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The Donald Trump administration has upped the pressure on India to ease registration rules for US electronics and information technology product suppliers to the country.
A team from the US Trade Representative’s (USTR) office, in a recent meeting with officials from the Commerce & Industry Ministry, stressed that India should accept quality certificates issued by the US for registration of American companies and not insist on testing in its own labs, a government official told BusinessLine .
New Delhi, however, is not willing to oblige and the Indian team indicated that the matter could be sorted out only if the US returned the favour in areas such as drugs and agriculture.
“The USTR team, led by Deputy Assistant USTR Tanya Menchi, argued that the order making it mandatory to test the notified goods in Bureau of Indian Standards (BIS) labs was acting as a trade barrier for American companies as it was a time consuming process and also increased costs,” the official said.
The requirement is part of an order of the Ministry of Electronics and IT stating that no person shall manufacture or store for sale, import, sell or distribute goods which do not conform to the Indian standards specified in the order.
Manufacturers of these products are required to apply for registration from BIS after getting their product tested from BIS recognised labs, it added.
While the order covered about 15 electronics and consumer goods when it was notified in 2012, the list has now grown to 31 items. These include laptops, notebooks & tablets, plasma and LCD/LED televisions with screens 32-inch or above, mobile phones, smart card readers, microwave ovens, set top boxes, printers and scanners and electronic games (video).
“We understand that it is time consuming and problematic for foreign companies to get their products tested in Indian labs. But this is a regulation guiding all companies and not just ones from the US. The way out are mutual recognition agreements (MRAs) that we need in all areas including drugs and agricultural items,” the official said.
Exporters of Indian pharmaceutical products and agricultural items such as mangoes to the US have to carry out tests under the vigilance of American departments which has served as an impediment for long.
“If the US is willing, the two countries can start work on MRAs that will help industries of both sides. The ball is in their court,” the official added.
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