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Compulsory registration of electronics goods: Industry may lose Rs 10 billion: MAIT

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The Electronics and Information Technology Goods (Requirement for Compulsory Registration) Order 2012 has put a blanket ban on the sale of certain electronic products unless they meet the standard specified by BIS

With the deadline of April 3 fast approaching, electronics hardware manufacturers have every reason to worry. Products right from laptops, TV, tablet, printers or any other electronics hardware will not be allowed to sell if it is not certified for compliance by the Bureau of Indian Standards (BIS).

This entire situation can lead to an alarming situation for the industry. MAIT (Manufacturers’ Association for Information Technology) has reportedly said that if the April 3 deadline of Compulsory Registration Order 2012 is not extended, it could lead to a major slump in the electronics market in fiscal 2013-14, owing to which the industry may lose over Rs 1,000 crore.

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The Electronics and Information Technology Goods (Requirement for Compulsory Registration) Order 2012 has put a blanket ban on the sale of certain electronic products unless they meet the standard specified by BIS. The government order lists products under 15 categories ranging from video games, laptop, notebook, tablet and plasma/LCD/LED televisions, to microwave, printers and scanners, telephone answering machines, electronic music systems, etc.

MAIT has demanded an extension of the deadline by atleast 6 months. In addition, the hardware body feels that if nothing is done about this, it could lead to a major supply crunch in the market.

J V Ramamurthy, president, MAIT said, “It will also have a huge impact on the economy as there might be delays in the launch of new products and supply of key components in the market. This will eventually impact the consumers. The shortage and delays in supply will also severely hamper government and private projects, including ongoing e-Governance initiatives in India.”

The official release also stated, “It needs to be implemented taking care of the interests of all the stakeholders – users as well as the Industry. The order needs to be implemented without causing much disruption in current business or diluting its purpose.”

The announcement was made by the government in October 2012 and it has been sending notifications and clarification on a regular basis. The last clarification came in the second week of March 2013. Moreover, there are not sufficient number of labs to test these products with the fifth such facility being notified by the government as late as the 3rd week of February 2013.

 

 

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