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Steel Ministry Tightens Screws On Dubious, Cheap Imports; Short Relief Window As Focus Shifts To Make In India push
Steel Ministry Tightens Screws On Dubious, Cheap Imports; Short Relief Window As Focus Shifts To Make In India push

India.com

time2 days ago

  • Business
  • India.com

Steel Ministry Tightens Screws On Dubious, Cheap Imports; Short Relief Window As Focus Shifts To Make In India push

Reported By: Rabiul Islam In a move aimed at strengthening domestic manufacturing and ensuring high-quality standards, the Ministry of Steel has issued fresh exemptions under its order dated 13 June 2025. This new directive provides two key relaxations: First, imported steel products with a Bill of Lading date on or before 15 July 2025 are exempted from the mandatory requirement of using BIS-compliant input steel. This window allows certain pre-shipped consignments to clear without facing sudden regulatory hurdles, offering relief to traders caught in transition. Second, integrated steel plants (ISPs) within India are exempted from the same requirement for their final products, provided they undergo verification of their BIS licences. To avail this, ISPs must submit a declaration to the Ministry of Steel confirming their status along with supporting BIS documentation. Any false declaration can lead to penalties, including debarment in the Steel Import Monitoring System (SIMS). These changes come against the backdrop of increasing scrutiny of steel imports, especially from China, Vietnam, and Japan. Over the past year, the Steel Ministry uncovered widespread malpractices where traders tried to bypass quality norms by misrepresenting the grade and composition of imported steel. In many cases, importers sought approval for 'new' or 'modified' grades that did not meet Bureau of Indian Standards (BIS) norms, allowing them to bring in cheaper and weaker materials. Earlier data showed over 1,100 import applications involving steel grades not officially recognised or covered under BIS. Many of these so-called new grades had only minor tweaks, clearly revealing a strategy to flood the Indian market with inferior steel. India has been importing around 400,000 tonnes of non-BIS-compliant steel each year, worth nearly Rs 4,200 crore. The new order supports India's broader push to reduce dependence on imports, improve quality checks, and strengthen local production. The Ministry's latest decision is expected to boost the 'Make in India' programme. By insisting that only BIS-compliant steel be used, the government is protecting consumers and encouraging Indian producers to expand capacity. Many domestic steelmakers — both public and private — have already assured the government they will ramp up production and keep prices stable. Two major producers have committed to supplying enough steel to meet local demand and avoid sudden price spikes, at least until December 2025. This aligns with the vision of a self-reliant India, or 'Atmanirbhar Bharat', where local industries cater to domestic needs and create jobs. Moreover, these steps will help stop the inflow of Chinese-origin steel entering India through Vietnam and other routes. The Ministry had highlighted that many so-called Vietnamese shipments were actually Chinese products re-routed to bypass trade barriers. By enforcing BIS norms on both final products and input materials like billets and coils, India is closing these loopholes that have hurt local steelmakers. Overall, this order marks a clear step toward building a stronger, more reliable steel ecosystem in India. It protects safety standards, supports local manufacturing, and reinforces India's goal of becoming a global manufacturing hub. For a sector that is critical to infrastructure and countless industries, such policy clarity sends a strong message: India is serious about quality and self-reliance. This is not just a regulatory update; it is a decisive move to empower Indian producers, enhance global competitiveness, and place 'Make in India' firmly at the centre of the country's growth story.

New steel import rule could disrupt supply chains and impose heavy compliance costs on MSMEs: GTRI
New steel import rule could disrupt supply chains and impose heavy compliance costs on MSMEs: GTRI

Malaysia Sun

time17-06-2025

  • Business
  • Malaysia Sun

New steel import rule could disrupt supply chains and impose heavy compliance costs on MSMEs: GTRI

New Delhi [India], June 17 (ANI): The recent regulation by the Ministry of Steel has the potential to disrupt supply chains and may impose heavy compliance costs on India's micro, small, and medium enterprises (MSMEs), according to a report by the Global Trade Research Initiative (GTRI). GTRI said 'the abrupt change could disrupt supply chains and impose heavy compliance costs on MSMEs reliant on imported semi-finished steel'. It adds that new regulation has triggered panic among MSMEs that depend on imported semi-finished steel, with fears of large-scale losses and plant closures The rule, issued by ministry on June 13, mandates that not just the finished or semi-finished steel products, but also the raw materials used to manufacture them must comply with Indian Standards (IS) and be registered on the Steel Import Monitoring System (SIMS) portal. The move applies to all products covered under India's Quality Control Orders (QCOs). Earlier, foreign exporters could ship finished steel to India after getting certification from the Bureau of Indian Standards (BIS). However, under the new regulation, their raw material, like billets, slabs, or hot-rolled coils, must also meet BIS standards. For instance, if a Malaysian firm supplies steel slabs to a Vietnamese company that converts them into steel sheets before being exported to India, both companies must now be BIS-certified. It also highlighted that many importers have already paid advances for shipments arriving between June and August, which now risk of being labelled non-compliant, even though contracts were signed months earlier. Adding to the concern is the exemption given to finished products like welded pipes from the new traceability rule. GTRI noted that there was no need for such compliance, especially when BIS officials already inspect and certify finished products at foreign factories. It added 'BIS certification for upstream suppliers can take six to nine months. Yet the Ministry has enforced the new traceability requirement with only three days' notice and no stakeholder consultation. Also, when BIS officials have already inspected and audited the products, say CR coils, at the foreign entity's facility physically and ensured compliance with the Indian standards, then where is the need to ensure the compliance of the raw material used to make it?' GTRI asks the government to reconsider the move with a warning that without relief or extension, the order could result in widespread factory closures and financial distress. (ANI)

New steel import rule could disrupt supply chains and impose heavy compliance costs on MSMEs: GTRI
New steel import rule could disrupt supply chains and impose heavy compliance costs on MSMEs: GTRI

India Gazette

time17-06-2025

  • Business
  • India Gazette

New steel import rule could disrupt supply chains and impose heavy compliance costs on MSMEs: GTRI

New Delhi [India], June 17 (ANI): The recent regulation by the Ministry of Steel has the potential to disrupt supply chains and may impose heavy compliance costs on India's micro, small, and medium enterprises (MSMEs), according to a report by the Global Trade Research Initiative (GTRI). GTRI said 'the abrupt change could disrupt supply chains and impose heavy compliance costs on MSMEs reliant on imported semi-finished steel'. It adds that new regulation has triggered panic among MSMEs that depend on imported semi-finished steel, with fears of large-scale losses and plant closures The rule, issued by ministry on June 13, mandates that not just the finished or semi-finished steel products, but also the raw materials used to manufacture them must comply with Indian Standards (IS) and be registered on the Steel Import Monitoring System (SIMS) portal. The move applies to all products covered under India's Quality Control Orders (QCOs). Earlier, foreign exporters could ship finished steel to India after getting certification from the Bureau of Indian Standards (BIS). However, under the new regulation, their raw material, like billets, slabs, or hot-rolled coils, must also meet BIS standards. For instance, if a Malaysian firm supplies steel slabs to a Vietnamese company that converts them into steel sheets before being exported to India, both companies must now be BIS-certified. It also highlighted that many importers have already paid advances for shipments arriving between June and August, which now risk of being labelled non-compliant, even though contracts were signed months earlier. Adding to the concern is the exemption given to finished products like welded pipes from the new traceability rule. GTRI noted that there was no need for such compliance, especially when BIS officials already inspect and certify finished products at foreign factories. It added 'BIS certification for upstream suppliers can take six to nine months. Yet the Ministry has enforced the new traceability requirement with only three days' notice and no stakeholder consultation. Also, when BIS officials have already inspected and audited the products, say CR coils, at the foreign entity's facility physically and ensured compliance with the Indian standards, then where is the need to ensure the compliance of the raw material used to make it?' GTRI asks the government to reconsider the move with a warning that without relief or extension, the order could result in widespread factory closures and financial distress. (ANI)

Traceability trap hits MSMEs: New steel import rule mandates BIS for raw materials, triggering fears of plant shutdowns over compliance cost
Traceability trap hits MSMEs: New steel import rule mandates BIS for raw materials, triggering fears of plant shutdowns over compliance cost

Time of India

time17-06-2025

  • Business
  • Time of India

Traceability trap hits MSMEs: New steel import rule mandates BIS for raw materials, triggering fears of plant shutdowns over compliance cost

A regulatory change by the Ministry of Steel has sparked alarm among India's micro, small and medium enterprises (MSMEs), with the Global Trade Research Initiative (GTRI) warning of potential supply chain disruptions and heavy compliance costs that could lead to widespread factory shutdowns. According to a report by GTRI, the rule—issued on June 13—mandates that raw materials used in the manufacture of finished or semi-finished steel products must now comply with Indian Standards (IS) and be registered on the Steel Import Monitoring System (SIMS). The requirement applies to all products covered under India's Quality Control Orders (QCOs), expanding the compliance burden significantly for importers. Earlier, foreign suppliers only needed BIS certification for finished steel products destined for India. Under the new rule, upstream materials like billets, slabs and hot-rolled coils must also be BIS-certified—even if they're used by a third country to manufacture finished steel products for Indian buyers. 'This abrupt change could disrupt supply chains and impose heavy compliance costs on MSMEs reliant on imported semi-finished steel,' GTRI said as quoted ANI. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Зачем на ночь сжигают лавровый лист? Undo It added that the rule has triggered 'panic' in the sector, which fears large-scale losses and plant closures due to the lack of transition time. The report pointed out that many importers had already paid advances for steel shipments due to arrive between June and August. These contracts, signed months in advance, now face the risk of being deemed non-compliant due to the new traceability requirement. To illustrate the complexity, GTRI cited an example: if a Malaysian company supplies steel slabs to a Vietnamese manufacturer, which then converts them into steel sheets for India, both entities must now be BIS-certified. This multi-stage requirement, GTRI warns, creates serious obstacles for global supply chains. Further complicating matters is the apparent exemption granted to finished products such as welded pipes, which are not subject to the same traceability clause. GTRI questioned the need for additional raw material compliance when BIS already certifies finished products after physical inspections at foreign factories. 'BIS certification for upstream suppliers can take six to nine months. Yet the Ministry has enforced the new traceability requirement with only three days' notice and no stakeholder consultation,' it said. The think tank has urged the government to reconsider the move, warning that without an extension or relief, the regulation could push many MSMEs into financial distress and lead to a wave of factory closures. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now

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