SCOMET
Policy Rationalised
·
DGFT to
Issue Authorisation to Distinguish between Non-SCOMET and SCOMET Items
·
Revised
Policy Running into 230 Pages Released
·
Decision
within 30 Days of Application
·
SCOMET
Records to be Maintained for Five Years
[DGFT Notification No. 05 dated 24th
April 2017]
Effect of this notification: Annexure
to this notification contains the revised 'Appendix 3' to Schedule- 2 of ITC
(HS) Classification of Export and Import Items which will replace the existing Appendix
3. This notification has the effect of carrying out updates to the SCOMET list
and defining the licensing jurisdiction for various categories of the SCOMET
list.
Subject: Amendment in Table A of Schedule 2 and
Appendix 3 of ITC(HS) Classification of Export and
Import Items.
In exercise of the powers conferred by Section 5
and Section 14A of the Foreign Trade (Development & Regulation) Act, 1992
(No.22 of 1992) read with Para 1.02 of the Foreign Trade Policy, 2015-2020, as
amended, and in supersession of DGFT Notification No.38 (RE-2010) /2009-2014
dated 31st March, 2011, Notification no. 93(RE-2012)/2009-14 dated 6th
January 2012, Notification no. 37(RE- 2012)/2009-14 dated 14th March 2013,
Notification no. 26(RE-2013)/2009-14 dated 3rd July 2013, Notification no. 56
(RE – 2013)/2009-2014 dated December 2013, Notification no. 115 (RE -
2013)/2009-2014 dated 13th March 2015, Notification no.
116(RE-2013)/2009-14 dated 13th March 2015, Notification no. 05/(2015-2020)
dated 29th April 2016 and Notification no. 38/(2015-2020) dated 17th
February 2017, except as respects acts done before such supersession, the
Central Government hereby makes the following amendments in Table A of Schedule
2 and Appendix 3 of ITC(HS) Classification of Export and Import Items. Annexure
to this notification will replace the existing 'Appendix 3' to Schedule 2 of
ITC (HS) Classification of Export and Import Items, 2012.
2. Serial No.
(S. No.) 4 and 5 of the Table A of Schedule 2 of ITC
(HS) Classification of Export and Import Items is substituted as under:
Goods falling in more than one Chapter of ITC (HS)
Classification
|
“4 |
- |
- |
- |
- |
|
5 |
Any
chapter |
Special
Chemicals, Organisms, Materials, Equipment & Technologies (SCOMET) items
as specified in Appendix-3 of this Schedule. |
Prohibited/
Restricted |
a.
Exports would be governed as per the conditions indicated in Appendix-3 of
this Schedule. b.
Export of items specified in Category 0 of the SCOMET list is governed by the
extant provisions of the Atomic Energy Act 1962 as amended and rules,
regulations, guidelines and resolutions issued under the said Act. Unless
otherwise prohibited, export may be permitted against an authorization
granted by the Department of Atomic Energy. c.
Export of items specified under the Note 2 of the 'Commodity Identification
Note' of the SCOMET list would be permitted against an authorization granted
by the Department of Atomic Energy. d.
Export of items specified in Category 6 of SCOMET list (Munitions List),
(except those covered under Note 2 and 3 of Commodity Identification Note of
the SCOMET list) is governed by the extant Standard Operating Procedure
issued by the Department of Defence Production in the Ministry of Defence.
Unless prohibited, export may be permitted against an authorization issued by
the Department of Defence Production. e.
Export of items specified in Categories 1, 2, 3, 4, 5, 7 and 8 of the SCOMET
list is governed by the notifications, public notices and circulars issued
under the Foreign Trade (Development and Regulation) Act 1992 as amended.
Unless otherwise prohibited (including the items covered under Note 4 of the
Commodity Identification Note of the SCOMET list), export of such items may
be permitted against an authorization issued by the DGFT.”I |
3. 'Appendix
3' to Schedule- 2 of ITC (HS) Classification of Export and Import Items, 2012
contains the list of specified goods, services and technologies, i.e. Special
Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET). Annexure
to this notification contains the revised 'Appendix 3' and the same is
also available in the DGFT's website www.dgft.gov.in.
SCOMET Categories in which amendments
have been made are as follows:-
a) SCOMET
Category 6 titled 'Munitions List' that was hitherto 'Reserved' has been
populated. The Military Stores list notified vide Notification No.
115(RE-2013/2009-2014 dated 13th March 2015 stands rescinded.
b) A new
SCOMET Category 8 titled 'Special Materials and Related Equipment, Material
Processing, Electronics, Computers, Telecommunications, Information Security,
Sensors and Lasers, Navigation and Avionics, Marine, Aerospace and Propulsion'
has been added.
c) In SCOMET
Category 18 and 1C, amendments have been made. SCOMET Category 10 titled 'Other
Chemicals' has been added.
d) SCOMET
Category 2 has been substituted with amended and new entries.
e) SCOMET
Categories 30001 to 30005 have been substituted by entries 30001 to 30015.
f) Categories
3A201, 3A303, 3A309, 4A003, 4A007, 4A017, 48006, SA102, SA20S have been
substituted with amended and new entries.
g) SCOMET
Category 7C has been deleted.
4. This
notification shall come into force on the 1st of May,
2017.
[Click here
for Appendix 3 – SCOMET List]
[DGFT Public Notice No. 04 dated 24th
April 2017]
Effect of this Public Notice:
The provision for regulating export of non-SCOMET items having potential risk
of use in or diversion to WMD/missile/military end use has been prescribed. Provision
for Maintenance of Records has been prescribed. Amendments have been made in para
2.74 and para 2.81 for adherence to various Multilateral Export Control Regimes
and to clarify the licensing jurisdiction of various SCOMET categories. The
time period to furnish written comments/views/No Objection by members of IMWG
to DGFT has been reduced to 30 days. Revised formats for End use cum End User
Certificate have been prescribed.
Subjects- Amendments in Paras 2.72,
2.73, 2.74, 2.81 & 2.82 and Appendix 2S of the Handbook of
Procedures, 2015-2020.
In exercise of the powers conferred under
Paragraph 1.03 of the Foreign Trade Policy, 2015-20, the Director General of
Foreign Trade, hereby makes the following amendments in Paras 2.72, 2.73, 2.74,
2.81 & 2.82 and Appendix 2S of the Handbook of Procedures,
2015-2020 with immediate effect (changes made are in bold letters).
2. New
sub para 2.72(b) is being added and the revised Para 2.72 would read as under:
"2.72 Application for Grant of
Export Authorisation/Certificate/ Permission for non-SCOMET Items
(a) An application for grant of Export
Authorisation in respect of restricted items [other than Special Chemicals,
Organisms, Materials, Equipment and Technologies (SCOMET)} mentioned in
Schedule 2 of ITC (HS) Classifications of Export and Import Items
may be made in ANF 2N to DGFT (Headquarters) along with documents prescribed
therein. EFC shall consider applications on merits for issue of export Authorisation.
(b) 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 2.73."
3. New sub para 2.73(c) is being added
after sub Para 2.73(b) as under:
"Para 2.
73(c) Maintenance of Records:
Every SCOMET authorisation holder shall
maintain the following records in manual or electronic form for a period of 5
years from the date of export or import, as applicable:
a) All documents submitted while making
an application for SCOMET Authorization.
b) Correspondence with buyer/consignee/end-user
or DGFT or relevant Government agency;
c) Relevant Contracts;
d) Relevant Books of account;
e) Relevant Financial records;
j) Any communication from any government
agency related to an application for authorization for any item on the SCOMET
list or a commodity classification request;
g) Shipping documents including
shipping bill, bill of entry and bill of lading"
4. The amended sub Para 2.74(1)(f) shall read as under:
"Para 2.
74 (I)(f): Applicability of provisions of relevant bilateral or multilateral
Agreements and Arrangements, to which India is a party, or adherent, including
but not limited to the guidelines and control lists of the Nuclear Suppliers
Group, Missile Technology Control Regime, Australia Group and Wassenaar Arrangement (and its Sensitive List and Very
Sensitive List) as updated from time to time. "
5. The amended sub Para 2.74(V) shall
read as under:
"2. 74 V (a) Licensing
authority for items in Category 0 and Note 2 of the 'Commodity Identification
Note' 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.
Authorisations 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.
(b) Licensing authority for items in
Category 6 in Appendix 3 to Schedule 2 of
ITC (HS) is Department of Defence Production. Export of items in Category 6
is governed by the extant Standard Operating Procedure issued by the
Department of Defence Production in the Ministry of Defence. Export of items
covered in Note 3 of the 'Commodity Identification Note' in Appendix 3 to
Schedule 2 of ITC (HS) is prohibited."
6. The amended Para 2.81 shall read as
under:
"2.81 Export of SCOMET Category 6 items
Notwithstanding anything contained in
paras 2.73 to 2.80, Export of SCOMET Category 6 items
will be permitted against an authorisation issued by Department of Defence
Production. The grant of authorisation will be governed by the Standard Operating
Procedure (SOP) issued for the purpose by Department of Defence Production.
"
7. The amended Para 2.82 shall read as
under:
“2.82 Time-line for comments/NOC
The members of IMWG will endeavour to
furnish their written comments/views/No Objection to DGFT within 30 days from
the date of forwarding of applications by DGFT (Hqrs.).
If no comments/views/No Objection is received within the stipulated period. The
cases will be placed before IMWG for taking a decision. as
deemed appropriate. "
8. The format for the End use cum End
User Certificate (EUC) is being annexed with this Public otice.
a) Appendix- 2S (i) is required for export of SCOMET items in Categories
2,3,4,5,7& 8.
b) Appendix- 2S (ii) is required for
export of SCOMET items in Category 1.
9. This Public Notice shall come into
force on the 1st of May, 2017.
[Click
here for Appendix]