Government Extends QCO Import Exemptions for AC and Refrigerator Compressors Till March 2027

The Government of India has extended QCO-linked import exemptions for selected compressors used in air conditioners, refrigerators and heat pumps till March 31, 2027, providing significant relief to manufacturers amid rising demand and ongoing localisation efforts.

The latest government notification allows manufacturers to continue importing specific categories of compressors under prescribed limits linked to their financial year 2024-25 import volumes. The move is aimed at preventing supply disruptions while giving the industry additional time to strengthen domestic manufacturing capabilities under India’s quality control and indigenisation framework.

The decision comes at a crucial time for the cooling appliances sector, particularly ahead of peak summer demand, when manufacturers often face supply-side pressures due to stricter Quality Control Order compliance requirements. Industry stakeholders had raised concerns over limited domestic manufacturing capacity for certain advanced and high-capacity compressor categories, especially those used in premium cooling systems and Variable Refrigerant Flow applications.

As per the revised norms, manufacturers will be permitted to import limited quantities of small reciprocating compressors used in refrigerators, rotary compressors used in air conditioners and heat pumps, as well as larger scroll and rotary compressors under specified exemption limits. The notification also allows continued imports of large rotary compressors used in advanced VRF systems where domestic production capabilities remain limited.

The government has further directed manufacturers availing the exemption to maintain monthly import records and submit periodic compliance reports to the concerned authorities. Companies will also be required to submit detailed indigenisation plans as part of the broader effort to encourage domestic manufacturing and reduce long-term import dependence.

The extension is expected to provide operational stability to AC, refrigeration and consumer durable manufacturers while supporting India’s larger objective of building a stronger and more self-reliant electronics and appliance manufacturing ecosystem.