandatory Re-Export or Destruction of Cargo

When Customs authorities detaining non-compliant goods cannot provide a way for the parties to clear the goods without paying duties, they issue clear, strict orders:

• Re-Export Mandatory: The importers have to return the whole shipment to their country of origin on their own costs, per orders from Customs authorities.​

• Confiscation and Destruction: Sometimes, Customs officials may declare that the goods are seized and destroyed if they can't be re-exported.​

The importer is left without inventory and money in both cases, since he lost his goods, shipping charges, as well as his supplier's initial payments. ​

4. Criminal Penalties Under the BIS Act, 2016

Bringing in goods that were not BIS certified isn't just a matter of breaching a customs law; it's breaking the national law. Section 29 of the BIS Act, 2016 prescribes very strict penalties:

• Fines: Monetary penalties can be as high as 5 Lakhs or may be equal to double the worth of the goods made/sold.​

• Imprisonment: Directors or other officials of the firm are liable to be imprisoned for up to 2 years for a repeat or serious offense.

5. E-Commerce Delisting & Market Bans

If the goods that haven't received the certificate manage to get past the first border inspections and enter the domestic market it doesn't mean that the enforcement is over. Officers of BIS regularly do the market surveillance.

• Ban on Marketplaces: The biggest e-commerce players like Amazon and Flipkart, etc. routinely take down products that have no verifiable BIS registration.

• Blacklisting: Non-compliant importers face the threat of being blacklisted which means that they would be prevented from the government tenders and corporate procurement.

Key Strategies to Avoid Import Blockades

To maintain a smooth and compliant supply chain, you should mainly adhere to these:

1. Verify Applicability Early: By using the most recent BIS Quality Control Orders with the product's description and function you can find out what QCO(s) apply to your product, not only by using the HS code.

2. Appoint an AIR: A manufacturer based abroad should get in touch with an Authorized Indian Representative (AIR) as BIS application process is quite complex and a local representative is needed to oversee the entire process of BIS certification.

3. Plan Lead Times: Allow up to 1 to 3 months for sample testing and factory audits before shipping international freight shipments.

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Frequently Asked Questions

Q1. Can I import product samples without a BIS certificate?

An absolute yes, but not freely. Indian Custom has the right to import samples, but the quantity should be quite minimal and they should strictly be for R & D, testing and prototype evaluation purposes. You are required to make a proper declaration to the customs that Clearly samples not going to be commercialized or sold in the Indian market.

Q2. Is the importer or the foreign manufacturer responsible for BIS certification?

Under the Foreign Manufacturer Certification Scheme (FMCS) or Compulsory Registration Scheme (CRS), the foreign manufacturer shall possess a valid BIS certificate. The Indian importer Though should be ready legally at the customs to confirm that the goods being cleared will possess an up-to-date certificate.

Q3. How long does it take to get BIS certification for imported goods?

Different schemes give varying results:

• Compulsory Registration Scheme (CRS): As testing at laboratories is mainly the reason, this route typically takes 3 to 6 weeks.​

• Foreign Manufacturers Certification Scheme (FMCS): It generally takes 3 to 6 months; because it involves overseas factory inspections by BIS officers.

Q4. Can I get BIS certification after my shipment arrives at the Indian port?

No Port clearance can not be granted by Customs with a still pending application for BIS certification, since it is not considered to be a valid reason for granting port clearance.

Conclusion

​ Getting into the habit of not adhering to necessary procedures and legal standards by importing products that require BIS certification in India will not benefit any business eventually. The money lost through demurrage fees, destruction of the goods, paying legal fines, and even being prosecuted for such a crime will leave the company in tatters. Compared with these losses, not taking the proper certification seriously and making your product legal and marketable in India is of little importance and the expenses of certifying the products is trivial.

To avoid such situations where you may be denied market access, make compliance your priority so products leaving the factory are already certified.