India Opens a Facilitated Registration Scheme for Selected QCO Products to Skip BIS Factory Inspection

India's Department for Promotion of Industry and Internal Trade (DPIIT) issued Gazette Notification S.O. 3417 (E) on June 25, 2026, introducing the Transition Facilitation (Quality Control) Order, 2026. The Order allows eligible Indian companies to seek a BIS Scheme II (Registration), rather than the Scheme I that mandate factory inspection, for specified products covered by Quality Control Orders (QCOs).

The Order does not remove the underlying QCO requirements or the obligation to meet applicable Indian Standards. Instead, it provides an alternative conformity assessment pathway for eligible applicants seeking BIS Standard Mark licences under Scheme II. It is intended to reduce supply-chain bottlenecks, facilitate technology transfer and research and development in India, and support local manufacturing while maintaining compliance with applicable Indian Standards.

DPIIT has released a Guideline to facilitate the implementation of the Transition Facilitation (Quality Control) Order, 2026.

Eligible Applicants and Qualification Pathways

The scheme is directed at companies incorporated in India under the Companies Act, 2013 that are bringing technology, design capabilities, or R&D activities into India. The stated eligibility pathways are:

• Direct capability development: Investment in plant and machinery, R&D, or technology adoption to develop supply-chain capabilities in India.

• Contract manufacturing: Use of Indian contract manufacturing arrangements supported by group or parent company credentials.

• Proven compliance integrity: A record of successful QCO compliance for three consecutive years without default.

Global or parent companies may support applications through corporate, financial, technical, and relationship documentation. However, the application is made by the eligible Indian company.

Products Covered by the Order

The schedule identifies the following QCOs and their implementation dates:

Application and Assessment Process

Applications may be submitted through the National Single Window System or physically to the Joint Secretary/Director (in charge of Technical Regulations) at DPIIT. Applicants must submit Annexure A (Guidelines) and supporting corporate, technical, and project information.

The specified documents include:

• Certificate of incorporation;

• Importer Exporter Code, GSTIN, and PAN;

• Board authorisation letters;

• Audited financial statements for the preceding three years;

• Foreign factory registration documents;

• Declarations establishing the relationship between the Indian applicant and its parent or group company;

• Patents, design registrations, tooling ownership records, engineering capability records, or existing BIS licences; and

• A project roadmap setting out investment in Indian rupees, three-year milestones, land and machinery plans, commercial operations, and employment objectives.

Applications are reviewed by an Implementation Committee using a risk-based assessment. The review considers factors including:

• Technical capability;

• Design control;

• Compliance conduct and integrity; and

• The applicant's commitments relating to investment and capability development.

Following the committee's recommendation, approval is required from the Union Minister of Commerce and Industry. DPIIT then issues a Permission Letter.

The Order states that no mandatory pre-assessment physical factory inspection is required under this facilitation route. Applicants remain subject to periodic reviews, market surveillance, and third-party audits.

Ongoing Compliance Obligations

Companies using the facilitated route must submit an annual compliance report certified by a chartered accountant within 60 days after the end of the relevant financial year. They must also submit quarterly import and consignment filings to DPIIT.

The Scheme II route therefore changes the initial assessment pathway but does not eliminate continuing reporting, surveillance, audit, or product conformity obligations.

Validity and Transition Period

The Transition Facilitation (QCO) Order, 2026 is valid for five years from notification. Applications will be accepted for 24 months from June 25, 2026. Companies seeking to use the facilitated Scheme II route should therefore assess eligibility, prepare the required corporate and technical evidence, and establish systems for quarterly filings and annual certified reporting within the application window.