Vinu: Manu, I saw in BusinessLine that the government is planning to relax some Quality Control Order norms for MSMEs. What exactly is happening?

Manu: Good question, Vinu. The government is considering easing certain QCO (Quality Control Order) rules because many MSMEs were struggling with compliance. This relaxation will reduce their burden, especially in areas where imports were stuck due to non-compliance.

Vinu: Why were imports getting stuck?

Manu: Imports were being blocked because the products didn’t meet the required quality norms under QCOs. But now, consignments that have bills of lading dated before the QCO order dates may be released. This is to avoid unnecessary delays.

Vinu: Are they also changing the eligibility limits for MSMEs under QCO?

Manu: Yes. Currently, MSMEs with

Turnover up to ₹2 crore, and

Investments up to ₹25 lakh

get certain flexibilities.

The new proposal increases this to:

Turnover up to ₹5 crore, and

Investments up to ₹2 lakh

This aligns with the revised MSME definitions announced in the Union Budget.

Vinu: What flexibilities do MSMEs get under QCO?

Manu: They get:

• Longer implementation time
• Exemption from creating their own testing infrastructure
• Financial incentives like lower fees for various items

These help smaller businesses comply without heavy investment

Vinu: Who implements these QCOs?

Manu:  The Bureau of Indian Standards (BIS). They grant licenses and certificates of conformity. Once a QCO is issued, manufacturing, storing, or selling non-BIS-certified products becomes prohibited.

Vinu: How many QCOs exist today?

Manu: There are 188 QCOs, covering 773+ products across sectors like toys, plywood, machinery, footwear, furniture, steel, hinges, petrochemicals, and engineering goods.

Vinu: Manu, before we end, can you explain some technical terms used here? 

1. QCO (Quality Control Order) A government order making BIS certification mandatory for certain products to ensure quality and safety. 

2. BIS Certification A quality stamp issued by the Bureau of Indian Standards confirming that products meet prescribed norms. 

3. Bill of Lading A document issued when goods are shipped; it proves the date of shipment and ownership of goods. 

4. MSME Definition (Turnover & Investment Limits) Government-defined criteria that classify businesses as Micro, Small, or Medium based on their annual turnover and investment in plant & machinery/equipment. 

5. Certificate of Conformity Official approval from BIS stating that a product meets mandatory quality standards.

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