The Ministry of Commerce and Industry has issued the Bolts, Nuts and Fasteners (Quality Control) Order, 2024 (‘new QCO’). The features of the new QCO are:
- Supersedes the previous Bolts, Nuts and Fasteners (Quality Control) Order, 2023 (‘previous QCO’);
- Mandates different types of Bolts, Nuts, and Fasteners (‘subject goods’) to comply with the different Indian Standards issued by the Bureau of Indian Standards;
- Covers the same 19 product types as was in the previous QCO.
Entry into force of the new QCO –
- From the date of publication in the official gazette, viz.,12 July 2024.
- However, different dates for implementation for MSME enterprises:
|
S.No.
|
MSME Category
|
Date of implementation
|
|
1.
|
Micro enterprises
|
1 February 2025
|
|
2.
|
Small enterprises
|
1 November 2024
|
| 3. |
Enterprises other than micro and small enterprises
|
1 August 2024
|
Similar to the previous QCO, new QCO does not apply to subject goods that are:
- Manufactured domestically for export;
- Imported as a part of any finished good or sub-assembly or component;
- Manufactured domestically by an enterprise, registered under ‘Udyam portal’ of the MSME Ministry, where the investment in plant and machinery or equipment at original cost does not exceed INR 25 lakh and the turnover does not exceed INR 2 crore for the previous financial year (CA certified)
Changes introduced in the new QCO:
The new QCO exempts its application for a period of three years from the date of commencement of the QCO in the following cases:
(a)Import for manufacturing for export purposes:
- Import of the subject goods for manufacturing equipment, products, sub-assemblies, or components solely for export purposes.
- Compliances required by a manufacturer:
(a) Self-declarations, including invoice details and an ‘end-use’ undertaking;
(b) Record-keeping requirements that are subject to potential verification/audits by government authorities;
(c) Submit a plan for indigenization of the subject goods.
- Similar exemption was provided under the previous QCO, but differed in the following ways:
(a) Exemption was previously available for manufacturing all goods for export purposes under the previous QCO;
(b) Exemption was perpetual in the previous QCO;
(c) No record-keeping requirements or declarations required under the previous QCO;
- Phased reduction in the exemption in the next three financial years, as below:
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S.No.
|
Year of imports
|
Eligible exemption upto (as a % of the total value of the subject goods imported in financial year 2023-24)
|
|
1.
|
FY 2024-25
|
80
|
|
2.
|
FY 2025-26
|
70
|
|
3.
|
FY 2026-27
|
50
|
(b) Import for R&D purposes to promote domestic manufacturing:
- Import of up to 200 kgs of the subject goods solely for the purposes of research and development to promote domestic manufacturing is permitted;
- Condition: such imports cannot be sold commercially.
(c) Import for spares
- Subject goods imported or domestically procured as spares or for providing after-sales service;
- Subject to the following conditions:
(a) Upper cap of 5% of the value of the subject goods imported in FY 2023-24;
(b) maintaining records and mandatory declarations of old stock of subject goods domestically procured or imported within three months from the date of commencement of the QCO.
