India’s Ministry of Steel has granted exemptions to 202 Bureau of Indian Standards (BIS) licences on the Steel Import Monitoring System (SIMS) portal—temporarily waiving mandatory raw-material certification requirements for foreign steel suppliers. This move is aimed at streamlining imports and mitigating delays faced by domestic Integrated Steel Plants (ISPs).

The exemptions were issued under an official order dated August 8, following a July 11 directive by the ministry. This allows select foreign steel manufacturers to continue exporting raw inputs without undergoing certification under BIS norms.

The relief extends to around 72 integrated steel plants in 16 countries, including major exporters like Japan, South Korea, Germany, Italy, France, Russia, and the United States. Japan leads with over 80 exempt licences, followed by South Korea with more than 50.

The ministry states the initiative is intended to maintain the steady flow of high-quality steel to domestic ISPs by removing hold-ups tied to certification via SIMS.

However, policy watchers regard this as a temporary, stop-gap measure. Ajay Srivastava of the Global Trade Research Initiative (GTRI) argues that “raw material certification may be redundant when the final product’s BIS compliance already ensures quality,” and points out that such requirements particularly burden MSMEs and rolling mills that rely on small, flexible orders rather than direct sourcing from large integrated facilities.

To address ongoing concerns about SIMS, Quality Control Orders (QCOs), and No Objection Certificates (NOCs), the Ministry of Steel will host an Open House session on August 19, inviting industry stakeholders to discuss these issues directly with officials.

The exemptions arrive against the backdrop of a mandatory compliance regime enforced since June 2025 under the Steel Quality Control Order 2024, where both finished steel products and their input materials must meet BIS standards as monitored by the Central Board of Indirect Taxes and Customs (CBIC) via SIMS. This requirement, while ensuring quality, has also prompted supply-chain inefficiencies, particularly when domestic production can't keep up.

Aligned with India’s Make in India agenda and rapid infrastructure expansion, easing bottlenecks in steel imports is becoming increasingly crucial. While this exemption offers immediate relief, it also highlights the need for a nuanced regulatory framework that balances quality assurance with supply flexibility.

The Ministry has indicated that similar exemptions could be granted on a case-by-case basis as more requests arise, demonstrating a willingness to maintain a responsive and adaptable import regime.