QUALITY OR CONTROL: WHICH IS THE FOCUS?

While the government asserts that QCOs are implemented to ensure product quality, protect human, animal, and plant health, and prevent deceptive practices, domestic industries argue that these measures impose significant burdens.

- Shivanand Pandit

Over the past decade, the Indian Central government has mandated higher standards for the production and importation of various items, ranging from toys, footwear, and furniture to insulated flasks, smart meters, and air coolers. For instance, until 2014, there were only 14 Quality Control Orders (QCOs) covering 106 products. As of the latest count, this number has risen to 156 QCOs encompassing 672 products.

These QCOs, issued by government departments in collaboration with the Bureau of Indian Standards (BIS), are mandatory, unlike the many other standards recommended by the BIS. While the government asserts that QCOs are implemented to ensure product quality, protect human, animal, and plant health, and prevent deceptive practices, domestic industries argue that these measures impose significant burdens. Additionally, they often lead to disputes with trading partners at the World Trade Organization (WTO).

Adhering to specified quality standards through Quality Control Orders (QCOs) often leads to increased production costs for domestic industries. However, these standards can also be perceived as trade barriers by international partners. QCOs, falling under the Technical Barriers to Trade (TBT) agreement of the WTO, aim to ensure that technical regulations and standards do not unfairly impede trade. While the agreement supports the right of WTO members to implement measures for legitimate policy goals, it also encourages the use of international standards to promote a consistent trading environment. India argues that developed nations and China have utilized QCOs as trade barriers to limit imports from countries like India. As a result, India seeks to bridge this gap by addressing these perceived trade barriers.