BIS CERTIFICATE FOR FOREIGN MANUFACTURER
The Economy of India-the fastest developing economy on the globe with the capabilities that help it matches up with the biggest international economies of the world. Globalization has opened the world economy for trade like manufacturing, services, selling products in different countries, import-export etc. Over the last few decades, many foreign companies have set up different industries like manufacturing in India as a result of globalization. The manufacturing sector has the ability to expand its market base beyond the country borders, contribute to the foreign exchange reserves of the economy and boost the economic development of the country. It is considered as the “engine of growth”. India has become the most attractive destination for import, investment in the manufacturing sector. Many top brands have decided to invest in India, like Amazon has planned to start electronic manufacturing in India, Samsung Display Noida, which has invested a huge amount in starting its manufacturing etc. In order to boost the growth of the manufacturing sector, the Government of India has offered special incentives.
If we talk about the import, India is one of the biggest hubs for international manufacturer who can export their product to India.
In India, lots of foreign companies are operating, but every country has set different rules and standards for manufacturing. You cannot launch your product directly into the market without product conformity compliances, testing and marking. For this, you have to follow some procedures, and this is where Foreign Manufacturer Certification Scheme takes place for product certification by the Bureau of Indian Standards under ISI mark Scheme.
FOREIGN MANUFACTURERS CERTIFICATION SCHEME (FMCS)
Foreign Manufacturers Certification Scheme (FMCS) is a Scheme operated by the Bureau of Indian Standards under Scheme-I of Schedule-II for foreign manufacturers, and this scheme enables the overseas applicants/manufacturers to use the standard mark, which is also called ISI Mark, to sell their products in India. The foreign manufacturers Certification Department (FMCD) is the only eligible authority that can grant the licence for foreign manufacturers. The major motive of BIS for granting a Licence to Foreign manufactures is that the public gets good quality, safe, reliable and risk-free products.
BIS Certificate in India from the FMCD department is meant for the manufacturing units located overseas, and which will undergo for factory audit to determine whether the manufacturer is complying with all the necessary requirements illustrated by BIS. It is also mandatory for foreign applicants to nominate Authorized Indian Representative (AIR).To understand all these steps, let’s explore the parameters in detail.
BIS STANDARD MARK/ISI MARK
BIS Standard Mark or ISI Mark consists of Licence number as ‘CM/L-XXXXXXXXXX’ at the bottom of ISI Mark and Indian standard number at the top of above ISI Mark. This mark shall be rewarded by the Bureau of Indian Standards after the successful grant of the BIS Certificate.
Foreign manufacturers who want to export their product to India, first need to get a Licence from Bureau of Indian Standards (BIS) and following requirements shall be fulfilled by the applicant.
- The manufacturing unit should be located outside of India.
- Ensure conformity of their product(s) to applicable Indian Standards Specification (ISS).
- At the factory premises, all manufacturing machinery and testing facilities should be available.
- Product testing equipment and quality control personnel should be available in-house laboratory to test the product as per applicable ISS.
- The manufacturer should accept the Scheme of Inspection & Testing(SIT) and the annual marking fee.
- The company/manufacturer (FMCS) should accept the terms and conditions of the Licence.
Note - Separate applications shall be submitted for each product, each factory location.
MANDATORY DOCUMENTS REQUIRED FOR FMCS ISI MARK CERTIFICATION
The documentation part under the FMCS scheme of BIS is quite simple as very recently BIS Online application system has been introduced to collect and maintain the records. Following are the essential documents, must be available with the applicant before initiating the project:
- Factory/company registration documents
- Flow chart of manufacturing process
- Manufacturing capabilities in-house and also outsourcing agreement of manufacturing operation, if applicable.
- Adequate facilities for testing
- Quality Control Parameters and their records
- Accept Scheme of Testing& Inspection and Annual Marking fee, laboratory product testing report and other information as per BIS norm and so on. The list of documents is quite tedious and can be obtained from BIS.
PROCESS OF GRANT OF LICENCE UNDER FMCS
Following systematic steps will help in Grant of licence to foreign manufacturers
- Submit application:
• Compile all required documents
• Submit the application with required documents to BIS online and hardcopy to FMCD department
• BIS authority will verify the application
- Query raised (if any):
• In case, any document or test equipment or any other requirement is missing or incomplete, communication will be done by email with applicant
• If the application is found satisfactory in all respects, it will be recorded
• Acknowledgement number will be allotted for future purpose
• BIS Officer will arrange a visit at factory premises of applicant on the mutually agreed date
• Remittance of inspection/audit fee
• BIS Officer will verify the manufacturing process, testing infrastructure and also test the product in your in-house laboratory
• BIS Officer will collect the sample, seal it, and forward it for testing with an independent laboratory
- Sample Testing:
• Sample collected sent to BIS Approval Laboratory
• BIS(FMCS) receive the test report
• Charges for testing will be paid by the application firm
- Grant of Licence:
• Satisfactory inspection report of the auditor visited the factory premises, and test report of the product received according to Indian Standards
• Applicant should pay a Licence fee, advance minimum Marking fee & if any outstanding due
• Letter for Grant of Licence issued
Agreement & Indemnity bond entered between the applicant and BIS. It includes following provisions
- All rights and responsibilities of licensee
- Performance bank guarantee
- Cancellation of license
After qualifying all above steps, the licence will be granted once all type of fee is paid. Initially, it will be granted for 1 year, which would be further renewable for subsequent years.
Note: Performance Bank Guarantee should be of USD 10000 of any bank approved from Reserve Bank of India (RBI) to be submitted
TIMELINE FOR BIS LICENCE
The average time taken for Grant of Licence is approximately 6 months from the date receipt of complete application and its recording. The rest depends upon the circumstances. It may vary for certain reasons like delay from applicants in response to queries raised, if any, delay in organizing inspection or testing of the sample, remittance of dues, etc.
Surveillance Inspection is carried out from time to time, and market samples are drawn out by the BIS in order to assess the performance of the foreign BIS licensee.
In case any complaint is received against the licensee’s product, then an investigation will be carried out as per IS/ISO 10002, and immediate action will be taken to redress the complaints, such as free replacement or repair. In case of any damage, the entire liability will be borne by the licensee, and BIS will not be responsible for any damages or losses.
HOW TO RENEW BIS LICENCE?
A license is valid for the time period of one year. It can be further renewed for subsequent years just by filing a renewal application form along with the prescribed fees, which should be certified by the Chartered accountant.
GUIDELINES FOR NOMINATION OF AUTHORIZED INDIAN REPRESENTATIVE (AIR) FOR FOREIGN MANUFACTURER
Every Foreign applicant/manufacturer shall have a branch office located in India which shall fulfill all the liabilities and obligations with respect to the BIS Act, 1986, and rules and regulations framed for the purpose of registration, on behalf of the foreign applicant. Foreign Manufacturers/companies need to appoint an Authorized Representative in India to represent their case and meet the terms with the regulations and registrations purposes.
It is mandatory for the foreign applicants to nominate Authorized Indian Representative (AIR in India to get BIS Licence, ISI Mark Certificate in case they don’t have a branch office in India. AIR as a local representative, is responsible for submitting and managing the application for certification and is available to answer the questions. While nominating the AIR, the applicant should ensure the following points.
- AIR nominated by the foreign manufacturer should be an Indian resident
- AIR shall give his consent that he is responsible for compliance to the provisions of the Indian BIS act, Rules, Regulations, and Terms & Conditions given in BIS Licence, Agreement, Undertaking or other documents executed on behalf of the foreign manufacturer in connection with grant and operation of the licence.
- AIR can only represent one Foreign manufacturer at one time, cannot represent other Foreign applicants as AIR.
- AIR(s) shall have no conflict of interest in their role as AIR with testing of a sample(s) in third-party laboratories.
- The minimum qualification for an AIR is a bachelor's degree and knowledge of the provisions of the BIS Act, 2016, as well as rules and regulations.
- AIR’s name shall appear in the licence documents.
With more than 16 years of professional experience working with foreign companies, we can help you in establishing a trust mark on your product. It’s not easy to sell your product in India without the Bureau of Indian Standards approval of your manufacturing unit. The process to obtain the BIS Certificate for grant of Licence is very much time-consuming. It takes almost 6 months, also this time period is not fixed and may increase to 7-8 months but we ALEPH INDIA best BIS Consultant in INDIA and ISI Certificate provider since decade can tackle the situation with our pre-designed matrix system to reduce the time in documentation, auditing and processing. Our technical team will assist you accordingly at every step and ensures the quality performance of your business.
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