(NOC) FOR STEEL IMPORTERS

(NOC) for Steel Importers - Overview

Steel products play a crucial role in various industries, and India is one of the largest importers of these materials. However, the importation of steel into India is governed by strict regulations to ensure product quality and prevent dumping. To facilitate this, the Bureau of Indian Standards (BIS) has mandated that certain steel products meet quality standards and bear the ISI mark, which certifies that they comply with Indian standards for safety.

Still, not all steel products fall under the compulsory certification, and for such products, a No Objection Certificate (NOC) from the Ministry of Steel is necessary for customs clearance. This article will explore the importance of NOC for steel products, the process of obtaining it, and how regulatory experts like EVTL India can assist importers in navigating these complex requirements.

Importance of BIS Certification for Steel Products

The Bureau of Indian Standards (BIS) plays a pivotal role in maintaining the quality of steel products entering India. With over 145 categories of steel products requiring certification, the main objective of these regulations is to ensure zero-defect products and superior quality. Steel items under the BIS certification must bear the ISI mark and a BIS license number, which signifies compliance with the standards laid out in the BIS Act of 2016.

The BIS certification primarily prevents the dumping of substandard steel products in the Indian market, safeguarding industries reliant on high-quality materials.

While BIS certification is mandatory for a wide range of steel products in India, certain specific items are exempt from these requirements. Such products are allowed clearance only after obtaining a No Objection Certificate (NOC) from the Ministry of Steel. The NOC serves as official confirmation that the steel product does not fall under the scope of mandatory BIS certification.

In practical scenarios, customs authorities may sometimes flag steel products for BIS certification based on their HS (Harmonized System) codes, even when those products are technically exempt. This can result in unnecessary delays, detention of consignments, or additional compliance costs for importers.

To avoid such complications, securing a Ministry of Steel NOC in advance becomes crucial. The NOC ensures smooth customs clearance, prevents penalties, and provides clarity to customs officials regarding the certification status of the imported steel product.

The Ministry of Steel issues periodic updates to the Steel and Steel Products (Quality Control) Order under the BIS Act of 2016. This order mandates that all steel imports must meet BIS standards unless explicitly exempted. The Ministry also introduced the TCQCO Portal, a platform for steel importers to apply for clarifications or NOCs for products not covered under BIS certification. Importers are required to submit individual applications for every steel consignment through the portal.

A No Objection Certificate (NOC) is required for importing steel products that do not meet the mandatory BIS certification standards. In essence, the NOC serves as proof that a particular steel product is exempt from certification. This helps importers avoid penalties, delays, and confusion at customs when their products are erroneously classified under certified categories.

Common Issues Faced by Steel Importers

The Ministry of Steel has streamlined the process for obtaining an NOC through the TCQCO Portal. Importers must apply for an NOC for every consignment that does not require BIS certification. The NOC is granted on a per-grade, per-consignment basis, ensuring that only the specific products exempt from certification are cleared.

Acquiring a No Objection Certificate (NOC) offers numerous benefits to steel importers:

While the process is straightforward, several challenges remain. Importers must be vigilant in identifying whether their products fall under mandatory certification or are exempt. Misclassification by customs or mistakes in the HS code can result in delays, financial penalties, and reputational damage.

Additionally, frequent updates to the Quality Control Order can add to the complexity, requiring importers to stay informed about the latest regulatory changes.

Navigating the complex regulatory landscape of steel imports in India can be overwhelming. The strict BIS certification rules and the necessity of obtaining a No Objection Certificate (NOC) for exempt products add layers of complexity to the import process. However, with the right support, importers can avoid delays, penalties, and financial losses.

EVTL India, a leading regulatory compliance expert, provides comprehensive services to steel importers. With their expertise, they help clients accurately determine whether their products require BIS certification or are exempt. They also assist in the NOC application process, ensuring that all documentation is complete and correct to facilitate smooth customs clearance.

In addition to NOC support, EVTL India offers ongoing assistance to keep importers informed about the latest regulatory changes and requirements from the Ministry of Steel. With their guidance, importers can focus on growing their business while leaving the complexities of compliance to the experts.