of dual use
items, munitions and nuclear related items, including software and technology
viz.
SCOMET
, are dealt with in this Chapter. Foreign Trade Policy 2023
CHAPTER 10
SCOMET: Special Chemicals, Organisms, Materials, Equipment and Technologies
(Relevant Procedure Chapter 10)
SCOMET List Appendix 3 to Schedule 2 of ITC (HS)
10.00 Objective
The general provisions governing the
export
of dual use
items, munitions and nuclear related items, including software and technology
viz.
SCOMET
, are dealt with in this Chapter.
10.01 Brief Background
India is a signatory to international conventions on
disarmament and non-proliferation, viz. the Chemical Weapons Convention (CWC)
and Biological and Toxin Weapons Convention (BWC). The United Nations Security
Council Resolution 1540 obliges all countries to prohibit access of weapons and
mass destruction and their delivery systems to non-state actors (in particular
for terrorist purposes); and
prescribed
measures and controls on weapons of mass
destruction, their delivery systems and related materials, equipment and
technology. India is also a member of the major multilateral export control
regimes, viz. the Missile Technology Control Regime (MTCR), Wassenaar
Arrangement (WA) and Australia Group (AG); and has harmonized its guidelines and
control lists with that of the Nuclear Suppliers Group (NSG). In consonance with
the guidelines and control lists of these international conventions and
obligations as well as multilateral export control regimes, India has regulated
the exports of dual use items, nuclear related items, including software and
technology.
In respect of controls on export of
specified
goods,
services
and technology, the Weapons of Mass Destruction and their Delivery Systems
(Prohibition of Unlawful Activities) Act, 2005 (21 of 2005) shall apply to
exports, transfers, re-transfers, brought in transit, trans-shipment of, and
brokering in specified goods, technology or services. These provisions have been
incorporated in Chapter IVA of Foreign Trade (Development & Regulation) Act,
1992, as amended in 2010.
10.02 SCOMET List
Export of dual-use items, including software and
technologies, having potential civilian / industrial applications as well as use
in weapons of mass destruction is regulated. It is either
prohibited
or is
permitted under an Authorization unless specifically exempted. SCOMET is an
acronym for Special Chemicals, Organisms, Materials, Equipment and Technologies.
Accordingly, the SCOMET list is our National Export Control List of dual use
items munitions and nuclear related items, including software and technology and
is aligned to the control lists of the all the multilateral export control
regimes and conventions. The SCOMET List has been notified under
Appendix 3 to
Schedule 2 of ITC (HS) Classification of Export and
Import
Items, which is
available on the website of DGFT.
10.03 Classification of SCOMET categories and Licensing jurisdiction
The SCOMET List is divided into nine categories of items from Category 0 to Category 8. However, Category 7 is presently ‘Reserved’ and has not been populated. The broad classification of different categories under SCOMET List and their jurisdictional licensing authorities are tabulated as under:
Table: SCOMET Categories and Licensing Jurisdiction
| SCOMET Category | SCOMET items | Jurisdictional Licensing Authority | Remark |
| 0 | Nuclear materials, nuclear-related other materials, equipment and technology | Department of Atomic Energy (DAE) | Including items mentioned in Note 2 of CIN of SCOMET List |
| 1 | Toxic chemical agents and other chemicals | Directorate General of Foreign Trade (DGFT) | |
| 2 | Micro-organisms, Toxins | DGFT | |
| 3 | Materials, Materials Processing Equipment and related Technologies | DGFT | |
| 4 | Nuclear-related other equipment and technology, not controlled under Category ‘0’ | DGFT | |
| 5 |
Aerospace systems, equipment, including production and test
equipment, and related Technology and specially designed
components
 and
accessories thereof. |
DGFT | |
| 6 | Munitions List | Department of Defence Production (DDP)/ Ministry of Defence | Excluding those covered under Note 2 and 3 of CIN and Sub- category 6A007, 6A008 |
| 7 | ‘Reserved’ | DGFT | |
| 8 | Special Materials and Related Equipment, Material Processing, Electronics, Computers, Telecommunications, Information Security, Sensors and Lasers, Navigation and Avionics, Marine, Aerospace and Propulsion. | DGFT |
CIN : Commodity Identification Note of SCOMET List
Note: DGFT to be licensing authority for above specified categories/sub-categories and any other sub-category as may be specified.
Procedure for grant of export authorization for
SCOMET items in respect of Categories 1 to 5 and 8, is
specified
under
Chapter 10 of Hand Book of Procedures (HBP).Export of SCOMET items under
Category 0 and Note 2 of the Commodity dentification Note (CIN) of
SCOMET will be permitted against an authorization issued by the
Department of Atomic Energy (DAE) as per the guidelines 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.Export of SCOMET items
under Category 6 (Munitions List) [except those covered under Note 2 and
3 of CIN and items under Category 6A007, 6A008], irrespective of end use
of the items, whether military or civil will be permitted against an
authorization to be issued by Department of Defence Production (DDP)/
Ministry of Defence under the extant guidelines /Standing Operating
Procedure (SOP) issued by the DDP, time to time.
10.05 Additional controls on Non-SCOMET items for dual use (Catch-all controls)
Export of
items not in the SCOMET List may also be regulated under provisions of
the Weapons of Mass Destruction and their Delivery Systems (Prohibition
of Unlawful Activities) Act,2005.If the
exporter
has been notified in
writing by DGFT or he knows or has reason to believe that an item not
covered in the SCOMET list has a potential risk of use in or diversion
to weapons of mass destruction (WMD) or in their missile system or
military end use (including by terrorists and non-state actors), the
export of such an item may be denied or permitted subject to the grant
of a license, as per the procedure provided for SCOMET items in
Para
10.05 and 10.06 of HBP.
10.06 Supply of SCOMET Items from
DTA to SEZ/EOU
and outside the country
Export authorisation is not required for supply
of SCOMET items from DTA to SEZ /EoU. However, all supplies of SCOMET
items from DTA to SEZ/EOU will be reported to the
Development Commissioner
(DC) of the respective SEZ/EoU by the supplier in the
prescribed performa within one week of the supplies getting effected.
Export Authorisation is, however, required if the SCOMET items are to be
physically exported outside the country from SEZ/ EOU, i.e. to another
country (Rule 26 of the SEZ Rules, 2006 may be referred).
10.07 Export of imported SCOMET items
Imported goods covered under the SCOMET list are not permitted for export, even from the Customs bonded warehouse, without an export authorization, unless specifically exempted.
10.08 Different types of export authorizations for SCOMET items
(i) Direct export to ultimate end user: Export to the ultimate end users abroad after due verification process;
(ii) Export for repeat
orders
of same SCOMET items: Repeat export of items of same technical specifications
which have earlier been allowed for export to the same
countries/entities after due verification process;
(iii) Export for Stock and Sale purpose: Export of items initially to the stockist abroad and then from the stockist to the ultimate end users in the same country or approved countries;
*(iv) Export of spare parts under SCOMET under Stock and Sale: Export of spare parts along with main item/ equipment under stock and sale;
(v) Export for/after repair / replacement of defective SCOMET items: Export authorizations for repair/ replacement of imported items on being found defective and export authorization after repair of indigenous/third party items imported for repair;
(vi) Temporary export of SCOMET items: Export authorization for demo/display/exhibition/tenders/ RFP/RFQ/NIT abroad or for return abroad after demo/ display/ exhibition/ tenders/ RFP/ RFQ/ NIT etc. in India;
(vii) Export of imported items to the same foreign entity or to its OEM: Export of imported items to its foreign supplier or its OEM on obsolescence of technology, dead on arrival, cancellation of order, calibration, testing, etc.;
(viii) Global Authorization for
Intra-Company Transfers (GAICT) of
SCOMET
Items including Software/Technology :Only one time authorization will 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), 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; based on a
Master Service Agreement / Contract between the Indian parent
company/Indian subsidiary of foreign company and foreign subsidiary of
Indian company/foreign parent company of Indian subsidiary for carrying
out certain services but not limited to design, encryption, research,
development, delivery, validation, calibration, testing, related
services, etc. in
specified
countries for the one time validity of 3
years subject to the post export reporting of all the exports done under
the
authorisation
.
1[(ix) General Authorization for export of Chemicals and related equipments (GAEC) except software and technology :
Export of Chemicals (excluding Software and Technology) for export to specified countries as listed in Paragraph 10.16 of Handbook of Procedure is allowed on the basis of a onetime General Authorization for Export of Chemicals and related equipment (GAEC) issued by DGFT with one lime validity of 5 years subject to the post export reporting of all the exports done under the authorisation.]
old[(ix) General Authorization for export of Chemicals and related equipments(GAEC) except software and technology : Export of chemicals (Excluding Software and Technology) listed in 1C,1D, 3D001 and 3D004 sub-categories is allowed to Australian Group(AG) countries and those listed in 1E sub-category allowed for export to State Parties to the Chemical Weapons Convention (CWC) on the basis of a onetime General authorization for export of Chemicals and related equipments (GAEC) issued by DGFT with one time validity of 5 years subject to the post export reporting of all the exports done under the authorisation.]
(x) General Authorization for export after repair in India(GAER): Export of imported SCOMET items to the same entity abroad after repair in India will be allowed on the basis of a one-time General authorization for Export after Repair in India (GAER) issued by DGFT subject to post reporting on quarterly basis and other conditions as specified in para 10.12(D) of the Hand Book of Procedures.
2[(xi) - General Authorization for Export of Telecommunication-related items under SCOMET Category 8A5 Part 1 (GAET) (Excluding Software & Technology and items referenced in Para 10.15(I)) as per the procedure specified in para 10.15(I) of HBP 2023.
(xii) - General Authorization for Export of Information Security items (GAEIS) under SCOMET Category 8A5 Part 2 (Excluding Technology) as per the procedure specified in Para 10.15(II) of HBP 2023.]
10.09 Issue, amendment and revalidation of SCOMET authorizations
Export authorization for SCOMET items will be issued centrally by the DGFT (HQrs). Amendments, including revalidation, etc. on such authorization will also be done by the DGFT (HQrs) only. The procedure for Revalidation is prescribed in Para 10.20 of Handbook of Procedures.
10.10 Outreach Programmes on SCOMET and Export Control Framework
DGFT in association with Administrative Ministries/
Departments and Trade Associations will organize Industry Outreach
Programmes on regular basis for effective awareness among the
exporters
/importers
dealing with trade and
manufacture
, in particular,
of SCOMET items. Institutional mechanism will be adopted to organize
sector specific / region specific outreach programmes with focus on MSMEs and Startups.
10.11 Voluntary Self Disclosure of export of dual use items
DGFT recognizes that there may be occasions where responsible
exporters, occasionally did not comply with the export control
provisions of the FTDR Act, WMD Act, Customs Act, or any regulation,
order
, license, or other authorization on export controls issued by DGFT. DGFT encourages voluntary self disclosures of failure to comply
with the export control provisions, and supports raising awareness among
exporters to avoid any incidents of noncompliance while taking strict
action under FTDR Act for violation of
SCOMET
policy in cases other than
voluntary self disclosure.
1 Substituted vide:- Notification No. 12/2023 Dated 19.06.2023
2. Inserted vide:- Notification No. 82/2023 Dated 27.03.2024