(To be published in the Gazette of India Extraordinary Part I Section I)

Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Udyog Bhawan

Public Notice No. 14/2015-20
New Delhi, dated 13^th June 2022

Subject: Amendment in Paragraph 2.79F in the Handbook of Procedures of the Foreign Trade Policy (FTP) 2015-20 to lay down the procedure for Global Authorization for Intra-Company Transfer (GAICT) of SCOMET items/software/technology

In exercise of the powers conferred under Paragraph 1.03 of the Foreign Trade Policy (FTP) 2015-20, the Directorate General of Foreign Trade (DGFT) hereby makes amendments in Paragraph 2.79 F to Handbook of Procedures (HBP) of FTP 2015-20 with immediate effect.

2. Existing entry at sub-Para 2.79F of the HBP of FTP 2015-20 shall be substituted as under:

"Para 2.79F - Global Authorisation for Intra-Company Transfers (GAICT) of SCOMET Items/Software/Technology

A. Scope and Eligibility: Pre-export authorization will not be required, for export and/or re-export of SCOMET items including software and technology under SCOMET Category 8 (except items listed in Annexure-I), subject to the following conditions:

i. 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;

Note: In case of third party involvement in the supply chain, the end user has to be a foreign parent / another subsidiary of foreign parent company or a subsidiary company of Indian company.

ii. where the transfer fulfils the conditions mentioned at (a) to (f) below:

a. The items/software/technology to be exported/re-exported is based on a Master Service Agreement I 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.;

Note 1: As a result of the service carried out by the Indian exporter in case of re-export, the items/software/technology should not undergo change in classification.

Note 2: The list of services mentioned above is illustrative, not exhaustive. However, the final decision to approve a GAICT authorization lies with the relevant authority.

b. These items including software and technology are to be exported/re-exported to the countries listed in Table 1 below (entire supply chain including any third party should be in the countries listed in Table 1 to this Public Notice);

Table 1

Note: However, IMWG on a case to case basis may allow countries other than those listed in Table 1 considering description/end use/end user of the item.

c. The applicant exporter declares that the exported items would be used for the purposes for which it is intended by the foreign subsidiary of Indian company / foreign parent company / another subsidiary of foreign parent company, as the case may be;

d. The applicant exporter furnishes either a certified/approved Internal Compliance Programme (ICP) or demonstrates compliance to the ICP of the foreign parent company or ICP certified by the Compliance Manager of the company or certified by any Government agency such as Authorized Economic Operator (AEO) scheme etc.

e. The exporter agrees to allow on-site inspection, if required by the DGFT or authorized representatives of Government of India;

f. No export authorization would be granted for UNSC sanctioned destinations or countries;

g. No export authorization shall be granted to an exporter specified at (i) above if they have come to adverse notice previously;

h. The exporter is granted a Global Authorisation for Intra-Company Transfers (GAICT) as per procedure mentioned in para 2.B below.

B. Procedure for grant of Global Authorization for Intra-Company Transfers (GAICT)

Filing and Assessment of Application

a. In respect of export/re-export of SCOMET items including software and technology ,the applicant exporter shall submit an application for GAICT through online SCOMET portal and attach information in proforma -ANF 20(b);

b. The application would be assessed for the issue of GAICT by Inter-Ministerial Working Group (IMWG) based on the submission of the application and other supporting documents by the applicant exporter in the prescribed proforma;

i. Documentary proof of the corporate relationship between the Indian parent company (applicant exporter) and its foreign subsidiary company or between the Indian subsidiary of foreign company (applicant exporter) and its foreign parent / another subsidiary of foreign parent company ;

ii. Classification of item including software and technology in SCOMET (indicating SCOMET category and sub-category);

iii. Documentary proof of License Exception /Temporary license from the country of the parent company abroad or from subsidiaries of the parent company abroad, if available (optional)

iv. Detailed description of the item intended to be exported with relevant technical details with specifications such as model, part number, etc. and in case of software/technology, relevant details like encryption algorithm, key length, encryption functionality, eligibility under cryptography note etc. to be provided (if applicable);

v. In case of third party involvement in the supply chain, a clear contract /service agreement/ Purchase order has to be furnished specifying SCOMET item description.

vi. Certified/approved ICP of the Indian parent company or self-certified copy of the ICP of the foreign parent company being adopted by Indian subsidiary of foreign company along with an undertaking thereon;

vii. Undertaking on the letterhead of the firm duly signed and stamped by the authorised signatory:

a. To allow on-site inspection, if required by the DGFT or authorized representatives of Government of India;

b. The applicant exporter declares that the exported items would be used for the purposes for which it is intended by the foreign subsidiary of Indian company / foreign parent company I another subsidiary of foreign parent company, as the case may be;

c. The applicant exporter declares that subsequent to issue of export authorisation, if the licensee has been notified in writing by DGFT or if they know or has reason to believe that an item may be intended for military end use, the exporter would not be eligible for GAICT for export of that/those item(s) and would apply separately to DGFT for a fresh authorisation in terms of regular policy. [DGFT’s PN No. 27 dated 21.09.2017 for catch-all policy may also be referred],

viii. The Company must ensure that:

a. They shall submit original End User Certificate in the prescribed format within 30 days of filing application and in case of subsequent exports, within 30 days of delivery at destination point, after issue of export authorisation;

b. They have Agreement/purchase order, excerpt of contract from entity (consignee) receiving the items which states the export is for a permitted use ;

c. The documents include the name & contact number and email id of the authority signing the EUC.

ix. A precise and clear contract /service agreement/ Purchase order has to be furnished indicating item description in case of third party involvement in the supply chain (if applicable)

x. Additional details, if any, sought by DGFT

C. Post reporting for re-export of items/software/technology under GAICT

a. The Indian exporter shall submit post-shipment details of each transfer/consignment of exports of SCOMET items/software/technology under GAICT to the SCOMET Division of DGFT (Hqrs), New Delhi, via E-mail (scomet-dgft-pr@nic.in) or a procedure as prescribed by DGFT, on quarterly basis (March / June / September / December), by the end of subsequent month of each quarter, in respect of the exports made in the previous quarter;

b. The post-shipment details shall be submitted in proforma ANF 2 O (c) along with a copy of EUC in Appendix 2S (iv) within the timelines mentioned above, from the foreign subsidiary company or foreign parent company I another subsidiary of foreign parent company;

c. Failure to do so may entail imposition of penalty and / or suspension/revocation of GAICT.

Note: Revised ANF (Aryat Niryat Form) - ANF 20(b), ANF 20(c) and End Use Certificate proforma Appendix 2S (iv) enclosed with this Public Notice.

D. Record Keeping

The exporter will be required to keep records of all the export documents, in manual or electronic form, in terms of Para 2.73 (c) of HBP, for a period of 5 years from the date of GAICT issued by DGFT.

E. General conditions

a. GAICT would not be issued in case of items including software and technology to be used to design, develop, acquire, manufacture, possess, transport, transfer and / or used for chemical, biological, nuclear weapons or for missiles capable of delivering weapons of mass destruction and their delivery system;

b. GAICT would not be issued for countries or entities covered under UNSC embargo or sanctions list or to the countries or entities assessed for risk of proliferation concern, based on national security and foreign policy considerations;

c. In case of inclusion or amendment of items (including software and technology) or inclusion of new companies or amendment in existing companies in the supply chain, the applicant exporter will obtain prior permission of DGFT with relevant details;

d. IMWG shall reserve the right to deny issuance of authorization GAICT for any reason and also relax any provision of the policy, if so required in exceptional cases.

F. Re-exports / re-transfer of the items including software and technology (processed or incorporated)

Further re-exports / re-transfers of the items including software and technology (processed or incorporated) from the foreign subsidiary company or foreign parent company / another subsidiary of foreign parent company to end users in other countries would be subject to the export control regulations of the country of the foreign subsidiary of Indian company or foreign parent company / another subsidiary of foreign parent company.

G. Validity

a) GAICT issued for intra-company transfers of SCOMET items including software and technology shall be valid for a period of three years from the date of issue of GAICT;

b) GAICT cannot be revalidated in terms of Paragraph 2.80 of HBP of FTP 2015-20.

H. Suspension / Revocation

GAICT issued shall be liable to be suspended by the DGFT on receipt of intimation about initiation of any inquiry from the country concerned or from any domestic agency. GAICT shall be revoked on receipt of an adverse report on proliferation concern or for non-submission of mandatory reports/documents within the prescribed timelines or for non- compliance of any of the condition of this Public Notice.

3. Effect of this Public Notice:

Existing entry at Paragraph 2.79F has been substituted in the Handbook of Procedures (HBP) of the Foreign Trade Policy (FTP) 2015-20 to amend the procedure for issue of Global Authorisation for Intra-Company Transfer (GAICT) of SCOMET items including software and technology. Henceforth, GAICT policy would be applicable only for export I re-export of items, including software and technology under SCOMET Category 8 (except items listed in Annexure-I), and to only the countries listed in Table 1 above. Revised ANF (Aayat Niryat Form) - ANF 20(b), ANF 20(c) and End Use Certificate proforma Appendix 2S (iv) for applying for GAICT also notified.

(Santosh Kumar Sarangi)
Director General of Foreign Trade &
 Ex-officio Additional Secretary to the Gol
E-mail: dgft@nic.in

[Issued from F.No. 01/91/180/18/AM17/EC(S) (Computer No. 2862)

Annexure -1

List of Items excluded under SCOMET Category 8 for export / re-export under GAICT POLICY notified, vide Public Notice No. 14/2021 dated 13.06.2022

 ANF- 2 O(b)

APPLICATION FORM FOR EXPORT OF SCOMET ITEMS INCLUDING SOFTWARE AND TECHNOLOGY (UNDER GLOBAL AUTHORISATION FOR INTRA COMPANY TRANSFER) LISTED IN APPENDIX 3 TO SCHEDULE 2 OF ITC (HS) CLASSIFICATION

[Please see DGFT’s Public Notice No. 14 /2015-20 dated 13.06.2022 before filling the application]

1. Applicant Details:

i IEC

ii. Name

iii.Address

Flat/Plot/Block No.

Street/Area/Locality

City

State

PIN Code

iv.Tele No.

(1)

Country Code

Area Code

Tel.No.

(2)

v. Mobile No.

Country Code

Area Code

Fax No.

vi. E-mail address where alerts and notifications to be sent

vii. Company Website

ix. Principal Business Activities of the applicant firm:

x. Is this applicant a parent company?

Yes

No

xi. If applicant is a subsidiary, then provide following details:

Name

Address

Country of Export (tick the appropriate)

a. Parent Company

b. Other Subsidiaries (to which exports to be made)

xii. License exception given by (if applicable)

1. From Foreign parent/subsidiary

2. Name of the country

Xiii Export license of foreign country (if applicable)

1. Type of Export license of foreign country (for e.g.bulk/general / temporary license/ others)

2. Country of granting such license

*Insert additional row or sheet, if required for more number of countries

DECLARATION/UNDERTAKING

I / We hereby certify that:

(i) I/We hereby declare that the particulars and the statements made in this application are true and correct to the best of my/our knowledge and belief and nothing has been concealed or held there from.

(ii) I/We fully understand that any information furnished in the application if found incorrect or false will render me / us liable for any penal action or other consequences as may be prescribed in law or otherwise warranted.

(iii) I/We undertake to abide by the provisions of the FT (D & R) Act, 1992, as amended, the Rules and Orders framed thereunder, FTP, HBP, Appendices and Aayat Niryat Forms and ITC(HS).

(iv) I/We hereby certif. that:

A. The entity for whom the application has been made have not been penalized under any of the following Acts (as amended from time to time):

(i) The Customs Act, 1962,

(ii) The Central Excise Act1944, Central & State GST Act, 2017

(iii) Foreign Trade (Development & Regulation) Act 1992, as amended, and

(iv) The Foreign Exchange Management Act ,1999;

(v) The Conservation of Foreign Exchange, Prevention of Smuggling Activities Act, 1974

(vi) Weapons of Mass Destruction & their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005

B. None of the Directors / Partners / Proprietor / Karta / Trustees of the company /firm /HUF/Trust, (as the case may be), is/are a Director(s) / Partner(s) / Proprietor / Karta / Trustee in any other Company/ firm / entity which is on the Denied Entity List (DEL) of DGFT or is in the caution list of RBI;

C. Neither the Registered Office of the company / Head Office of the firm / nor any of its Branch Office(s)/ Unit(s)/ Division(s) has been declared a defaulter and has otherwise been made ineligible for undertaking import / export under any of the provisions of the Policy;

D. We have neither obtained nor applied for issuance of an Importer Exporter Code Number in the name of our Registered / Head Office to any other Licensing Authority.

(v) I / We hereby declare that I / We have neither obtained nor applied for such benefits (including issuance of an Importer Exporter Code Number) in the name of our Registered / Head Office or any of our Branch(s) / Unit(s) / Division(s) to any other Regional Authority.

(vi) We have complied with the conditions of all previous licences / authorisations issued to us for export of SCOMET items and wherever required have duly intimated the o/o DGFT, New Delhi along with documentary evidence regarding receipt of the items of export by the end -user within the stipulated time.

(vii) I / We undertake to abide by the provisions of the FT (D & R) Act, 1992, as amended, the Rules and Orders framed there under, FTP, HBP and ITC (HS) and submit all requisite documents to the o/o DGFT (SCOMET Section), failing which I/We shall be liable to action under FT (D & R) Act, 1992 as amended or rules and orders made there under, and the Customs Act,1962.

(viii) I hereby certify that I am authorised to verify and sign this declaration as per Paragraph 9.6 of the Policy.

Signature of the Applicant

Name

Designation

Official Address

Telephone

Country Code

Area Code

Tel.No.

Place:

Date:

ANF- 2 O (c)

APPLICATION FORM FOR POST REPORTING FOR RE-EXPORT OF SCOMET ITEMS/SOFTWARE/TECHNOLOGY
[UNDER GLOBAL AUTHORISATION FOR INTRA COMPANY TRANSFER(GAICT))
LISTED IN APPENDIX 3 TO SCHEDULE 2 OF ITC (HS) CLASSIFICATION

1. General Information

i. GAICT Authorization No. (13 digit) and date

ii. GAICT Authorization  date  (DD/MM/YY)

iii. IEC

iv. Name of the applicant exporter:   __________________________________________

v. Address 

Flat/Plot/Block No.
Street/Area/Locality
City
State		PIN Code

vi. Tele No.

	Country Code			Area Code					Tel. No
(1)
(2)

vii. Fax no.

Country Code

Area Code

Fax No.

2. Details of the shipment for (Tick the appropriate)

3. Items Details

 i. Actual flow of items

ii. Details of the items (Actual export)

iii. For Software/Technology (Actual exports) (Skip if not applicable)

4. Details of New Intermediary/third party involved (if applicable)

* The DGFT need to be informed in advance in case of any new Intermediary/third party is involved.

5. Documents Attached:

APPENDIX- 2 S (iv)

END USE CUM END USER CERTIFICATE IN CASE OF GLOBAL AUTHORIZATION FOR INTRA

COMPANY TRANSFER (GAICT)

PART 1: PARTIES CONCERNED

a) Name of Exporter ______________________________________________________________________________________

b) Intermediary Name (if any)________________________________________________________________________________

c) Intermediary Address (if any) _____________________________________________________________________________

d) Name of End User ______________________________________________________________________________________

e) End-User’s Address ______________________________________________________________________________________

f) Zip code ______________________ Tele No.__________________________ Email__________________________ Fax __________________________

g) Specific Location where the items will be used (if different from (e)) __________________________________________________________________

h) Nature of usual business of the End-User (e.g. manufacturer or research) _______________________________________________________________

i) Business relationship with the applicant exporter (foreign subsidiary company or foreign parent company / another subsidiary of foreign parent company ________________________________________________

j) How long has your business relationship with the applicant exporter existed? ________________________________________________ 

PART 2: ITEMS (goods, software, technology)

(c) Master Service Agreement / Contract Agreement Number & Date of signature                                                       

PART 3: DECLARATION

a) The item(s) indicated in PART2 will be used as capital equipment/component/raw material /other use for (Intended End use) ____________________________________________________

b) The item(s) indicated in PART2 are being processed or incorporated in to another product (as detailed in 3a above), for sale to ultimate end users located in__________________________

c) Purpose of import by End User (R&D/testing/Calibration/ demo/design/encryption/delivery/validation/import after repair/others, etc). __________________________

d) I/we certify that the above-mentioned items (as detailed in the referenced purchase order/ master service agreement/other contract agreement) shall not be used for any purpose other than the purpose(s) stated above.

e) Further re-export /re-transfer of the item including software and technology from the foreign subsidiary company or foreign parent company / another subsidiary of foreign parent company to end users in other countries would be subject to the export control regulations of the country of the foreign subsidiary company or foreign parent company / another subsidiary of foreign parent company.

f) I/we certify that the items including software and technology indicated in part 2 is/are to be exported as per the terms and condition of Global Authorization for Intra Company Transfer (GAICT) policy of the Government of India and shall be allowed only to the entities eligible under authorization for GAICT.

g) I/we certify that I/we will provide DGFT, Government of India with delivery verification certificate upon its request. h) Post shipment verification of the items at the end users’ site shall be allowed, if required by the Government of India, as may be applicable. In case the above mentioned item(s) include(s) technology, we certify that it will be treated as strictly confidential.

i) End Use of the items shall not be changed nor the items modified or replicated without the prior consent of the Government of India (This will be optional in case the ownership/patent of the items is with the foreign parent company).

j) I/we shall not myself/our self, or through another, cause the items, or replicas, or derivatives thereof to be re-exported/re-transferred/sold without the consent of the licensing authority of the country of the end user, to any party within country of final destination or outside it, unless specifically exempted in the export authorization.

k) I/We also certify that the above items and/or replicas thereof will not be used to design, develop, acquire, manufacture, possess, transport, transfer and/or used for chemical, biological, nuclear weapons or for missiles capable of delivering weapons of mass destruction and their delivery system. The items will be used for civil purposes only.

l) I/We also certify  that I/we are not a   party designated under UNSC  sanctioned individual/entities/groups and I/we are neither owned nor controlled by a designated party under UNSC individual/entities/groups.

m) I/we also certify that all the facts contained in this certificate are true and correct to the best of my knowledge and belief and that I/we do not know of any additional facts that are inconsistent with this certificate.

Signature: __________________________
                 (Signature of authorized signatory)

Company stamp/Official seal__________________________ 

Name: __________________________ 

Designation __________________________

Date: __________________________

Address: __________________________

Email: __________________________

Alternate Email: __________________________

Tele No.: __________________________

[To be submitted by foreign subsidiary company or foreign parent company / another subsidiary of foreign parent company on its letterhead indicating full chain of supply in case other subsidiaries are also involved. Any additional page(s) must be signed by the same person who signs this form.   

1: For Technology exports, value should be mentioned in Part 2(b)