Notification No. 16/2026-27, Dated 01-06-2026
The Directorate General of Foreign Trade (DGFT) has issued a notification amending Para 2.03A(iii) of the Foreign Trade Policy (FTP), 2023, to broaden the exemption from Quality Control Orders (QCOs) issued under the Bureau of Indian Standards (BIS) Act, 2016, for imports by SEZ Units and SEZ Developers.
The amendment comes into effect immediately.
1. Scope of Exemption Expanded Beyond Export Production Inputs
Earlier, the exemption from QCOs applied only to inputs required for the manufacture of goods intended for export.
Pursuant to the amendment, the exemption has now been extended to all permissible goods imported by SEZ Units and SEZ Developers for authorised operations within Special Economic Zones.
2. Goods Covered Under the Expanded Exemption
The expanded exemption covers imports of:
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- Raw materials
- Components
- Consumables
- Spares
- Capital goods
- Other permissible goods required for authorised operations
The imports must be undertaken in accordance with the:
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- Special Economic Zones Act, 2005; and
- Special Economic Zones Rules, 2006
3. Exemption Restricted to Authorised Operations Within SEZs
DGFT has clarified that the exemption is available solely for the use of imported goods within SEZs for authorised operations.
Accordingly, goods imported under the exemption must be utilised for activities permitted under the SEZ framework.
4. Compliance Required for Domestic Tariff Area (DTA) Clearances
The notification further provides that where:
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- Imported goods are removed, transferred or cleared into the Domestic Tariff Area (DTA); or
- Goods manufactured or processed using such imported goods are cleared into the DTA;
the applicable Quality Control Orders, BIS requirements and other laws in force at that time must be complied with.
Thus, the exemption is not available once goods enter the domestic market.
5. Mandatory Undertaking by SEZ Units and Developers
SEZ Units and SEZ Developers availing the exemption are required to furnish an undertaking to the concerned Development Commissioner at the time of importation.
The undertaking is intended to ensure compliance with conditions governing the utilisation of imported goods within SEZs.
6. Immediate Effect of the Amendment
The amendment to Para 2.03A(iii) of the FTP, 2023 has come into force with immediate effect.
Accordingly, eligible SEZ Units and SEZ Developers may avail themselves of the expanded exemption for qualifying imports from the date of issuance of the notification.
7. Objective of the Amendment
The amendment aims to facilitate ease of doing business within Special Economic Zones by reducing regulatory constraints on imports required for authorised operations.
By extending the QCO/BIS exemption beyond export-production inputs to all permissible goods used within SEZs, the Government seeks to support operational efficiency, investment and manufacturing activity in Special Economic Zones while maintaining regulatory controls for goods entering the Domestic Tariff Area.
