Annual Advance Fee Payment, Suspension Rules & Revised Scheme-II Introduced
The Bureau of Indian Standards (BIS) has issued an important notification dated 25 February 2026, published in the Gazette of India (Extraordinary), introducing the Bureau of Indian Standards (Conformity Assessment) Amendment Regulations, 2026 under the BIS Act, 2016.
These amendments significantly impact license holders, certificate holders, manufacturers, importers, and MSMEs operating under BIS certification schemes.
This blog provides a comprehensive overview of the key changes and what they mean for stakeholders.
Legal Background
The amendment has been notified under powers conferred by:
- Section 39 read with Sections 12 and 13 of the BIS Act, 2016
- With prior approval of the Central Government
The amendment comes into force from the date of publication in the Official Gazette.
Key Highlights of the 2026 Amendment
1. Mandatory Advance Annual Payment of Fees
One of the most significant changes is the introduction of advance annual payment requirements.
What Has Changed?
- Fees must now be paid:
- At the time of grant of licence/certificate
- Annually in advance for continuation of validity
- Annual fees must be submitted along with production details within the prescribed timeline.
Impact of Non-Payment
If annual fees and production details are not submitted:
- Licence/Certificate will be automatically suspended
- Suspension will remain for 90 days
- Reinstatement allowed within 90 days upon:
- Payment of annual fees
- Payment of ₹5,000 late fee
If payment is not received within 90 days:
- Licence or Certificate will be cancelled
This applies to both:
- BIS Licence holders (Standard Mark users)
- Conformity Certificate holders
2. Revised Suspension and Cancellation Provisions
The amendment clarifies that:
- 21-day notice is mandatory before suspension or cancellation
- However, in cases of non-payment of annual fees, Regulation 8 provisions will apply directly
- Even if fees are paid during suspension, revocation depends on resolution of:
- Non-conformity
- Other compliance issues
This ensures stricter financial discipline and procedural clarity.
3. Major Overhaul of Scheme-II (Self-Declaration Based Registration)
One of the most impactful structural changes is the complete substitution of Scheme-II under Schedule-II.
What is the Revised Scheme-II?
Scheme-II is now defined as:
A Conformity Assessment Scheme based on Self-Declaration of Conformity (SDOC) for goods/articles manufactured in a manufacturing premises.
It is aligned with Type-C certification model and allows registration based on:
- Self-declaration
- Third-party laboratory test reports
- Compliance affidavit
- Infrastructure verification
Key Features of Revised Scheme-II
Applicable to:
- Goods/articles complying with:
- Relevant Indian Standards OR
- Notified Essential Requirements
Process Includes:
- Identification of applicable standards
- Testing in BIS-recognized third-party laboratory
- Submission of compliance affidavit
- Separate application per brand name
- Appointment of Indian Representative (for foreign manufacturers)
4. Validity and Renewal of Licence
Under the amended provisions:
- Initial validity: Up to 5 years
- Renewal: Up to 5 years at a time
- Renewal application: Must be filed 3 months before expiry
- Annual resource fee: Payable in advance every year
Failure to comply will trigger automatic suspension provisions.
5. Fee Structure Under Scheme-II
Application & Renewal Fees
- ₹1,000 per application
Annual Resource Fee
- ₹25,000 per application (advance payment)
Additional Test Report
- ₹20,000 per additional test report
Scope Extension
- ₹30,000 per application
Service Requests (change of address, management, etc.)
- ₹5,000 per request
6. Special Concessions for MSMEs & Startups
The amendment provides substantial fee concessions:
Until 31 May 2029:
- 80% concession – Micro enterprises & Startups
- 50% concession – Small enterprises
- 20% concession – Medium enterprises
From 1 June 2029 onward:
- 20% concession for Micro, Small & Medium Enterprises
MSME classification will be as per:
- Micro, Small and Medium Enterprises Development Act, 2006
Startup definition will be as per:
- Income Tax Act, 1961
This move significantly supports ease of doing business.
7. Marking & Standard Mark Requirements
Revised Scheme-II includes detailed marking requirements:
- Proper display of Standard Mark
- Registration number must be clearly visible
- Reference to applicable Indian Standard or Essential Requirement
- Optional e-marking for digital display devices
- Compliance with specified dimensions and color schemes
This ensures better traceability and authenticity verification.
Practical Implications for Manufacturers
Immediate Action Required:
- Review fee payment schedules
- Ensure advance annual payment compliance
- Maintain timely production reporting
- Reassess internal compliance timelines
- MSMEs should evaluate concession eligibility
Failure to comply may lead to automatic suspension and eventual cancellation.
Strategic Significance of the Amendment
This amendment reflects BIS’s move toward:
- Stronger financial compliance enforcement
- Structured suspension mechanism
- Alignment with international conformity models
- Digital traceability and marking control
- MSME-friendly certification environment
It balances regulatory discipline with industry facilitation.
Conclusion
The Bureau of Indian Standards (Conformity Assessment) Amendment Regulations, 2026 introduce crucial compliance reforms that directly affect all BIS licence and certificate holders.
The shift to advance annual payments, stricter suspension timelines, and the revamped Scheme-II framework makes it essential for manufacturers, importers, and brand owners to reassess their compliance strategies immediately.
Proactive compliance today will prevent operational disruptions tomorrow.
