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Core Purpose

This notification amends Para 2.03A(iii) of the Foreign Trade Policy (FTP), 2023, to clarify and align provisions for the exemption of Quality Control Orders (QCOs) on imports by Special Economic Zone (SEZ) Units and Developers.

Detailed Summary

The Ministry of Commerce and Industry, Department of Commerce, Directorate General of Foreign Trade, issued Notification No. 20/2026-27 (S.O. 2827(E)) on June 2, 2026, amending Para 2.03A(iii) of the Foreign Trade Policy (FTP), 2023. This amendment, made under Sections 3 and 5 of the Foreign Trade (Development & Regulation) Act, 1992 (22 of 1992) and Paragraph 1.02 of the FTP, 2023, revises the exemption from Quality Control Orders (QCOs) issued under the BIS Act, 2016, for imports by Special Economic Zone (SEZ) Units and Developers. Previously, the exemption applied to inputs for export production, with no Domestic Tariff Area (DTA) clearance allowed. The revised provision grants exemption for import of all permissible goods, including raw materials, components, consumables, spares, and capital goods, required for authorized operations within SEZs, in accordance with the SEZ Act, 2005 and Rule 27 of the SEZ Rules, 2006. This exemption is strictly for goods used within the SEZ; any subsequent removal or clearance of such goods, or products made from them, into the DTA will require compliance with applicable QCOs, Bureau of Indian Standards (BIS) requirements, and other relevant laws. Both existing and revised provisions require an undertaking to be submitted to the concerned Development Commissioner of the SEZ by the SEZ Unit or SEZ Developer at the time of importation. The purpose of this amendment, approved by the Minister of Commerce & Industry, is to align the QCO exemption provisions for SEZ imports with the SEZ Act, 2005 and SEZ Rules, 2006, and to enhance clarity regarding QCO applicability.

Full Text

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-06062026-273230 EXTRAORDINARY PART II-Section 3-Sub-section (ii) PUBLISHED BY AUTHORITY No. 2733] NEW DELHI, WEDNESDAY, JUNE 3, 2026/JYAISTHA 13, 1948 MINISTRY OF COMMERCE AND INDUSTRY (Department of Commerce) (DIRECTORATE GENERAL OF FOREIGN TRADE) NOTIFICATION New Delhi, the 2nd June, 2026 No. 20/2026-27 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. 2827(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 | Exemption from applicability of Quality Control Orders | | issued under the BIS Act, 2016, shall be provided to | (QCOs) issued under the BIS Act, 2016, shall be provided to | | SEZ on import of inputs which are required for | SEZ Units or SEZ Developers for import of all permissible | | export production. No DTA clearance of such inputs | goods, including raw materials, components, consumables, | | or goods manufactured | spares, and capital goods, required for authorised operations | | made out of such inputs, are allowed. An | within Special Economic Zones (SEZs), in accordance with | | undertaking to that effect will be submitted to the | the provisions of the SEZ Act, 2005 and Rule 27 of the SEZ | | concerned Development Commissioner of the SEZ | Rules, 2006 made thereunder. | | by the SEZ Unit at the time of importation. The | | | exemption from QCO will be available for physical | Such exemption shall apply only for the use of the imported | | exports only. This exemption is further subject to | goods within the SEZ for authorised operations. However, any | | para 2.03 (c) of FTP. | 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. [F. No. 01/89/180/13/AM-15/PC-2(A)/[E5910]] LAV AGARWAL, Director General of Foreign Trade & Ex-officio Addl. Secy.

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