26 July 2018

SCOMET - Amendments in Appendix 3, procedural relaxations and export authorisations

The Central Government has made a total of 139 amendments in Appendix 3 to Schedule-2 of ITC (HS) Classifications of Export and Import Items, 2018. Notification No. 17/2015-2020, dated 3-7-2018 has been issued for the purpose.

These amendments have been made to align India’s SCOMET list with the amendments made to Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies in December 2017 to which India is a signatory.


Procedural relaxation for issue of authorizations for repeat orders:

By Public Notice 20/2015-20, dated 12-7-2018, DGFT has relaxed the procedure for issue of authorisations for repeat orders of SCOMET items. Now the applications for grant of authorization for repeat orders to the applicant exporter for export of same SCOMET items to the same country/entities shall be approved by Chairman IMWG, without any consultation with IMWG members.

However, in cases of repeat orders for export of same SCOMET items to different country/entities, approval shall be granted only after verification of the credentials of foreign buyer/consignee/end user. The public notice also specifies criteria subject to which the approval will be granted for repeat orders.


Issuance of export authorisation/license by DGFT (Hqrs):

DGFT has decided that export authorisations for SCOMET items would be issued by the SCOMET Cell, DGFT (Hqrs). Issues relating to revalidation of SCOMET authorisations after expiry, penal action in terms of FTDR Act, grant of MEIS and other benefit, etc. would continue to be handled by the concerned jurisdictional Regional Authority, in terms of the existing provision in FTP/HBP.

The Trade Notice also clarifies that where the permission has been granted by DGFT (Hqrs) before issuance of this Trade Notice, jurisdictional RAs would immediately issue export authorisations in respect of such SCOMET cases. Trade Notice 20/2018-19, dated 6-7-2018 has been issued for this purpose.

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