Steel Ministry restricts import of substandard products

02 Dec 2024 CW Team

According to the ministry, numerous traders and manufacturers have been attempting to bypass the Bureau of Indian Standards (BIS) requirements by making minor alterations to steel grades. Official reports indicate that this appears to be an effort to import inexpensive steel under the guise of different grades.

The BIS has established 151 standards encompassing 1376 steel grades under the Steel Ministry’s Quality Control Orders (QCO). The ministry emphasized that this framework ensures compliance with BIS standards for both domestically produced and imported steel. The statement further highlighted that these measures are aimed at restricting the import of low-quality steel.

While steel imports require a BIS license, certain grades not yet covered by BIS standards may be imported with a No Objection Certificate (NOC) from the Steel Ministry. However, the ministry noted instances of misuse of this provision. Officials observed that many traders and manufacturers have been modifying steel grades slightly to circumvent BIS requirements.

Official data revealed that import applications for 1136 additional grades have been submitted to the Steel Ministry. Most of these grades are reportedly neither internationally recognized nor covered by BIS standards. They often involve minor variations in chemical composition or product dimensions and appear to facilitate the import of cheaper steel under the pretext of alternative grades. Furthermore, many of these shipments were ordered without obtaining the requisite NOC from the ministry.

Addressing concerns regarding restrictions on Japanese steel imports, the ministry clarified that 735 applications for importing Japanese steel had been received. Of these, 594 were approved, while 141 were denied due to non-compliance with established norms.

The central government has identified instances of substandard steel imports and has taken measures to prevent their entry into the country. The Ministry of Steel stated that cheaper imports tend to lower domestic steel prices and negatively impact both large and small steel producers. According to the ministry, numerous traders and manufacturers have been attempting to bypass the Bureau of Indian Standards (BIS) requirements by making minor alterations to steel grades. Official reports indicate that this appears to be an effort to import inexpensive steel under the guise of different grades. The BIS has established 151 standards encompassing 1376 steel grades under the Steel Ministry’s Quality Control Orders (QCO). The ministry emphasized that this framework ensures compliance with BIS standards for both domestically produced and imported steel. The statement further highlighted that these measures are aimed at restricting the import of low-quality steel. While steel imports require a BIS license, certain grades not yet covered by BIS standards may be imported with a No Objection Certificate (NOC) from the Steel Ministry. However, the ministry noted instances of misuse of this provision. Officials observed that many traders and manufacturers have been modifying steel grades slightly to circumvent BIS requirements. Official data revealed that import applications for 1136 additional grades have been submitted to the Steel Ministry. Most of these grades are reportedly neither internationally recognized nor covered by BIS standards. They often involve minor variations in chemical composition or product dimensions and appear to facilitate the import of cheaper steel under the pretext of alternative grades. Furthermore, many of these shipments were ordered without obtaining the requisite NOC from the ministry. Addressing concerns regarding restrictions on Japanese steel imports, the ministry clarified that 735 applications for importing Japanese steel had been received. Of these, 594 were approved, while 141 were denied due to non-compliance with established norms.

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