Fastener Traders Urge Government to Repeal Quality Control Order Amid Soaring Costs and Supply Chain Disruptions

The recent Quality Control Order (QCO) issued by the Department for Promotion of Industry and Internal Trade (DPIIT) in 2023 mandates that all importers of fasteners, including nuts, bolts, and screws, must obtain Bureau of Indian Standards (BIS) certification prior to importation. This regulatory requirement aims to enhance product quality but is facing backlash from fastener traders who argue that it imposes significant operational burdens. The “one-product-one-licence” system creates redundancy and delays, particularly given the diverse nature of fastener production which often occurs in small, varied batches.

For the common citizen and the market, this QCO has far-reaching implications. Traders report that the regulatory burden is causing a notable decrease in their turnover—up to 50% in some cases—potentially resulting in job losses and disruptions within the broader manufacturing sector. The delayed availability of fasteners, which are crucial components in industries such as automotive, infrastructure, and electronics, threatens to halt production lines, increase the costs of goods, and create a ripple effect across the economy. Moreover, this situation could lead to higher prices for end consumers as imported products become limited due to certification delays and regulatory challenges.

Looking forward, the government and the RBI must consider the challenges posed by the QCO and the adverse effects on the manufacturing ecosystem. There is an urgent need for a reassessment of the quality control measures to strike a balance between maintaining standards and ensuring the uninterrupted flow of essential inputs. A more flexible approach that accommodates the unique production landscape of fasteners could help alleviate costs and supply issues while still ensuring product quality. The government may need to engage with industry stakeholders to reform the QCO and mitigate its negative implications on trade, job security, and manufacturing competitiveness in India.