DPIIT has informed that implementation date of Quality Control Orders will not be extended, and that they are in the interest of the furniture industry.
The meeting of industry stakeholders with officials of the Department for Promotion of Industry & Internal Trade (DPIIT), Ministry of Commerce and Industry, held on 19 December 2024, has resolved the protracted issue of mandatory implementation of Quality Control Orders (QCOs). Sanjiv Singh, Jt Secretary, DPIIT, chaired the meeting.
In early 2024, DPIIT had issued QCOs to make BIS certification mandatory for wood based boards, plywood and wooden flush door shutters, and resin treated compressed wood laminates. In 2022, it circulated for wider consultation a draft QCO for furniture including work chairs, general purpose chairs and stools, tables and desks, storage units, beds and bunk beds.
This is part of the government’s plan to promote Make in India, and develop India as a furniture manufacturing hub.
Besides proposing the relevant IS standard for each category, the QCOs make compliance mandatory from the specified date for all players involved in the manufacture, storage and sale of these products. Relief has been granted to small enterprises (3 months) and micro enterprises (6 months).
The effective implementation dates are 11 February 2025 for wood based boards, 28 February 2025 for plywood and wooden flush door shutters, and 14 January 2025 for resin treated compressed wood laminates.
Late last year the industry reached out to the Ministry with representations, seeking a delay in the application of the QCOs, an amendment to some of the standards, and speedier certification for overseas vendor factories.
There were concerns that mandatory certification would lead to a shortage of acceptable components and raw materials and a surge in costs since a substantial proportion of the supplies were being met from imports from China and Southeast Asia. There was also a belief that certain countries were been marked out for blocking imports, while for others the certification process would be delayed due to bureaucratic red tape. Besides, domestic capacity could not be developed fast enough to cater to the rise in demand after the implementation dates.
The key representation was made by the Association of Furniture Manufacturers of India (AFMI), which raised the following concerns:
- The QCOs cover inputs for the furniture industry, which may lead to an increase in imports of furniture from China.
- BIS has not carried out inspections in non-China-owned units in ASEAN countries.
- The Indian Standards for Engineered Wood Panels to be revised to higher quality benchmarks.
- Wood Based Boards QCO, Plywood and Wooden Flush Doors QCO and Furniture QCO to be implemented on the same date.
Similar representations were received from the Association of Furniture Manufacturers and Traders (AFMT), All India Door Manufacturers Association, Spacewood, Neelkamal and Bonton Furniture Solutions.
They sought an extension of the QCO dates to ensure continued raw material availability and avoid the influx of finished furniture imports.
Representations were also received from the Federation of Indian Plywood and Panel Industry (FIPPl), Punjab Plywood Manufacturers Association, Rajasthan Plywood Manufacturers Association, Haryana Plywood Manufacturers Association, All India Plywood Manufacturers Association, and All India MDF Manufacturers Association.
These parties requested the immediate implementation of QCOs to strengthen the domestic industry.
After scrutiny of the representations and ensuing discussions, the following consensus was reached:
- Since the QCOs had already been extended in response to industry representations, no further extensions were required.
- BIS was requested to expedite the revision of the concerned standards in consultation with the relevant stakeholders for Plywood and Wooden Flush Door Shutters (Quality Control) Order, 2024, Wood Based Products (Quality Control) Order, 2024, and Draft Furniture, QCOs, to ensure effective implementation.
- To support the domestic plywood, door and furniture industry with steady raw material supply, the department has forwarded to the Office of Economic Advisor (OEA) the recommendation for Basic Custom Duty (BCD) reduction for products under HS 4408 (from 10% to 0%). Further, the request for considering a reduction in BCD on wood logs products falling under HS 4401 and HS 4403 from 5% to 0% has been forwarded to the Ministry of Environment, Forest and Climate Change (MoEFCC).
- During the meeting, the BIS official informed that the Standards pertaining to Draft Furniture QCO would be finalised by January 2025. After the formulation of standards, the process for publication of the Draft Furniture QCO may be initiated.
- BIS was asked to expedite the processing of licenses and to speed up the inspection of foreign manufacturers, to ensure the timely issuance of licenses for products covered under the aforementioned QCOs. Additionally, industries and associations were advised to take necessary steps to obtain licenses well in advance of the effective implementation dates of the QCOs.
- With respect to concerns about the influx of imported furniture from China, already the import duty has been imposed at 10-25%.
After prolonged and fruitful discussions, the furniture and components industry has come to terms with the fact that it is in common interest to have a strict quality regime in place. Also, the import of substandard products should be drastically curtailed if the industry has to make in India.
