Foreign manufacturers planning to export products to India under mandatory BIS certification often assume that MSME benefits and fee concessions are available to them. However, under the FMCS scheme, the rules are different.
In this blog, we explain why foreign manufacturers are treated as large-scale industries under the BIS FMCS scheme and why no concession is available on the Minimum Marking Fee.
What is FMCS in BIS?
Bureau of Indian Standards introduced the Foreign Manufacturers Certification Scheme (FMCS) to allow overseas manufacturers to obtain BIS certification for products intended for the Indian market.
Under FMCS:
- Foreign manufacturers can use the ISI Mark on their products
- BIS conducts factory inspections outside India
- Products must comply with the applicable Indian Standard (IS)
FMCS certification is mandatory for many products before they can be imported or sold in India.
BIS Fee Structure Under FMCS
The BIS fee structure for foreign manufacturers generally includes:
- Application Fee
- Annual License Fee
- Factory Inspection Charges
- Auditor Travel & Stay Expenses
- Product Testing Charges
- Marking Fee / Minimum Marking Fee
Among these, the Minimum Marking Fee (MMF) is an important annual payable amount for using the ISI mark.
Are MSME Discounts Applicable to Foreign Manufacturers?
The simple answer is: No.
Under the FMCS scheme, all foreign manufacturers are considered as Large Scale Industries by default, irrespective of:
- Company turnover
- Production capacity
- Number of employees
- Small business status in their home country
Because of this classification:
- No MSME concession is available
- No 80% discount for Micro Enterprises
- No 50% discount for Small Enterprises
Why Foreign Manufacturers Do Not Get MSME Benefits
The MSME concessions provided by BIS are linked with:
- Indian MSME classification
- Udyam Registration issued in India
Since foreign manufacturers are not registered under the Indian MSME/Udyam system, they are not eligible for these benefits.
Therefore, BIS treats all FMCS applicants under the standard fee structure applicable to large-scale manufacturers.
Important Point About Minimum Marking Fee Under FMCS
Foreign manufacturers must pay the complete applicable Minimum Marking Fee prescribed by BIS without any concession.
This applies even if:
- The export quantity to India is low
- The manufacturer is a startup abroad
- The company qualifies as a small business in another country
The standard marking fee and minimum marking fee remain fully applicable.
Common Misconception Among Foreign Manufacturers
Many overseas manufacturers assume that:
“Since our company is small in our country, BIS should provide MSME benefits.”
However, BIS does not recognize foreign MSME classifications for fee concessions under FMCS.
Only Indian manufacturers with valid Udyam Registration can claim MSME-related discounts in eligible schemes.
The BIS FMCS scheme is mandatory for many foreign manufacturers exporting products to India. However, it is important to understand that:
- All foreign manufacturers are treated as Large Scale Industries under FMCS
- No MSME concession is applicable
- No 80% or 50% discount is available on Minimum Marking Fee
- Full marking fee and BIS charges must be paid as per FMCS guidelines
Understanding the actual BIS fee structure helps foreign manufacturers plan their certification budget properly and avoid confusion during the application process.
If your company is planning to obtain BIS FMCS certification for exporting products to India, professional guidance can help streamline documentation, testing, factory inspection coordination, and overall compliance management.
