Steel ministry defers quality rules on imports amid importer concerns

The Union Ministry of Steel has postponed the enforcement of its June 13 Quality Control Order (QCO) on finished steel imports by four months, according to a report by LiveMint. The decision comes after small importers expressed concerns about steel shipments that are already on their way to India as well as those that were contracted before the order took effect.

As per the government notification, importers were mandated to get Bureau of Indian Standards (BIS) certification for all incoming finished steel products. The move was part of the government’s effort to tighten quality checks on steel imports.

According to a letter reviewed by LiveMint, the ministry consulted with industry stakeholders on July 7 and agreed to temporarily relax the rules. Importers will be allowed to bring in steel without certification from the BIS.

Broader scope under QCO

The notification was an addition to an earlier QCO issued in August 2024. It expanded the scope to include not just finished steel products, but also raw materials used in their production. This meant all steel imports — including input materials — would need to meet BIS standards.

However, during the July 7 discussions, the government decided that these rules would not apply to input materials used by overseas steel mills.

Acknowledging the impact on shipments already in transit, the ministry decided to give businesses more time to adopt the new norms.

"The Ministry of Steel is aware of the concerns of shipments that have already reached/are reaching the ports in India. A suitable timeline for ensuring that there are no disruptions in clearing such consignments, is being considered," the government's letter stated.

Risk to MSMEs and financial exposure

Had the June 13 rules come into effect immediately, micro, small and medium enterprises (MSMEs) in the steel trade — many of whom rely on imported materials — would have faced higher compliance costs and operational hurdles.

Industry bodies wrote to the ministry urging it to roll back the notification. According to a letter sent by the Federation of Associations of Maharashtra (FAM) on June 18, the short notice for implementation placed around ?150 crore in advance payments at risk.

"Importers who placed orders months ago under pre-existing regulations are now facing uncertainty. Shipments already in transit or contracted prior to June 16th are suddenly non-compliant, risking needless financial loss and supply disruption," Livemint quote the letter as saying.

Importers also pointed out that obtaining BIS certification is a time-consuming process that can take several months. During the July 7 meeting, the government outlined a timeline to streamline this process: once proper documents are submitted, the BIS would inspect the steel plants within two months, followed by the issuance of certification in another two months.

Import trends and top suppliers

According to the Steel Import Monitoring System (SIMS), 0.661 million tonnes of finished steel were marked for import in May under 23,797 applications. Korea accounted for the largest share (36.8 per cent), followed by China (21.3 per cent).

The automobile and auto components industry made up the highest share of these imports — 28 per cent in May 2025.

Government stand on steel standards

Union Steel Minister HD Kumaraswamy, posting on X on July 7, said: "Held a stakeholder consultation on BIS certification under the QCO framework. The June 13, 2025 order by the Ministry of Steel is a clarificatory measure, ensuring parity between domestic producers and importers by mandating BIS compliance even for intermediate steel inputs used in final products."

He added: "Imports from BIS-certified integrated steel plants will be streamlined, and all concerns raised by industry representatives were duly addressed. India's growth must be backed by strong, self-reliant industrial foundations."

Kumaraswamy added that the move is vital to prevent substandard steel from entering the country, protect small and medium-sized enterprises, and uphold the quality of India's steel standards.