India's $1.1B steel fastener imports face disruption as no manufacturer has BIS approval under the new Quality Control Order
Chennai: The import of specialised steel fasteners like screws, nuts and bolts is likely to stop by March 20 as no foreign manufacturer has received BIS certification, disrupting industrial production. The import of $1.1 billion worth steel fasteners is critical to a lot of industries, including automobiles, aerospace, electronics, and defence.
BIS approval of foreign manufacturer is a necessary condition for imports as specialised steel fasteners were notified under the Quality Control Order in September 2024 and is set to come into effect for from March 20.
The QCO mandates BIS certification for domestic as well as foreign manufacturers. BIS has not yet approved any foreign or domestic manufacturer under the QCO scheme, creating uncertainty and supply chain bottlenecks.
In 2024, India imported steel fasteners amounting to $1.1 billion. Of this, China supplied fasteners worth $306 million, Japan $127 million, South Korea $111 million, Germany $107 million, the US $104 million, Thailand $78 million and Singapore $63 million, as per the data of GTRI.
Due to the complex and slow BIS approvals and low trade values, many foreign manufacturers are unlikely to register, leading to critical shortages of high-end specialized fasteners.
India relies heavily on specialized imported fasteners for critical applications in industries such as automobiles, aerospace, electronics, and defence, and their sudden unavailability will jeopardize production.
Since the QCO applies only to specific fasteners under HS Code 7318, confusion is likely to arise at customs regarding non-QCO-covered items, causing shipment delays and extra demurrage costs.
The government should withdraw the QCO for steel fasteners immediately to avoid disruption in production, said GTRI.
