SEZ Units Get Broader QCO Exemption, DTA Clearances Must Now Comply

The Ministry of Commerce has amended Foreign Trade Policy 2023 to widen the exemption from Quality Control Orders (QCOs) for Special Economic Zone (SEZ) units and developers. The revised Para 2.03A(iii) now allows exemption for all permissible goods including raw materials, components, consumables, spares, and capital goods required for authorized operations within SEZs. However, any transfer or clearance of such goods into the Domestic Tariff Area (DTA) will be subject to full compliance with applicable QCOs and BIS requirements.