Important Update DPIIT Transition Facilitation QCO – What MSMEs Must Prepare Now

Dear Members,

Greetings from GAPS & IamSMEofIndia.

The Department for Promotion of Industry and Internal Trade has notified the Transition Facilitation (Quality Control) Order, 2026, which came into effect from 25 June 2026.

This is an important development for industries dealing with products covered under notified Quality Control Orders (QCOs) and requiring BIS compliance.

The new framework provides a structured, permission-based transition mechanism for eligible companies, allowing them to continue operations and supplies while remaining within the BIS compliance ecosystem.

This should be seen as a practical transition window, not as an exemption from quality standards.
 

Why this matters for MSMEs

1. . Reducing sudden business disruption
   Companies progressing towards BIS compliance may get a structured route to continue supplies instead of facing abrupt stoppage.
2. . Giving time to build compliance capability
   MSMEs can use this period to strengthen quality systems, testing procedures, technical documentation, product conformity, and vendor controls.
3. . Helping supply chains remain stable
   For OEM suppliers, component manufacturers, import-dependent industries, and QCO-affected sectors, this may help avoid immediate supply-chain breakdowns.
4. . Encouraging domestic manufacturing capability
   The framework appears designed to support companies that are serious about building technical capability, R&D, quality assurance, and domestic manufacturing strength.
5. . Creating a formal route instead of ad hoc relief
   This is a regulated mechanism with oversight, documentation, evaluation, and BIS surveillance. It gives industry a legitimate path to seek transition support.

What members must understand clearly

Preparatory steps for members

1. . Identify whether your products fall under any notified QCO
   Review your product category, HS codes, applicable Indian Standards, and BIS certification requirements.
2. . Check your current compliance status
   See whether BIS certification is already obtained, pending, not applied for, or partially applicable.
3. . Prepare technical documentation
   Keep product specifications, drawings, material details, test reports, process controls, inspection plans, and quality records ready.
4. . Strengthen quality assurance systems
   Review in-house testing, third-party testing, calibration records, traceability, batch control, rejection control, and customer complaint systems.
5. . Map your supply chain risks
   Identify imported inputs, non-certified vendors, alternate domestic sources, testing gaps, and customer-specific requirements.
6. . Build a BIS readiness file
   Members should maintain one complete file containing product details, applicable standards, production process flow, quality controls, test reports, vendor controls, and compliance history.
7. . Do not wait for the last date
   Applications under the mechanism will be accepted for a limited period. Detailed operational guidelines will be issued separately by DPIIT, but preparation should start now.
8. . Avoid casual or incorrect declarations
   Since permission can be withdrawn for misrepresentation or non-compliance, all submissions must be factual, documented, and defensible.

Our recommendation

This new transition framework gives industry some breathing space, but only those companies that prepare seriously will benefit.

GAPS & IamSMEofIndia will continue to track the detailed operational guidelines and will support members with awareness, guidance, and structured compliance preparedness wherever possible.

Members affected by QCO/BIS requirements are advised to immediately review their product categories and begin documentation and compliance preparation.

This is the right time to move from reactive compliance to proactive quality leadership.
 

Proud to say IamSMEofIndia