Issue of Authorisation for Repeat Orders for Export of SCOMET Items - Scope Widened

[DGFT Public Notice No.20/2015-20 dated 12 July 2018]

Effect of this Public Notice: Paragraph 2.79 of the Handbook of Procedures (HBP) of the Foreign Trade Policy (FTP) 2015-20 has been amended to widen the scope for issue of authorizations for repeat orders of SCOMET items.

Subject: Amendment in Paragraph 2.79 of the Handbook of Procedures of the Foreign Trade Policy (FTP) 2015-20

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 to Paragraph 2.79 of the Handbook of Procedures (HBP) of the Foreign Trade Policy (FTP) 2015-20, with immediate effect.

The Paragraph 2.79 of the Handbook of Procedures (HBP) of the Foreign Trade Policy (FTP) 2015-20 is substituted to read as under: "2.79 Issue of authorization for repeat orders

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 will be granted by Chairman, IMWG after verification of the credentials of foreign buyer/consignee/end user only.

The approval will be subject to the fulfillment of the following criteria:

(i) Same SCOMET items would imply that the products, along with the technical specifications, are exactly the same for which export authorization has been issued to the applicant exporter earlier after due consultation/verification;

(ii) Same country/entities would imply that (a) the foreign buyer (b) the consignee or the intermediaries, if any (c) the end user and (d) the end use are exactly the same for which export authorization has been issued to the applicant exporter earlier after due consultation/verification;

(iii) Only the applications submitted within three years from the date of issue of original SCOMET authorization, after due verification/consultation process, will be eligible for repeat authorization;

(iv) The cumulative quantity permitted against repeat export authorizations shall be commensurate with the operational capacity of the end user in respect of the relevant product, as certified by the end user. A certificate to this effect from the end user shall be submitted by the exporter along with the application for a repeat authorization;

(v) A declaration by the authorized signatory on the qualifying conditions as per (i) to (iv) above shall be submitted by the exporter along with the application for consideration under the repeat or der route;

(vi) The authorizations(s) for repeat orders shall be liable for recall/termination by the DGFT on receipt of an adverse report in respect of any of the export consignments;

(vii) All authorizations for repeat orders shall be brought before IMWG in its subsequent meeting for confirmation of approval, on ex-post facto basis, and the IMWG would reserve its right to refuse further repeat authorizations based on its assessment of proliferation concerns.