Regulatory Respite Redefines Recent RulingIn a move welcomed by steel importers, the Union Ministry of Steel postponed enforcement of its June 13 Quality Control Order by four months. The order, which required all finished steel imports to be certified by the Bureau of Indian Standards, faced criticism from micro, small and medium enterprises that rely heavily on imported steel. The ministry’s letter, shared after a consultation on July 7, confirmed the extension to prevent immediate disruptions at Indian ports.

Policy Pivot Protects Pre-Contracted ParcelsThe ministry acknowledged that many steel consignments were already in transit or contracted months before the new order. Without the delay, importers risked seeing these shipments rendered non-compliant upon arrival, threatening supply chains and placing around ₹150 crore in advance payments at risk. The Federation of Associations of Maharashtra highlighted these concerns in a letter dated June 18, warning of "needless financial loss and supply disruption."

Inclusive Input Exemption IntroducedThe June 13 notification expanded an earlier Quality Control Order from August 2024, extending BIS certification not just to finished products but also to raw materials. However, after industry discussions, the ministry clarified that intermediate steel inputs used by overseas steel plants will not fall under the immediate scope of certification, giving global suppliers space to adjust.

Compliance Concerns Countered by Certification CalendarImporters pointed out the lengthy process of securing BIS certification, which could stretch over months. To streamline, the government proposed a clearer timeline: after document submission, BIS will inspect steel plants within two months, followed by certification issuance in another two months. This phased approach aims to balance quality assurance with operational feasibility.

Import Insights Illuminate Industry ImpactData from the Steel Import Monitoring System shows 0.661 million metric tons of finished steel marked for import in May 2025 under 23,797 applications. South Korea led the list with a 36.8% share, followed by China at 21.3%. The automobile and auto components industry accounted for 28% of these imports, underlining the sector’s reliance on global supply chains.

Ministerial Message Mandates Metal MeritUnion Steel Minister HD Kumaraswamy defended the QCO as a clarificatory step to ensure equal standards between domestic producers and foreign suppliers. Posting on X, he stressed the importance of preventing substandard steel, safeguarding domestic small and medium businesses, and reinforcing India’s industrial strength.

Strategic Standards Sustain Self-RelianceThe government remains committed to supporting India’s steel industry while preventing quality dilution. Kumaraswamy stated that imports from BIS-certified integrated plants would continue, ensuring genuine trade is not hindered while discouraging low-quality inflows.

Foundation for Future Fortified FurtherThe deferment reflects the ministry’s willingness to engage with stakeholders and fine-tune regulations to protect both quality and business continuity. As the industry adapts, the QCO is expected to set higher benchmarks for steel quality, strengthening India’s vision of becoming a self-reliant and globally competitive steel powerhouse.

Key Takeaways:

• Enforcement of the June 13 Quality Control Order on finished steel imports postponed by four months.

• BIS certification aims to align imported steel quality with domestic standards and protect local industry.

• Automobile sector remains the top user, while Korea & China lead in finished steel exports to India.