Notification by Department of Trade

This is to inform that the product-based distribution system for three hardware products, namely Electrical  Wires,  Cables,  and  Pipes,  which  was  introduced  on  1  January  2023,  will  remain temporarily suspended with immediate effect owing to practical difficulties faced in sourcing and supplying the materials on time. Instead, a company-based distribution system, similar to Fast Moving Consumer Goods (FMCG) will be adopted.

As  per  a company-based distribution  system (i.e two  (2)  or  more  wholesalers  appointed  by  a principal company), only those wholesalers appointed by principal companies to deal in above

three products will be allowed to import and supply in the domestic market. While other entities or  general consumers  are  not  permitted  to  import  these  products,  they  can  import  similar products of different brands or the same product line sourced from principal companies other than those mentioned in the annexed list.

Currently,  there  are  15  such  principal  companies  and they have  appointed  46  wholesalers  tosupply and distribute these products in the domestic market. Please refer to the annexed list for further details. Click here for details…

Please note that the number of principal companies and wholesalers is not limited to the above

list.  Interested  parties/individuals  can  apply  for  wholesale  and  dealership  licenses  as  per  theexisting rules in vogue. The department will review the effectiveness of the above system from time to time based on market dynamics in the hardware sector.

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