Government Gives Temporary Import Relaxation for AC & Refrigeration Compressors

The Ministry of Commerce and Industry under the government of India has published an amendment onMay 8, 2026, to the Bureau of Indian Standards Quality Control Order (QC) on Air Conditioner and its related Parts, Hermetic Compressor and Temperature Sensing which allows manufacturers to import a limited number of specified hermetic compressors without BIS QC Compliance until March 31, 2027, after which, there will be complete enforcement of BIS restrictions. The recent order is for Manufacturers of Air Conditioners, Manufacturers of Refrigerators, Manufacturers of Refrigeration Equipment, and Businesses in the HVAC Industry.

Overview of Import Relaxation for AC & Refrigeration Compressors

The government has revised the Air Conditioner and its related Parts, Hermetic Compressor and Temperature Sensing Controls (Quality Control) Order, 2019. Under this alteration, manufacturers of air conditioning/refrigeration equipment will be able to import, on a limited-quantity basis. This concession is available until March 31, 2027.

Why Did the Government Give This Relaxation?

Reasons for the introduction of this exemption policy by the Indian government to assist the manufacturing industry are stated below:

• Many advanced compressors are still imported in large quantities.
• Domestic manufacturing capacity is still being developed.
• Manufacturers require continuous supply chains for their goods.
• A sudden shortage of materials may cause production to halt.

The exemption provides companies with additional time to expand their local manufacturing capabilities consistent with the Make in India initiative.

Compressor Categories Covered Under the Exemption

Notification provides information on four main types of compressor series:

Reciprocating hermetic compressors of fixed speed and variable speed (inverter), having a rated capacity of less than two tons of refrigeration and intended for use in refrigerators and similar refrigeration appliances, are permitted for import up to 40% of the total quantity imported during the financial year 2024–25 for FY 2026–27.

Rotary hermetic compressors of fixed speed and variable speed (inverter), having a rated capacity of less than two tons of refrigeration and intended for use in air conditioners and heat pump applications, are permitted for import up to 30% of the total quantity imported during the financial year 2024–25 for FY 2026–27.

Scroll and rotary hermetic compressors of fixed speed and variable speed (inverter), having a rated capacity of two tons of refrigeration and above and intended for refrigeration, air-conditioning, and heat pump applications, are permitted for import up to 90% of the total quantity imported during the financial year 2024–25 for FY 2026–27.

Rotary hermetic compressors with a rated capacity of 2 tons of refrigeration or more for variable refrigerant flow (VRF) air conditioning systems are permitted for import up to 100% of the total quantity imported during the financial year 2024–25 for FY 2026–27.

Important Conditions for Manufacturers

Certain compliance requirements apply to the manufacturers for the exemption. These include:

• Maintaining monthly import records;
• Submissions to the authorities in the government;
• Utilising the company letterhead along with their signature;
• Submitting an indigenisation plan to the Central Government.

What is an Indigenisation Plan?

An indigenisation plan means a roadmap for increasing local manufacturing in India. The government wants businesses to gradually reduce their reliance on imported compressors and to encourage domestic production.

Impact on the AC and Refrigeration Industry

The HVAC and refrigeration industries are set to benefit from numerous advantages thanks to this amendment.

• Uninterrupted Manufacturing Processes: Manufacturers can continue operating their facilities as originally planned and will not suffer from supply interruptions.
• Less Pressure on Supply Chains: Companies will receive more time to find sources of supply closer to home (meaning fewer delays due to delays in sourcing).
• Better Planning Ability: Flexibility in imports will enable easier management of inventory and production schedules.
• Support for Make In-India: The Government will balance its desire for industrial development with its need for long-term localisation.

Conclusion

The Indian government has announced an amendment, the Air Conditioner and its related Parts, Hermetic Compressor and Temperature Sensing Controls (Quality Control) Amendment Order, 2026, which remains in effect until March 31, 2027. It also helps the AC and refrigeration industry continue to produce systems with fewer interruptions, furthering long-term local production growth. To meet their obligations and comply with the amended legislation, all related businesses, including those engaged in HVAC, refrigeration, and air conditioning systems, must be aware of new import restrictions and forthcoming compliance measures.