BIS Certificate Exemption for MSMEs: Madras HC Directs Customs to Clear Plywood Imports Without Registration Requirement [Read Order]
It was held that executive circulars or clarifications cannot override the provisions of the parent statute. Since the Quality Control Order itself granted MSMEs time until 28 August 2025, Customs authorities could not deny the benefit by selectively restricting it to domestic producers alone
The Madras High Court has ruled that Customs authorities cannot insist on a Bureau of Indian Standards (BIS) registration certificate for plywood imports made by micro enterprises, where the statutory Quality Control Order itself grants an exemption up to a specified date.
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The court noted that “When the enactment does not distinguish between an importer and a person who does domestic production, the Circular cannot be pressed into service to come up with such a distinction and restrain the relaxation that was given for enterprises falling under the MSME Classification till 28.08.2025. If this is the ground on which the request made by the petitioner for assessing and clearing the goods, is kept in abeyance, such a ground is not sustainable.”
The petitioner, Alankar Shipping and Trading Co. Pvt. Ltd imported 3,456 sheets of packing plywood from Vietnam in August 2025. It was argued that under the Plywood and Wooden Flush Door Shutters (Quality Control) Order, 2024, the mandatory BIS certification requirement was deferred until 28 August 2025, and that as a recognized micro enterprise under MSME classification, it was entitled to this relaxation.
Despite this, Customs officials refused to permit bonding of the goods or clearance without BIS certification, stating a March 2025 communication from the Ministry of Commerce and Industry stating that the exemption period for MSMEs would not apply to imports.
The Court, after examining the BIS Act, 2016, observed that the law does not distinguish between domestic manufacturers and importers, and the statutory relaxation applied equally to both.
It was held that executive circulars or clarifications cannot override the provisions of the parent statute. Since the Quality Control Order itself granted MSMEs time until 28 August 2025, Customs authorities could not deny the benefit by selectively restricting it to domestic producers alone.
RJustice N. Anand Venkatesh directed Customs to assess and clear the petitioner’s consignment covered under Bill of Entry dated 12 August 2025 without insisting on a BIS registration certificate. The Court further ordered that the clearance process be completed within two weeks of receiving the order.
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