Special Chemicals, Organisms, Materials, Equipment, and Technologies (SCOMET) goods are dual-use items that can be employed in both civilian and military settings. The export of commodities on the SCOMET list is regulated by India's Foreign Trade Policy. To export SCOMET, the exporter must receive a licence from the Director General of Foreign Trade.
Export of Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET), as indicated in Appendix-3 of Schedule 2 of ITC(HS) Classification of Export & Import Items, shall be governed by the specific provisions of (i) Chapter IV A of the FT(D&R) Act, 1992 as amended from time to time (ii) Sl. No. 4 & 5 of Table A and Appendix-3 of Schedule 2 of ITC(HS) Classification of Export & Import Items (iii) Para 2.16, Para 2.17, Para 2.18 of FTP and (iv) Para 2.73 -2.82 of Hand Book of Procedures, in addition to the other provisions of FTP and Handbook of Procedures governing export Authorisations.
Sections 5 and 14A of the FTDR Act of 1992 were used to notify the SCOMET list of products. The FTDR Act of 1992 was revised in 2010, and a new Chapter IV-A was added. This newly added chapter addresses export controls for certain products, services, and technologies, and gives the Central Government the authority to monitor and alter the list of such items, services, and technologies.
Appendix 3 of Schedule 2 of the ITC contains the SCOMET list (HS). The export of items on the SCOMET list is limited and requires a licence or authorisation. The SCOMET articles are divided into nine different categories:
i. Nuclear materials, nuclear-related other materials, equipment, and technology (Category 0)
ii. Toxic chemical agents and other chemicals (Category 1)
iii. Microorganisms and Toxins (Category 2)
iv. Materials, Materials Processing Equipment, and Related Technologies (Category 3)
v. Uncontrolled nuclear-related other equipment and technologies (Category 4)
vi. Aerospace systems, equipment, including production and test equipment, related technology, and specially designed components and accessories thereof (Category 5).
vii. Munitions list (Category 6)
viii. Reserved (Category 7)
ix. Special Materials and Related Equipment, Material Processing, Electronics, Computers, Telecommunications, Information Security, Sensors and Lasers, Navigation and Avionics, Marine, Aerospace, and Propulsion (Category 8)
It has also been clarified that the SCOMET list includes used items, non-controlled items containing one or more controlled component(s) where the controlled component(s) is the principal element, and non-controlled items containing one or more controlled component(s) where the controlled component(s) is the principal element.
Export authorization for SCOMET goods
The exporter must submit an online application to the DGFT for the award of SCOMET Authorization, as per Trade Notice No. 11/2021-22 Dated 28.07.2021 of DGFT.
SCOMET goods for exhibition export
Endues or end-user certifications are not required for the export of products from the SCOMET List (other than Category 0,1 and 2) purely for the purpose of display or exhibition. The export licence will not be provided for any category or item under Categories 0, 1, or 2.
Export licences for SCOMET items for exhibition in a foreign nation are subject to a six-month reimport requirement. If the exhibitor intends to sell the item during the show abroad, the merchant must apply for an export licence. The selling of SCOMET merchandise without a valid licence is prohibited.
SCOMET items exported from DTA to SEZ
The SCOMET commodities can be shipped without a permit from the Domestic Tariff Area (DTA) to the Special Economic Zone (SEZ). Suppliers must, however, disclose all SCOMET supplies from the Domestic Tariff Area to the appropriate SEZ's Development Commissioner.
SCOMET Items from the SEZ that can be exported to any country
For the physical export of SCOMET commodities from a Special Economic Zone outside of India, an export authorization is required.
Authority that License
The Directorate General of Foreign Trade, which is part of the Licensing Authority, issues export licences for commodities included in SCOMET Categories 1, 2, 3, 4, 5, 7, and 8.
The Ministry of Defence is the prescribed authority for the export of items included in Category 6 of the SCOMET list, with the Department of Atomic Energy being the licencing authority for items in Category 0.
The SCOMET Export License's Validity
The export licence is valid for 24 months, however it can be extended for up to one year by revalidation by the DGFT regional office with approval from DGFT Headquarters.
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