If you are stuck in such a situation, here is what to do.

Mr. Alok, a young entrepreneur from the city of Vikaspuri, was excited about his new venture, “Futuretronics Imports.” His business plan was to import niche electronic gadgets from East Asia that were not readily available in the Indian market. However, as he delved into the import regulations, he became overwhelmed by the requirements of the Bureau of Indian Standards (BIS). He was unsure which products needed certification, what the process involved, and what penalties he might face for non-compliance. He feared that a single mistake could lead to his entire shipment being confiscated at the port, resulting in a massive financial loss before his business even started.

Advice in such cases

For entrepreneurs like Mr. Alok, understanding and complying with BIS regulations is crucial for a smooth business operation. Here is some essential advice:

• Identify Applicable Standards: The first step is to determine if your product falls under the list of items mandated for BIS certification. The BIS website maintains an updated list under various schemes, most notably the Compulsory Registration Scheme (CRS) for electronics and IT goods.
• Understand the Scheme: Electronics are typically covered under Scheme-II, the Compulsory Registration Scheme (CRS). Under CRS, the manufacturer must get their products tested from a BIS-recognized laboratory and then apply to BIS for registration.
• Appoint an Authorized Indian Representative (AIR): If the manufacturer of the gadgets is located outside India, they must appoint an AIR. The AIR is a local representative in India who will be responsible for submitting the application to BIS and will be the point of contact for all compliance-related matters.
• Product Testing: The product samples must be sent to a BIS-approved laboratory in India for testing. The lab will generate a test report confirming that the product conforms to the relevant Indian Standard.
• Documentation and Application: A detailed application must be submitted to BIS along with all necessary documents, including the lab test report, technical details of the product, address of the manufacturing unit, and details of the AIR.
• Marking and Labelling: Once BIS registration is granted, the product must bear the Standard Mark (the ISI mark for Scheme-I or the registration number for Scheme-II/CRS) before it can be sold in India.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

Applicable Sections of Law

The primary legislation governing standards and certification in India is The Bureau of Indian Standards Act, 2016. Key provisions for importers include:

• The BIS Act, 2016: This is the parent act that establishes the Bureau of Indian Standards as the National Standards Body of India.
• Section 16 of the BIS Act, 2016: This section empowers the Central Government to mandate the compulsory use of the Standard Mark for certain goods or articles for safety, health, and consumer protection reasons.
• Section 17 of the BIS Act, 2016: This section explicitly prohibits the manufacturing, import, storage, sale, or distribution of any goods that do not conform to the specified standard and do not bear the Standard Mark after a government notification has been issued.
• Section 29 of the BIS Act, 2016: This section outlines the penalties for non-compliance. Importing or selling goods in contravention of the Act can lead to imprisonment for a term which may extend to two years or a fine of at least two lakh rupees for the first contravention, which can be extended depending on the value of the goods.
• BIS (Conformity Assessment) Regulations, 2018: These regulations detail the different schemes of conformity assessment, including the Compulsory Registration Scheme (CRS) under which most electronic items fall.

If you are the complainant

Suppose you are a business owner who has complied with all BIS norms, and you discover that a competitor, “Quick Gadgets,” is selling imported, non-certified electronics. This gives them an unfair price advantage and puts consumers at risk. In this scenario, you are the complainant.

• Gather Evidence: Purchase the non-compliant product from the competitor. Keep the receipt, take clear photographs of the product and its packaging, noting the absence of the BIS Standard Mark or registration number.
• File a Complaint with BIS: You can file a formal complaint with the BIS. This can be done through their online portal or by writing to the nearest BIS branch office. Provide all the evidence you have collected.
• Follow Up: BIS has an enforcement department that conducts raids and seizures based on such complaints. You can follow up on the status of your complaint.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

If you are the victim

Let’s say you are Mr. Alok, and due to a misunderstanding or misinformation from your foreign supplier, a shipment of your gadgets arrives without proper BIS certification, and BIS officials seize your consignment at customs. In this situation, you are the victim of the circumstances.

• Do Not Panic and Cooperate: Cooperate fully with the BIS or customs officials. Provide them with all the documentation you have. Arguing or concealing information will only worsen the situation.
• Preserve all Communication: Keep records of all communication with your supplier regarding BIS compliance. This could be crucial in proving that you acted in good faith.
• Respond to Notices: You will likely receive a show-cause notice from BIS. It is imperative to respond to this notice within the stipulated time, explaining your position.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think. A lawyer specializing in trade and regulatory laws can help you draft a response, represent you before the authorities, and advise on the best course of action, which might include getting the products tested and certified retrospectively if possible, or arranging for their re-export.

How the police behave in such cases

In cases related to BIS non-compliance, the primary enforcement agency is the Bureau of Indian Standards itself, not the local police. BIS has its own enforcement wing with officers who are authorized to conduct search and seizure operations (raids) on premises where they suspect non-compliant goods are being manufactured, stored, or sold.

The role of the police is generally supportive. BIS officials may request police assistance to maintain law and order during a raid, to prevent any obstruction of their duties, or to ensure the safety of their team. Police get directly involved only if a First Information Report (FIR) is registered, which can happen in serious cases of fraud, counterfeiting, or when a specific direction is given by a court. For most procedural violations or first-time offenses, the matter is handled directly by BIS through notices, fines, and seizure of goods.

FAQs people normally have

• What is the difference between BIS Certification and BIS Registration?
  BIS Certification (Scheme-I) typically involves a factory audit and is for products like cement, steel, etc., marked with the ISI logo. BIS Registration (Scheme-II/CRS) is for electronics and IT goods, requires only lab testing of the product, and is marked with a registration number.
• Do I need a separate registration for each model of my product?
  Yes. Each model is considered a separate product and must be tested and registered individually. However, products in the same series with minor, non-functional differences may sometimes be grouped under a single registration, subject to BIS’s guidelines.
• How long is a BIS registration valid?
  BIS registration under the CRS is initially valid for two years and can be renewed for a subsequent two years.
• What are the consequences of not having BIS registration?
  Importing or selling notified goods without BIS registration is a punishable offense. The consequences include seizure and destruction of goods, financial penalties (starting from Rs. 2 lakhs), and imprisonment for up to two years.

What evidence is required?

The evidence required depends on whether you are applying for registration or are facing an investigation.

For obtaining BIS Registration:

• Completed application form (Form V).
• Original test report from a BIS-recognized lab.
• Technical documents of the product (circuit diagram, user manual).
• Documents for the Authorized Indian Representative (AIR).
• Proof of the manufacturing unit’s address.
• A sworn affidavit confirming that the information is correct.

If you are being investigated for non-compliance:

• Any BIS license or registration certificate you hold.
• Import documents, including the Bill of Entry and commercial invoice.
• Records of communication with suppliers about compliance.
• Sales records and inventory details.

How long will the investigation take?

The timeline can vary significantly based on the context.

For Getting Registration: The standard processing time for a new BIS registration under CRS is typically 20-30 working days after the submission of all required documents and the test report. However, the entire process, including product testing, can take 2 to 3 months.

For a BIS Investigation: If BIS initiates an investigation based on a complaint or a market survey, the duration is not fixed. It can range from a few weeks for a simple case of seizing non-compliant goods to several months or even years if the case involves legal proceedings, prosecution, and appeals in court. The complexity of the case and the cooperation of the involved parties are major factors.

Advocate Sudhir Rao, Supreme Court of India