Centre eases BIS compliance with risk-based framework, lets manufacturers source from Scheme II suppliers
The Transition Facilitation (Quality Control) Order, 2026 introduces a risk-based BIS mechanism, allowing manufacturers to source inputs from Scheme II self-declaration suppliers instead of requiring Scheme I ISI Mark holders. The move aims to unblock QCO certification bottlenecks across industries over a 3-year transition.
What happened
Bureau of Indian Standards (BIS) · Centre notifies Transition Facilitation (Quality Control) Order, 2026, introducing a risk-based BIS compliance mechanism.
Key facts
- 3 years
Why this matters
Expanded supplier eligibility under Scheme II opens M&A and sourcing partnership opportunities with previously non-ISI-certified manufacturers, though due diligence on self-declaration credibility becomes critical.
What to watch
- BIS publishes Scheme II supplier registry growth rate
- First major recall or quality incident tied to Scheme II inputs
- Sector-specific QCO deadline extensions or carve-outs
- MSME ministry signals on Scheme II adoption incentives
- Import substitution data for previously bottlenecked categories
- Map current supplier base by Scheme I vs Scheme II eligibility and identify cost-saving switch candidates
- Build internal quality assurance protocols for Scheme II inputs to mitigate self-declaration risk
- Engage with mid-tier component suppliers now pursuing Scheme II to lock favorable pricing early
- Audit private-label SKUs for QCO exposure and accelerate stalled launches
- Monitor competitor sourcing shifts via import data and channel checks