What Happens If You Don’t Have BIS Certification: Legal and Business Impacts

Tags: BIS Certification, Bureau of Indian Standards, Legal Metrology, Compliance, Product Standards, EPR

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1. Introduction: Why BIS Certification Matters

In India’s fast-evolving regulatory landscape, product quality and consumer safety have become non-negotiable priorities. The Bureau of Indian Standards (BIS)—India’s national standards body under the Ministry of Consumer Affairs, Food & Public Distribution—serves as the guardian of these objectives.

Through BIS Certification, the government ensures that manufacturers, importers, and traders maintain consistent quality and safety across a wide range of goods and services. However, failure to obtain or maintain a valid BIS certificate can trigger serious legal, financial, and reputational consequences.

This article explores in depth what happens if your business does not have BIS Certification, the statutory implications under the BIS Act, 2016, and the commercial and reputational risks that accompany non-compliance.

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2. Understanding BIS Certification in India

2.1 What is BIS?

The Bureau of Indian Standards (BIS) was established under the BIS Act, 1986, later replaced by the BIS Act, 2016 to strengthen the framework for product quality regulation.
It operates through various divisions and laboratories across India and acts as the national standards authority, formulating and enforcing Indian Standards (IS) for products and systems.

2.2 Types of BIS Certifications

Depending on the product and its nature, BIS grants certification through various schemes:

Scheme Type	Applicability	Key Features
ISI Mark Scheme	Indian manufacturers	Confirms compliance with Indian Standards (IS) through factory inspection and product testing.
Compulsory Registration Scheme (CRS)	Electronics & IT goods	Mandated under the Electronics and IT Goods (Requirements for Compulsory Registration) Order, 2012.
Foreign Manufacturers Certification Scheme (FMCS)	Overseas manufacturers	Allows foreign producers to sell in India under BIS certification.
ECO Mark	Environmentally friendly products	Ensures products meet environmental sustainability standards.

As of 2025, more than 450 product categories fall under mandatory BIS certification—covering sectors like electronics, chemicals, construction, steel, food, renewable energy, and automotive parts.

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3. Legal Framework Governing BIS Certification

The BIS Act, 2016, along with the BIS Rules, 2018 and Quality Control Orders (QCOs) issued by various ministries, constitute the legal foundation for BIS certification.

Key Legal Provisions:

• Section 16 – Empowers the government to notify goods or articles requiring mandatory certification.

• Section 17 – Prohibits manufacturing, importing, selling, or distributing such goods without a valid BIS license.

• Section 29 – Prescribes penalties for violations, including imprisonment and fines.

• Section 30 – Addresses offences by companies and their officers in default.

• Section 34 – Allows for confiscation of non-compliant goods.

The law is stringent and proactive—BIS, along with Customs and other enforcement bodies, routinely conducts market surveillance to detect and prosecute violators.

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4. Legal Consequences of Operating Without BIS Certification

Failure to obtain BIS certification when mandatory can lead to severe legal and administrative actions, including:

4.1 Violation of the BIS Act, 2016

Operating without a BIS certificate for products listed under Quality Control Orders (QCOs) amounts to a statutory violation. BIS or enforcement authorities can:

• Suspend manufacturing or import operations

• Issue stop-manufacturing orders

• Seize goods from warehouses or retail points

4.2 Penal Provisions under Section 29

Type of Offence	Penalty/Consequence
First-time Offence	Fine up to ?2,00,000
Subsequent Offence	Fine up to ?5,00,000 and/or imprisonment up to 2 years
False or misleading BIS mark usage	Imprisonment and cancellation of license
Continued violation post-warning	Suspension or cancellation of business license

4.3 Customs and Import Restrictions

Customs authorities will detain, confiscate, or reject imports lacking BIS registration.
In the absence of certification:

• Importers cannot clear goods at Indian ports

• Consignments face indefinite delays

• Businesses incur storage demurrage and financial losses

4.4 Market Ban and Blacklisting

Businesses selling uncertified goods face blacklisting, suspension, or debarment from government procurement.

For instance, several PSU tenders and Defence procurements strictly require BIS-certified products.

4.5 Legal Action for False Claims

Under Section 29(3) and Section 30 of the BIS Act:

• Misusing or faking a BIS mark is a criminal offence

• Offenders can face imprisonment, fines, and public naming in enforcement reports

BIS regularly publishes notices of companies penalized for misrepresentation or misuse of its hallmark symbols.

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5. Business and Commercial Impacts of Non-Compliance

Legal consequences aside, lack of BIS certification can have long-term business ramifications that may threaten your organization’s credibility and continuity.

5.1 Erosion of Consumer Trust

Consumers associate the BIS or ISI mark with safety and quality. Selling uncertified products can damage brand reputation, reduce market confidence, and affect repeat business.

5.2 Ineligibility for Government Contracts

Most government departments, PSUs, defence procurement agencies, and even large private corporations require BIS-certified supplies. Non-certified suppliers are automatically disqualified from such opportunities.

5.3 Competitive Disadvantage

Competitors with BIS certification enjoy marketing leverage, better pricing power, and smoother access to distributors and marketplaces.

5.4 Financial and Operational Losses

If products are found unsafe or substandard:

• Authorities can order mass recalls

• Companies may face consumer compensation claims

• Inventory losses and business disruptions can be significant

5.5 Restricted Export and Trade Opportunities

Many international markets recognize BIS standards as equivalent to ISO and IEC standards.
Therefore, certification enhances export readiness, whereas non-compliance restricts cross-border opportunities.

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6. Why BIS Certification Is More Crucial Than Ever in 2025

The year 2025 marks a turning point for India’s quality compliance ecosystem.
The government has intensified its focus on consumer protection and import substitution, introducing new Quality Control Orders (QCOs) under the BIS regime.

Recent Developments Include:

• Inclusion of EV components, solar equipment, and smart devices under mandatory certification

• Online compliance tracking by BIS for real-time monitoring

• Integrated data-sharing with Customs, DGFT, and DPIIT for stricter enforcement

These initiatives make BIS certification indispensable not only for compliance but also for business continuity, export growth, and investor confidence.

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7. How to Obtain BIS Certification: Step-by-Step

1. Identify Applicable Indian Standard (IS) Code
   Determine the relevant standard for your product using the BIS database or consultant assessment.

2. Choose the Certification Scheme
   Select ISI, CRS, or FMCS depending on the product type and manufacturing origin.

3. Testing at BIS-Recognized Laboratories
   Submit product samples for conformity testing at a BIS-approved lab.

4. File the BIS Application
   Submit all required forms, factory details, and quality control documents.

5. BIS Inspection and Verification
   BIS officers may conduct a factory visit to ensure compliance with standards.

6. Grant of License / Registration
   Upon successful verification, BIS issues the license with a unique number.

7. Post-Certification Compliance
   Maintain records, renew the license periodically, and allow BIS inspections.

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8. Role of BIS Consultants and Why Legal Mantra Recommends Expert Support

Navigating BIS compliance involves technical interpretation of standards, documentation, testing, and coordination with authorities—often complex for businesses.

BIS consultants play a crucial role in:

• Assessing applicable Indian Standards (IS)

• Preparing documentation and testing coordination

• Liaising with BIS officials and accredited labs

• Ensuring correct labeling, marking, and packaging compliance

• Managing renewals, audits, and corrective actions

Partnering with experts ensures timely certification, avoids rejection or delay, and supports sustained compliance—minimizing the risk of penalties or operational interruptions.

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9. Conclusion

BIS Certification is far more than a bureaucratic requirement—it is a strategic business necessity.
Operating without it can result in:

• Legal prosecution

• Financial penalties

• Loss of business reputation

• Restricted domestic and international trade access

In 2025 and beyond, as India moves towards global quality parity, BIS compliance has become synonymous with credibility and consumer trust.

To safeguard your business, ensure continuous compliance, and stay competitive in regulated markets, consult experts who specialize in BIS, Legal Metrology, and EPR compliance.

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 Need BIS Assistance?

Legal Mantra provides end-to-end support for BIS, Legal Metrology, and regulatory compliance for manufacturers, importers, and exporters across India.

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Disclaimer: Every effort has been made to avoid errors or omissions in this material in spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition In no event the author shall be liable for any direct indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information Many sources have been considered including Newspapers, Journals, Bare Acts, Case Materials , Charted Secretary, Research Papers etc

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