BIS FMCS 3-Year Licence Renewal: Important Update for Foreign Manufacturers

The Bureau of Indian Standards (BIS) has made an important change in the renewal of the licence under the Foreign Manufacturers Certification Scheme (FMCS). Foreign manufacturers who are eligible to apply for a 3 year renewal period instead of an annual renewal process can now do so.

This move will significantly ease the repetitive administrative work for foreign manufacturers with BIS licences who export certified products to India.

What Is the Latest BIS FMCS Renewal Update?

Under the Foreign Manufacturers Certification Scheme, BIS grants licenses to the eligible manufacturers outside India for products conforming to the applicable Indian Standards.

Many of the foreign manufacturers were earlier used to dealing with their BIS license renewal requirements on an annual basis. The current BIS renewal framework provides for the possibility of requesting a longer renewal period, including three years and in appropriate cases up to five years.

This gives manufacturers more flexibility when planning their compliance and export activities for the Indian market.

Previous method:

Yearly renewal → renewal application again → administrative work again

Longer method for renewal:

Multi-year renewal less renewal applications, annual compliance stays

The main difference is that the licence renewal period and the ongoing compliance obligations are not the same thing.

Does a 3-Year BIS FMCS Licence Mean No Compliance for 3 Years?

This is perhaps the most important point for foreign manufacturers to grasp. The longer period to renew the licence does not relieve the manufacturer from continuing obligations under ISI Certification. BIS requires licensees to comply with the applicable Indian Standard and to meet the applicable reporting and fee requirements.

The BIS renewal guideline specifically requires details of production and applicable marking fee related information. The BIS general product certification guideline also requires details of production for the calculation of actual marking fees. It should be viewed as a longer licence/renewal cycle and not a three year compliance holiday and manufacturers should plan for this.

What Annual Compliance Is Still Important?

Foreign manufacturers who hold an FMCS licence should continue to monitor their ongoing BIS obligations. This can include such things as:

1. PRODUCTION DECLARATION

The production data on standard-marked goods shall be retained and provided as appropriate. BIS renewal guideline requires details of production including month wise production information and consignee details.

2. Marking Fees Applicable

The manufacturer shall ensure that the relevant marking fee obligations are met. BIS's renewal guidelines tie the renewal period to the payment of the applicable licence fee and advance minimum marking fee.

3. Ongoing Conformance of Products

The certified product shall continue to conform to the relevant Indian Standard and the conditions of the BIS licence. FMCS is intended for foreign manufacturers whose products conform to the relevant Indian Standards.

4. Manufacturing & Test Arrangements

The manufacturer should continue to maintain the necessary manufacturing, inspection and testing infrastructure relevant to its BIS license.

5. BIS Inspection/Surveillance

A longer renewal period does not take away BIS's ability to conduct surveillance. BIS says that after grant of a licence, surveillance inspections may be undertaken to check continued compliance.

What Are the Benefits of a 3-Year FMCS Licence Renewal?

For eligible foreign manufacturers, a longer renewal period can provide several practical advantages.

Who Can Benefit From the Longer FMCS Renewal Period?

The update is of particular interest to:

1. Foreign manufacturers with a valid BIS FMCS licence.
2. Overseas manufacturers regularly exporting BIS certified products to India.
3. Large Indian distribution networks of multinational companies.
4. Producers with a stable system of production and quality control.
5. Companies planning long term operations in the Indian market.
6. Foreign manufacturers preparing their next BIS licence renewal.

However, the renewal period that applies is not always automatically three years for all manufacturers. The time period for renewal should be set in accordance with the relevant BIS framework, licence status, fees and other requirements. BIS currently says renewal can be considered for 1 to 5 years.

Important: FMCS Is More Than Licence Renewal

For foreign manufacturers, BIS FMCS compliance begins long before the renewal stage.

FMCS is a BIS certification route which allows eligible foreign manufacturers to get a BIS license for products matching with relevant Indian Standards. BIS's Foreign Manufacturers Certification Department (FMCD) at BIS Headquarters in New Delhi is responsible for issuing the licence.

The process usually involves:

In addition, BIS mandates that foreign manufacturers designate an Authorized Indian Representative (AIR) under the FMCS process.

Need Assistance With BIS FMCS Renewal?

For foreign manufacturers, deciding the appropriate renewal period, creating production statements, calculating applicable fees, keeping documentation, and coordinating with BIS thru their Authorized Indian Representative are often necessary steps. Sun Certifications India provides professional assistance to foreign manufacturers for BIS FMCS certification, licence renewal, scope changes and continuous BIS compliance.

Our support can include:

1. BIS FMCS Licence renewal support
2. Review Documentation
3. Coordination of Production Statements
4. Fee assessment applicable
5. BIS Application Support AIR Coordination BIS Query Reply Support
6. Scope of licence change
7. Compliance guidance continued

BIS FMCS licence renewal on your mind? Monitor your license and compliance status as the expiry date approaches to prevent any unnecessary delays or regulatory issues.

FAQ

Q1. Any update on new BIS FMCS 3-year renewal of license?

Eligible FMCS licence holders can apply for longer renewal periods under BIS. The existing BIS guidance states that renewal may be considered for periods from one year to five years, as long as applicable requirements and fees are met.

Q2. Does each BIS FMCS Certificate automatically renew for 3 years?

No. A three-year renewal should not be considered as an automatic entitlement for all FMCS licences. The applicable renewal period is determined by the BIS renewal framework and the manufacturer's compliance and fee position.

Q3. Do foreign manufacturers have to submit production information during the 3-year renewal period?

BIS compliance and marking-fee calculations still require relevant production details. BIS specifically asks for production details as part of the renewal requirements.

Q4. Does a 3-year FMCS Certificate mean no more annual fees?

No. The applicable licence-fee and marking-fee requirements under the BIS framework for their licence must be followed by manufacturers.

Q5. Can BIS suspend or revoke an FMCS license during the renewal period?

A longer renewal period does not preclude BIS from taking action for non-compliance. Manufacturers must continue to comply with the applicable BIS requirements during the term of the licence.