DGFT authorises Department of Defence Production to be licensing authority for export of items under Category 6 of SCOMET

Directorate General of Foreign Trade (DGFT), Ministry of Commerce & Industry, has notified the updated SCOMET list for the year 2024. India’s export control list (SCOMET) has been updated, incorporating the recent changes /updates in the control lists of the multilateral export control regimes, and certain policy amendments in our national system, on the basis of inputs from relevant government organizations and stakeholders.

With the recent update, DGFT has also authorized the Department of Defence Production (DDP), MoD, to be the licensing authority for export of all items falling under Category 6 of SCOMET for military end use, streamlining certain exclusions existing earlier.

India has a robust legal and regulatory framework on strategic trade and related non-proliferation matters, which includes the inter-ministerial SCOMET licensing process, effective enforcement and risk assessment mechanisms, regular outreach to industry and other stakeholders, etc. India is a member of the major multilateral export control regimes, viz. the Missile Technology Control Regime, Wassenaar Arrangement, and Australia Group, and harmonises its guidelines and control lists with that of these regimes and the Nuclear Suppliers Group.

Accordingly, India regulates the exports of dual use items, nuclear related items, and military items, including software and technology under the SCOMET (Special Chemicals Organisms Materials Equipment and Technologies) list, which is notified by DGFT under the Foreign Trade Policy.

The emergence of Strategic Trade Controls as an important area has been acknowledged in the Foreign Trade Policy 2023, where the SCOMET processes and procedures have been consolidated at one place for better understanding of the Industry, for effective compliance. As the exports under the  SCOMET have increased substantively during the last three years, DGFT has taken several initiatives, based on regular interactions with the industry to facilitate authorized and responsible export of these high end goods and technologies, which includes strengthening DGFT’s e-platform for licensing, laying down a liberalized General Authorization policy for items such as drones, dual-use chemicals, telecommunication equipment, information security systems, and for Repairs in India, Repeat Order for Stock & Sale Policy, Intra Company Transfers (GAICT), among many others.

The SCOMET List has been notified by DGFT under Appendix 3 to Schedule 2 of ITC (HS) Classification of Export and Import Items. The policy and procedures under SCOMET are outlined in Chapter 10 of FTP and HBP 2023, and the list is regulated under Chapter IVA of Foreign Trade (Development & Regulation) Act, 1992, as amended in 2010.

SCOMET export controls updated; Department of Defence Production now licensing authority for Category six military exports, streamlining exclusions. SCOMET List updated to reflect multilateral regime changes and national policy amendments; DGFT authorised the Department of Defence Production as licensing authority for Category six military end use exports, streamlined exclusions, and introduced facilitative measures including strengthened e licensing, liberalised General Authorizations for specified dual use and related items, and policies for repairs, repeat orders, stock & sale and intra company transfers within the Foreign Trade Policy framework.