The Directorate General of Foreign Trade (DGFT), through Notification No. 20/2026-27 dated 2 June 2026, has amended Para 2.03A(iii) of the Foreign Trade Policy (FTP) 2023 to clarify the applicability of Quality Control Orders (QCOs) and Bureau of Indian Standards (BIS) requirements on imports made by Special Economic Zone (SEZ) Units and Developers. Earlier, the exemption from mandatory QCOs was limited to imports of inputs required for export production, subject to restrictions on Domestic Tariff Area (DTA) clearance and available only for physical exports. The revised provision significantly expands the exemption by allowing SEZ Units and Developers to import all permissible goods, including raw materials, components, consumables, spares, and capital goods, required for authorized SEZ operations without QCO compliance at the import stage. However, any transfer, removal, or clearance of such goods, or products manufactured from them, into the DTA must comply with applicable QCOs, BIS requirements, and other laws. An undertaking must be furnished to the concerned Development Commissioner at import.
(To be published in the Gazette of India Extraordinary Part-II, Section-3, Sub-Section (ii))
Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Vanijya Bhawan
Notification No. 20/2026-27- DGFT | Dated: 02nd June, 2026
Subject: Applicability of Quality Control Orders (QCOs)/BIS requirements on imports by Special Economic Zone (SEZ) Units and Developers- Amendment in Para 2.03(A)(iii) of FTP 2023 reg.
S.O. (E): In exercise of the powers conferred by Section 3 read with Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (22 of 1992), read with Paragraph 1.02, of the Foreign Trade Policy (FTP), 2023, as amended from time to time, the Central Government hereby makes the following amendments relating to SEZ imports in Para 2.03(A) (iii) of the FTP, 2023, with immediate effect, as under:
| Existing Para 2.03A(iii) | Revised Para 2.03A(iii) |
| Exemption from applicability of mandatory QCOs issued under the BIS Act, 2016, shall be provided to SEZ on import of inputs which are required for export production. No DTA clearance of such inputs or goods manufactured made out of such inputs, are allowed. An undertaking to that effect will be submitted to the Development Commissioner concerned of the SEZ by the SEZ Unit at the time of importation. The exemption from QCO will be available for physical exports only. This exemption is further subject to para 2.03 (c) of FTP. | Exemption from applicability of Quality Control Orders (QCOs) issued under the BIS Act, 2016, shall be provided to SEZ Units or SEZ Developers for import of all permissible goods, including raw materials, components, consumables, spares, and capital goods, required for authorised operations within Special Economic Zones (SEZs), in accordance with the provisions of the SEZ Act, 2005 and Rule 27 of the SEZ Rules, 2006 made thereunder.
Such exemption shall apply only for the use of the imported goods within the SEZ for authorised operations. However, any removal, transfer or clearance of such goods, or goods manufactured or processed therefrom, from the SEZ into the Domestic Tariff Area (DTA) shall be subject to compliance with the applicable Quality Control Orders (QCOs), Bureau of Indian Standards (BIS) requirements and any other applicable laws, rules or regulations in force at the time of such clearance. An undertaking to the above effect shall be submitted to the concerned Development Commissioner of the SEZ by the SEZ Unit or SEZ Developer at the time of importation. |
Effect of this Notification: Para 2.03A(iii) of FTP, 2023 is amended to align the provisions relating to exemption from applicability of Quality Control Orders (QCOs) for imports by SEZ Units and Developers with the provisions of the SEZ Act, 2005 and SEZ Rules, 2006, and to bring clarity regarding the applicability of QCOs.
This is issued with the approval of the Minister of Commerce & Industry.
(Lay Agarwal)
Director General of Foreign Trade &
Ex-officio Additional Secretary to the Government of India
E-mail: dgft@nic.in
(Issued from the File No. 01/89/180/13/AM-15/PC-2(A)/[E-59101
