MSEs Get 6-Month Breather As Govt Rolls Out Quality Norms For Copper Products

The Ministry of Commerce, by notifying Quality Control Orders (QCOs) for copper products, drums, and tin containers, has extended the timelines for micro and small enterprises. An additional six months and three months have been provided for the implementation of QCOs for the respective sectors. The QCOs will become effective six months from their publication in the e-gazette.

According to the Ministry, the prime objective of introducing QCOs is to improve the quality of domestically produced items, prevent the import of sub-standard goods into India, and combat unfair trade practices. These measures are taken to safeguard human, animal, and plant health, as well as environmental safety.

“Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce & Industry consultation with Bureau of Indian Standards (BIS) and stakeholders has been identifying key products for notifying Quality Control Order (QCO). This has led to the initiation of the development of more than 60 new QCOs covering 318 product standards. It includes 9 standards of Copper Products,” the statement noted.

Products Subject to QCOs

Nine different products are now subject to Quality Control Orders (QCOs), which include copper wire rods used for electrical applications, copper rods and bars for electrical purposes, copper strips for electrical use, wrought copper tubes for refrigeration and air-conditioning purposes, among others.

Additionally, seven standards have been introduced for drums and tins, including various types such as large open-top drums, grade A drums, grade B steel drums, bitumen drums, square tins for solid products, and more. The government has initiated the development of over 60 QCOs, covering a total of 318 product standards.

Ensuring High-Quality Products

The introduction of these quality standards is expected to enhance the quality of Indian goods, benefit small enterprises, and reinforce the 'Make in India' initiative. The enforcement of Quality Control Orders (QCOs) will result in the prohibition of manufacturing, storing, and selling non-Bureau of Indian Standards (BIS) certified products, in accordance with the BIS Act, 2016.

For non-compliance with the BIS Act, the first offense may incur a penalty of INR 2 lakh or imprisonment for up to two years. Subsequent offenses could lead to increased penalties, ranging from a minimum of INR 5 lakh up to ten times the value of the goods or articles, the Ministry informed. It's important to note that these regulations do not apply to domestically manufactured goods intended for export.

Surge In Copper Demand

During the fiscal year 2022-23, India witnessed a significant 15 per cent year-on-year jump in its copper imports, marking the country as a net importer in this sector for the fifth consecutive year. The surge in copper demand is primarily attributed to the developing infrastructure projects and a strong resurgence of economic activities in various sectors, including real estate, consumer durables, electric vehicle manufacturing, and renewable energy production.

As per the Commerce Ministry data, India's copper imports for FY23 amounted to 2,75,341 tonnes, compared to 2,38,694 tonnes in FY 2021-22. The import figures include both refined copper, which is the end product after impurities are removed from copper ore, and finished copper, which includes various processed forms like wires, tubes, pipes, sheets, etc.

In conclusion, the Ministry of Commerce's extension of timelines for Quality Control Orders (QCOs) and their introduction for various copper and other products demonstrate a commitment to improving product quality and eliminating sub-standard imports.