1.
What are dual-use goods and
technologies?
Dual-use
items are goods, software, technology, chemicals etc. which can be used for
both civil and military applications. Such items require a license for
exporting out of the country. India’s list of items which need an export
license is known as the SCOMET list.
2.
What is the
meaning of SCOMET?
SCOMET is an
acronym for Special Chemicals, Organisms, Materials, Equipment and
Technologies.
3. Is export of
SCOMET items regulated?
Yes, export
of items in the SCOMET list is regulated as per India’s Foreign Trade Policy.
Export is either prohibited or is permitted under a license.
4.
Where can I
find the list of SCOMET items?
Appendix 3 of Schedule 2
of ITC (HS) Classification contains the control list of India which is also
referred to as the SCOMET list. You can go to the DGFT website to see the
complete list. The link for the same is:
In the list as
appearing in Appendix 3 of Schedule 2 of ITC (HS) Classification, SCOMET items
are listed under eight (8) categories as follows:
· Category 0: Nuclear material, nuclear-related
other materials, equipment and technology.
· Category 1: Toxic chemical
agents and other chemicals
· Category 2: Micro-organisms,
toxins
· Category 3: Material, Materials
Processing Equipment, and related technologies
· Category 4: Nuclear-related
other equipment, assemblies and components; test and production equipment; and
related technology, not controlled under Category 0
· Category 5: Aerospace systems,
equipment including production and test equipment, related technology and
specially designed components and accessories thereof.
· Category 6: (Reserved)
· Category 7: Electronics,
computers, and information technology including information security.
Each category
contains exhaustive listing of items covered under that category. Special conditions
applicable to items under different categories are mentioned under each
category.
5. How do I apply for a license to export SCOMET items?
5. How do I apply for a license to export SCOMET items?
Application for grant of
Export Authorisation has to be made to DGFT through an online system. Please
visit the DGFT website at http://dgft.gov.in. Firstly, you should read
the detailed guidelines and get all the required documents before making the
application.
6.
What are the
documents to be submitted for the application?
The following documents need to be uploaded online
while making the application.
(i) End
Use-cum-End User Certificate(s)(EUC) from all the firms/entities involved in
the supply chain of the product(s) (to be furnished on their letter head duly
signed by the authorised signatory);
(ii) Copy(ies) of
Purchase Order(s) of firm(s) involved in the supply chain of the item/product;
(iii) Aayat Niryat
Form (ANF)-1 (Profile of Exporter);
(iv) Elaborate
technical specification relating to item of export;
(v) Copy(ies) of
supply contract/agreement {if documents are bulky only the relevant portion
containing contract reference and parties to the contract and the portion
indicating the item(s) to be supplied and quantity thereof not exceeding 10
pages shall be uploaded);
(vi) Copy of DGFT
authorization letter for the same product, if any in case of repeat
application;
Hard copy (Paper copy) of the following
documents are required to be submitted to DGFT (HQ):
(i) Original End
Use-cum-End User Certificate (EUC);
(ii)
Copies of
Bills of Entry into the destination country for items exported during the last
one year.
7.
What is the process to obtain the license?
You need to first
make an application to DGFT, Headquarters for obtaining the approval for
issuance of license. All applications
for licence for export of SCOMET items are considered on case-by-case basis by an
Inter-Ministerial Working Group (IMWG) in the DGFT under the Chairmanship of Additional
Director General of Foreign Trade as per guidelines and criteria laid down in
Para 2.49 of the Handbook of Procedure Vol. 1. Once the case is approved by the
IMWG, permission letter is issued to the exporter for obtaining export
authorization from the concerned Zonal/Regional office of the DGFT.
8. Is a license required even for export of SCOMET items for display or
exhibition purposes?
Yes, a license is
required. Licences for export of items
in this list for display or exhibition abroad are subject to a
condition of re-import within a period not exceeding six months.
Exporters are
entitled to apply for an export licence for such items exhibited abroad if
exhibitor intends
to offer that item for sale during exhibition abroad. Such sale shall
not take place
without a valid licence.
The export of items in SCOMET List (other than those
under Category 0, 1 and 2) solely for purposes of display or exhibition shall
not require any end-use or end-user certification.
However, no export
Authorisation for display or exhibition shall be issued for ‘Technology’ in any
category
9. Do I need a
license to supply SCOMET Items from DTA to SEZ?
ü No export authorisation is required for supply of SCOMET items from
DTA to SEZ. However, all supplies of SCOMET items from DTA to SEZ will be
reported to the Development Commissioner of the respective SEZ by the supplier.
ü Export authorisation is, however, required if the SCOMET items are to
be physically exported outside the country from SEZ i.e. to another country
(Refer Rule 26 of the SEZ Rules, 2006).
10.
Do I need a license to supply SCOMET Items from SEZ to any other
country?
Export permission is required if the SCOMET items are to be physically
exported outside the country from SEZ i.e. to another country (Refer Rule 26 of
the SEZ Rules, 2006).
(Inserted vide Notification No.93(RE-2010)/2009-14 dated 6.1.2012)
11.
What is the procedure for Applications for entering into an arrangement
or understanding for Site Visits, On-site Verification and Access to Records /
Documentation?
An application shall be made in ANF 2P to DGFT (Hqrs.), New Delhi along with documents prescribed
therein. These applications shall be considered by an Inter-Ministerial Working
Group (IMWG) in DGFT (Hqrs.) for grant of approval.
12. Do I need an authorization for repeat orders of same product?
Applications for grant of authorisations for repeat orders for export
of SCOMET items shall be considered by IMWG on automatic basis. However, only
the applications submitted within two years from the date of approval by IMWG
of the original SCOMET authorisation will be eligible for repeat authorisation.
It is also subject to other conditions i.e All of the following should
be the same i.e. (a) the product along with the technical specification (b) the
exporter (c) the foreign buyer (d) the consignee or the intermediaries, if any
(e) the end user (f) the end use and (g) the country of destination.
Moreover, the permitted quantity against repeat export authorisations
shall not be more than two times of the quantity in original authorisation,
subject to the annual manufacturing capacity of the end user in respect of the
relevant product, as certified by the end user.
13.
What are the
restrictions on export of chemicals as per SCOMET list?
Category 1 (of
SCOMET List) Chemicals : Exporters must go through the
provisions
very carefully before undertaking to export chemicals under Category 1.
Export of
Category 1A chemical is prohibited. The list of State Parties to the
Chemicals
Weapons Convention (CWC) and countries which are not State Parties is
available on the
OPCW website http://www.opcw.org.
14.
Can I get an
advance authorization where the export item is a SCOMET item?
15.
Can I get export permission for “stock and sale” purpose?
Yes, but Export shall be permitted only from the principal company/the
wholly owned subsidiary in India to their subsidiaries/principal
company/warehouse abroad on the basis of an EUC from the latter for ‘stock
& sale’ purposes, when considered appropriate from the point of view of
security and other critical consideration.
16.
What is the requirement for export for spare parts for SCOMET items?
Request for export permission for spare parts covered under SCOMET may
be considered by IMWG along with the application for the main item/
equipment. Applicant may indicate the
requirement of spares after judicious and reasonable assessment thereof, and
provide the justification for the same.
17.
Is there is a validity period of the license? Can it be extended?
Yes, there is a validity period of the license. It can be extended for
six months at a time and maximum upto 12 months through revalidation by DGFT
regional office on the approval of DGFT.
18. Do I need a license for Export of Military Stores?
Not exactly a license But a No Objection Certificate (NOC) from
Department of Defence Production is required for Export of Military Stores.
19. Who gives license for Category 0 items in the SCOMET list?
Licensing authority for items in Category 0 in Appendix 3 to Schedule 2 of ITC (HS) is Department of Atomic Energy. Applicable guidelines are notified by the Department of Atomic Energy under Atomic Energy Act, 1962. For certain items in Category 0, formal assurances from the recipient State will include non-use in any nuclear explosive device. Authorizations for export of certain items in Category 0 will not be granted unless transfer is additionally under adequate physical protection and is covered by appropriate International Atomic Energy Agency (IAEA) safeguards, or any other mutually agreed controls on transferred items.
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