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Quality Control Order 12-03-2012

UNDERSTANDING THE SALIENT POINTS OF THE ORDER BY STEEL MINISTRY DATED 12TH MARCH 2012

Considering the confusion seen among induction furnace owners regarding the notification from STEEL MINISTRY regarding compulsory taking of BIS license, I have tried to explain some of the important clauses of the document in simple English to help the owners understand the order taken by ministry of steel and accordingly align their activities.

In below part, first the clause has been written in black with its explanation provided in RED in simple English:-

3. Prohibition regarding manufacture, storage, sale, distribution etc.-

(1) No person shall by himself or through any person on his behalf manufacture or store for sale, sell or distribute any steel and steel products spedified in the Schedule, which do not conform to the specified standards and do not bear Standard Mark of the bureau of Indian Standards, on obtaining certification marks licence:

Provided that nothing in this Order shall apply in relation to export of steel and steel products required for export, which conform to any specification required by the foreign buyer.


Para 3 of the order states that no person can manufacture or store products conforming to IS 2830:2012 and IS 2831:2012 without having BIS license. Also all the products manufactured in these codes will have to have the standard mark on the product.

This order is not applicable on products which are to be exported. – i.e. it is compulsory to take BIS license unless the product is to be exported.

(2) The sub-standard or defective steel and steel products, which do not conform to the specified standard, shall be disposed off as scrap as per the scheme of testing and inspection of the Bureau of Indian Standards.

All products which do not conform to BIS certification are to be scrapped – i.e. all substandard or defective material is to be disposed as scrap.
 
4. Obligation for certification .-9

(1) all manufacturers of steel and steel products shall make an application to the bureau of Indian standards for obtaining licence for use of the standard mark, within forty-five days from the date of coming into force of this order, if not already obtained.

All manufacturers have to make an application to BIS for obtaining license within 45 days of this notification if the license is already not available.

5.  power to call for information, etc., - the appropriate authority may , with a view to securing compliance with this order, -


(a) Require any person engaged in the manufacture, storage for sale, sale or distribution of any steel and steel products to give such information as he deems necessary relating to the manufacture, storage for sale, sale or distribution of any steel and steel products for the implementation of this Order or require any such person to furnish to him samples of any such steel and steel products;

(b) Inspect or cause to be inspected any books or other documents and other steel and steel products kept by or belonging in the possession or under the control of any person engaged in the manufacture, storage for sale, sale or distribution of any steel and steel products.

Only the authorities mentioned in para 2 namely
I.    An officer not below the rank of an Under Secretary in the Ministry of Steel
II.  General Managers, District Industries Centres of State Governments
III. Directors or Commissioners of Industries of the State Governments or Union territories.
Can call any person to get any sample or inspect books/documents or get information related to manufacture or sale of steel products.
 

7. Power to  issue direction to manufactures and dealers . –

The appropriate authority may issue such directions to manufacturers and dealers, consistent with the provisions of the Act or this Order, as may be necessary for carrying out the provisions of this Order.

Only the authorities mentioned in para 2 namely

   I.   An officer not below the rank of an Under Secretary in the Ministry of Steel
   II.  General Managers, District Industries Centres of State Governments
   III. Directors or Commissioners of Industries of the State Governments or
          Union territories.

can issue any direction to a manufacturer or dealer in relation to this order.
 
8. Compliance of directions. –

Every person engaged in the manufacture, storage for sale, sale or distribution of any steel and steel products specified  in the Schedule to whom any direction is issued under this order, shall comply with such direction.

In para 8 it is stated that all persons have to comply with this order. The BIS act 1968 clause 33 states that if anybody found manufacturing the product without BIS license is liable to a fine of maximum 50,000 or imprisonment up to 1 year or both. The case for such matter cannot be heard in court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class specially empowered in this behalf.

Also the complaint in this matter can only be made by or under the authority of the Government or Bureau or by any officer empowered in this behalf by the Government or the Bureau, or any consumer or any association recognised in this behalf by the Central or State Government.

In summary only the authorities namely
    I.  An officer not below the rank of an Under Secretary in the Ministry of Steel
    I
I. General Managers, District Industries Centres of State Governments
   
III.Directors or Commissioners of Industries of the State Governments or
        Union territories.


Can issue any direction in relation to this order, also

  1. Any manufacturer can be fined or prosecuted if he manufactures material (based on IS  2830:2012 or IS 2831:2012) without getting the BIS license (clause 33 of BIS act 1986).
  2. Any trader can be fined or prosecuted if he purchases or sells material (based on IS 2830:2012 or IS 2831:2012) without taking the BIS certificate from the manufacturer. (clause 33 of BIS act 1986)
  3. The material needs to be disposed as scrap if it is made below standard by mistake after getting the BIS license. (Para 3 subpara 2 of QC order dated 14.03.2012 and clause 8 of BIS certification testing scheme (Doc: STI/2830/4, September 2012))

Information Courtesy "Technical Team eSteelMarket"

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