Let consumers choose

Non-tariff barriers spreading from food to electronics

The Bureau of Indian Standards, or BIS, wants sellers of electronic items like laptops, tablets, video games, microwave ovens, printers, scanners and set-top boxes to emboss or screen-print a certificate on the product that says the quality meets the BIS standards. Its argument is that India has become a dumping ground for electronic waste, especially from East and Southeast Asia, and some restraint is required. The importers, in turn, have said that this could be a costly exercise. Most of them import such items in small batches from manufacturers spread across many countries, and say it is not financially viable for the manufacturer to emboss the BIS certificate on each product. Also, most of these products are made of parts sourced from various producers and, therefore, it is not easy to certify the quality. Instead, they are willing to affix labels to these imports and this, hopefully, will make them accountable for products that violate safety norms or are substandard.

The BIS, however, is not enthused with the idea. It feels stickers are no guarantee and can be fixed and removed by anyone. The controversy dates back to September 2012 when the department of electronics and information technology listed 15 products that couldn't be imported without a declaration that they met BIS standards. This happened because BIS was inundated with certification requests from importers. Since its laboratories were unable to cope with the deluge, it came up with the idea of self-certification. The deadline set by the department was six months. It has been extended time and again and is now fixed for the end of June.

Clearly, this looks like another case of bureaucratic overreach. One news report has said that some overseas companies have already taken up the matter with the Union commerce ministry, alleging that it amounts to a non-tariff barrier. Others too have raised the issue with various arms of the government. More than the government, it is for the consumer to buy or reject the product. If a product is substandard, it will clearly not find buyers. The bogey of dumped Chinese and Taiwanese products swamping the market has been heard in recent past more than once. The experience has been that though some consumers may be initially lured by the low price tags, they eventually end up buying only those products that provide value for money, come with service and part replacement guarantee, and have some resale value. Consumer rejection is the best solution.

This is reminiscent of the chocolate controversy that erupted a few months ago. The Food Safety and Standards Authority of India (FSSAI), a regulatory body under the Union health ministry, had mandated that imported chocolate should have full information (the manufacturer's name and details of ingredients) printed on the pack. The importers were willing to put stickers on the packs, but the FSSAI insisted that the information should be printed on the packs. The argument given by the importers was the same: the quantities they imported were too small for the manufacturer to invest in special packaging for India. As a result, imported chocolate vanished from the shelves during Christmas, the New Year and Valentine's Day. It is clear who gained from their absence in the market.