India to curb Chinese substandard paper imports with new QCO amid rare earth magnet imbroglio

New Delhi: India is set to tighten controls on substandard paper product imports, particularly from China, with the Department for Promotion of Industry and Internal Trade (DPIIT) in the process of introducing a new Quality Control Order (QCO) for a wide range of commonly used paper products, said two people directly involved in the process.
This mandatory quality certification will be applicable to writing and printing paper, coated paper, and boards used for packaging by the consumer products industry.
This comes in the backdrop of supply concerns following China's move to halt exports of rare earth magnets, a key component of electric vehicles, to India and other countries.
Also read: Eicher, Maruti to TVS Motor: Auto stocks jump up to 2% on reports India may turn to Australia for rare-earth magnets
Once the QCO comes into force, import consignments will be subject to BIS (Bureau of Indian Standards) certification requirements, leading to delays in customs clearance and higher compliance costs for foreign suppliers.
India sources a substantial amount of coated and uncoated paper from China, Indonesia, and S Korea.
India's imports of paper and paperboard have been steadily rising over the past five years, according to data from the commerce ministry. Imports rose from 1.08 million tonnes in FY21 to 2.06mt in FY25.
In FY25, imports of paper and paperboard from China recorded a 33% jump in volume, and the Asean countries of South East Asia accounted for about 20% of total imports. In value terms, overall imports touched nearly $1.81 billion during the year, with China's share amounting to about $800 million.
'Cheap imports are having a serious negative impact on the domestic paper industry, making many small and medium-sized mills commercially unviable," said the first of the two people cited above.
'Out of over 850–900 paper mills in the country, only around 550 are currently operational. This is a significant setback for a sector that has traditionally supported a large number of rural and small-scale livelihoods," said this person, a senior DPIIT official.
Also read: Mint Impact: India plugs the loophole that allowed gold importers to evade duty
According to Rohit Pandit, secretary general of the Indian Paper Manufacturers Association (IPMA), 'Indian consumers deserve quality products, whether manufactured domestically or imported. QCOs for different products ensure the supply of quality products to Indian consumers, prevent unfair trade practices, and check the import of substandard products into the country."
'To make India globally competitive in the world market, the government has been emphasising the need for the domestic industry to manufacture high-quality products. IPMA has been pursuing with the government the need to issue QCOs for different grades of paper," said Pandit.
'We have informed the members of the World Trade Organization (WTO) about the upcoming QCO. Once it is approved, the quality standards will be notified, allowing a six-month transition period for large manufacturers to comply with the norms," said the second official cited above.
'However, small enterprises will be given nine months, and micro enterprises will get up to twelve months to align their production with the QCO requirements," the official added.
The QCO is also part of the government's broader initiative to bring more than 1,500 products under stringent quality standards by the end of the current financial year under the supervision of the BIS, as reported by Mint on 10 February. An exercise to improve product quality spanning 37 ministries is currently under way, as per the Mint report.
Currently, 761 products are regulated by so-called QCO that mandate strict parameters for both domestic and imported goods.
Some of the items already covered under QCOs in India include household and industrial appliances such as coffee makers, shavers, electrical appliances, vacuum cleaners, stainless steel utensils, toys, hot-rolled and cold-rolled steel strips, and medical devices.
Also read: Rare earths: China is choking its own prospects of leadership
The expansion of the QCO regime could bring items such as wheelchairs, full-body harnesses, self-locking gates, artificial limbs, sanitaryware, and ceramic tiles under these standards.
QCOs are enforced by the BIS, an arm of the consumer affairs ministry. Once a QCO is notified, no firm can manufacture, import, distribute, sell, hire, lease, store, or exhibit any product covered under the QCO without an ISI (Indian Standards Institute) mark. Violations can attract jail terms and fines.

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