- NOC removed for importing non-QCO grades
- QCO imports need BIS or committee exemption
The Ministry of Steel has announced a significant procedural clarification regarding the import of steel, primarily aimed at streamlining the regulatory framework and facilitating the ease of doing business for importers. These changes specifically address the requirements for importing steel grades not covered under any existing Quality Control Order (QCO), while also clarifying the mechanism for QCO-covered grades.
Crucial easing of rules for non-QCO steel grades
In a major move to reduce bureaucratic hurdles, the Ministry of Steel has abolished the requirement for a clarification or No Objection Certificate (NOC) for importing steel grades that are not covered under any QCO. This decision stems from a review and the recommendations of the High-Level Committee on Non-Financial Regulatory Reforms (HLC-NFRR).
Previously, importers faced a procedural step introduced in October 2023 requiring them to seek clearance for these non-QCO grades. The new rule eliminates this step, offering immediate relief to importers dealing in specialised or unregulated steel products.
To ensure a seamless transition, the Ministry has mapped all steel grades not covered under any QCO-across all relevant HSN Codes-on the Steel Import Monitoring System (SIMS) Portal. Importers can now directly generate the necessary SIMS numbers for these non-QCO grades through the portal without any prior reference or approval from the Ministry of Steel.
QCO-covered grades: Existing exemption mechanism stays
For steel grades that are covered by the Ministry of Steel’s QCOs, the core regulatory requirement remains unchanged: imports must only be made from manufacturers who hold valid and operative BIS (Bureau of Indian Standards) licences for the specified grades.
However, the Ministry reaffirms that a well-established exemption mechanism is available for cases where an importer wishes to procure QCO-covered steel products from a manufacturer that does not possess a BIS licence.
Applications for this exemption will continue to be examined by a dedicated committee constituted for this purpose. This committee comprises representatives from key bodies, including the Bureau of Indian Standards (BIS), the Directorate General of Foreign Trade (DGFT), and domain experts. The committee will review applications and make decisions on granting exemptions for the import of QCO-covered steel manufactured by non-BIS licensee units.
Importers seeking this exemption must file their applications through the designated link on the SIMS port
Impact on industry
These procedural clarifications mark a focused effort by the Ministry of Steel to create a more efficient and predictable import environment. The removal of the NOC requirement for non-QCO grades is expected to reduce transaction time and costs, particularly for businesses dealing with a diverse range of specialised steel products. The sustained and formal structure for the QCO exemption process, meanwhile, balances regulatory standards with the practical needs of the industry, ensuring that essential steel products can be imported even from non-BIS certified sources when justified.
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