DGFT, SEZ & QCO Update (2 June 2026): Major BIS Compliance Changes Every Business Must Know
The Directorate General of Foreign Trade (DGFT) has issued Notification No. 20/2026-27 dated 2 June 2026, introducing an important amendment to the Foreign Trade Policy (FTP) 2023. The update brings greater clarity regarding the applicability of BIS-related requirements on imports made by Special Economic Zone (SEZ) Units and Developers.
The amendment revises Paragraph 2.03(A)(iii) of FTP 2023 and aligns the policy with the provisions of the SEZ Act, 2005 and SEZ Rules, 2006. The objective is to remove ambiguity surrounding compliance obligations for goods imported into SEZs for authorised operations.
What Has Changed?
Under the revised provision, SEZ Units and SEZ Developers can import all permissible goods required for authorised operations within SEZs. The clarification extends beyond export-production inputs and covers a broader range of goods used for approved SEZ activities.
The amendment also formally recognizes both SEZ Units and SEZ Developers under the compliance framework, providing a clearer regulatory position for businesses operating within Special Economic Zones.
Why This Update Matters
For many businesses, uncertainty regarding BIS and QCO applicability on SEZ imports has often created compliance challenges, delays, and additional documentation requirements. The latest DGFT notification provides regulatory certainty and helps businesses plan imports more efficiently.
The clarification is expected to:
- Improve ease of doing business for SEZ units and developers.
- Reduce regulatory ambiguity during import planning.
- Support manufacturing, infrastructure development, and export-oriented operations within SEZs.
- Align Foreign Trade Policy provisions with the existing SEZ legal framework.
Important Compliance Point for Businesses
While the amendment provides greater flexibility for imports used in authorised SEZ operations, businesses must continue to carefully monitor compliance requirements whenever goods are moved from SEZs into the Domestic Tariff Area (DTA). Regulatory obligations applicable to the domestic market remain relevant and should be reviewed before any such clearance.
Impact on Industry
The notification is expected to benefit a wide range of sectors operating in SEZs, including electronics, engineering, chemicals, manufacturing, industrial equipment, renewable energy, and export-oriented businesses. By reducing uncertainty around import compliance, the government aims to strengthen India's manufacturing ecosystem and enhance the competitiveness of SEZ operations.
Conclusion
The DGFT Notification dated 2 June 2026 marks a significant policy clarification for SEZ stakeholders. By aligning FTP provisions with the SEZ framework and providing clearer guidance on BIS-related compliance obligations, the government has taken another step toward simplifying trade regulations and supporting industrial growth. Businesses operating in SEZs should review their import and compliance strategies to ensure they fully benefit from the revised provisions while maintaining regulatory compliance.