India's Ministry of Steel, as per an order dated 11 July 2025, has exempted imported steel products of an intermediate nature used in the manufacturing of finished steel with a bill of lading of 15 July or earlier from the mandatory BIS compliance for input material.
The notification reiterates that Integrated Steel Plants (ISPs), which make intermediate products and finished products themselves and to whom BIS licences are issued to taking into account the whole manufacturing process, will not need to have different licences for all stages "as the BIS certification process takes care of the whole manufacturing chain."
"The mandatory adherence requirement of input steel for the final products supplied by Integrated Steel Plants (ISPs) shall be exempted after verification of such licences by BIS," the order states.
Meanwhile, the ISPs have been instructed to email the ministry, with a list of operative BIS licences and relevant documents, declaring that they are Integrated Steel Plants.
The Steel Import Monitoring System (SIMS) will be updated with appropriate provisions for such ISPs, and the ministry has warned that any misdeclaration could lead to debarment in the SIMS.
The ministry acknowledged that concerns have emerged among MSMEs regarding the consignments that have arrived at ports or are on the way. As such, it stated a grace period was being considered to ensure that there were no disruptions in clearing such consignments and that manufacturing activity was not impacted.
Meanwhile, it was established that the order would not be applicable for overseas re-rolling steel mills that use input material from BIS-approved ISPs located abroad.
The ministry also assured that the entire process for acquiring BIS licences will take three-four months. BIS officials will visit the plant within two months of them filing the proper applications and documents. Following this, the licence will be issued within the next two months.
The latest clarification effectively provides MSMEs with a breather regarding import cargoes booked before the issuance of the notification. Additionally, there seems to be some uncertainty regarding the ministrys intent to accelerate the BIS certification, which may be hindered due to labour shortages. There are expectations that timelines may get extended in case delays in certifications occur and some mechanism could be developed for mills that have already applied for a licence.
