Centre shifts QCO policy, rolls out transition framework for manufacturers
NEW DELHI: The Centre on Thursday introduced a formal transition mechanism under its quality control regime, allowing companies facing temporary sourcing constraints to procure products
NEW DELHI: The Centre on Thursday introduced a formal transition mechanism under its quality control regime, allowing companies facing temporary sourcing constraints to procure products from otherwise ineligible manufacturers instead of relying on repeated exemptions from Quality Control Orders (QCOs). The move aims to reduce supply-chain disruptions while retaining mandatory quality standards. It follows a government review of the QCO regime after industry raised concerns over implementation, with NITI Aayog recommending a more predictable and manufacturing-friendly framework that preserves product quality and consumer safety. The Transition Facilitation (Quality Control) Order, 2026, notified by the Department for Promotion of Industry and Internal Trade (DPIIT), creates the framework under which eligible companies can obtain temporary permission to source products covered by mandatory QCOs from manufacturers that are not otherwise eligible under the existing regime, subject to continued compliance with Indian Standards.
According to the notification issued on Thursday, the order applies to products regulated under ten existing QCOs, including toys, footwear, air conditioners and their components, furniture, domestic water heaters, washing machines, household electrical appliances and hinges. Manufacturers will be able to obtain a BIS licence exclusively to supply companies that receive prior approval from DPIIT under the transition mechanism. Such permissions will be available only to companies incorporated under the Companies Act, 2013, following a risk assessment by an inter-ministerial implementation committee. The committee comprises representatives from DPIIT, the Department of Consumer Affairs, the Department of Commerce, the Directorate General of Foreign Trade (DGFT) and the Bureau of Indian Standards (BIS). It will assess applicants on technical capability, quality assurance systems, compliance history, supply-chain controls and commitment to strengthening manufacturing capabilities in India through technology adoption, design capabilities and research and development.
Companies that have complied with the relevant QCO continuously for at least three years without default may also qualify for permissions under the framework. Products supplied under the framework must continue to conform to applicable Indian Standards, while BIS, in consultation with DPIIT, will undertake market surveillance to verify continued compliance. The Centre may suspend, modify or withdraw permissions in cases of breach of conditions, misrepresentation or failure to meet prescribed standards after providing an opportunity to be heard, it noted. Applications under the transition mechanism will be accepted for 24 months from the commencement of the order, while the framework itself will remain in force for five years unless extended by the government. DPIIT will issue detailed operational guidelines covering documentation, eligibility, monitoring and compliance.
The BriefWire