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GDPREU DataSOC 2 Type IIISO 27001
Blog/Product Compliance
Product Compliance2026-07-03·6 min read
Naomie Halioua

Naomie Halioua

Co-founder & CRO, AI Research

India opens a 5-year sourcing bridge for footwear, toys and home appliances — but foreign manufacturers need an Indian entity to use it

India opens a 5-year sourcing bridge for footwear, toys and home appliances — but foreign manufacturers need an Indian entity to use it.

On 25 June 2026, India’s Department for Promotion of Industry and Internal Trade (DPIIT) notified the Transition Facilitation (Quality Control) Order, 2026 — a five-year alternative route across ten mandatory BIS Quality Control Orders (QCOs), including toys, footwear (protective footwear included), air conditioners and household electrical appliances. Most coverage reads it as industry relief. The nuance it misses: only a company incorporated under India’s Companies Act, 2013 can apply — a foreign manufacturer without an Indian entity cannot use this bridge at all.

What DPIIT actually notified on 25 June

The Transition Facilitation (Quality Control) Order, 2026 was notified by DPIIT under the Bureau of Indian Standards Act, 2016, and came into effect on 25 June 2026. It stays in force for five years unless the central government extends it. It does not waive BIS certification: it creates a time-bound alternative pathway that lets eligible manufacturers facing temporary sourcing constraints procure products or components from manufacturers who are not themselves covered under the existing QCO regime — provided those products still meet Indian quality standards.

Three nuances that separate signal from noise

01

Not a certification exemption

It is a sourcing bridge, not a waiver — products routed through it still have to meet Indian quality standards.

02

Indian entity required

Only companies incorporated under the Companies Act, 2013 can apply. Foreign manufacturers need an India-incorporated company to qualify.

03

Operating guidelines still pending

Documentation, eligibility criteria and processing timelines are due separately from DPIIT — trade body GTRI flagged the gap on 27 June 2026.

Ten QCOs, one committee, a two-year licence

The order applies across ten selected Quality Control Orders, including toys, protective footwear, air conditioners and compressors, footwear, furniture, hinges, and domestic and household electrical appliances — categories that sit directly in the path of global toy, footwear, sporting-goods and small-appliance brands sourcing from or selling into India. Applications are evaluated by an Implementation Committee chaired by DPIIT, with the Bureau of Indian Standards, the Department of Commerce, the Department of Consumer Affairs and the Directorate General of Foreign Trade at the table — assessing technical capability, past compliance record, quality-assurance systems and supply-chain resilience.

10

Quality Control Orders covered by the transition route

5 yrs

the order stays in force, unless extended by the central government

24 mo

window to submit applications from the date of commencement

The real subject: entity structure and product classification, not “relief”

To know whether a single SKU can actually use this pathway, a brand has to answer three questions at once: which of the ten QCOs does this exact product fall under — not the product family, the specific BIS standard; is the entity applying an India-incorporated company under the Companies Act, 2013, or a foreign manufacturer shipping in without one; and does the alternate sourcing manufacturer, though outside the QCO regime itself, still meet the underlying Indian quality standard. That is a product-classification and legal-entity mapping problem before it is anything else — and it is compounded by the fact that DPIIT’s detailed operational guidance on documentation and eligibility has not been published yet.

The same summer, a second, narrower amendment moved on footwear specifically: on 12 June 2026, DPIIT pushed back the deadline to sell pre-August-2024 footwear stock that never carried a BIS mark, from 31 July 2026 to 31 July 2027, and added a research-and-development import allowance of up to 4,500 pairs a year, provided each pair is marked “NOT FOR SALE” and scrapped after use. Two separate amendments, same underlying regime, same summer — India’s QCO framework is actively being rebuilt around who can source what, and how it is declared.

12 Jun 2026

Footwear QCO amendment: legacy-stock sell-through deadline pushed from 31 Jul 2026 to 31 Jul 2027; new R&D import allowance (4,500 pairs/year, “NOT FOR SALE”).

25 Jun 2026

Transition Facilitation (Quality Control) Order, 2026 notified — alternative sourcing route across 10 QCOs, Companies Act 2013 entities only.

27 Jun 2026

GTRI publicly asks DPIIT for detailed operational guidelines, digital applications and 60–90-day processing timelines.

Why it matters for brands

Global retail and consumer-goods brands sourcing footwear, toys or small electrical appliances from India — or through Indian contract manufacturers — now have three possible compliance lanes for the same product family: standard mandatory BIS/QCO certification, this new transition route if the applying entity is India-incorporated and accepted by the committee, or, for footwear specifically, the extended legacy-stock carve-out. A brand with its own India-incorporated subsidiary can apply directly. A brand sourcing through an independent Indian contract manufacturer, or shipping in without a local entity, cannot use the bridge at all and stays on the standard QCO certification timeline — regardless of how the relief is being reported.

None of this is visible from a product’s name or category label. It only becomes visible once a product is mapped precisely to the BIS standard that governs it, and that mapping is cross-referenced against the legal structure sourcing or selling it into India. That mapping — product to applicable regulation, to the entity that has to act on it, kept current as the rules move — is exactly Cleo’s terrain.

Two ways to read 25 June

The narrow read

India eased sourcing pressure for manufacturers stuck under its Quality Control Orders. Good news, file it under industry relief.

The structural read

Which compliance lane applies now depends on precise product-to-standard classification and on legal-entity structure at once — and it changes twice in the same summer. Static spreadsheets can’t track that; live product-data mapping can.

Sources

  1. Press Information Bureau — DPIIT notifies Transition Facilitation (Quality Control) Order, 2026 (25 June 2026, official)
  2. Gazette of India — Transition Facilitation (Quality Control) Order, 2026, full notification (official)
  3. Business Standard — GTRI urges DPIIT to issue detailed guidelines for new quality certification (27 June 2026)
  4. ETV Bharat — New QCO transition framework may ease compliance, but transparent implementation key: GTRI
  5. KNN India — DPIIT notifies Transition Facilitation QCO to ease BIS compliance
  6. Angel One — Centre notifies transition framework to ease QCO compliance for manufacturers
  7. The Tribune — Footwear industry gets relief as Centre extends Quality Control Order deadline to July 2027
  8. Business Today — Govt eases footwear import norms for R&D, extends compliance relief by 1 year

Frequently asked questions

What is India's Transition Facilitation (Quality Control) Order, 2026?

It is an order notified by India's DPIIT under the BIS Act, 2016, effective 25 June 2026 for five years unless extended. It creates a time-bound alternative sourcing route across 10 mandatory BIS Quality Control Orders, letting eligible manufacturers facing temporary sourcing constraints procure products or components from manufacturers not themselves covered by the QCO regime, provided the products still meet Indian quality standards. It does not waive BIS certification.

Which product categories does the order cover?

The order applies across 10 selected Quality Control Orders, including toys, protective footwear, air conditioners and compressors, footwear, furniture, hinges, and domestic and household electrical appliances. DPIIT has yet to publish the detailed operational guidelines covering documentation, eligibility criteria and processing timelines.

Can a foreign manufacturer use this new pathway directly?

No. Only companies incorporated under India's Companies Act, 2013 can apply under the framework. A foreign manufacturer must set up or operate through an India-incorporated company to become eligible — brands sourcing through an independent Indian contract manufacturer, without their own local entity, cannot use this route and remain on the standard QCO certification timeline.

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