DGFT Widens QCO Exemption for SEZ Imports to All Permissible Goods, Mandates BIS Compliance on DTA Clearance [Read Notification]

The DirectorateGeneral of Foreign Trade (DGFT) has amended Para 2.03A(iii) of the ForeignTrade Policy (FTP) 2023 to expand the exemption from Quality Control Orders (QCOs) issued under the Bureau of Indian Standards (BIS) Act, 2016 for imports by Special Economic Zone (SEZ) Units and Developers.

At the same time, the DGFT has mandated compliance with QCOs and BIS requirements when goods are cleared into the Domestic Tariff Area (DTA).

The latest Notification No. 20/2026-27 dated June 2, 2026, replaces the existing Para 2.03A(iii), which restricted the QCO exemption to inputs required for export production and prohibited any DTA clearance of such inputs or goods manufactured from them.

The revised provision extends the exemption from mandatory QCOs to all permissible goods imported by SEZ Units or Developers for authorised operations within the SEZ and includes raw materials, components, consumables, spares, and capital goods in accordance with the SEZ Act, 2005 and Rule 27 of the SEZ Rules, 2006.

The exemption is applicable only to goods used within the SEZ for authorised operations. Any goods or products manufactured from them that are subsequently moved into the DTA must comply with applicable QCOs, BIS requirements, and all other laws in force at the time of such clearance.

SEZ Units and Developers must submit an undertaking to the concerned Development Commissioner at the time of importation.

Also Read: No QCOExemptions for Imports by MSEs: Mundra Customs Issues Directive

The notification has been issued with the approval of the Minister of Commerce & Industry and signed by Lav Agarwal, Director General of Foreign Trade and Ex-officio Additional Secretary to the Government of India.

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