The Bureau of Indian Standards (BIS) is India’s national certification body. While the BIS certification scheme is generally voluntary, some products are required to comply with Indian Standards by the Central Government. This is due to issues of public concern, environmental concern, and national concern among others.

In this article, we will examine the gravity of penalties for manufacturers’ non-compliance with compulsory BIS certification products.

Let us, go through some news articles from the past few years –

1. In May 2024, the Bureau of Indian Standards (BIS) raided a firm in Chembur, Mumbai, for storing and selling Aluminium and Aluminium Alloy Bare Foil for Food Packaging without the BIS standard mark. The BIS Mumbai Branch-I team seized the products after discovering that the firm had violated Section 17(1)(a) of the BIS Act, 2016. The raid followed information received by BIS officials about a breach of the BIS Aluminium Foil (Quality Control) Order, 2020, prompting swift action.

2. The Bureau of Indian Standards (BIS) Bengaluru branch office conducted a search and seizure operation at three facilities of Maruthi Internationals, a toy manufacturer and supplier, for allegedly breaching the license requirement. BIS officials discovered several toys labeled “Made in China” but lacking the necessary BIS license. They confiscated around 35,000 toys and six containers of polyester staple fiber during the operation.

3. The Bureau of Indian Standards operated an enforcement raid on information obtained regarding violations of the Synthetic Micro Fibres for Use in Cement-Based Matrix (Quality Control) Order, 2022.

4. This news item is from March 2023 wherein, 114 search operations were conducted to seize unsafe and poor-quality toys. Consequently, 41,489 toys were seized in BIS operations for flouting safety and quality standards set by BIS.

The above four examples are enough to establish the fact about the raid, search, and seize operations of BIS inspectors, wherein, upon the manufacturers’ non-compliance, fines are imposed and sometimes license of the manufacturer is canceled according to the provisions of the BIS Act, 2015

Mandatory certification of certain goods: 

According to BIS Act, 2015, the central government can notify certain goods, articles, etc, which will need to compulsorily carry a standard mark.  Such goods or articles are notified by the government if it thinks them to be necessary for: 

(i) public interest or for the protection of human, animal or plant health, 

(ii) safety of the environment, 

(iii) prevention of unfair trade practices, or 

(iv) national security.

Penalties for non-compliance with the Bureau of Indian Standards (BIS) Act include:

Fines and Imprisonment: 

According to the BIS Act 2016, a breach of Section 17(1)(a) is punished by imprisonment for up to two years, a fine of at least Rs. 2,00,000, or both. The process starts with filing a case in court for the offense.

A fine of a minimum of Rs. 2,00,000, or up to 10 times the value of the goods being sold, stored, or manufactured without the BIS standard mark is imposed.

Upon violation of the QCO order imprisonment up to two years is imposed.

Challenges exporting products: 

Non-compliant companies may struggle to export their products to compliance markets. To avoid these penalties, manufacturers can consult and engage with BIS-accredited certification organizations. These bodies can provide information on testing requirements, documentation, and certifications needed to meet compliance standards.

License cancellation: 

The BIS may cancel a license if the conditions of the license are violated 

The Act also prescribes penalties for: 

(i) Improper use of the standard mark by testing and marking centers, and 

(ii) Manufacturing or selling products without the required standard mark.

The BIS Act provides for compounding of offenses punishable with a fine except when a person has committed such an offense for the second time or if such an offense committed by him has been compounded earlier.

Offenses by companies:  

Criminal liability arising from an offense under the Act places all directors and persons in control of the firm as being responsible for the crime even when the act was performed without their knowledge or consent.

The manufacturer and the company also face following challenges:

Reputation damage: 

Reputation loss is the worse effect of non-compliance; it creates barriers in resetting the company’s image in the market.

Challenges accessing government contracts: 

Non-compliant companies may face challenges accessing government procurement contracts 

Hence, in conclusion – it is important to obtain BIS certificate as –

• BIS certification proves that the products are compliant with the Indian standards and hence legal to be sold within the country.
• The scheme adds credibility to the product to the customers because they receive an assurance that was produced in India meets the required standards of quality and safety.
• Certification can act as a way to set apart products from other non-BIS certified products hence giving it an edge. 
• Certified products qualify for government tenders.
• A BIS certificate demonstrates a brand’s commitment to quality and ensures health and physical safety of the consumer.