The government said on Thursday that it has introduced an alternative risk-based compliance mechanism to facilitate a smooth transition for industries while maintaining quality assurance, a move aimed at easing compliance with quality control orders (QCOs).
The mechanism was introduced through the Transition Facilitation (Quality Control) Order, 2026. The Department for Promotion of Industry and Internal Trade (DPIIT) notified for critical products to safeguard consumer interests, improve product reliability and enhance the competitiveness of domestic industry through standardisation and improved manufacturing practices.
“Building upon this objective, the Transition Facilitation (Quality Control) Order, 2026 introduces an alternative risk-based compliance mechanism to facilitate a smooth transition for industry while maintaining quality assurance and consumer protection,” the Ministry of Commerce & Industry said in a on June 25.
The enables a flexible sourcing framework for industry while upholding quality standards, the said in a statement.
The order states that the scheme, notified on Thursday, will remain in force for five years as a temporary arrangement to help manufacturers transition to full compliance with QCOs, Money Control reported.
Licences issued under the framework will initially be valid for two years and may be renewed thereafter.
What changes?
The order enabled domestic industry to procure supplies from manufacturers holding licences under Scheme II of Schedule II of the (Conformity Assessment) Regulations, 2018, instead of Scheme I (ISI Mark Scheme) of BIS.
Under the Scheme I, traditional BIS certification with the ISI Mark involves factory assessment, surveillance and a licence from BIS.
Scheme II is a BIS registration system under which manufacturers can supply products based on self-declaration of compliance with Indian standards, instead of obtaining a full-fledged ISI Mark licence. Companies prefer to use this scheme.
It added that permissions under the mechanism will be granted based on technical capability, demonstrated compliance history and commitment towards technology advancement or adoption, development of design and research capabilities, innovation and strengthening domestic supply chain capabilities.
The order also extends benefits to manufacturers that have demonstrated consistent adherence to QCO (quality control orders) requirements over a continuous period of three years without any default.
The provision recognises sustained compliance with quality requirements and encourages continued adherence to prescribed standards.
“The reform seeks to facilitate industry compliance while maintaining quality standards. By providing an alternative compliance mechanism, the Order is expected to support technological modernisation, innovation and the strengthening of India’s manufacturing ecosystem,” it added.
Why govt wants to ease compliance with QCOs
Imported goods are required to comply with India’s quality control norms. The new framework provides eligible manufacturers with greater flexibility in using imported inputs during the transition period, subject to specified conditions.
The Centre’s new transition framework offers relief to manufacturers in sectors such as toys, personal protective equipment (PPE), air conditioners, footwear, furniture and select electrical appliances.
It provides an alternative route to meet quality requirements without immediately complying with existing Quality Control Orders (QCOs).
The decision is important, as certain industries have raised concerns about difficulties in meeting the requirements for obtaining BIS (Bureau of Indian Standards) certificates under these orders, PTI reported. A BIS Certificate is an official mark of quality, safety, and reliability issued by the Government of India.
The initiative is expected to strengthen domestic value chains, promote technological advancement, reduce compliance bottlenecks, and enhance India’s integration into global supply chains, while reinforcing consumer confidence in the quality and safety of products available in the Indian market, the DPIIT said.
Which products are likely to benefit
According to the Department for Promotion of Industry and Internal Trade’s (DPIIT) Transition Facilitation (Quality Control) Order, 2026, manufacturers of products covered under 10 existing QCOs can apply for permission under the new scheme.
The 10 industry segments include products such as washing machines and water heaters. Full list here:
1. Toys (Quality Control) Order
2. Personal Protective Equipment- Footwear (Quality Control)
3. Air Conditioner and its related Parts, Hermetic Compressor and Temperature Sensing Controls (Quality Control) Order, 2019.
4. Footwear made from All Rubber and all Polymeric Material and its components (Quality Control) Order, 2024.
5. Footwear made from Leather and other Materials (Quality Control) Order, 2024.
6. Electrical appliance for domestic water heating (Quality Control) Order, 2025.
7. Electrical appliance for domestic clothes washing (Quality Control) Order, 2024.
8. Hinges (Quality Control) Order, 2025
9. Furniture (Quality Control) Order, 2025
10. Safety of Household, Commercial and Similar Electrical
Benefit to China?
The scheme has been introduced to ensure that quality regulations do not disrupt manufacturing activity, delay imports of components or adversely affect downstream industries. The move is particularly significant for businesses that rely heavily on imported raw materials and components, especially from China, Money Control reported.