Industry officials said that several globally launched products of brands such as Lenovo, Acer, Hewlett Packard (HP) and Samsung are unlikely to hit the Indian market soon due to a delay in procuring the Bureau of Indian Standards (BIS) certification.
The Manufacturers Association for Information Technology (MAIT), the apex body of computer hardware industry in India, has estimated the mandatory certification to cost around Rs1,000 crore a year for computer manufacturers.
“There is no way we can absorb this huge compliance cost,” said Amar Babu RK, MAIT president and MD at Lenovo India. The industry is already under pressure due to exchange rate fluctuation and overall slowdown impacting sales growth, he said, justifying companies’ decision to pass on the complying cost to consumers.
From January 3 this year, the government made BIS certification mandatory for import of 15 electronic products. It was done to curb entry of substandard and spurious electronic items that can be a health hazard and a security risk.
The problem is not much for TVs and many other products as most companies make or assemble these products within the country, and the number of models being imported is small. In case of tablets and laptop, however, firms import the products and refresh their models almost every quarter.
Industry officials alleged that the process of BIS certification takes an average of 45 days, depriving Indian consumers the access to the latest models available in other countries. S Rajendran, chief marketing officer at Acer India, said, “At a time when the industry sales is badly impacted with poor consumer sentiments, the approval process has become a major sore point.” Lenovo’s Babu said the company has some 15 new models stuck in the approval process.
Sunil Soni, director-general at BIS, however, denied any delay in the approval process and said most models are cleared in aweek’s time. “There are some 50-60 applications which are pending but that is due to improper application by the manufacturer and hence the fault is on them, and not on us,” he said.
Soni said BIS plans to introduce a computerised application system next month to streamline the process and speed up approval. Most big markets in the world have mandatory certification for electronics products to be launched there. CE marking is the identification mark that a product meets the European standards, while the FCC Declaration of Conformity in mandatory in the US.
Anwar Shirpurwala, executive director at MAIT, said that the approval process in India is not well set yet, impacting product planning of the companies and even making some companies hold back launch of some of their new models here.
Source : https://economictimes.indiatimes.com/tech/hardware/hundreds-of-lenovo-acer-hp-samsung-gadgets-held-up-due-to-delay-in-bis-certification/articleshow/31432311.cms