Transition relief, MSME expansion, and sectoral amendments: Decoding DPIIT’s latest orders

On 12 February 2026, the Department for Promotion of Industry and Internal Trade (‘DPIIT’) issued a set of important orders introducing transitional exemptions applicable to several Quality Control Orders (‘QCOs’). 

The changes introduced by these orders aim to improve predictability for industry stakeholders during their transition to mandatory BIS compliance under various QCOs. Alongside these cross-sectoral changes, DPIIT also released the Furniture (Quality Control) Amendment Order, 2026 (‘Amendment Order’), which substantially eases several compliance requirements under the Furniture (Quality Control) Order (‘Furniture QCO’).

Transitional exemptions: Goods dispatched or purchased pre-implementation

The DPIIT issued two Orders that introduced a 180-day transition window for goods dispatched or purchased before the respective QCOs came into effect. 

Dispatch-based exemption. For goods dispatched before the date of implementation of the QCOs, the exemption from compliance with the QCOs applies if the Bill of Entry was filed within 180 days after the date of implementation of that QCO. 

Purchase-based exemption. Similarly, for goods for which the purchase order was placed before the date of implementation of the QCOs, the exemption from compliance with the respective QCOs applies if both the Bill of Lading and the Bill of Entry are dated on or before 180 days from the date of implementation of the QCOs. 

Applicable QCOs. The above exemptions have been made applicable across the following twenty-six (26) QCOs, which cover a diverse range of products, including aluminium products, electrical appliances, air coolers and filters, copper products, footwear, laboratory glassware, etc.:
 

• Air Cooler and Air Filters (Quality Control) Order, 2025 
   
• Aluminium and Aluminium Alloy Products (Quality Control) Order, 2025 
   
• Asbestos or Fibre Cement based Products (Quality Control) Order, 2024 
   
• Bottled Water Dispenser (Quality Control) Order, 2024
   
• Copper Products (Quality Control) Order, 2024 
   
• Electric Fence Energizers (Quality Control) Order, 2024 
   
• Electrical Accessories (Quality Control) Order, 2023 
   
• Electrical Appliances Fans (Quality Control) Order, 2023 
   
• Electrical Appliances for Commercial Dispensing and Vending (Quality Control) Order, 2025 
   
• Electrical Appliances for Domestic Clothes Washing (Quality Control) Order, 2024 
   
• Electrical Appliances for Domestic Water Heating (Quality Control) Order, 2023 
   
• Electrical Appliances for Kitchen (Quality Control) Order, 2023 
   
• Electrical Appliances for Skin or Hair Care (Quality Control) Order, 2023 
   
• Flashlight (Quality Control) Order, 2025 
   
• Footwear made from All Rubber and all Polymeric Material and its Components (Quality Control) Order, 2024 
   
• Footwear made from Leather and other Materials (Quality Control) Order, 2024 
   
• Gypsum based Building Materials (Quality Control) Order, 2024 
   
• Hinges (Quality Control) Order, 2025 
   
• Laboratory Glassware (Quality Control) Order, 2023 
   
• Plywood and Wooden flush door shutters (Quality Control) Order, 2024 
   
• Resin Treated Compressed Wood Laminates (Quality Control) Order, 2024 
   
• Self-Contained Drinking Water Cooler (Quality Control) Order, 2023 
   
• Telescopic Ball Bearing Drawer Slide (Quality Control) Order, 2024 
   
• V-Belt (Quality Control) Order, 2024 
   
• Water Meters and Accessories (Quality Control) Order, 2023 
   
• Wood Based Boards (Quality Control) Order, 2024 
   

The DPIIT has also extended transitional exemptions, i.e., dispatch and purchase-based exemptions, to the Furniture QCO through the Furniture (Quality Control) Second Amendment Order dated 2 March 2026. 

The harmonized 180-day exemption window provides importers and manufacturers with much-needed clarity when handling shipments already in transit or orders placed before the regulatory changes took effect. However, in a few cases, such as the Electrical Accessories QCO and the Laboratory Glassware QCO, both of which became effective in July 2024, the 180-day window has already expired. Consequently, the practical utility of the new exemption is limited for manufacturers dealing with goods covered by such QCOs that have already been implemented.

Expanded exemptions for MSMEs across selected QCOs

Applicable QCOs. The DPIIT also issued a separate Order (‘MSME Order’) expanding the MSME-based exemption applicable to eight (08) QCOs, namely: 
 

• Air Cooler and Air Filters (Quality Control) Order, 2025 
   
• Electric Ceiling Type Fans (Quality Control) Order, 2023 
   
• Flame-Producing Lighters (Quality Control) Order, 2023 
   
• Furniture (Quality Control) Order, 2025
   
• Insulated Flask, Bottles and Containers for Domestic Use (Quality Control) Order, 2024 
   
• Laboratory Glassware (Quality Control) Order, 2023
   
• Potable Water Bottles (Quality Control) Order, 2024
   
• Welding Rods and Electrodes (Quality Control) Order, 2023 
   

Expanded MSME Thresholds. Under the updated framework, enterprises registered on the Udyam Portal can avail of the exemption from compliance with the aforementioned QCOs, provided their investment in plant and machinery or equipment does not exceed ₹1 crore and their turnover for the preceding financial year does not exceed ₹5 crore. 

This marks a significant increase from the previous investment threshold of ₹25 lakh and a turnover limit of ₹2 crore, respectively. The expansion of these limits substantially widens the pool of MSMEs eligible for exemption from mandatory BIS certification requirements under the identified QCOs. This move aligns closely with the Government’s ongoing efforts to reduce regulatory burdens for smaller manufacturers, many of whom face considerable financial and operational challenges in navigating the BIS certification process. By easing compliance for a larger segment of the MSME sector, the revised thresholds are expected to facilitate smoother business operations and reduce bottlenecks for industries that rely heavily on small-scale production units.

Key amendments to the Furniture (Quality Control) Order, 2025

The Furniture (Quality Control) Amendment Order, 2026, introduces three (03) major amendments to the Furniture QCO to relax compliance obligations for manufacturers of work chairs, general-purpose chairs and stools, tables and desks, storage units, beds, and bunk beds. 

Imports meant for Research and Development. First, imports meant strictly for research and development (‘R&D’) have been exempted from compliance with the Furniture QCO. Manufacturers are permitted to import up to 200 units per financial year for R&D purposes. It is pertinent to note that this exemption is available only to manufacturers who are either BIS-certified or have applied for certification. Further, goods imported for R&D purposes cannot be commercially sold and must ultimately be disposed of as scrap. Manufacturers are also required to maintain year-wise records and submit them to the Central Government.

Pre-implementation imports or domestic stock. Second, the Amendment Order provides relief for pre-implementation stock. Goods that are domestically manufactured or imported before the date of implementation of the Amendment Order by manufacturers who are already BIS‑certified or have applied for certification may continue to be sold, displayed, or offered for sale up to twelve months, i.e., until 11 February 2027. To avail this exemption, manufacturers must furnish a self-declaration to the BIS regarding such stock.

Export-oriented imports. Third, the Amendment Order exempts non-BIS-marked goods or articles, or their components/sub-assemblies, imported by a manufacturer of furniture in India for export-oriented furniture manufacturing from compliance with the Furniture QCO. Such manufacturers are required to submit a self-declaration to the Central Government, specifically mentioning the invoice number, along with other consignment details, and an undertaking that the imported goods/ components/ sub-assemblies will not be put to any other use or sold in the domestic market. These manufacturers must also maintain relevant records for inspection by authorities. This carve-out is particularly relevant for entities that manufacture exclusively for global markets and have no domestic sales exposure.

Parallel MSME exemption for furniture manufacturers

In addition to the above amendments, the MSME Order is also applicable to the Furniture QCO. Accordingly, the thresholds have been revised from ₹25 lakh to ₹1 crore for investment and from ₹2 crore to ₹5 crore for turnover. This expands the exemption to a much wider pool of furniture manufacturers and is expected to significantly ease compliance burdens for smaller units operating under the MSME category.

Industry impact and way forward

These Orders issued by the DPIIT collectively represent a calibrated shift to ease compliance pressures during the early phases of implementing QCOs. The uniform 180-day transition window creates a predictable framework for managing consignments that have already been ordered or dispatched, which will be especially useful for industries dependent on long-lead-time imports. The amendments made to the Furniture QCO further provide targeted flexibility to support R&D activities, clear legacy inventory, and enable uninterrupted export-linked operations. At the same time, the continued emphasis on self-declarations and record-keeping demonstrates the Government’s intent to maintain regulatory oversight while reducing operational friction.

The significant increase in MSME thresholds across multiple QCOs signals a broader policy focus on supporting small manufacturers, many of whom struggle with the costs, delays, and procedural complexity of BIS compliance. Manufacturers seeking to avail of these exemptions should ensure that the necessary documentation, declarations, and internal controls are firmly in place to avoid compliance-related risks.

[The authors are Partner, Senior Associate and Associate, respectively, in BIS practice at Lakshmikumaran & Sridharan Attorneys]