Quality Control Orders (QCOs) are regulatory mandates issued by Indian government to ensure that products meet specific quality standards. However,…

Answer (c) Imports of inputs under Advance Authorisation without mandatory QCO compliance are allowed only with pre-import condition. Imports of inputs under Advance Authorisation must be used exclusively for manufacturing export goods under the same authorisation. Exemption from QCOs must be specifically endorsed. Unutilised inputs or products made from such inputs cannot be transferred to DTA. Unutilised inputs or products made from such inputs must be destroyed or re-exported, with payment of effective duty along with interest to customs authorities and specified composition fee to DGFT. Exemption from QCOs applies to physical exports only. Import of inputs without compliance to the mandatory QCOs under DFIA scheme is not allowed.