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FOREIGN TRADE POLICY – PROCEDURE LAID DOWN ON EXPORT AND/OR RE-EXPORT OF INFORMATION SECURITY ITEMS UNDER SCOMET (I.E. SENSITIVE ITEMS THAT MAY IMPACT NATIONAL SECURITY) 

SCOMET (Special Chemicals, Organisms, Materials, Equipment, and Technologies) items are of crucial importance and highly regulated. The export controls on these are important pillars of non-proliferation and nuclear security. The GOI introduced a procedure for exporting and or re-exporting of information security items under SCOMET. According to said procedure, exporters are not required to obtain separate authorization and may export and or report based on one-time general authorization (valid for 3 years). These procedures do not apply to export and or report of technology.

A brief of procedures laid down are as follows:

  1. Submit a one-time application on SCOMET portal and it shall be subject to verification.
  2. Provide description of goods, end user certificate of complete supply chain and list of countries intended to be exported and or reported.
  3. Provide an undertaking, for allowing items inspections by authorized persons of GOI; goods shall not be used for purposes other than mentioned in EUC nor items shall be modified or replicated without consent of GOI.
  4. In case DGFT provides in writing that the goods may be intended for military applications or has a potential risk of use in weapons of mass destruction, exporter must undertakes to not to be eligible for general authorization and would obtain separate authorization.
  5. Submit certified internal compliance programme by compliance manager.
  6. Holder of AEO T2.
  7. Quarterly filing of Aayat Niryat Form and make some assurances before actual export.
  8. Post shipment filing of returns for 3 years and maintenance of records for 5 years.
SW Point of View: Items of information security under SCOMET are of utmost importance. Inter-alia, the procedures also provide that GAEIS would not be issued in case of items to be used to design, develop, acquire, or manufacture, possess, transport, transfer and/or used for military applications,  explosives, chemical, biological, nuclear weapons or for missiles capable of delivering weapons of mass destruction and their delivery system; GAEIS would not be issued for countries or entities covered under UNSC embargo or sanctions list or on assessment of proliferation concerns, or national security and foreign policy considerations, etc.

Source: Public Notice No. 53/2023 dated 27.03.2024.

Amandeep Singh – Indirect Tax

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