A smart card reader is electronic hardware that writes and reads card data. Its main job is to read the card’s information and conduct the monetary transaction properly. Most retail establishments now use smart card readers so that transactions can be completed quickly and easily using a debit card, credit card, or both. Customers can choose to conduct a cashless transaction if they have a debit or credit card. An embedded integrated circuit, such as a secure micro controller, an equivalent processor with internal memory, or a memory chip, makes up a smart card. As per a report by Market Research Future (MRFR), the smart card reader market is expected to reach US$ 79,000 Million at a 40.8% CAGR between 2018 and 2024. The Bureau of Indian Standards (BIS) has made it mandatory for such smart card readers to be registered with BIS under the Compulsory Registration Scheme under IS 13252 (Part 1):2010 as of May 13, 2015. The right to produce, import/export, store, sell, or distribute these goods in the Indian market is granted by obtaining BIS Certification for smart card readers. Due to the high risk of product-related customer grievances, the BIS has covered it under the Compulsory registration programme.
Essential Requisites to Obtain BIS Certification for Smart Card Readers
The four requisites that every certificate applicant must adhere to before applying for Indian BIS Certification for Smart Card Readers include the following:
- Manufacturer: The BIS Certification is only issued to the product manufacturer. The importers, retailers or traders are not eligible for the BIS certificate. However, they can act as an Authorised Representative of a manufacturer in India if the manufacturer does not have their liaisoning office in India. However, the license is issued in the name of the manufacturer only.
- Product: If a manufacturer manufactures more than one product, then two separate BIS certifications must be obtained for each product. For example, manufacturers manufacturing smartphones and chargers must file two separate certification applications with BIS.
- Manufacturing Address: The application and supporting documents shall mention a proper manufacturing address. If a manufacturer has more than one manufacturing premises for a product, then separate BIS Certification is required for each manufacturing premises.
- Trademark or Brand: A manufacturer manufacturing the same product for more than one brand has to apply for a separate license with BIS. For example, if the manufacturer manufactures speakers for brands A & B, they must apply for two separate BIS Licenses with the department.
Documents Required for BIS Certification for Smart Card Readers
Following are some vital documents required to obtain BIS Certification for Smart Card Readers:
- Filled out CCL/CDF form;
- Business License of manufacturing premises;
- ISO Certificate of the manufacturing;
- Letter of Authorisation (if the signatory person is different from the owner of the manufacturing premises);
- Letter of Trademark Authorization (in case the Trademark is owned by an entity other than the manufacturer);
- Photo ID of Authorized Signatory or Authorized Indian Representative;
- Duly filled BIS Application form;
- Business License or Certificate of Incorporation;
- Marking Label or Information of marking on the product;
- Trademark Certificate;
- Authorised Indian Representative (AIR) Company registration proof in India (in case of a foreign manufacturer);
- Technical Specification sheet of user/product manual.
Procedure to Obtain BIS Certification for Smart Card Readers
The process of obtaining BIS Certification for Smart Card Readers varies based on the location of the manufacturing premises. Further, the BIS Certification procedure for Indian (Domestic) differs from that for a foreign manufacturer. The main steps involved in obtaining BIS for smart card readers include:
Procedure for Domestic Manufacturer
Step 1: Submit the online application form.
Step 2: Get the product sample testing done from BIS authorised laboratory.
Step 3: Submit an offline or online hard copy of the application form and the test report.
Step 4: BIS officials verify the Application form and all required documents.
Step 5: Grant of BIS Certification
BIS Certification Procedure for Foreign Manufacturer
Step 1: Nominate Authorised Indian Representative (AIR) who can represent a foreign manufacturer.
Step 2: Submit the online application form and all required documents.
Step 3: Get the product sample tested from a BIS-authorised laboratory.
Step 4: Submit the offline or online hardcopy of the application, including the product sample test report.
Step 5: BIS Officials verify the application form and all vital documents.
Step 6: Grant of BIS Certification
Other Points Related to BIS Certification for Smart Card Readers
- Hire a BIS-authorised testing organisation & an experienced compliance partner to get complete guidance regarding the procedure for BIS certification for smart card readers.
- Ensure that the laboratory testing the product sample has a valid licence and is not suspended. Further, the laboratory must not be in the middle or about to get audited.
- Before shipment of product samples, make sure that complete arrangements have been made for the entire shipment from the manufacturing location to the BIS testing laboratory’s door.
- The manufacturer, brand owner & Indian Representative must have signed all essential documents. In addition, vital documents must be notarised and stamped by the brand owner and authorised Indian Representative (AIR).
- The product information in the Construction Data Form (CDF) and the details of the product components in the Critical Component List (CCL) must be filled in briefly and accurately.
- A product Test report is valid for three months, and before its expiry, the test report must be submitted to BIS. If the applicant cannot submit the test report to BIS (Bureau of Indian Standards), then the applicant will have to submit the new product sample again for testing.
- All essential documents must be ready before the testing of the product sample.
- After submitting essential documents, including the product test report, the BIS typically takes about 15 days to grant the BIS Certification. Sometimes, it may take 30 to 60 days, which is a more realistic timeline to expect.
The obligatory BIS/CRS Registration Scheme under IS standard IS 13252 (Part-1) now includes all Smart Card Readers. Without BIS Certification for smart card readers, the product cannot be imported, exported, or sold in the Indian markets. Therefore, it is essential to seek BIS Registration consulting services for such products, to get end-to-end help with all documentation requirements and to handle all communications with the BIS office in India.
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