FTP aligned with SEZ framework

The Directorate General of Foreign Trade (DGFT) has broadened the scope of exemptions from Quality Control Orders (QCOs) applicable to imports by Special Economic Zone (SEZ) Units and Developers. 

Prior to the amendment, the exemption was largely restricted to inputs imported for export production and was available only in relation to physical exports. The revised provision substantially expands the exemption to cover all permissible goods imported by SEZ Units or SEZ Developers for authorised operations within SEZs, including raw materials, components, consumables, spares, and capital goods. 

At the same time, the notification clarifies that the exemption is confined to use within the SEZ and does not extend to goods subsequently cleared into the Domestic Tariff Area (DTA). Any removal, transfer, or clearance of imported goods, or goods manufactured or processed therefrom, into the DTA will continue to be subject to applicable QCOs, BIS requirements, and other prevailing laws at the time of such clearance.