SCOMET items, which stand for Special Chemicals, Organisms, Materials, Equipment, and Technologies, are dual-use items that have both military and civilian uses.
SCOMET items, which stand for Special Chemicals, Organisms, Materials, Equipment, and Technologies, are dual-use items that have both military and civilian uses. Exports of goods on the SCOMET List are subject to restrictions imposed by India’s Foreign Trade Policy. To export SCOMET, the exporter needs a SCOMET Declaration license from the Directorate General of Foreign Trade, Ministry of Commerce.
SCOMET Items Categories
Following are the eight SCOMET item categories:
- Nuclear weapons, technology, and other materials that are related to nuclear weapons fall under category 0
- Toxic chemical agents and other chemicals fall under category 1.
- Microbes and toxins fall under category 2.
- Material, equipment for processing materials, and other technologies relating to materials fall under category 3.
- Equipment used in the production, testing, and handling of nuclear materials; nuclear assemblies and components; and associated technology not governed under Category 0.
- Category 5: Aerospace systems, equipment, including production- and test-type equipment, associated technology, and specifically designed parts and accessories.
- List of Munitions, Category 6
- Information security is a part of category 7: computers, electronics, and information technology.
- Category 8 includes avionics, marine, aerospace navigation, propulsion, electronics, computers, material processing, sensors, telecommunications, and lasers. It also includes special components and related types of equipment.
Note that each category includes a comprehensive list of the items it covers, and each type is subject to different restrictions. The complete list of SCOMET Declaration items can be found on the DGFT website, and the detailed list of SCOMET items is included in Appendix 3 of Schedule 2 of ITC (HS).
Authorization to export SCOMET Items
The exporter must submit an application for the DGFT’s approval of an export authorization using an online system, as detailed below.
Exporting SCOMET Products for an Exhibition
There are no end-user certifications or licenses needed for exporting SCOMET Declaration List items (other than Category 0, 1 and 2) solely for display or exhibition. The display of “Technology” in any category or for any items falling under Categories 0, 1, and 2 will not be granted an export license.
A requirement of re-importation within six months applies to Import Export licenses for the SCOMET items for exhibition in foreign countries. If the exhibitor plans to sell the product during the exhibition abroad, the trader must apply for an export licence. It is prohibited to sell SCOMET products in this way without a working licence.
Export of SCOMET Items from DTA to SEZ
The SCOMET products can be supplied without permission from the Domestic Tariff Area (DTA) to the Special Economic Zone (SEZ). However, the Development Commissioner of the relevant SEZ must be notified of all SCOMET supplies made from the Domestic Tariff Area to the Special Financial Site.
Export of SCOMET Items from SEZ to any Other Country
Physically exporting goods from the Special Economic Zone outside of India to another nation SCOMET items requires export authorization.
Licensing Authority
- Exporting goods listed in SCOMET List Categories 1, 2, 3, 4, 5, 7, and 8 requires a licence from the Directorate General of Foreign Trade.
- The Department of Atomic Energy is responsible for issuing licences for items in Category 0.
- The designated authority for exporting the items listed in Category 6 of the SCOMET List is the Ministry of Defence’s Department of Defence Production.
Validity of SCOMET Export License
The export licence has a 24-month validity period; however, with DGFT Headquarters’ approval, the regional office may revalidate it for an additional six months or up to one year.
DGFT New SCOMET Module
According to DGFT Trade Notice 11/2021-2022, dated July 28, 2021, a new online module for submitting Export Authorizations for SCOMET has been established as part of it Revamp of the exporter/importer-related services.
It is recommended that all exporters looking for export permission for SCOMET products submit their applications online using this new Module. The export of items on the SCOMET List is governed by the Foreign Trade Policy (FTP) 2015-2020. (i.e., Special Chemicals, Organisms, Materials, Equipment, and Technologies). In-depth analysis of the DGFT’s New SCOMET Module will be provided in this article.
Important Announcement for Exporters
It is recommended that all prospective exporters who need export permission for SCOMET products submit their applications online at the official DGFT website.
- Online applications must be submitted for the issuance of SCOMET Declaration item export authorizations as well as their amendment or revalidation.
- With effect from 05/08/2021, all SCOMET-related issues will continue to be handled by the SCOMET Cell, DGFT (HQ), and SCOMET approvals will proceed to also be provided from DGFT HQ, Udyog Bhawan, and New Delhi through the New Online Module.
- All currently open applications will be automatically transferred to the new system as of May 8, 2021, and will be handled by DGFT as usual (HQ).
New Process as part of the New SCOMET Module
The new SCOMET Module will also make the subsequent procedures online accessible:
- Authorization for Site Visit by the Foreign Entity wants to the Premises of the Indian Manufacturer/ Exporter
- Type of IEC to check manufacturing processes for SCOMET
- Export Items following reporting of export of SCOMET Items, Software/Technology in the following cases:
Chemicals may be exported without permission to certain nations
- Repairing imported SCOMET items abroad and returning them
- Return of imported or domestic SCOMET products after international demonstrations, displays, exhibitions, RFPs, RFQs, tenders, etc.
- Purchase and Sale
- Global Permission for Internal Transfer
- Others, if required by export permits
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 organisations involved in the supply of the products (EUC needs to furnish on the letterhead with an authorised 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
- Document describing a supply agreement
- DGFT letter of authorization for the SCOMET product
- The following documents must be submitted in hard copy to the DGFT headquarters:
- Original End Use-cum-End User Certificate (EUC) Bills of Entry into the destination nation for SCOMET products exported over the previous year
Specified format for the End User Certificate (EUC)
The exporter needs to use a particular layout of EUC provided in the Handbook of Procedures depending on product type and authorization.
- Again for the export of SCOMET products 2,3,4,5,7, and 8, see Appendix-2S(i).
- For requesting a Specific SCOMET approval again for the export of SCOMET items in Category 1, see Appendix 2S (ii).
- For requesting a “Stock and Sale” SCOMET authorization for the export of all SCOMET items, see
- Appendix 2S (iii). This authorization requires an End-User Certificate (EUC) from the Foreign Buyer if they are different from the End User.
- End-User Certificate (EUC) from the Consignee, if distinct from the Foreign Buyer and the End User.
- End-User Certificates (EUC) from any additional intermediaries, if any, need to show the logical order of the items.
- They can come from foreign buyers, consignees, and end users.
Application Procedure
- The exporter must go to the new DGFT portal’s home page; from there, select Export Management System from the Service option by clicking on the Service menu link.
- The hyperlink will take you to the brand-new DGFT New SCOMET Module.
- The exporter must choose the SCOMET Declaration Application Module after logging in to the DGFT portal with the ECOM application module via a digital certificate. The create option will display a message box with a 20-digit ECOM Reference number; click the OK button to continue.
Business Details
Then, press a save the button to save the information after entering the upcoming information on the master screen.
- Phone number, fax information, and email address Provide the shipping information, including the port of shipment, the port of discharge, the exporting country, the final destination country, and the purpose of the export. In the following tab, provide the from and to-date information.
- From the dropdown box, choose the relevant Jurisdictional Regional Authority.
In the Item of Export screen, enter the information for the ITC (HS) code, SCOMET category, SCOMET Item Number Name, and Item Description.
The exporter must then provide the foreign investor and consignee information after providing the details.
Bank Details
The exporter is required to provide the SWIFT (Society for Worldwide Interbank Financial Telecommunication Code), the IFSC (International Financial Services Code), the destination country bank address, and the international bank account number (Indian Financial System Code).
The exporter must click the declaration button and enter their name, official address, and phone number after filling out all the information.
Upload Documents
After clicking the submit button, the export industry must attach all necessary supporting documents. To obtain a tough copy of the application, click the download button when the application form appears. Exporters who wish to export SCOMET products must submit this application form to the DGFT (Headquarters), Udyog Bhawan, New Delhi, along with the required supporting documentation.
Processing of Application
All requests for the export of SCOMET Declaration items will be evaluated on their merits by the Inter-Ministerial Working Group (IMWG), which is part of the DGFT and is chaired by the Additional Director General of Foreign Trade.
Evaluation of application
When evaluating an application to export something from the SCOMET Declaration List, the following criteria will be taken into account:
- Credentials of the end-user, the veracity of the end-use claims made for the product, the integrity of the transfer of the SCOMET product from the supplier to the end-user, and the potential of the product or technology
- The potential for exported goods to end up in the possession of terrorists, terrorist organisations, or non-State actors, as determined by risk assessments
- By the recipient State enacted export restrictions
- The delivery of weapons and the capabilities and goals of recipient states’ programmes
- Examining the item’s intended uses
- Relevant agreements to which India is a party and their application for a license for exporting
Get License
After the Inter-Ministerial Working Group approves the request, the exporter will receive a letter of permission from the zonal or regional office of the Director-General of Foreign Trade authorising the export of SCOMET. The relevant Zonal/Regional can issue the exporter with the necessary licence.
FAQ’s
What are SCOMET items, and why are they subject to export controls?
SCOMET stands for Special Chemicals, Organisms, Materials, Equipment, and Technologies. These are dual-use items with potential applications in both civilian and military contexts. They are subject to export controls to prevent proliferation and maintain national security.
What government authority in India oversees the export of SCOMET items?
The Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce is the government authority responsible for overseeing the export of SCOMET items in India.
Can you explain the licensing process for exporting SCOMET items from India?
Exporters of SCOMET items must obtain a license from DGFT. The application is submitted online and reviewed by the Interministerial Cooperation Group (IMCG) representing various ministries. The license is typically valid for 24 months and can be extended.
What are the documentation requirements for obtaining SCOMET export licenses?
Documentation for obtaining SCOMET export licenses includes an application for Export Authorization, an end-use certificate from the exporter, quantity, and value details. An End User Certificate (EUC) certifying the end-user and intended use is also required.
Are there specific end-user restrictions for SCOMET item exports?
Yes, the export of SCOMET items may be prohibited, restricted (requiring prior authorization), or exempted from such authorization. The restrictions are in place to prevent access by proliferators, terrorist groups, and non-state actors.
What is the role of the End User Certificate (EUC) in SCOMET exports?
The End User Certificate (EUC) certifies the end-user of the exported item and its intended use. It is a crucial document for ensuring that SCOMET items do not fall into the wrong hands.
What are the penalties for non-compliance with SCOMET export regulations?
Non-compliance with SCOMET export regulations can lead to civil or criminal prosecution, resulting in fines, imprisonment, and cancellation of export licenses.
How can I determine whether my product falls under Category 6 of SCOMET?
Products listed under SCOMET are typically found in Appendix 3 of Schedule 2 of the ITC (HS). Category 6 items are under the purview of the Department of Defense Production (DDP) as the licensing authority.
What are the implications of exporting SCOMET items without the required authorization?
Exporting SCOMET items without the necessary authorization can lead to legal issues, penalties, and implications for national security and reputation in the international market.
What steps can a business take to ensure compliance with SCOMET regulations and avoid legal issues?
Businesses can ensure compliance by obtaining the required licenses, maintaining proper documentation, adhering to end-user restrictions, and implementing effective internal compliance programs to minimize risks associated with dual-use item exports.
Conclusion
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