Guide to India’s Foreign Manufacturer Certification Scheme

India’s Foreign Manufacturer Certification Scheme (FMCS) is meant for overseas production units and those manufacturers exporting goods to India. India Briefing shares with you a comprehensive overview of how the scheme works and qualifying norms for manufacturers.

India is emerging as a key production and assembly hub for global markets. The country has significantly boosted its imports of raw materials to meet the demand for finished goods. Nevertheless, a rise in imports has also contributed to a rise in the dumping of commodities, many of which are of poor quality. The Bureau of Indian Standards (BIS), the national standards organization that promotes and controls product and goods standards in India, has established a number of rules to guarantee that goods entering India meet minimum quality thresholds.

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Major manufacturing economies have set different rules and standards for goods production; therefore, a manufacturer is obligated to adhere to each market’s conformity compliance, testing, and marking rules. The Foreign Manufacturer Certification Scheme (FMCS) provides BIS product certification under the ISI mark scheme. The ISI mark is a standards-compliance mark for industrial products in India since 1950.

What is the foreign manufacturer certification scheme? 

Foreign manufacturers who want to export their product to India first need to get a manufacturer certificate from the BIS.  

BIS has been operating FMCS since the year 2000 under Scheme-I of Schedule-II, BIS Act, 2016 and (Conformity Assessment) Regulations, 2018 for foreign manufacturers. This scheme enables overseas applicants or manufacturers to use the standard mark, which is also called the ISI Mark, to sell their products in India.

The Foreign Manufacturers Certification Department (FMCD) is the only eligible authority that can grant BIS certificates for import to foreign manufacturers.

Qualifying norms for factory audits

The FMCS Certificate in India from the FMCD department is meant for manufacturing units located overseas. The production units will undergo a 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).

The auditing process also ensures that the manufacturing unit is legitimate and that the said machines and equipment are present on the premises. Prior to the audit, a manufacturer must agree to the applicable fee, as prescribed by the BIS. 

List of fees to be borne by an applicant 

The fees to be remitted by applicants & licensees under FMCS shall be the same as applicable to domestic manufacturers. In addition, Per-diem charges shall be applicable as prescribed in Chapter II of Regulation 12 (4) (a) of the Bureau of Indian Standards (Terms and Conditions of Service of Employees) Regulations, 2020.

All visits under FMCS shall be treated as special visits, and cost of ticket, visas, insurance, etc. shall be payable as per BIS norms. Payment against contingency fund of INR 10,000 (US$120.07) shall also be payable.

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BIS guidelines also specify that all payments can be made either in Indian Rupees with GST (as applicable) or in equivalent of US dollars by applicants or licensees of the South Asian Association for Regional Cooperation (SAARC) countries, i.e., Afghanistan, Bangladesh, Bhutan, India, Nepal, the Maldives, Pakistan, and Sri Lanka. It may be noted that the fees prescribed by the authority do not include bank commissions and transfer charges.

Validity and renewal of foreign manufacturer certificate

Initially, the license is provided for a minimum of one year and a maximum of two years. Depending on whether the yearly license fee and advance minimum marking charge have been paid, the license renewal may be considered for a minimum of one year and a maximum of five years. An INR 5,000 (US$60.03) late charge must be included with the renewal application if it is submitted after the license has expired.

The following must be included in a renewal request:

1. A renewal application (Form XII)
2. Production details, broken down by month and consignee address in full
3. Extended Performance Bank Guarantee: six months beyond the license’s expiration date
4. Payment of the relevant marking costs

As prescribed by the BIS, there are over 200 items that are mandated to obtain a quality certificate. The articles are product-wise categorized.

Foreign manufacturer certification process

FMCS conducts inspection of a manufacturing unit based in abroad to ensure the articles meant for imports to India meet the required quality standards. All manufacturers, except for those dealing in electronic and information technology, are permitted to obtain the FMCS certification.

1. Fill out the application form for the certification along with all the mandatory documents.
2. Pay the prescribed fee while submitting the application form.
3. The manufacturing and testing infrastructure would be verified during a factory inspection.
4. A sample product will be taken during the factory inspection for independent testing.
5. The registration process will only move forward if the inspection and independent testing report verifies that the product complies with the BIS standards.
6. The applicant would have to pay a license fee before the license is granted.
7. The certificate will be issued if the product complies with the BIS standards.

Mandatory documents

1. Business license and ISO certificate (English translation is mandatory, if license/certificate is available in any other language).
2. Process flow chart.
3. Certificates for products or factory systems (if any).
4. List of manufacturing machinery.
5. List of raw materials and raw material test certificate.
6. Test Equipment Calibration Certificate.
7. Drawing of the product or its components.
8. Test report according to Indian Standards.
9. Authorized Indian Representative (AIR) details
10. Undertaking and Declaration.

Guidelines to nominate an AIR by foreign manufacturer

Each foreign application or manufacturer must have a branch office in India that will handle all of the foreign applicant’s duties and obligations with regard to the BIS Act as well as any rules and regulations formulated for the purpose of registration. In order to present their case, comply with registration requirements, and meet regulatory requirements, foreign manufacturers and companies must designate an Authorized India Representative in India.

In the event that they do not have a branch office in India, international applicants must designate AIR in order to obtain an ISI Mark Certificate and a BIS License. As the local representative, AIR is in charge of filing and overseeing the certification application and is accessible to respond to inquiries. The applicant must be sure of the following when nominating the AIR:

• The foreign manufacturer’s nominee for AIR must be an Indian citizen.
• In connection with the grant and operation of the license, AIR shall agree that he is responsible for adhering to the terms and conditions stated in the BIS license, agreement, undertaking, and any other documents executed on behalf of the foreign manufacturer.
• AIR is only able to represent one foreign manufacturer at a time; it is not permitted to act in the place of other foreign applicants.
• When AIRs examine a sample in a third-party laboratory, they will not have a conflict of interest in their capacity as AIRs.
• 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 license documents.

Key takeaways

On average, it takes six to nine months from the date of receipt of the completed application and its documentation to grant a license. It may also vary for other reasons, such as the applicant’s delay in responding to inquiries, sample transportation, fee payments, etc. Obtaining a BIS certificate for foreign manufacturers is done manually; the forms to be submitted can be downloaded from the BIS website.

(US$1=INR 83.29)

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