World Trade Organization Organisation Mondiale du Commerce Organización Mundial del Comercio

(Question 4: Page 67, paragraph 99)

(Background)

In regard to the conformity assessment procedure on India's mandatory certification on iron and steel products, Japan understands that India has postponed the enforcement of the "Second Order" since February 12, 2009.

However, Japan has heard that the Indian government adopted a mandatory standard for the "Second Order" on June 24, 2011.

Japan has managed to achieve the safety and protection of consumers by implementing many strict regulations on finished products, e.g. the Building Standard Law or the Electrical Appliance and Material Safety Act. The Japanese government has not implemented mandatory certification regulations on intermediate products, but only on finished products, because certification on intermediate products is not useful.

Japan would like to remind India that even if such a regulation is enforced, it should be implemented in a way that is consistent with Article 2.2 of the TBT Agreement which stipulates that "technical regulations shall not be more trade restrictive than necessary to fulfil a legitimate objective", reflecting the spirit of the series of G 20 Commitments, as well as giving adequate consideration to actual business transactions.

Japan would like to request India to seriously review the need for its current technical regulations on iron and steel products from the point of view on both their political objectives and actual economic effects. Then, Japan expects that imposed technical regulations on steel products will be eliminated as soon as possible and no more technical regulations on steel products will be imposed in the future.

From the above mentioned point of view, Japan would like to ask the following questions;

(1) Japan is aware that the government of India understands this position and Japan believes that India will not establish any further mandatory standards for intermediate products. Japan would like to know the development of Indian Standard (IS) on steel since last February.

(2) If mandatory standards are applied to a broader range of steel materials, Japan asks India to consider introducing an exemption mechanism for steel materials that conform to internationally recognized standards like JIS that are equal to or stricter than BIS. Indonesia, Malaysia and other ASEAN countries have already enacted such exemption mechanisms.

Reply: Decision regarding notifying Indian standards on steel and steel products, or for any other products, for mandatory compliance under a licence from BIS rests with the Central Government/regulatory body. The list of Indian standards on steel and steel products established since Februarz 2011 is given below:

1.