Exporting goods to India: The most important regulatory first steps
The Indian market has started showing increasing demand for goods imports, and EU companies have started stepping in to meet those demands. In order to get a product onto the Indian market, the most important first steps to take in terms of regulatory compliance are towards certification.
The Bureau of Indian Standards (BIS, not to be confused with the Bureau of International Standards, holding the same acronym), is operating under the Ministry of Consumer Affairs, Food & Public Distribution. It is the main body governing the requirements an EU product must meet before being able to enter the Indian market. The BIS covers around 700 product categories. Companies wishing to export goods in said categories must get those approved by the BIS.
The process is relatively straightforward with the main requirements including appointing an Indian representative, testing the product in a BIS accredited lab on-site in India, and obtaining BIS registration. Failure to comply can lead to goods getting rejected upon import, fines, licence revocations, and other sanctions outlines in Indian law.
There are multiple types of certification schemes at the BIS, with EU manufacturers (mostly) falling under the Foreign Manufactures Certification Scheme (FMCS). Under this scheme a factory inspection is being carried out on-site with the EU manufacturer, with a sample being sent to a BIS accredited lab in India. The FMCS process can be extensive, especially because of the on-site requirements on both ends of the supply chain.
BIS registration usually results in a product getting an ISI number. ISI is the former acronym of the Indian Standards Institute and now fully integrated under the BIS. However, not all product categories necessitate an ISI mark. Those that do, will get an ISI number assigned, and consumers in India will be able to recognise the product as certified by the BIS
Companies wishing to promote products that are sustainable and meeting environmental objectives can consider adding an Eco mark, on top of their ISI mark. This voluntary certification is carried out by BIS which is an implementer along with the Central Pollution Control Board (CPCB).
With the deadline for the India-EU Free Trade Agreement (FTA) negotiations approaching, certification schemes are to be simplified. The EU has proposed in negotiations to implement international technical standards wherever possible, and the final draft of the FTA will simplify product certification procedures and allow for recognition of EU-issued certificates.
Changing dynamics remain in place as two of the world’s largest economic blocks are adjusting their cooperation and recognition. Where it applies and regulations necessitate it, from a legal standpoint, the largest chunk of getting a product onto the Indian market relates to its certification, so it’s fit for use.
Stefan Radaković