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Planned special tax for the import of pharmaceutical raw materials to India fuels fears of a possible shortage

A government committee has proposed to introduce a special tax on pharmaceutical raw materials imported into India. Experts, on the other hand, fear that this would cause further shortages due to the already tense situation caused by the after-effects of the coronavirus outbreak in China. “The special tax will not exceed 1 percent,” said a government spokesman. The corresponding committee of the Department of Pharmaceuticals (DoP) also wants to establish a new authority to monitor the production and reserves of drugs in India. The new special tax could be used to finance this authority, according to a proposal.

The committee was set up about a month ago when traders raised the prices of certain raw materials. The reason given was the extended and prolonged closure of producers in China. The committee also proposed that 12 raw materials and medicines could no longer be exported from India so easily in the future. This should ensure that there is no shortage in the country should the closure of Chinese factories continue. Most of the 12 substances are imported from Hubei province, whose capital Wuhan was the epicentre of the Covid-19 outbreak.

Indian pharmaceutical manufacturers import around 70 percent of their basic substances from China. According to data from the Indian government, the value of the imported goods is 2.4 billion US dollars. It is still to be investigated to what extent India is dependent on the raw materials imported from China and what measures can be taken against this. Meanwhile, the Indian government is considering promoting the domestic production of pharmaceutical raw materials to prevent a scarcity. Therefore, there could also be opportunities for foreign producers to establish new production sites in India. The Central Drug Standard Control Organisation (CDSCO) is responsible for the registration and approval of all drugs and medical devices on the Indian market. We would be pleased to advise you on the appropriate India certification of your products.

Indian companies are increasingly working in cloud environments

Half of all Indian companies will be working in so-called hybrid multi-cloud environments by 2021. This is the result of a study by market researchers from International Data Corporation (IDC). In addition, 95 percent of those surveyed plan to increase their spending on setting up and using cloud solutions in the next 12 months. Companies in India view the cloud as a key strategy for achieving their business goals, according to an analyst from IDC. The challenge is to combine different systems and providers into a single application.

IDC’s technical consultants therefore see the following scenario for buyers and suppliers and cloud services for the next three years. By 2021, distributed and individual cloud solutions will dominate. Half of the companies rely on company-owned storage and data centers, some public services and outdated technologies in their IT infrastructure. By the end of 2022, there will be a so-called multicloud management. 30 percent of the companies use virtual machines (VMs), Kubernetes and other similar solutions.
By 2023, development will have progressed so far that a third of all Indian companies will be working with hyper-agile apps in the cloud. They will rely on container virtualization in hybrid or multicloud environments for flexible and smooth application. “Cloud management is a challenge,” said Senior Market Analyst Shende of IDC India. “Companies need partners for training and hiring staff. The market in India is demanding consistent and standardized automated cloud solutions, both hardware and software. This could save time and money for skilled workers and corporate decision makers,” Shende added. Cloud equipment manufacturers should look into TEC certification, which is required for telecommunications equipment. Telecommunication Engineering Center (TEC) TEC certification is a mandatory product registration for certain products in the Indian market.

We will be happy to assist you with TEC accreditation and are also available to answer any questions you may have. Call us directly (+ 49-69-2713769261) or send us an E-mail.
For further information on TEC certification, please read our free information package “TEC Certification – The Booklet“.
Information on the certification of vehicle components can be found here: AIS/TAC Certification.

In India, new BIS standards to restrict the uncontrolled import of goods

The Indian government is planning new regulations to limit the increasing number of imports. This mammoth task employs numerous ministries such as steel, chemicals, telecommunications, heavy industry and also the Bureau of Indian Standards (BIS). The Indian Prime Ministers bureau has set up a committee of secretaries of state which now has 6 months’ time to distinguish between imports that are necessary for production in the local industry and other imports that are not necessary. Meanwhile, the Ministry of Commerce has pointed out that many imported goods are not properly declared according to the uniform HS system. The Harmonized System is a system introduced in international trade that identifies goods by their composition, product description or function with a specific code and levies import duties accordingly.

According to a government spokesman, it is important to control the exact content of imported goods as India has become largely dependent on imports. He also said that they want to offer consumers safe and environmentally friendly products and put an end to brand piracy. The different ministries are to analyse the exact figures on behalf of the Ministry of Commerce. After that, trade restrictions will most likely be introduced and monitored by the BIS. The BIS will therefore play a stronger role in the future in monitoring markets and regulations.
India’s exports last November amounted to around 26 billion US dollars while imports amounted to 38 billion US dollars. This corresponds to a trade deficit of 12 billion US dollars compared with 11 billion in October. Many of the imported goods are simply declared as ‘miscellaneous goods’ and do not have an HS code. Of these, toys, furniture, sports goods and glassware are just a few of the 370 items on a list for which there are no common technical standards. The BIS estimates the import value of these goods at 127 billion US dollars. The respective ministries are now called upon to draw up a list of goods which are to be tested and certified by the BIS in the future. It is assumed that the government wants to include at least 300 products in this list within the next three months. The Ministry of Commerce has instructed the BIS to raise the current 500 technical standards to 5,000.
We are your partner for BIS certification in India. A list of products requiring approval can be found on our website. We support you in the fast certification of products for the Indian market.
Here you can find more information about the AIS certification, BIS certification, WPC certification and TEC certification.
Please do not hesitate to contact us for further details and consultation. You can contact us via e-mail, or call us (UK: +44 2071931135, Rest of Europe: +49 69 2713769150, US: +1 773 654-2673).
You can also download our brochures about the compulsory certifications here.

Volkswagen demands reliable decisions from the Indian government for the automobile market

At the beginning of February, the Volkswagen Group proposed to the Indian government to create a reliable framework for new product launches. For the Group, which plans to invest 1 billion euros in India, clear statements and regulations are important for bringing new vehicles to market. The AIS standards, which govern the certification of automotive products, play a key role in this discussion. New laws should have adequate lead times so that the automotive industry can react to them and offer customers the appropriate vehicles, Skoda Chairman Maier demanded. In 2018, the VW Group restructured its business in India and assigned the Skoda brand the sole leadership role.

The regulations for electric vehicles in India were also not yet conclusive, he said. “This is a global issue that also applies to the Indian market. If the framework conditions and customer acceptance are in place, we too will bring electric vehicles to market,” Maier continued. There is no clear development plan for electric mobility in India, such as the creation of an infrastructure for charging stations. Maier also criticized the relatively short period of time in which Indian emissions standards have been tightened. “With a lead time of only 2 years, they are putting pressure on the industry”.
Nevertheless, Maier is confident for the Indian automobile market. Volkswagen and Skoda together are expected to have a market share of five percent. This would make India one of Skoda’s five largest sales markets. The Group recently presented the Skoda Vision IN concept vehicle and a compact SUV from Volkswagen under the provisional name Taigun for the Indian market. For the new vehicles, the Group plans to source 95 percent of its parts and components from local suppliers. Vehicles and vehicle components for the Indian market require certification in accordance with the Indian AIS (Automotive Industry Standard). The AIS certification process can be challenging and complex. Feel free to inquire a free check without obligation whether your product is subject to AIS certification from us.
If you need assistance with your TAC Certification or have any questions, you can contact us any time. Call us directly: EU: +49-69-2713769261, UK:+44-2071931135, US: +1-773-654-2673 or send us an email.
For more information regarding the AIS/TAC certification, please read our free information booklet “AIS/TAC – The Booklet“.

BIS is about to implement phase 4 of certification scheme

As published in the Gazette of India on April 1, 2020 the Bureau of Indian Standards (BIS) will implement phase 4 of their certification scheme effective October 01, 2020. Further product categories will be added to the Schedule of the “Electronics and Information Technology Goods” and will become subject to the compulsory registration scheme (CRS):

Product CategoryIndian Standard NumberTitle of Indian Standard
Standalone LED Modules for General LightingIS 16103: Part 1: 2012LED modules for general lighting: Part 1 safety requirements
Lighting Chain (Rope Lights)IS 10322: Part 5 Section 9: 2017Luminaries: Part 5 Particular Requirements Section 9 Rope Lights
Keyboard  IS 13252: Part 1: 2010Information technology equipment – safety part 1 general requirements
Induction Stove  IS 302: Part 2: Section 6: 2009Safety of household and similar electrical appliances: part 2 particular requirements, section 6 cooking ranges, hobs, ovens and similar appliances
Automatic Teller Cash Dispensing Machines  IS 13252 Part 1: 2010  Information technology equipment – safety part 1 general requirements
USB Type External Hard Disk Drive  IS 13252 Part 1: 2010  Information technology equipment – safety part 1 general requirements
Wireless Headphone and EarphoneIS 616: 2017Audio, video and similar electronic apparatus-safety requirements
USB Type External Solid- State Storage Devices (above 256 GB capacity)  IS 13252 Part 1: 2010Information technology equipment – safety part 1 general requirements
Electronic Musical System (with input power below 200 Watts)IS 616: 2017  Audio, video and similar electronic apparatus-safety requirements
Standalone Switch Mode Power Supplies (SMPS) (with output voltage 48 V max)  IS 13252 Part 1: 2010Information technology equipment – safety part 1 general requirements
Television (other than Plasma/ LCD/LED)  IS 616: 2017Audio, video and similar electronic apparatus-safety requirements
Rice Cooker    IS 302: Part 2: Section 15: 2009safety of household and similar electrical appliances: part 2 particular requirements: section 15 appliances for heating liquids

A transition period of three months is given by the Indian authorities. For all of the product categories mentioned in the schedule, the latest standards as published and notified by BIS from time to time would apply.

The list has been brought into public discussions last month and the official announcement on phase 4 came sooner than expected. The BIS certification scheme has been implemented in several phases since 2012. The last update of phase 3 was in 2017.
BIS certification is required for many industrial and consumer electronic products. Factory inspections are also required for some products.
If you have products affected by this regulation or have uncertainties about it, please feel free to contact us. We can check the BIS certification requirements for your case individually. You can send us an email or call us any time +49-69-2713769261.
For more information regarding the BIS certification, please read our free information booklet “BIS Certification – The Booklet“.

New Standard for Pashmina Wool in India

Pashmina scarfs can be purchased almost everywhere now. In the past the Pashmina title stood for high quality, but recently this term has been used for textile products of different qualities.
Originally Pashmina was defined as a thin cloth which was created out of silk, a cashmere blend or pure cashmere. The term Pashmina comes from the Persian word “pashm” which means wool.
Due to limited availability and high prices of genuine Pashmina products, there are often fake Pashmina products on the market with low quality wool or merino wool. The fake Pashmina products have damaged the credibility of real Pashmina and have affected both the demand and price for the higher quality real product.

The BIS has developed a new Indian standard of identification, labeling and marking on Pashmina products in an effort to preserve the culture and heritage of Pashmina products from the Leh and Ladakh region and to stop low quality fakes.

This new standard will boost the Pashmina industry so that all manufacturers of genuine products will be more profitable and not need to compete with lower quality fake Pashmina. The real Pashmina products should be clearly identified through standardization and conformity assessment, so that there will be an improvement of the economic status of workers and artisans.

Additionally, the BIS is doing research on a method to identify Pashmina with artificial intelligence that would be cost-effective, fast and reliable.

Here you can find more information about the AIS certification, BIS certification, WPC certification and TEC certification.
Please do not hesitate to contact us for further details and consultation. You can contact us via e-mail, or call us (UK: +44 2071931135, Rest of Europe: +49 69 2713769150, US: +1 773 654-2673).
You can also download our brochures about the compulsory certifications here.