MOICE Lyonpo Namgyal Dorji

MoICE defers BSB certification rule for imports amid GST transition

The Member of Parliament (MP) Kinzang Wangchuk of Dramedtse-Ngatshang constituency raised concerns in Parliament over the potential impact of the Bhutan Standards Bureau’s (BSB) product certification requirement on imports, small businesses, and market supply.

The MP said the recent BSB circular requiring imported products to be certified and included under the approved BSB list from 2026 onwards had created concerns among small businesses and importers across the country. Concerns were raised that restricting the entry of non-listed products could disrupt supply chains, increase prices, create monopolistic situations, and negatively affect businesses and consumers, particularly as Bhutan remains heavily dependent on imported goods.

In response, the Minister of Industry, Commerce and Employment, Lyonpo Namgyal Dorji, said the objective of the notification was not to restrict trade or create hardship for businesses, but to ensure that products entering the Bhutanese market meet minimum quality and safety standards to protect consumers, public safety, and infrastructure quality.

Lyonpo explained that the move was part of the implementation of the Bhutan Standards Act 2010, enacted more than 15 years ago, which established the legal framework for BSB to develop standards, operate product certification systems, and enforce quality control measures.

He said the requirement applies only to 15 selected regulated products where poor quality may pose significant risks. These include cement, steel, pipes, roofing sheets, electrical wires and cables, and electrical fittings.

According to Lyonpo, extensive consultations were carried out with business associations, importers, and relevant government agencies before the notification was issued. The concerns raised during consultations mainly related to supply continuity, transition timelines, availability of certified products, and possible impacts on prices and small businesses.

The government assessed that while there may be short-term adjustment challenges, the long-term benefits of preventing substandard products, protecting consumers, ensuring fair competition, and reducing infrastructure failures outweighed the concerns. The Minister added that BSB had ensured that sufficient certified brands were already included in the approved list for all regulated product categories to avoid supply shortages, monopolistic situations, or unreasonable price increases.

He also said the government was closely monitoring market supply and pricing trends to ensure there would be no artificial shortages or unnecessary price escalation.

To support implementation, the notification was initially issued on 16th June 2025 with implementation scheduled for 1st January 2026, giving stakeholders more than six months to prepare and comply. Awareness and sensitisation programs were conducted across all 20 dzongkhags, while customs officials, Royal Bhutan Police personnel, and clearing and forwarding agents were trained at major entry points.

However, the Minister said it became evident that the transition coincided with the nationwide implementation of GST reforms. Recognizing that simultaneous major regulatory transitions could create adjustment challenges and inconvenience for businesses, importers, and consumers, the ministry decided to defer the full implementation of the notification to a later date.

The ministry and BSB are continuing consultations with industry associations, importers, customs authorities, and other stakeholders to address operational challenges and gather feedback. The certification process is also being streamlined to improve efficiency, transparency, and timely approvals.

Lyonpo said that the government remains committed to balancing consumer protection, quality assurance, and ease of doing business through a phased and consultative approach.

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