Ministry Issues Clarification and Exemptions on BIS Compliance for Input Steel

In response to widespread queries and industry feedback, the Ministry of Steel, Government of India, has issued a detailed clarification and subsequent exemptions regarding the applicability of BIS Standards to intermediate steel products used in the manufacturing of final goods. The move aims to streamline implementation while upholding quality standards across the entire value chain of steel production.

Clarification Issued Without New Quality Control Orders

On June 13, 2025, the Ministry of Steel released an Office Memorandum (O.M.) clarifying that intermediate steel materials—not just finished products—must conform to the relevant Bureau of Indian Standards (BIS) certifications if they are part of the production process of items already under mandatory BIS standards.

The O.M. was issued as a clarification, not as a new Quality Control Order (QCO), and is intended to ensure that quality and safety are maintained throughout the steel supply chain, including the raw materials and semi-finished inputs used in downstream processing.

Stakeholder Reactions and Industry Consultation

Following the issuance of the clarification, the Ministry received several representations from industry stakeholders, including user industries, steel producers, and importers. The concerns revolved around:

• Scope and operational implementation of the O.M.

• Compliance issues with regard to in-transit shipments

• Requests for temporary or situational exemptions

To address these, the Ministry convened a stakeholder consultation meeting on July 7, 2025, chaired by the Honourable Minister of Steel. Participants included key representatives from Integrated Steel Plants (ISPs), re-rollers, user industries, and trade associations.

Key outcomes from the consultation included:

• Broad consensus in support of the O.M. in principle, recognizing its intent to reinforce quality assurance in steel manufacturing.

• Request for relaxation in implementation timelines for consignments that were already dispatched prior to the issuance of the clarification.

• Clarification of the unique status of Integrated Steel Plants (ISPs), which typically manage the entire production chain from raw material to final output.

Official Exemptions Announced on July 11, 2025

Taking into account the concerns raised during consultations, the Ministry of Steel issued an official order on July 11, 2025, introducing two key exemptions under the June 13 clarification:

1. Import Exemption for In-Transit Consignments:

   • Imports of steel products with a Bill of Lading dated on or before July 15, 2025, are exempted from the mandatory adherence to BIS standards for input materials.

   • This relief is aimed at reducing uncertainty and commercial loss for importers whose consignments were already in transit when the O.M. was issued.

2. Exemption for Integrated Steel Plants (ISPs):

   • ISPs, which produce both intermediate and final steel products under a comprehensive BIS license, are exempted from holding separate certifications for each stage of production.

   • These plants are covered under a process-based BIS certification that takes the entire manufacturing chain into account.

   • ISPs must, however, verify their eligibility by:

     • Submitting a declaration to the Ministry at tech-steel@nic.in.

     • Providing a list of active BIS licences and supporting documentation.

     • Any misdeclaration will result in debarment from the Steel Import Monitoring System (SIMS).

Additionally, the SIMS portal will be updated by the Ministry to include mechanisms for verifying and processing such ISP exemptions.

Industry Response and Way Forward

The clarifications and exemptions have been welcomed by the steel industry, especially ISPs and importers. The balanced approach demonstrates the government’s commitment to quality regulation without stifling industrial efficiency or penalizing ongoing operations.

By reinforcing that no new QCOs have been introduced, the Ministry has also sought to ease concerns around regulatory overreach. Industry players are now expected to align their internal compliance protocols with the clarified BIS standards while preparing documentation for exemption eligibility, where applicable.

Ensuring Quality Without Disruption

With steel being a critical sector underpinning India’s infrastructure, defense, manufacturing, and export growth, the government is keen to ensure that every stage of the steel production cycle adheres to consistent quality benchmarks. At the same time, transitional flexibility for stakeholders is seen as essential for smooth implementation.

The Ministry of Steel’s consultative and adaptive approach, demonstrated through this O.M. and the July 11 order, reinforces the Centre’s long-term vision of establishing India as a global steel hub grounded in innovation, sustainability, and quality assurance.