Exports of certain commodities may require special approval or license. SCOMET lists down a few such items. SCOMET is an acronym for Special Chemicals, Organisms, Materials, Equipment, and Technology that has both civilian and military use. Therefore, the export of these items is regulated by India’s Foreign Trade Policy. The exporter of these items must obtain a license from the Director General of Foreign Trade under the Ministry of Commerce. What are the categories of products under the SCOMET list, who are the issuing authorities, and why the SCOMET Exports License is mandatory to export SCOMET Items? Let us find out!
The SCOMET items are stated in Appendix 3 of Schedule 2 of the ITC (HS). The product listed under SCOMET are items that are mandated to obtain a SCOMET license from the DGFT Head Quarter or the National Authorities.
Following are the 9 categories of products under the SCOMET List:
SCOMET items authorizations are issued by the following three agencies i.e. Directorate General of Foreign Trade (DGFT), the Department of Defence Production (DDP), and the Department of Atomic Energy (DAE).
Here, DGFT has the authority to issue SCOMET licenses for categories 1, 2, 3, 4, 5, 7, and 8. The DDP can issue the license for category 6 and DAE can issue it for Category 0.
The export-import industry along with the government of India has a responsibility to ensure that exports are not accessed by terrorist groups, non-state actors, and proliferators. Any export that lands in the wrong hands can have implications on our national security and can create a negative image in the international market. SCOMET is a significant step to identify such concerns.
Further, International supply chains are interconnected our Import-Export partners would like to be guaranteed that India’s regulations are measured with the highest standards. Adoption of these Indian regulations is expected to act as an enabler for a greater role for the Indian industry in global supply chains for high technology, strategic sector items, and value-added items.
SCOMET license is valid for a period of 24 months. However, it can be extended for a period of 6 months and the maximum extension that can be provided is up to 1 year through revalidation by the DGFT regional office after the approval of the DGFT headquarters.
Following was a detailed analysis of the SCOMET license in India. In case you need any assistance in obtaining a SCOMET license, feel free to contact the ASC Group.
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