India Curbs Substandard Imports to Protect Domestic Industry/Consumers

Measures have been implemented by the Government of India to address the challenge of substandard goods entering Indian markets. A multi-pronged approach is employed, involving various regulatory bodies and legal frameworks, aimed at protecting domestic industries and ensuring consumer safety. This coordinated effort underscores the commitment to maintaining quality standards and fair-trade practices within the country.

Trade Remedies: Role of DGTR

The Directorate General of Trade Remedies (DGTR), operating under the Department of Commerce, plays a crucial role in shielding the domestic industry from unfairly priced or subsidized imports.

i) Investigations Initiated: Based on petitions filed by domestic producers, investigations are conducted by DGTR. These include:

a) Anti-dumping: Counteracting goods sold below their normal value in the exporting country.

b) Countervailing: Addressing imports benefiting from foreign government subsidies.

c) Safeguard Measures: Providing temporary relief (like quantitative restrictions) to domestic industries injured by a surge in imports.

ii) Process Followed: Applications from the domestic industry are examined meticulously. Responses from importers, exporters, and other stakeholders are evaluated in accordance with the Customs Tariff Act, 1975, and associated rules.

iii) Recommendations Issued: Following thorough examination, findings and recommendations are submitted by DGTR to the Ministry of Finance for final consideration and the potential imposition of duties.

Customs Enforcement and Vigilance

Continuous monitoring and enforcement actions are undertaken by the Directorate of Revenue Intelligence (DRI) and Customs field formations under the Central Board of Indirect Taxes and Customs (CBIC).

i) Vigilance: Constant vigil is maintained to detect and prevent the import of substandard goods.

ii) Enforcement Action: Upon detection of violations (including those related to Intellectual Property Rights (IPR), Bureau of Indian Standards (BIS), and Food Safety and Standards Authority of India (FSSAI) norms), action is taken under the Customs Act, 1962, and other relevant laws.

iii) Recent Cases: In the financial year 2024-2025 (up to February 2025), 206 cases involving substandard goods valued at approximately Rs. 206.62 crore were booked.

iv) Risk Management System (RMS): The Indian Customs RMS facilitates risk-based selective examination and testing. This system implements selectivity criteria set by regulatory agencies, effectively thwarting attempts to import non-compliant goods.

Food Safety Regulations for Imports

The import of food items is specifically regulated to ensure consumer health and safety.

i) Governing Legislation: Section 25 of the Food Safety and Standards (FSS) Act, 2006, and the Food Safety and Standards (Import) Regulations, 2017, provide the legal basis for controlling food imports.

ii) Clearance Process: A No Objection Certificate (NOC) or clearance is issued by FSSAI only after a rigorous process. This process includes:

> Scrutiny of submitted documents.

> Visual inspection of the consignment.

> Sampling and laboratory testing.

iii) Compliance Determination: The objective is to determine conformity with established safety and quality standards before goods are allowed entry.

Comprehensive Legal and Quality Framework

India maintains an extensive legal and institutional framework designed to protect its environment, consumers, and the health of people, plants, and animals from risks associated with imported goods.

i) Foreign Trade Policy (FTP): Provisions within the FTP ensure imported goods are subject to all applicable domestic laws, rules, regulations, technical specifications, and environmental/safety norms.

ii) BIS Standards: Standards set by the Bureau of Indian Standards (BIS), applicable to domestically manufactured goods, are equally applied to imported goods, ensuring a level playing field for quality.

iii) Specific Sector Regulations:

a) Plant Products: Imports are subject to Plant Quarantine measures and Sanitary & Phyto-sanitary (SPS) checks.

b) Animal Products: Imports require sanitary import permits and adherence to animal quarantine protocols.

c) Food Items: Compliance with FSSAI standards is mandatory, as detailed earlier.

These comprehensive measures, highlighted in a statement by the Minister of State for Ministry of Commerce & Industry, Shri Jitin Prasada, reflect a sustained effort to ensure that goods imported into India meet required standards, thereby protecting national interests. (PIB: 2117283)

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