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Govt Extends QCO-Linked Import Relief For Key AC, Refrigerator Components Till March 2027

The government has extended QCO-linked import exemptions for key AC and refrigerator compressors till March 2027 to ease supply concerns and aid localisation.

Govt Extends QCO-Linked Import Relief For Key AC, Refrigerator Components Till March 2027
The move is anticipated to benefit AC, refrigeration and consumer durable manufacturers.
Photo Source: Freepik

The central government has extended QCO (Quality Control Order)-related import exemptions for key compressors used in air conditioners, refrigerators and heat pumps till March 31, 2027, as per a notification issued by the relevant authorities on Saturday.

The move is intended to provide appliance makers with more time to localise production while avoiding supply disruptions amid stricter quality norms. The Centre permits limited imports of specified compressor categories under existing localisation conditions.

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Higher import relaxations have been permitted for advanced and high-capacity AC and refrigeration systems, where domestic manufacturing capacity remains limited. The decision comes amid industry concerns over supply constraints and the compliance burden linked to QCO implementation, the notification said.

The move is anticipated to benefit AC, refrigeration and consumer durable manufacturers ahead of peak summer demand.

The notification allows manufacturers of air-conditioning and refrigeration equipment to continue importing certain types of compressors for their own use without full quality-control restrictions until March 31, 2027, but only up to specified limits based on their import volumes in financial year 2024-25.

This includes up to 40% for small reciprocating compressors used in refrigerators, 30% for small rotary compressors used in ACs and heat pumps, 90% for larger scroll and rotary compressors, and 100% for large rotary compressors used in variable refrigerant flow (VRF) systems.

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"The manufacturer shall maintain monthly record of goods or articles specified ... and furnish the same to the authorities concerned in their letter head signed by its authorised signatory and shall also submit a plan for indigenisation of goods or articles to the central government," the notification said.

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