Export of SCOMET Items
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 on the SCOMET List. The exporter must 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: Microorganisms and toxins.
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 components 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 list of items covered, and special conditions apply to each type.
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 a 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 the Domestic Tariff Area (DTA) to the Special economic zone (SEZ) without authorization. However, the suppliers need to report all supplies of SCOMET items from the Domestic Tariff Area to the Special financial site to the Development Commissioner of the respective SEZ.
Export of SCOMET Items from SEZ to any Other Country
Export authorization is mandatory for physically exporting items outside India from the Special economic zone to another country SCOMET items.
- Directorate General of Foreign Trade issues licenses for exporting items specified in Categories 1, 2, 3, 4, 5, 7, and 8 of the SCOMET List.
- Licensing authority for items in Category 0 is the Department of Atomic Energy.
- Department of Defence Production, the Ministry of Defence, is the prescribed authority for exporting items specified in Category 6 of the SCOMET List.
Validity of SCOMET Export License
The validity period of the export license is 24 months; it can be extended for six months and a full Upto one year through revalidation by DGFT regional office on the approval of DGFT Headquarters.
DGFT New SCOMET Module
As part of the IT Revamp of the exporter/importer-related services, DGFT introduces a new online module for filing Export Authorizations for SCOMET vide DGFT Trade Notice 11/2021-2022 dated 28/07/2021. All exporters seeking export authorization for SCOMET items are advised to apply online through this new Module. Foreign Trade Policy (FTP) 2015-2020 regulates the export of things in the SCOMET List (i.e., Special Chemicals, Organisms, Materials, Equipment, and Technologies). This article will look at DGFT’s New SCOMET Module in detail.
Important Announcement for Exporters
All applicant exporters seeking export authorization for SCOMET items are advised to apply online through the official DGFT website.
- Applications for issuance of export authorization of SCOMET items, as well as amendment/revalidation thereof, will need to be submitted online.
- The SCOMET Cell, DGFT (HQ), will continue to be the nodal point for all issues relating to SCOMET, and SCOMET authorizations will continue to be issued from DGFT HQ, Udyog Bhawan, and New Delhi through the New Online Module with effect from 05/08/2021.
- All the existing pending applications (as of 05/08/2021) will be automatically migrated to this new system and processed as usual at DGFT (HQ).
New Process as part of the New SCOMET Module
The following processes will also be made available online as part of this new SCOMET Module:
- Authorization for Site Visit by the foreign entity wants to the Premises of the Indian Manufacturer/ exporter
- Type of IEC to check production processes for SCOMET Export Items
- Post Reporting of Export of SCOMET Items, Software/ Technology in following cases:
Export of chemicals permitted to specified countries without authorization
- Repair and return of imported SCOMET items after repair abroad
- Return of SCOMET items (imported/ indigenous) after demo/ display/ exhibition/ RFP/ RFQ/ tender etc., abroad
- Stock and Sale
- Global Authorization for Intra-company Transfer (GAICT)
- Others, if mandated in export authorizations
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 needs to furnish on the letterhead with an authorized signatory)
- Purchase Orders of firms engaged 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 year
Specified format for the End User Certificate (EUC)
Depending on the product type and 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 the export of SCOMET items in Category 1
- Appendix- 2S (iii) – For applying for a ‘Stock and Sale’ SCOMET authorization for the 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.
The exporter needs to access the home page of the new DGFT portal; from the service homepage, click on the Service option and select Export Management System.
The link will redirect to the new DGFT New SCOMET Module.
After login into 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.
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 the 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.
In the Item of Export screen, provide the details of the ITC (HS) code, SCOMET category, SCOMET Item Number Name, and Item Description.
After providing details, the exporter must furnish the Foreign Buyer and consignee details.
The exporter must provide the destination Country Bank address, International Bank Account Number, the SWIFT Code (Society for Worldwide Interbank Financial Telecommunication Code), and the IFSC Code (Indian Financial System Code).
After filling in all the details exporter needs to press the declaration button and provide the Name, Official Address, and Telephone details.
The exporter must 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 to export SCOMET items, an exporter must 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 article, 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 States 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
Once the Inter-Ministerial Working Group accepts the request, the permission letter will be issued to the exporter for 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.