TMI BlogSCOMET: Special Chemicals, Organisms, Materials, Equipment and TechnologiesX X X X Extracts X X X X X X X X Extracts X X X X ..... ion Note (CIN) of SCOMET list, and any other sub-category as may be specified. (b) The Department of Atomic Energy (DAE) is the licensing authority for items in Category 0 and Note 2 of the 'CIN . Applicable guidelines are notified by the DAE for Nuclear Transfers (Exports) and Notification of schedule of Prescribed Substances, Prescribed Equipment and Technology issued under Atomic Energy Act 1962 and Atomic Energy (Working of Mines, Minerals and Handling of Prescribed Substance) Rules 1984. For certain items in Category 0, formal assurances from the recipient State will include non-use in any nuclear explosive device. Authorisations for export of certain items in Category 0 will not be granted unless transfer is under adequate physical protection and is covered by appropriate International Atomic Energy Agency (IAEA) safeguards, or any other mutually agreed controls on transferred items. (c) The Department of Defence Production (DDP) in the Ministry of Defence is the licensing authority for items in Category 6 of SCOMET known as Munitions List [except those covered under Note 2 of CIN to SCOMET and Note 3 of Munitions List (i.e. items under Category 6A007, 6A008)] irrespectiv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied by an EUC as per the applicable format (relevant Appendix), certifying that: The item will be used only for stated purpose and that such use will not be changed, nor items modified or replicated without consent of Government of India; Neither the items nor replicas nor derivatives thereof will be retransferred without consent of Government of India; End-user shall facilitate such verifications as are required by Government of India. (e) The end-user certificate will indicate the name of the item to be exported, the name of the importer and all the entities in the supply chain, the specific end-use of the subject goods, details of Purchase Order/Contract, etc. (f) Government of India may also require additional formal assurances, as deemed appropriate, including those on end-use and non-transfer, from the State of the recipient. Additional end-use conditions may be stipulated in Authorisations for export of items, including software and technology, based on an assessment of proliferation concerns and other factors. 10.05 Additional controls on Non-SCOMET items for dual use (Catch-all controls) If the exporter has been notified in writing by DGFT or he knows or has reason to beli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cluding but not limited to the control lists of the Nuclear Suppliers Group, Missile Technology Control Regime, Australia Group (and its Warning List or Awareness Raising Guidelines) and Wassenaar Arrangement (and its Sensitive List and Very Sensitive List) as amended from time to time; II. Timeline for comments/NOC by IMWG members: The members of IMWG will endeavour to furnish their written comments/views/no objection to DGFT within 30 days from the date of forwarding of online application by DGFT (Hqrs.). If no comments/views/no objection is received within the stipulated period, the cases will be placed before IMWG for taking a decision as deemed appropriate. III. The IMWG shall normally meet once every month. Where a case has been deferred in the IMWG meeting and subsequently comments/views/NOC(s) are received from all concerned agencies with no divergence in views, authorisation shall be issued with the approval of Chairman, IMWG and the case shall be brought before IMWG in its subsequent meeting for approval on ex-post facto basis. IV. Case(s) where a decision could not be arrived at in IMWG shall be placed before Director General of Foreign Trade for appropriate decision on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owing criteria: (i) Same SCOMET items would imply that the products, along with the technical specifications, are exactly the same for which export authorisation has been issued to the applicant exporter earlier after due consultation/verification; (ii) Same country/entities would imply that (a) the foreign buyer (b) the consignee or the intermediaries, if any (c) the end user and (d) the end use are exactly the same for which export authorisation has been issued to the applicant exporter earlier after due consultation/verification; (iii) Only the applications submitted within three years from the date of Issue of original SCOMET authorisation, after due verification/consultation process, will be eligible for repeat authorisation; (iv) The cumulative quantity permitted against repeat export authorisations shall be commensurate with the operational capacity of the end user in respect of the relevant product, as certified by the end user. A certificate to this effect from the end user on prescribed proforma [Appendix 10B(i)]shall be submitted by the exporter along with the application for a repeat authorisation; (v) A declaration by the authorized signatory of the exporter firm on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cument in lieu thereof; v. Technical specifications of the product(s); vi. Copy of Internal Compliance Program (if applicant exporter/ stockist entity has one) In-principle approval for export to the stockist, and, for sale by stockist within the country of the stockist, and, for re-export by stockist to end user in other countries d. The application would be assessed for grant of authorisation for export to the stockist, and, for grant of in-principle approval for re-export to specified countries of ultimate end use approved by the IMWG; e. No authorisation would be required for transfer from the stockist to the ultimate end user(s) within the country of the stockist and for re-export to end users in such approved countries; f. Re-export to such approved countries would be subject to the export control regulations of the country of the stockist; g. Country would denote an independent sovereign entity which is a distinct national entity in political geography. Hence, transfers within an economic union or a customs union would not qualify as same country transfers ; Post-reporting for same country transfer and re-export to pre-approved countries by the stockist h. In case of sale/tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ist entity under the stock and sale authorisation should be transferred to the final end-user(s) within the validity period of the authorisation as in paragraph 10.17 of HBP; n. The authorisation may be revalidated as per the procedure mentioned in paragraph 10.20 of HBP; 10.11 Issue of export authorisation for spare parts of SCOMET items under Stock and Sale An applicant may also apply for export of spare parts, under stock and sale arrangement in the application for export of main item/equipment along with justification of the same. The request for export of spare parts covered under SCOMET may be considered by IMWG along with the application for the main item/equipment, on the same conditions, as applicable for the main item/component. The applicant needs to indicate the requirement of spare parts after judicious and reasonable assessment with justification thereof. 10.12 Issue of authorisations for repair/replacement of defective SCOMET items An application for grant of an Authorisation for export/re-export of SCOMET items, as the case may be for (i) repair/replacement of imported item(s) abroad and return (ii) repair/replacement of indigenous SCOMET items (iii) return of items ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estruction in the importing country shall be submitted to DGFT within 90 days of export. (c) In case time beyond 90 days is required for repair of imported defective/damaged item(s) before re-import, permission from DGFT shall have to be obtained in advance indicating detailed justification for seeking extension of time. (d) Bill of Entry confirming the return back of such SCOMET item(s) to India shall be intimated by the licensee to the DGFT(Hqrs) in the prescribed proforma (Annexure-I of Appendix 10K), duly signed in ink and stamped by the authorised signatory. B. Authorisation for re-export of indigenous SCOMET items after repair/replacement: i. Conditions to be fulfilled: (a) The SCOMET items manufactured in India, were exported and brought back to India for repair or being replaced, on being found defective/damaged; (b) The items are to be re-exported after repair/replacement to the same entity to which the item(s) were originally exported by the applicant exporter; (c) There has been no change to the original characteristics/specifications of SCOMET item(s); (d) That the defective/damaged item(s)has/have already been brought back or would be brought back to India within 90 da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Scope of Work including conditions for undertaking repair in India; (b) The items are to be exported to the same entity abroad from which the item(s) has/have been imported or to the OEM (including agency 2 authorised by OEM); (c) The repair of defective/damaged items is allowed under the conditions of import or contractual agreement between Indian exporter, entities of repair facility (if different from exporter) and the entity abroad/OEM (including agency authorized by OEM)(name and address); (d) There has been no change to the original characteristics/specifications of the SCOMET item(s) after repair; (e) No Export Authorisation would be granted when the initial export authorisation has been suspended, modified or revoked by country of import; (f) No Export authorisation would be granted for UNSC sanctioned destinations or countries/entities of high risk, as assessed by the IMWG, from time to time; (g) No details of End Use and End Use Certificate would be required; (h) The application is accompanied with relevant documents as prescribed in Appendix 10F; ii. Applications for grant of authorisations for export to the entity from which it was imported or to the OEM (including agen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the repair work; h. No Export Authorisation would be granted when the initial export authorisation has been suspended, modified or revoked by country of import; i. No Export authorisation would be granted for UNSC sanctioned destinations or countries/entities of high risk, as assessed by the IMWG, from time to time; j. No details of End Use and End Use Certificate would be required; k. GAER issued for specific item and specific entity(buyer/end user) shall not be applicable incase the re-export is of a different imported item or to a different entity or Authorised OEM. In such cases, either a new GAER authorisation may be applied or application may be filed under Para 10.12(D) of HBP. B. Documents Required for GAER 1. Proof of import of the item(s): a. Export License (if applicable) issued by the foreign country for original import of the items to India; b. Documentary proof and/or self declaration that the item exempted from license requirement or place under no license requirement for India. c. Bill of Entry (first time) 2. Proof of obligation for repair of defective/damaged items: Contract agreement and/or Statement of Work (SOW) / Master Service agreement (MSA) between Indian e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es or for noncompliance with the conditions of this Public Notice. E. General conditions i. GAER would not be issued in case of items to be used to design, develop, acquire, manufacture, possess, transport, transfer and / or used for chemical, biological, nuclear weapons or for missiles capable of delivering weapons of mass destruction and their delivery system; ii. GAER would not be issued for countries or entities covered under UNSC embargo/ sanctions or on assessment of proliferation concerns, or national security and foreign policy considerations, etc.; iii. DGFT shall reserve the right to deny issuance of GAER or recall GAER without assigning any reason(s). F. Applications for grant of General authorisations for export to the same entity from goods were imported shall be approved by Chairman IMWG, without any consultation with IMWG members after the first export/shipment. In exceptional cases, consultation with IMWG may be done prior to issuance of GAER, incase required. G. All such authorisations shall be brought before IMWG in its subsequent meeting for confirmation of approval, on ex-post facto basis. 10.13 Issue of export authorisations for demo/display/exhibition/tenders/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed signatory. (B) Authorisation for export of imported SCOMET items after participation in demo/display/ exhibition/tenders/RFP/RFQ/NIT in India Application for grant of authorisation for export of imported SCOMET items (other than those under Category 0, 1, 2 and 6 or Technology or Software in any category) to the entity from which it has been originally imported or to its OEM (including agency authorized by OEM), after Demo/Display/ Exhibition/tender/RFP/RFQ/NIT, shall be considered by Chairman IMWG, on the following conditions: a) The SCOMET item(s) were imported in India for the purpose of demo/display/exhibition/tender/RFP/RFQ/NIT under a contract agreement between Indian exporter and supplier/OEM(including agency authorized by OEM); b) The export should only be to the entity from which the item(s) has/have been imported or to the OEM (including agency authorized by OEM); c) No details on End Use and End Use Certificate would be required; d) No export authorisation would be granted for UNSC sanctioned destinations or countries/entities of high risk, as assessed by the IMWG, from time to time; e) The application is accompanied with relevant documents as prescribed in Appendix ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oved by Chairman IMWG, without any consultation with IMWG members. However, in cases of re-export/return to an entity other than the OEM (including agencies authorized by OEM), approval will be granted by Chairman, IMWG after verification of the credentials of the foreign entity to which the item(s) are to be exported. iii. All such authorisations shall be brought before IMWG in its subsequent meeting for confirmation of approval, on ex-post facto basis. 10.15 Global Authorisation for Intra-Company Transfers (GAICT) of SCOMET Items including /Software/Technology A. Scope and Eligibility : Pre-export authorisation will not be required, for export and/or re-export of SCOMET items including software and technology under SCOMET Category 8 (except items listed in Appendix 10M), subject to the following conditions: i. where the export is an Intra-company transfer from the Indian parent company (applicant exporter) to its foreign subsidiary company or from the Indian subsidiary of foreign company (applicant exporter) to its foreign parent/another subsidiary of foreign parent company and; Note : In case of third party involvement in the supply chain, the end user has to be a foreign parent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... zed representatives of Government of India; f. No export authorisation would be granted for UNSC sanctioned destinations or countries; g. No export authorisation shall be granted to an exporter specified at (i) above if they have come to adverse notice previously; h. The exporter is granted a Global Authorisation for Intra-Company Transfers (GAICT) as per procedure mentioned in para 10.15 B below. B. Procedure for grant of Global Authorisation for Intra-Company Transfers (GAICT) Filing and Assessment of Application a. In respect of export/re-export of SCOMET items including software and technology ,the applicant exporter shall submit an application for GAICT through online SCOMET portal and attach information in proforma ANF10C ; b. The application would be assessed for the issue of GAICT by Inter-Ministerial Working Group (IMWG) based on the submission of the application and other supporting documents by the applicant exporter in the prescribed proforma; i. Documentary proof of the corporate relationship between the Indian parent company (applicant exporter) and its foreign subsidiary company or between the Indian subsidiary of foreign company (applicant exporter) and its foreign ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ude the name contact number and email id of the authority signing the EUC. ix. A precise and clear contract /service agreement/ Purchase order has to be furnished indicating item description in case of third party involvement in the supply chain (if applicable) x. Additional details, if any, sought by DGFT C. Post reporting for re-export of items/software/technology under GAICT a. The Indian exporter shall submit post-shipment details of each transfer/consignment of exports of SCOMET items/software/technology under GAICT to the SCOMET Division of DGFT (Hqrs), New Delhi, through online system on DGFT website, on quarterly basis (March / June / September / December), by the end of subsequent month of each quarter, in respect of the exports made in the previous quarter; b. The post-shipment details shall be submitted in proforma ANF 10D along with a copy of EUC in Appendix 10J(iv) within the timelines mentioned above, from the foreign subsidiary company or foreign parent company / another subsidiary of foreign parent company; c. Failure to do so may entail imposition of penalty and / or suspension/revocation of GAICT. Note: ANF (Aryat Niryat Form) ANF 10C, ANF 10D and EUC Proforma App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on-compliance of any of the condition of this policy. 3 [ 10.15(I): General Authorization for Export of Telecommunication-related items under SCOMET Category 8A5 Part 1 (GAET) Export of indigenous/imported SCOMET items (Telecommunication items under SCOMET Category 8A5 Part 1) will be allowed based on a one-time General Authorization (GAET) subject to the following conditions: 1. Policy Eligibility: SCOMET authorization will not be required, for the export and/or reexport of Telecommunication items (excluding technology and software) under SCOMET Category 8A5 Part I(except items listed in Annexure-I) subject to the following conditions: a. The applicant exporter shall submit an application for getting a one-time license under GAET through the online SCOMET portal and attach the information in the prescribed proforma; b. The application would be reviewed/examined for the issuance of GAET by the Inter-Ministerial Working Group (IMWG) based on the submitted application and other supporting documents submitted by the applicant exporter in the prescribed proforma including: i. Detailed description of the items that are intended to be exported under this authorization with relevant techn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such restriction, the exporter will provide a letter of explanation detailing the list of countries/entities, to which re-export/return is restricted / regulated; Purchase order viii. After issuance of GAET authorization and before actual export, the applicant exporter must ensure the following: 1. They shall notify the relevant government authorities in the online portal of DGFT, on quarterly basis of such export in the prescribed format [Aayat Niryat Form (ANF)- 10H], along with the End-Use Certificate (EUC) for each export. 2. The EUCs in prescribed proforma [Appendix 10J(i)] are to be filled by all the entities involved in the chain of supply e.g. foreign buyer/consignee / end-user / intermediary (ies) on the letterhead of the respective entity, duly signed in ink and stamped by the authorized signatory of the company. In case of any additional sheet used along with the EUC, the same must be on the letterhead of the company and signed by the same person who signs the EUC. 3. They have an agreement or purchase order, an excerpt of a contract from the entity (buyer/consignee/end-user) receiving the items which state that the export is for a permitted use / an end-use as declared ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t on proliferation concern or for non-submission of mandatory post-shipment details/reports/ documents within the prescribed timelines or non-compliance with the conditions of the proposed policy. ] 4 [ 10.15(II): General Authorization for Export of Information Security items under SCOMET Category 8A5 Part 2 Export of indigenous SCOMET items (Information Security items under SCOMET Category 8A5 Part 2) will be allowed based on a one-time General Authorization (GAEIS) subject to the following conditions: 1. Policy Eligibility: SCOMET authorization will not be required, for the export and/or re-export of Information Security items ( excluding technology ) under SCOMET Category 8A5 Part 2 subject to the following conditions: a. The applicant exporter shall submit an application for getting a one-time license under GAEIS through the online SCOMET portal and attach the information in the prescribed performa. b. The application would be reviewed/examined for the issuance of GAEIS by the Inter-Ministerial Working Group (IMWG) based on the submitted application and other supporting documents submitted by the applicant exporter in the prescribed proforma including: i. Detailed description o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e country of export does not have any restriction on re- export from India; In case of any such restriction, the exporter will provide a letter of explanation detailing the list of countries/entities, to which re-export/return is restricted / regulated; Purchase order viii. After issuance of GAEIS authorization and before actual export, the applicant exporter must ensure the following: 1. They shall notify the relevant government authorities in the online portal of DGFT, on a quarterly basis of such export in the prescribed format [ Aayat Niryat Form (ANF) 10I ], along with the End-Use Certificate (EUC) for each export. 2. The EUCs in prescribed proforma [Appendix 10j(i)] are to be filled by all the entities involved in the chain of supply e.g. foreign buyer/consignee / end-user/intermediary (ies) on the letterhead of the respective entity, duly signed in ink and stamped by the authorized signatory of the company. In case of any additional sheet used along with the EUC, the same must be on the letterhead of the company and signed by the same person who signs the EUC 3. They have an agreement or purchase order, an excerpt of a contract from the entity (buyer/consignee / end-user) re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ocation GAEIS issued shall be liable to be suspended/revoked by the DGFT on receipt of an adverse report on proliferation concern or for non-submission of mandatory post-shipment details/reports/documents within the prescribed timelines or non-compliance with the conditions of the proposed policy. ] 1 [ 10.16 General Authorisation for Export of Chemicals and related Equipment (GAEC) of SCOMET items A. Procedure for grant of General Authorisation for Export of Chemicals and related equipment (GAEC) I. In respect of export/re-export of SCOMET items under the Categories / Sub Categories of 1C, ID, 1E, 3D001 and 3D004 (excluding software and technology), and those chemicals specified in the Appendix 10(N). to the specified countries mentioned in the Appendix 10(N). the applicant exporter shall submit an application for GAEC through online SCOMET portal and attach information in proforma-ANF-10A; ] II. The application would be reviewed/examined for the issuance of GAEC by Inter-Ministerial Working Group (IMWG) based on the submitted application and other supporting documents submitted by the applicant exporter in the prescribed proforma including; a. Detailed description of the items th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rchase order, excerpt of contract from entity (consignee / end user) receiving the items which states that the export is for a permitted use / an end use as declared in the EUC before actual export; iii. They possess documents include the name, contact number and email id of the authority signing the EUC before actual export. iv. Additional details, if any sought by DGFT B. Post reporting for export / re-export of items under GAEC a. The Indian exporter shall submit post-shipment details of each export/ re-export of SCOMET items under the above Categories/ subcategories under GAEC, as mentioned above at II.c. (i) and within the timelines specified therein; b. Failure to do so may entail imposition of penalty and / or suspension/revocation of GAEC. C. General Conditions Exclusions a. GAEC would not be issued in case of items to be used to design, develop, acquire, manufacture, possess, transport, transfer and / or used for chemical, biological, nuclear weapons or for missiles capable of delivering weapons of mass destruction and their delivery system; b. GAEC would not be issued for countries or entities covered under UNSC embargo or sanctions list or on assessment of proliferation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et used along with the EUC, the same must be on the letterhead of the company and signed by the same person who signs the EUC. d. Undertaking on the letterhead of the firm duly signed and stamped by the authorized signatory stating the following: i. Any on-site inspection will be allowed by the applicant exporter, if required by the DGFT or authorized representatives of Government of India; ii. The applicant exporter declares that the items that are intended to be exported shall not be used for any purpose other than the purpose(s) stated in the EUC and that such use shall not be changed nor the items modified or replicated without the prior consent of the Government of India.; iii. The applicant exporter declares that subsequent to issue of export authorisation, if the licensee has been notified in writing by DGFT or if they know or has reason to believe that an item may be intended for military end use or has a potential risk of use in or diversion to weapons of mass destruction (WMD) or in delivery of their missile system, the exporter would not be eligible for GAED for export of that/those item(s) and would apply separately to DGFT fora fresh authorization in terms of regular p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erations, etc.; c. In case of inclusion of new countries or amendment to the existing list of countries where the export is expected to be done under GAED, the applicant exporter will obtain prior permission of DGFT with relevant details; d. IMWG shall reserve the right to deny issue of GAED without assigning any reason(s). E. Validity a. GAED issued for export / re-export of SCOMET items under the above Categories / Sub Categories shall be valid for a period of Three years from the date of issue of GAED subject to subsequent post reporting(s) on quarterly basis to be reported within 30 days from the last quarter; b. GAED cannot be revalidated in terms of Paragraph 10.20 of HBP 2023. F. Suspension/Revocation GAED issued shall be liable to be suspended / revoked by the DGFT on receipt of an adverse report on proliferation concern or for non-submission of mandatory post-shipment details / reports / documents within the prescribed timelines or for non-compliance with the conditions of the proposed policy. ] 10.17 Validity Period of SCOMET Authorisations The validity period of SCOMET authorisations from the date of issue shall be as follows, unless specified otherwise S.No. Type of SCO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w Delhi, through e-mail (scomet-dgft@nic.in) immediately after an export violation is discovered. Detailed procedure/guidelines in this regard will be notified by the DGFT separately. The IMWG may consider each case on merit in accordance with the provisions of the Export and Import Policy determined by the Central Government from time to time under the Foreign Trade (Development and Regulation) Act 1992 and the orders issued thereunder, and may make recommendations on further action to be taken by DGFT in the specific case(s). Exporter is liable for strict action under the provisions of the FTDR Act for any violation of SCOMET policy brought to the notice of DGFT in cases other than voluntary self disclosure. 10.20 Revalidation of SCOMET Authorisation Export Authorisationfor SCOMET items may be revalidated, on merits for a period of six months at a time and maximum upto 12 months by the DGFT (Hqrs). An application for grant of revalidation may be made in prescribed proforma [ANF 10F] 30 days prior to the expiry of authorisation. The period of renewal of authorisation shall be counted from the date of actual expiry of authorisation. The total period of extension will not exceed 12 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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