Important Regulatory Update: DGFT Amends Foreign Trade Policy Provision on QCO/BIS Applicability for SEZ Imports
The Directorate General of Foreign Trade (DGFT) has issued Notification No. 20/2026-27 dated 2 June 2026, amending Para 2.03(A)(iii) of the Foreign Trade Policy (FTP) 2023 and bringing much-needed clarity on the applicability of Quality Control Orders (QCOs) and BIS requirements for Special Economic Zone (SEZ) Units and SEZ Developers.
Key Update
SEZ Units and SEZ Developers can import all permissible goods – including raw materials, components, consumables, spares, and capital goods – required for authorized operations in SEZs without the applicability of QCOs issued under the BIS Act, 2016.
However, this exemption is limited to use within the SEZ. Any removal, transfer, or clearance of such imported goods – or products manufactured/processed from them – into the Domestic Tariff Area (DTA) will be subject to the applicable QCOs, BIS requirements, and other prevailing regulations at the time of clearance.
The amendment aligns FTP provisions with the SEZ Act, 2005 and SEZ Rules, 2006, providing greater regulatory certainty for SEZ stakeholders while ensuring compliance for goods entering the domestic market.
Key Takeaway
While facilitating authorised SEZ operations, the notification reinforces the importance of QCO and BIS compliance for goods entering the domestic market.
QCO exemption applies for authorized SEZ operations, but compliance requirements remain applicable when goods move into the Indian domestic market.
See the official announcement here.
Need support with the India BIS Compliance? Contact us at indiabis@reachlaw.fi
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