The DGFT has widened the Quality Control Order (QCO) exemption for SEZ imports to all permissible goods, introducing a new compliance requirement for goods entering the domestic market.
Expanded QCO Exemptions for SEZ Imports by DGFT
The Directorate General of Foreign Trade (DGFT) has made significant amendments to the Quality Control Orders (QCO) applicable to Special Economic Zones (SEZ). The latest notification expands the exemption to cover all permissible goods, easing the previous restrictions.
In addition to this, a new compliance requirement has been introduced, mandating compliance with the Bureau of Indian Standards (BIS) for goods moving into the Domestic Tariff Area (DTA). This dual approach aims to strike a balance between promoting exports from SEZs and ensuring quality standards for domestic consumption.
Practitioners involved in import/export operations must stay abreast of these changes to ensure their clients comply with the new requirements, particularly regarding BIS compliance, which could impact the market entry of a range of products.
