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Government Relaxes Quality Control Order for Air-Conditioner Compressors Imports

The Department for Promotion of Industry and Internal Trade (DPIIT) has introduced a temporary relaxation in the Quality Control Order (QCO) requirements for manufacturers of air-conditioning and refrigeration equipment. The amendment, effective until March 31, 2027, allows for the import of specified quantities of certain compressors without complying with the mandatory QCO.

The Air-Conditioner and its related Parts, Hermetic Compressor and Temperature Sensing Controls (Quality Control) Amendment Order, 2026, was issued by DPIIT on May 8. According to the order, each manufacturer can import a fixed quantity of compressors based on its 2024-25 import levels. Imports beyond those limits must meet full QCO requirements.

Compressor TypeQCO Exemption Limit (as a percentage of 2024-25 import volumes)
Refrigerator compressors (below 2-ton capacity)40%
Compressors used in air-conditioners and heat pumps (below 2 tons)30%
Larger scroll and rotary compressors (used in refrigeration and cooling systems)90%
Compressors for VRF and air-conditioning systems100%

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

The relaxation allows for the import of compressors without QCO compliance, with specific limits set for each type of compressor. Refrigerator compressors below 2-ton capacity can be imported up to 40% of 2024-25 import volumes, while compressors below 2 tons used in air-conditioners and heat pumps are capped at 30%. Larger scroll and rotary compressors used in refrigeration and cooling systems are allowed up to 90% of previous import volumes, and compressors for VRF and air-conditioning systems can continue to be imported up to 100% of previous import volumes.

The move offers immediate relief to manufacturers dependent on imported compressors and helps avoid supply shortages in the AC and refrigeration sector during peak demand periods. Think tank GTRI commented that the government appears to have introduced the relaxation because domestic manufacturing capacity, BIS certification infrastructure, and localisation levels are still insufficient to support full-scale implementation of the QCO regime without disrupting production.

As part of the relaxation, manufacturers are required to maintain a monthly record of imported compressors and submit a plan for indigenisation of goods or articles to the central government. GTRI Founder Ajay Srivastava recommended that the government should test product quality at Indian ports for both QCO-exempt and non-exempt imports.

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