With the advent of liberalization in the Indian economy, the growth of foreign market players has tremendously increased. In the past three decades India has witnessed deep market penetration of foreign companies. It is pertinent to mention that different countries have different standards of product certification and are accordingly classified. However, to ensure that Indian consumers receive products of a standard quality, the Government of India has introduced the Foreign Manufacturers Certification Scheme under purview of Bureau of Indian Standards (hereinafter referred to as 'BIS').
The Foreign Manufacturer's Certification Scheme is granted to a foreign manufacturer, operating in India, when the products manufactured by it are in accordance with the prescribed Indian standards under the Bureau of Indian Standards Act, 2016.
The Scheme is applicable to all products except Electronics and IT goods (as notified by Department of Electronics and Information Technology) as Electronics and IT fall under the category of Compulsory Certification. The license is given by Foreign Manufacturers Certification Department (FMCD) located at BIS Headquarters, New Delhi. The product which fulfils the requirement of the Indian Standard can get the license under voluntary or mandatory certification.
The BIS license is given for a specific location where the product is manufactured and accordingly tested. Therefore, a separate application is to be submitted for each manufacturing location.
Procedure for grant of Foreign Manufacturer's Certification Scheme
The foreign manufacturer may submit its application with BIS as per the prescribed documents and payment of requisite fees. On receipt of the application, BIS scrutinizes the same and determines whether the application suffices the criteria for grant of certificate. If any queries persist BIS shall inform the applicant and seeks clarification upon the same. BIS will then conduct a physical inspection on the manufacturing premises and extract the sample for standard laboratory testing. Upon satisfaction of the testing results, the foreign manufacturer can be granted a license for a period up to 1 year.
Attainment of Foreign Manufacturer Certification Scheme enables the foreign manufacturer to operate smooth sale of its products in India. Though the above compliance requisite is not mandatory, it is advisable to obtain this certificate to maximize profits from the Indian market.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.