BIS certification is not just a formality for a manufacturer and importer, but most of the products in India have been transformed into being as legitimate as their counterparts. As the name suggests, BIS will guarantee you safety and quality standards of your product regardless of the nature of the product, whether electrical appliances, steel products, industrial goods or consumer goods. Nonetheless, the effects of the lack of this certification on most businesses are not taken seriously. Operating without BIS certification may also cause great legal, monetary and reputational profit loss, which is often significantly high in comparison to the price or effort of certification itself.
The uncertainty of the companies regarding the consequences of non-conformance to BIS standards has led to the practice of simply poking holes in the companies in Induce India due to ignorance of the repercussions of non-conformance. To make sure that you do not commit the same mistake, the following is a clear and simple elaboration of what happens after selling, production or importation of goods to India without the required certification, that is, BIS.
Legal Implications of the lack of a certification of BIS
The first and the most adverse impact would be the lawsuits. Some products are incapable of being in the market without the BIS certification, and breaking the rule is punishable by law. The government views the uncertified products as having serious complications, as they are dangerous to consumers.
In case a company makes a mandatory product or sells one without the permission of BIS, legal actions can be taken by means of the BIS Act. This may entail taking of goods, fines and finally even prosecution. When litigation is initiated, there is normally a halt in production activities, recall of products and protracted compliance checks against the business. To put it briefly, when you are not certified, it not only goes against the rules, but your whole business is at risk of being judged by the court of law.
Penalties and Fines
Besides legal proceedings, companies may be subject to enormous fines. These fines depend on the severity and the type of product, yet they may be immense enough to complicate financial resources. The fines are subject to the government upon selling products without the certification, but also for deceiving consumers by stating that they comply. These fines are costly to most businesses than the original certification.
Import restrictions and customs blocks
To the importers, the effect is more direct. Authorities can also intercept, rebuff, or seize shipments without it, though they need certification by BIS. A single document that has been lost may create an obstacle to the clearance of whole containers, incurring huge losses in shipping, warehousing, and late delivery. In other instances, the goods get returned to the country of origin or destroyed. In the case of import-based businesses, this can entirely play havoc with running the business and destroy the financial planning.
Loss of Market Access
Your product cannot even be legally sold in the Indian market without BIS certification. The existence of many distributors, retailers and e-commerce sites makes it very difficult to list any product without evidence of BIS compliance. This translates to loss of access to retail shelves, online marketplace place and even B2B networks. Opposing businesses will rule the market as your business fails to make big sales on certified products.
Broken Business Credibility
The modern age consumers are more conscious. Non-compliance with your product or even worse, its insecurity, may cause major effects on the image of your brand. Poor customer image spreads quickly, and when broken, it is not that easy to rebuild, and once lost, the cost is high. The brands that do not satisfy the requirements of the BIS will find it harder to win the trust of the customers once again, particularly in the sphere where the aspects of safety and quality are crucial.
Business Interruptions and Operational Setbacks
In most instances, companies have to shut down their operations or make sales until they receive the required certification. Such disruptions cause delays and affect supply chains and diminish profitability. Products in warehouses that are not certified also result in financial loss, whilst production units are being left idle. In the case of seasonal demand-based companies, a single missed selling period may have an enormous impact in terms of setback.
Loss of Partnerships and Contracts
A myriad of industries, namely the automotive, electronic, infrastructure, and government procurement sectors, deal with only BIS-certified products. Failure to provide the required compliance documentation can cost you so many valuable contracts, partnerships and even vendor relations. OEM-based business has an even greater risk, since customers can easily change their suppliers to comply with ones to eliminate future legal and operational complications.
How Induce India Will Get Your out of these Risks
The majority of the issues mentioned above arise merely from the fact that the businesses fail to grasp the procedure or misunderstand the demands. At Induce India, it is to this no-go area that you never fall into. We take care of it all, including determining the need to certify your product by BIS and processing all the documentation, laboratory testing, portal, factory inspection and last license application. We keep you in the Indian market with your head held high by keeping you out of trouble and working within its limits.
Conclusion
Failure to possess BIS certification may bring legal hassles, financial setbacks, operational stall, and reputation setback in the long-term view of your business. Although the certification process can be considered a potentially stressful undertaking, the cost of not carrying it out will be even greater. It is easy, predictable and a hassle-free process of achieving BIS compliance with the proper guidance and approach. In case your product is under the mandatory BIS standards or you are not aware that you need certification, then Induce India is here to show you the way step by step, before not meeting compliance ends up being an expensive mistake.
