Export of SCOMET Items

Export of SCOMET Items

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Export of SCOMET Items

SCOMET item is an acronym for Special Chemicals, Organisms, Materials, Equipment, and Technologies and these are dual-use items that can be used for both civilian and military applications. India’s Foreign Trade Policy regulates the export of items in the SCOMET list. The exporter needs to obtain a license from the Directorate General of Foreign Trade, Ministry of Commerce to export SCOMET.

SCOMET Items Categories

The eight categories of SCOMET items are as follows:

Category 0: Nuclear material, equipment, technology and nuclear-related other materials

Category 1: Toxic chemical agent and other chemicals.

Category 2: Micro-organism and toxin.

Category 3: Material, Materials Processing Equipments, and other material related technologies.

Category 4: Nuclear-related equipment, test and production types of equipment; assemblies and components of nuclear; and related technology, not controlled under Category 0.

Category 5: Aerospace system, equipment including productions and test types of equipment, related technology and specially designed component and accessories.

Category 6: Munitions List

Category 7: Computers, electronic, and information technology including information security.

Category 8: Special Materials and Related Types of equipment, Electronics, Computers, Material Processing, Information Security, Sensors, Telecommunications and Lasers, Avionics, Marine, Aerospace Navigation and Propulsion.

Note: Each category contains an exhaustive listing of items covered and special conditions are also applicable to each category.

The detailed list of SCOMET items is available in Appendix 3 of Schedule 2 of ITC (HS) and access the DGFT website to get the complete list of SCOMET.

Authorization to export SCOMET items

The exporter needs to furnish an application for grant of Export Authorization to DGFT through an online system as explained below.

Export of SCOMET items for Exhibition

Licenses for export of items in SCOMET List (other than Category 0,1 and 2) solely for purpose of display or exhibition will not require any endues or end-user certifications. The export license will not be issued for the exhibition of ‘Technology’ in any category or items under Categories 0, 1, and 2

Licenses for export of SCOMET item for exhibition in a foreign country is subject to a condition of re-import within six months. The trader needs to apply for an export license if the exhibitor intends to sell the item during the exhibition abroad. Such a sale of SCOMET items shall not take place without a valid license.

Export of SCOMET Items from DTA to SEZ

The SCOMET items can supply from Domestic Tariff Area (DTA) to Special economic zone (SEZ) without the authorization. However, the suppliers need to report all supplies of SCOMET items from Domestic Tariff Area to Special economic zone to the Development Commissioner of the respective SEZ.

Export of SCOMET Items from SEZ to any Other Country

Export authorization is mandatory for the export of items outside India from Special economic zone to another country SCOMET items physically.

Licensing Authority

  • Directorate General of Foreign Trade issues licenses for the export of items specified in Categories 1, 2, 3, 4, 5, 7 and 8 of the SCOMET list.
  • Licensing authority for items in Category 0 is Department of Atomic Energy
  • Department of Defence Production, the Ministry of Defence is the prescribed authority for the export of items specified in the Category 6 of the SCOMET list.

Validity of SCOMET Export License

The validity period of the export license is 24 months; it can extend for six months and maximum Upto 1 year through revalidation by DGFT regional office on the approval of DGFT Headquarters.

Documents for Obtaining License for Export of SCOMET Items

The following documents need to upload online while making the application for Obtaining SCOMET Authorization:

  • End Use-cum-End User Certificate (EUC) from all the organizations involved in the supply of the products (EUC need to furnish on the letterhead with authorized signatory)
  • Purchase Orders of firms involved in the supply chain of the products
  • Aayat Niryat Form (ANF)-1
  • Elaborate technical specification relating to SCOMET item of export
  • Supply contract document (If documents are bulky, the relevant portion containing the contract reference and parties to the contract can upload)
  • DGFT authorization letter for the SCOMET product
  • The hard copy of the following documents needs to submit to the DGFT Head Quarters:
  • Original End Use-cum-End User Certificate (EUC)
  • Bills of Entry into the destination country for SCOMET items exported during the last one year

Specified format for the End User Certificate (EUC)

Depending on the type of product and the authorization, the exporter needs to use a specific format of EUC provided in the Handbook of Procedures.

  • Appendix- 2S (i) – For the export of SCOMET items in Categories 2,3,4,5,7 and 8.
  • Appendix- 2S (ii) – For applying for a Specific SCOMET authorization for export of SCOMET items in Category 1
  • Appendix- 2S (iii) – For applying for a ‘Stock and Sale’ SCOMET authorization for export of all SCOMET items
  • End-User Certificate (EUC) from the Foreign Buyer, if different from the End User.
  • End-User Certificate (EUC) from the Consignee, if different from the Foreign Buyer and End User.
  • End-User Certificate (EUC) from the Other intermediaries, if any
  • End-User Certificates from Foreign Buyer, Consignee and End User must reflect the logical flow of items.

Application Procedure

The exporter needs to access the home page of DGFT, from the service tab click on the ECOM option. The link will redirect to the new page ECOM application module.

Export-of-SCOMET-Items - DGFT-Home-Page
Export of SCOMET Items – DGFT Home Page

After login to the DGFT portal using the ECOM application module through Digital Certificate, the exporter needs to select the SCOMET Application Module. By clicking on the create option, a message box will appear with a 20 digit ECOM Reference number, click on the OK button to proceed further.

Export-of-SCOMET-Items - DGFT-ECOM-Application-Page
Export of SCOMET Items – DGFT ECOM Application Page

Business Details

Provide the following details on the master screen and finally click the save button to save the details.

  • Telephone Number, Fax details and Email ID, Provide the shipping details such as the Port of shipment and provide the details of Port of Discharge, the country of export, the ultimate Destination country and the Purpose of export, in the next tab furnish the from the date and to-date details.
  • Select the concerned Jurisdictional Regional Authority from the dropdown box.
Export-of-SCOMET-Items - Business-Detail
Export of SCOMET Items – Business Detail

In the Item of Export screen, provide the details of ITC (HS) code, SCOMET category, SCOMET Item Number Name and Description of Item

If the exporter has already applied for export on Repeat Basis in the same licensing year for the same product, same end-use and to the same end-user then he/she can check in the repeated basis checkbox and provide the File number, File the date, License number, Quantity allowed for the export and the number of items exported and its UOM.

Export-of-SCOMET-Items - Import-Export-Details
Export of SCOMET Items – Import-Export Details

After providing details, the exporter needs to furnish the details of the foreign Buyer and consignee.

Bank Details

The exporter needs to provide the destination Country Bank address, International Bank Account Number, the SWIFT Code (Society for Worldwide Interbank Financial Telecommunication Code) and also furnish the IFSC Code (Indian Financial System Code).

Export-of-SCOMET-Items - Upload-Document
Export of SCOMET Items – Upload Document

After filling all the details exporter needs to press the declaration button and provide the Name, Official Address, and the Telephone details.

Upload Documents

The exporter needs to attach all the supporting documents and click on the submit button. The application form will display, click on the download button to get the hard copy of the application. To obtain a license for the export of SCOMET items, an exporter need to send this application form along with the prescribed documents to DGFT (Headquarters), Udyog Bhawan, New Delhi.

Processing of Application

Inter-Ministerial Working Group (IMWG) in the DGFT under the Chairmanship of Additional Director General of Foreign Trade will consider all requests for export of SCOMET items on merits.

Evaluation of application

The following factors will consider for the evaluation of the application for the export of items on the SCOMET List:

  • Credentials of end-user, the credibility of declarations of end-use of the item, integrity of the transmission of SCOMET item from supplier to end-user, and the potential of item or technology
  • The assessed risk that exported items will fall into the hands of terrorists, terrorist groups, and non-State actor
  • Export control measures instituted by recipient State
  • The capabilities and objectives of programs of recipient State relating to weapons and the delivery
  • Assessment of end-uses of item
  • Applicability to an export license application of relevant agreements to which India is a party

Get License

Once the Inter-Ministerial Working Group accepted the request, permission letter will issue to the exporter for obtaining SCOMET export authorization from the zonal or regional office of the Director-General of Foreign Trade. The exporter can get the license from the concerned Zonal/Regional.

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Post by Renu Suresh

Renu is experience content writer specialised in compliances and company rules.