The Directorate General of Foreign Trade (DGFT), through Notification No. 16/2026-27 dated 1 June 2026, has amended Paragraph 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 by Special Economic Zone (SEZ) Units and Developers. Under the revised provision, SEZ Units and Developers are exempt from QCO compliance for the import of all permissible goods, including raw materials, components, consumables, spares, and capital goods required for authorized operations within SEZs. The amendment aligns FTP provisions with the SEZ Act, 2005 and SEZ Rules, 2006. However, any removal, transfer, or clearance of such imported goods, or products manufactured from them, into the Domestic Tariff Area (DTA) must comply with applicable QCOs, BIS requirements, and other laws in force. An undertaking confirming compliance must be furnished to the concerned Development Commissioner at import.
Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Vanijya Bhawan
Notification No. 16/2026-27-DGFT |Dated: 01st 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 DT A clearance of such inputs or goods manufactured made out of such inputs, are allowed. An undertaking to that effect will be submitted to the concerned Development Commissioner 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 1s 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-5910]
