Gujarat High Court Stays QCO Rescission for Polyester Yarn (FDY, POY, IDY): What Businesses Must Know

On 15th May, 2026, the Principal Commissioner of Customs, Mundra, issued an order regarding the Stay on rescission of QCOs for Polyester Yarn (FDY, POY, IDY). This was followed by the order passed by the Hon'ble Gujarat High Court dated 06th April, 2026 in Orilon Tectex Pvt Ltd vs Union of India. The stay on the revocation of the QCOs for FDY, POY, and IDY will remain in effect; therefore, all BIS compliance requirements will continue to apply until further notice. This order suspends the government's November 2025 notification rescinding all quality requirements.

Manufacturers, importers and businesses involved in the textile supply chains have experienced uncertainty as a result of this abrupt policy reversal. The changes illustrate the growing concerns about regulatory uncertainty in the technical textile industry in India and emphasise the need for decision-makers to clearly implement policies on BIS Compliance.

What Are Quality Control Orders and Why Did the Government Roll Them Back?

Quality Control Orders (QCOs) are regulations issued by the Government of India to ensure that certain goods or products in India comply with prescribed quality or safety standards. Quality Control Orders are executed through the Bureau of Indian Standards (BIS), which requires certification of mandatory products. A QCO for polyester yarn was published in 2023 and requires the use of certified standards regarding product manufacture or the sale of goods.

November 12, 2025 QCO Rescission Notification

The Indian Government issued a notice on 12 November 2025, withdrawing various Quality Control Orders for polyester yarn. This decision was made following ongoing feedback from various parts of the textile industry that there had been difficulties due to both operational and supply chain effects arising from these orders.

Mixed Industry Reaction to the QCO Rollback

The QCO rescission was met with both support and objection throughout the textile industry. Manufacturers and importers were supportive, as it would allow easier access to raw materials and reduce compliance burdens. Export-oriented businesses supported the QCO rescission, as it provided additional supply flexibility, enabling them to remain competitive in international markets. But few domestic and polyester yarn manufacturers opposed the QCO rescission because they believe removing the QCOs will result in lower-quality material being imported into India.

Surat Textile Industry Became a Major Focus

The problem began to attract considerable attention in Surat's textile sector, a primary site for manufacturing polyester fabric, where more than 60% of India's total is manufactured.  For many businesses across Surat, the Notification rescinding the QCO, issued in November 2025, was a great relief, as it allowed reduced restrictions on the importation of polyester yarns from across the globe. However, uncertainty returned to manufacturers, importers, and exporters of textile products throughout the entire region when the Gujarat High Court issued a stay on the rescission order in April 2026.

The Court Case Between Orilon Tectex vs the Union of India

The Orilon Tectex Pvt. Ltd. vs Union of India legal dispute over the Quality Control Orders marks a significant step in the polyester yarn industry. This case involved the filing of Special Civil Application (SCA) No. 16973 of 2025 with the High Court of Gujarat.

As part of the Court's ruling, the Principal Commissioner of Customs, located at Mundra Port, has directed that all Import Assessment Groups, Docks Examiners, SIIB and any other relevant entity involved in the review of polyester yarn must comply with the applicable BIS/QCO requirements on any imported polyester yarn product. In addition, the SIIB Section has been directed to inform the NCTC located in Mumbai. The Order requests that any issues or problems that may arise be promptly reported to NCTC and reaffirms that the Notice was issued in accordance with the Commissioner's authority.

Impact of suspension of QCO Rescission for Polyester Yarn (FDY, POY, IDY)

The Gujarat High Court's decision to restore BIS/QCO compliance for polyester yarn imported into India has created both positives and negatives for the textile industry as a whole.

• Domestic polyester yarn producers who can compete with imports can expect less competition from non-BIS-compliant imports. 
• Shortages or price increases in raw materials for weavers, knitters, and texturising facilities are anticipated. 
• Many imported polyester yarn products are once again required to obtain BIS certification.
• Weavers and textile manufacturing units may continue production despite higher raw material prices.
• The textile industry in Surat may experience a supply chain squeeze on polyester yarn.
• Exporters may have difficulty sourcing and complying with BIS renewal deadlines.
• Companies that did not renew their BIS certificates will need to reapply quickly if they wish to continue producing their product domestically.

Conclusion

The Gujarat High Court's stay on the rescission of Polyester Yarn QCOs has placed BIS compliance back on the agenda for all FDY, POY, and IDY imports into India. The situation continues to underscore the need to improve regulatory clarity, ensure consistent policy application, and manage compliance in a timely manner in the Indian textile industry. Businesses that require expert advice on BIS Certification, QCO compliance, and import regulations for their textile or polyester yarn products may contact ERCS Private Limited for comprehensive compliance support.