Exemption from Quality Control Orders allows conditional import of inputs for manufacture of physical exports under endorsed authorisations. Amendments permit import of inputs subject to mandatory Quality Control Orders by Advance Authorisation holders without pre-import QCO compliance only when specifically endorsed on the AA and used in manufacture of export goods for physical export. Unutilised imports cannot be cleared to DTA and must be destroyed or re-exported; AA holders must pay exempted duties with interest and a composition fee to DGFT before EODC. Exemptions exclude DFIA, apply similarly to EOUs upon undertaking, and are subject to para 2.03(c) and Appendix 2Y listings.