Special Chemicals, Organisms, Materials, Equipment, and Technologies, or SCOMET goods, are dual-use items that have both defense and commercial usage. Exports of commodities on the SCOMET list are subject to India’s Foreign Trade Policy. To export SCOMET, the exporter must first get an IEC Code and license from the Ministry of Commerce’s Directorate General of Foreign Trade. Let’s understand all about the Scomet list for export.
What are SCOMET Items?
SCOMET items are those that have uses for the military as well as the general public. These items can be dangerous if used with wrong intention. Therefore, A multilateral export control regime is formed. It is an informal alliance of supplier nations with similar goals that aims to prevent the spread of advanced conventional weapons, delivery systems, and WMDs by having each government implement export regulations and control lists. In order to prevent SCOMET items from ending up in the wrong hands and being used for illegal purposes, India has allied itself with the MECRs and assures that it strictly monitors trade of SCOMET items. However, this also has an impact on organizations that trade SCOMET goods for authorized business uses.
What is the SCOMET List for Exports?
DGFT SCOMET list or SCOMET list 2022 is a list of items that the Indian government declares as SCOMET items and as double usage items. The SCOMET List for Exports has the following eight categories:
Category 0:
Nuclear material, equipment, technology, and nuclear-related other materials
Category 1:
Toxic chemical agents and other chemicals.
Category 2:
Micro-organisms and toxins.
Category 3
Material, Materials Processing Equipment, 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, electronics, 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.
Mechanism of Authorization of SCOMET Items
The exporter must submit an application for the DGFT’s approval of an export authorization using an online system as described below.
Exporting SCOMET products for an exhibition
No end-user certifications are necessary for export licenses for SCOMET List goods (other than Category 0, 1 and 2) exported merely for show or exhibition.
No export permit will be granted for the display of “technology” in any category or for any products falling under Categories 0, 1, and 2. Licenses to export SCOMET merchandise for exhibition in a foreign nation are subject to the requirement that they be imported again within six months. If the exhibitor plans to sell the item during the show abroad, the trader must apply for an export license. It is prohibited to sell SCOMET products in this way without a working license.
SCOMET Products Export from DTA to SEZ
The SCOMET products can be supplied without a permit from the Domestic Tariff Area (DTA) to the Special Economic Zone (SEZ). However, the providers must notify the Development Commissioner of the relevant SEZ of all SCOMET supplies made from the Domestic Tariff Area to the Special Economic Zone.
SCOMET Products Export from SEZ to Any Other Country
For the physical export of goods from the Special Economic Zone outside of India to another nation, export authorisation is required.
Latest Notification of Amendments in SCOMET List for Export
With the aim to simplify the policy of Unmanned Aerial Vehicles (UAVs)/Drones
under SCOMET list, a draft policy amendment of the Category 5B of SCOMET
List and the General Authorization for Export of Drones/UAVs are proposed through a notification from DGFT.
As per the notification, Unmanned aerial vehicle systems including drones, remotely piloted air vehicles and autonomous programmable vehicles, not specified under SCOMET Categories/sub-categories 3D013, 5B(a) & (b), 6A010, 8A912, and capable of range equal to or less than 5 km and delivering a payload of not more than 5 kgs (excluding the software and technology of these items), will not be covered for the purposes of SCOMET Category 5B.
SCOMET authorization will not be required, for export and/or re-export of Unmanned Aerial Vehicles including drones, remotely piloted air vehicles, and autonomous programmable vehicles, not specified under SCOMET Categories/sub-categories 3D013, 5B (a) & (b), 6A010, 8A912, and capable of range equal to or less than 5 km and delivering a payload of not more than 5 kgs (excluding the software and technology of these items) satisfying the conditions mentioned in the notification.
However, after issuance of GAED authorization and before actual export, the applicant exporter must ensure the following:
- They shall notify the relevant government authorities in the online portal of DGFT, on quarterly basis of such export in the prescribed format.
- The Indian exporter shall submit post-shipment details of each export/ reexport of SCOMET items under the above Categories/ sub-categories under GAED for 3 years
- The exporter will be required to keep records of all the export documents, in manual or electronic form, in terms of Para 2.73 (c) of HBP, for a period of 5 years from the date of GAED issued by DGFT
Validity of GAED issued
GAED issued for export / re-export of SCOMET items under the above Categories / Sub Categories shall be valid for a period of Three years from the date of issue of GAED subject to subsequent post reporting(s) on a quarterly basis to be reported within 30 days from the last quarter
Suspension of GAED
GAED issued shall be liable to be suspended/revoked by the DGFT on receipt of an adverse report on proliferation concern or for non-submission of mandatory post-shipment details/reports/documents within the prescribed timelines or for non-compliance with the conditions of the proposed policy.
For more details, you can visit the notification or contact our experts at: 8881-069-069.
Moreover, you require any kind of guidance related to the Import export code, please feel free to contact us at 8881-069-069.
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