Introduction
The Government of India has announced a significant import relaxation for certain hermetic compressors under the Air Conditioner and its Related Parts, Hermetic Compressor and Temperature Sensing Controls (Quality Control) Order. Through a recent amendment issued by the Department for Promotion of Industry and Internal Trade (DPIIT), eligible manufacturers can continue importing specified categories of hermetic compressors under defined limits until 31 March 2027.
Manufacturers planning to import hermetic compressors should carefully review the applicable conditions, import limits, and compliance obligations under the amended Quality Control Order (QCO) to ensure smooth operations and regulatory compliance.
Key Highlights of the Import Relaxation for Hermetic Compressors
- Issued By: Department for Promotion of Industry and Internal Trade (DPIIT)
- Notification Date: 8 May 2026
- Subject: Import relaxation for specified hermetic compressors under the Quality Control Order (QCO)
- Applicable To: Manufacturers of air-conditioning, refrigeration, heat pump and related equipment
- Covered Products: Specified reciprocating, rotary, scroll and VRF hermetic compressors
- Import Limits: Based on import quantities recorded during FY 2024-25
- Compliance Requirement: Monthly import records and indigenization plan submission are mandatory
- Validity Period: Relaxation available until 31 March 2027
What Is the New Import Relaxation Under QCO 2026?
The Government of India has introduced a temporary import relaxation for specific categories of hermetic compressors under the Air Conditioner and its Related Parts, Hermetic Compressor and Temperature Sensing Controls (Quality Control) Amendment Order, 2026. Issued by the Department for Promotion of Industry and Internal Trade (DPIIT), this amendment aims to support manufacturers that rely on imported compressors for the production of air-conditioning, refrigeration, and heat pump equipment.
Under the new amendment, eligible manufacturers can import certain hermetic compressors within prescribed limits until 31 March 2027. The relaxation is intended to ensure a stable supply of critical components while providing the industry with additional time to strengthen domestic manufacturing capabilities and localization efforts.
It is important to note that this is not a complete removal of the Quality Control Order (QCO). Instead, it is a limited relaxation available only for specified compressor categories and subject to conditions laid down by the Government. Manufacturers availing this benefit must comply with reporting requirements and submit plans related to the indigenization of these products.
Key Features of the Import Relaxation
- Applicable to selected hermetic compressors used in refrigeration, air-conditioning, and heat pump applications.
- Available only to manufacturers importing compressors for their own manufacturing activities.
- Import quantities are restricted and linked to import volumes recorded during FY 2024-25.
- Manufacturers must maintain monthly records of imported compressors.
- An indigenization plan must be submitted to the Government.
- The relaxation remains effective until 31 March 2027.
This amendment provides temporary relief to manufacturers while supporting the Government's long-term objective of increasing domestic production and reducing dependence on imported components.
Which Hermetic Compressors Are Covered Under the New Relaxation?
The import relaxation introduced under the QCO Amendment 2026 applies to specific categories of hermetic compressors used across refrigeration, air-conditioning, and heat pump applications. The Government has defined different import limits for each compressor category based on the manufacturer's import volumes during the financial year 2024-25
| Goods or articles | Financial Year 2026-27 |
|---|---|
| Reciprocating hermetic compressors of fixed speed and variable speed (inverter), of rated capacity less than two tons of refrigeration, intended for use in refrigerators and similar refrigeration appliances. | Up to 40% of the total quantity of goods or articles imported during the financial year 2024–25. |
| Rotary hermetic compressors of fixed speed and variable speed (inverter), of rated capacity less than two tons of refrigeration, intended for use in air conditioners and heat pump applications. | Up to 30% of the total quantity of goods or articles imported during the financial year 2024–25. |
| Scroll and rotary hermetic compressors of fixed speed and variable speed (inverter) having a rated capacity of two tons of refrigeration and above, intended for use in refrigeration, air-conditioning, and heat pump applications. | Up to 90% of the total quantity of goods or articles imported during the financial year 2024–25. |
| Rotary hermetic compressors of rated capacity two tons of refrigeration and above for Variable Refrigerant Flow (VRF) air-conditioning systems. | Up to 100% of the total quantity of goods or articles imported during the financial year 2024–25. |
Who Can Benefit From This QCO Relaxation?
The import relaxation for hermetic compressors has been introduced primarily to support manufacturers that depend on imported compressor technologies for the production of cooling and refrigeration equipment. The amendment provides temporary relief to eligible businesses while encouraging a gradual transition towards domestic manufacturing and localization.
Air Conditioner Manufacturers
Manufacturers producing residential, commercial, and industrial air conditioners are among the key beneficiaries of this amendment. The relaxation allows them to continue importing specified rotary and inverter hermetic compressors required for uninterrupted production and supply.
Refrigeration Equipment Manufacturers
Companies manufacturing refrigerators, freezers, cold storage systems, and other refrigeration equipment can benefit from the relaxation on reciprocating hermetic compressors. This helps maintain production continuity while domestic manufacturing capabilities continue to develop.
Heat Pump Manufacturers
Manufacturers of heat pump systems can also take advantage of the import relaxation for eligible compressor categories used in heating and cooling applications. This can help reduce supply chain disruptions and ensure timely project execution.
VRF System Manufacturers
Variable Refrigerant Flow (VRF) systems often rely on specialized high-capacity compressors. The amendment allows manufacturers of VRF air-conditioning systems to import eligible rotary hermetic compressors within the prescribed limits, supporting ongoing demand in commercial and industrial projects.
Manufacturers Planning Localization
The relaxation period also provides manufacturers with additional time to implement localization strategies and develop domestic supply chains for critical compressor components. This aligns with the Government's broader objective of promoting self-reliance in the manufacturing sector.
Who Is Not Eligible?
The relaxation is specifically intended for manufacturers importing compressors for their own production activities. It does not apply to:
- Traders importing products for resale
- Distributors and stockists
- Importers not engaged in manufacturing activities
- Businesses importing compressors for commercial trading purposes
Therefore, only genuine manufacturers meeting the conditions specified in the amendment can avail the benefits of this import relaxation.
What Does This Mean for BIS and QCO Compliance?
One of the most important aspects of this amendment is that it does not remove or replace the existing Quality Control Order (QCO) requirements for hermetic compressors. Instead, it provides a temporary import relaxation for specified compressor categories under defined conditions.
Manufacturers should understand that the Government has not withdrawn the regulatory framework governing hermetic compressors. The amendment simply allows eligible manufacturers to import certain compressors within prescribed limits until 31 March 2027 while continuing efforts toward domestic production and localization.
The relaxation is available only to manufacturers importing compressors for their own manufacturing purposes and is subject to compliance obligations outlined in the notification. Businesses availing this benefit must ensure that all import activities remain within the permitted limits and are properly documented.
Key Compliance Requirements for Manufacturers
Manufacturers intending to use this relaxation must comply with several reporting and documentation requirements to remain eligible under the amended Quality Control Order (QCO). Key compliance obligations include:
- Maintain monthly records of imported hermetic compressors.
- Submit the required records to the relevant authorities through an authorized signatory.
- Ensure that imports remain within the prescribed quantity limits based on FY 2024–25 import volumes.
- Prepare and submit an indigenization plan outlining efforts toward domestic manufacturing and localization.
Impact on the Air Conditioning and Refrigeration Industry
The latest import relaxation for hermetic compressors is expected to provide significant support to India's air-conditioning and refrigeration industry. By allowing manufacturers to import specified compressor categories within defined limits, the Government has addressed one of the key challenges faced by the sector—access to critical components required for uninterrupted production.
For many manufacturers, hermetic compressors are essential components that directly impact production schedules, product availability, and project execution. The temporary relaxation helps businesses maintain operational continuity while adapting to evolving compliance and localization requirements.
Improved Supply Chain Stability
The amendment is expected to reduce supply chain pressures by providing manufacturers with greater flexibility in sourcing eligible compressors. This can help minimize production delays and ensure a more stable supply of air-conditioning and refrigeration products in the market.
Support for Domestic Manufacturing
While the notification provides import relief, it also encourages manufacturers to strengthen domestic production capabilities. The requirement to submit an indigenization plan reflects the Government's focus on increasing local manufacturing and reducing long-term dependence on imports.
Benefits for Growing Industries
The air-conditioning, refrigeration, heat pump, and VRF sectors continue to experience growing demand across residential, commercial, and industrial applications. The relaxation provides manufacturers with additional time to meet market requirements while developing sustainable sourcing strategies.
Greater Business Certainty
The availability of import relaxation until 31 March 2027 gives manufacturers greater planning certainty. Companies can better manage procurement strategies, production targets, and investment decisions while preparing for future compliance requirements.
Encouraging a Balanced Transition
The amendment creates a balanced approach by supporting manufacturers in the short term while continuing to promote localization and self-reliance in the long term. This helps the industry transition gradually without causing major disruptions to manufacturing operations or product availability.
Overall, the import relaxation is expected to strengthen industry confidence, support manufacturing continuity, and facilitate the gradual development of a more robust domestic compressor ecosystem in India.
Conclusion
The Government's decision to introduce import relaxation for specified hermetic compressors under QCO 2026 provides temporary relief to manufacturers operating in the air-conditioning, refrigeration, heat pump, and VRF sectors. By allowing eligible manufacturers to import certain compressor categories within prescribed limits until 31 March 2027, the amendment aims to support production continuity while reducing short-term supply chain challenges.
At the same time, the notification reinforces the Government's long-term objective of promoting domestic manufacturing and localization. Manufacturers availing this relaxation must comply with the prescribed conditions, including maintaining import records and submitting indigenization plans to the relevant authorities.
Offical Notification
The Government of India has issued the Air Conditioner and its Related Parts, Hermetic Compressor and Temperature Sensing Controls (Quality Control) Amendment Order, 2026, introducing a temporary import relaxation for specified hermetic compressors used in manufacturing activities.
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