India Cracks Down on Substandard Imports

The Indian government has intensified its efforts to curb the influx of substandard goods into the domestic market, implementing a multi-pronged approach to safeguard its domestic industry and protect consumer interests.  

Combating Unfair Trade Practices:

To address the adverse impact of cheaper imports on domestic industries, the Directorate General of Trade Remedies (DGTR), under the Department of Commerce, is actively conducting investigations into anti-dumping, safeguard (quantitative restrictions), and countervailing duties. These investigations, based on petitions from domestic industries, are carried out under the Customs Tariff Act, 1975, and its associated rules. The DGTR’s recommendations are then submitted to the Ministry of Finance for final action.  

Enforcement Against Violations:

In the current financial year 2024-2025 (up to February 2025), the Directorate of Revenue Intelligence (DRI) and Customs field formations have booked 206 cases involving substandard goods valued at Rs. 206.62 crore. These cases pertain to violations of Intellectual Property Rights (IPR), Bureau of Indian Standards (BIS) norms, and Food Safety and Standards Authority of India (FSSAI) regulations, all under the Customs Act, 1962.  

Rigorous Customs Oversight:

The Central Board of Indirect Taxes and Customs (CBIC) maintains a constant vigil to prevent the entry of substandard goods. The Indian Customs Risk Management System (RMS) employs risk-based selective examination and testing, based on regulatory agency criteria, to further strengthen import controls.  

Food Safety Regulations:

The import of food articles is strictly regulated under Section 25 of the Food Safety and Standards Act, 2006, and the Food Safety and Standards (Import) Regulations, 2017. FSSAI clearance is subject to thorough document scrutiny, visual inspection, sampling, and testing to ensure compliance with safety and quality standards.  

Robust Legal Framework:

India has a comprehensive legal and institutional framework to protect its environment, public health, and agricultural sectors. The Foreign Trade Policy mandates that imported goods adhere to domestic laws, rules, regulations, technical specifications, and environmental and safety norms.

Specific Measures for Various Products:

  • BIS Standards: Imported goods must comply with the same BIS standards as domestic products.
  • Plant Quarantine: Plant and plant-based product imports are subject to plant quarantine and sanitary and phyto-sanitary measures.  
  • Sanitary Import Permits: Animal and animal-based product imports require sanitary import permits.  
  • FSSAI Standards: Food and edible item imports must meet FSSAI standards.  

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