The provision of stock and sale for SCOMET items was introduced through Public Notice 60 dated 3rd February 2016. It allows the principal company/wholly owned subsidiary to stock items in the subsidiary/parent company/warehouse abroad on the basis of an End user certificate submitted by the latter for 'stock and sale' purpose.
The license is given after taking into account security and other strategic characteristics. Now 2 cases arise with respect to the items stocked abroad:-
a) When items are transferred to any entity in the same country as they are stocked.
In this case the IMWG has the power to relax the condition for prior permission before transfer of such goods to any entity. However, the end use certificates from all links in the supply chain has to be submitted to DGFT.
b) When items are transferred to any entity in any other country
In cases of retransfer of items by the stockist entity to any entity outside the country, EUCs from all links in the supply chain have to be submitted to DGFT and prior permission received before the transfer.
This provision facilitates bulk transfer to the stockist entity, thereby substantially reducing the transaction cost and time. Moreover, if transfers are to be made in the same country and prior permission is not required, the transfers can be made on Just-in-time basis thereby increasing the efficiency in the supply chain.
The license is given after taking into account security and other strategic characteristics. Now 2 cases arise with respect to the items stocked abroad:-
a) When items are transferred to any entity in the same country as they are stocked.
In this case the IMWG has the power to relax the condition for prior permission before transfer of such goods to any entity. However, the end use certificates from all links in the supply chain has to be submitted to DGFT.
b) When items are transferred to any entity in any other country
In cases of retransfer of items by the stockist entity to any entity outside the country, EUCs from all links in the supply chain have to be submitted to DGFT and prior permission received before the transfer.
This provision facilitates bulk transfer to the stockist entity, thereby substantially reducing the transaction cost and time. Moreover, if transfers are to be made in the same country and prior permission is not required, the transfers can be made on Just-in-time basis thereby increasing the efficiency in the supply chain.
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