The Union government has eased the most stringent aspects of the Quality Control Orders (QCOs) it has passed for various sectors, allowing manufacturers to use an alternate mechanism to transition to the more stringent version over the course of five years. 

From 2020 onwards, the government has been issuing QCOs in an attempt to improve the quality standards of Indian manufacturing and protect consumer interests. These standards, however, met with significant opposition from domestic manufacturers who have said the compliance process is long and the paperwork arduous. 

The latest notification by the Ministry of Commerce and Industry, called the Transition Facilitation (Quality Control) Order, 2026, “introduces an alternative risk-based compliance mechanism to facilitate a smooth transition for industry while maintaining quality assurance and consumer protection”, the Ministry said in a release. 

Basically, the notification allows selected domestic companies to procure supplies from manufacturers holding licences under the less rigorous Scheme II of Schedule II of the Bureau of Indian Standards (BIS) regulations, instead of the more rigorous Scheme I.

Scheme II allows manufacturers to supply products based on self-declaration of compliance with Indian standards, while Scheme I requires factory inspections, surveillance, and the grant of an ISI Mark licence by BIS. 

According to the official notification, this relaxation would apply to the QCOs on toys, personal protective footwear, air conditioners, rubber footwear, electric water heaters, washing machines, hinges, furniture, and electrical safety equipment. 

“Permissions under the mechanism will be granted based on technical capability, demonstrated compliance history and commitment towards technology advancement or adoption, development of design and research capabilities, innovation and strengthening domestic supply chain capabilities,” the Commerce Ministry release said.

“The Order also extends its benefits to manufacturers that have demonstrated consistent adherence to QCO requirements over a continuous period of three years without any default,” it added. “The provision recognises sustained compliance with quality requirements and encourages continued adherence to prescribed standards.”

In order to be eligible for this benefit, companies would have to be registered under the Companies Act, 2013 and would have to qualify under the risk assessment by an Implementation Committee created for the purpose.  

The Committee will comprise officials from the Department for Promotion of Industry and Internal Trade, Department of Consumer Affairs, Directorate General of Foreign Trade and Bureau of Indian Standards.

“This Order shall remain in force for a period of five years from the date of its commencement and shall thereafter stand rescinded unless it is extended by the Central Government by notification in the Official Gazette,” the official order said.