SCOMET:
Application for Grant of Export Authorization/Certificate/ Permission for non-SCOMET Items

1. An application for grant of Export Authorisation in respect of restricted items [other than Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET)] mentioned in Schedule 2 of ITC (HS) Classifications of Export and Import Items may be made in ANF 2 N to DGFT (Headquarters) along with documents prescribed therein. EFC shall consider applications on merits for issue of export Authorisation.
2. If the exporter has been notified in writing by DGFT or he knows or has reason to believe that an item not covered in the SCOMET list has a potential risk of use in or diversion to weapons of mass destruction (WMD) or in their missile system or military end use (including by terrorists and non-state actors), the export of such an item may be denied or permitted subject to the grant of a license, as per the procedure provided for SCOMET items in Paragraph2.73.

Note: “Military use” shall mean incorporation into items listed in SCOMET Categories 5D or 6 or for the use, development, or production of military items listed in these categories.’

Application for SCOMET Authorisation

1. An application for grant of Export Authorisation in respect of SCOMET items mentioned in Appendix 3 to Schedule 2 of ITC (HS) Classifications of Export and Import Items may be made in ANF 2O to DGFT (Hqrs) along with documents prescribed the rein.
2. However, such applications are mandatorily to be filed through online system under the Icon E-COM on the website of DGFT. The Uniform Resource Locator [URL] for online application is http://dgft.gov.in/scomet. While submitting the online application, all the required documents including End User Certificates (EUCs) are to be uploaded as PDF files. Manual submission of application is dispensed with except the original End User Certificate(s) in Appendix 2 S from all entities in the chain of supply viz. the foreign buyer, end user and intermediary/consignee (if they are different from the foreign buyer & end user), which is/are to be submitted in hard copy to SCOMET Section of DGFT (HQ), besides electronic submission.

Maintenance of Records:
Every SCOMET authorisation holder shall maintain the following records in manual or electronic form for a period of 5 years from the date of export or import, as applicable:

1. All documents submitted while making an application for SCOMET Authorisation.
2. Correspondence with buyer/consignee/end-user or DGFT or relevant Government agency;
3. Relevant Contracts;
4. Relevant Books of account;
5. Relevant Financial records;
6. Any communication from any government agency related to an application for authorization for any item on the SCOMET list or a commodity classification request;
7. Shipping documents including shipping bill, bill of entry and bill of lading.

Inter-Ministerial Working Group
An Inter-Ministerial Working Group (IMWG) in DGFT (Hqrs.) shall consider applications for export of SCOMET items as specified in Appendix-3 to Schedule 2 of ITC (HS) Classifications of Export and Import Items based on following guidelines:

1. Applications  for Authorisation  to  export   items or technology on SCOMET List are considered on the basis of following general criteria:
2. Credential of end-user, credibility of declaration of end-use of the item or technology, integrity of chain of transmission of item from supplier to end-user, and on potential of the item or technology, including timing of its export, to contribute to end-uses that are not in conformity with India’s national security or foreign policy goals and objectives, goals and objectives of global non-proliferation, or India’s obligations under International treaties/agreements to which it is a State party.
3. Assessed risk that exported items will fall into hands of terrorists, terrorist groups, and non-State actors;
4. Export control measures instituted by the recipient State;
5. Capabilities and objectives of programmes of the recipient State relating to weapons and their delivery;
6. Assessment of end-use(s)of item(s);
7. Applicability of provisions of relevant bilateral or multilateral Agreements and Arrangements, to which India is a party, or adherent, including but not limited to the guidelines and control lists of the Nuclear Suppliers Group, Missile Technology Control Regime, Australia Group and Wassenaar Arrangement (and its Sensitive List and Very Sensitive List) as updated from time to time.

1. Application shall be accompanied by an end user certificate as per Appendix 2S, certifying that:
2. The item will be used only for stated purpose and that such use will not be changed, nor items modified or replicated without consent of Government of India;
3. Neither the items nor replicas nor derivatives thereof will be re- transferred without consent of Government of India;
4. End-user shall facilitate such verifications as are required by Government of India.

1. The end-user certificate will indicate the name of the item to be exported, the name of the importer, the specific end-use of the subject goods and details of Purchase Order/Contract.

1. Government of India may also require additional formal assurances, as deemed appropriate, including those on end-use and non- retransfer, from the State of the recipient.

1. (a) Licensing authority for items in Category 0 and Note 2 of the ‘Commodity Identification Note’ in Appendix 3 to Schedule 2 of ITC (HS) is Department of Atomic Energy. Applicable guidelines are notified by the Department of Atomic Energy under Atomic Energy Act, 1962. For certain items in Category 0, formal assurances from the recipient State will include non-use in any nuclear explosive device. Authorisations for export of certain items in Category 0 will not be granted unless transfer is additionally under adequate physical protection and is covered by appropriate International Atomic Energy Agency (IAEA) safeguards, or any other mutually agreed controls on transferred items.
2. Licensing authority for items in Category 6 in Appendix 3 to Schedule 2 of ITC (HS) is Department of Defence Production. Export of items in Category 6 is governed by the extant Standard Operating Procedure issued by the Department of Defence Production in the Ministry of Defence. Export of items covered in Note 3 of the ‘Commodity Identification Note’ in Appendix 3 to Schedule 2 of ITC (HS) is prohibited.

1. Additional end-use conditions may be stipulated in Authorisations for export of items or technology that bear possibility of diversion to or use in development or manufacture of, or use as, systems capable of delivery of weapons of mass destruction.

1. Authorisations for export of items in SCOMET List (other than those under Category 0, 1 and 2) solely for purposes of display or exhibition shall not require any end-use or end-user certification. However, no export Authorisation for display or exhibition shall be issued or ‘Technology’ in any category. IMWG would seek comments from technical agencies as deemed necessary.

1. AuthorisationforexportofitemsinCategories0,3(otherthan3D),4, 5 and 7 of the SCOMET list to Iran would be subject to the relevant provisions contained in Annex B to the UN Security Council resolution 2231 (2015). The licensing authority, i.e. DGFT or Department of Atomic Energy, as the case maybe, on completion of the IMWG process or the applicable internal process, shall seek the concurrence of Disarmament and International Security Affairs (D&ISA) Division in the Ministry of External Affairs, as required.

1. The Inter Ministerial Working Group shall normally meet once every month. Where a case has been deferred in the IMWG and subsequently, NOC(s) has / have been received from all concerned agencies with no divergence in views, authorisation shall be issued with the approval of Chairman, IMWG and the case shall be brought before IMWG in its subsequent meeting for approval on ex-post facto basis. Case(s) where a decision could not be arrived at in IMWG shall be placed before Director General of Foreign Trade for appropriate decision on grant of authorisation.

Applicability of WMD Act

1. Export of items not on SCOMET List may also be regulated under provisions of the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005.
2. Note 1: Export or attempt to export in violation of any of conditions of Authorisation shall invite civil and/or criminal prosecution.
3. Note 2:  Authorisations for export of items in SCOMET List for display or exhibition abroad are subject to a condition of re-import within a period not exceeding six months. Exporters are entitled to apply for an export authorisation for such items exhibited abroad. If exhibitor intends to offer that item for sale during exhibition abroad, such sale shall not take place without a valid Authorisation.
4. Note 3: Export of items in Category 2 of SCOMET list may also be controlled by other applicable guidelines issued from time-to time.
5. Note 4: Exporters are entitled to request that only such conditions   need be imposed as are subject of government-to-government instruments of accord over export of items on SCOMET List.
6. Note 5: ‘Technology’ (see also entry ‘Technology’ in glossary in  Appendix-3 to Schedule 2 of ITC (HS) Classifications of Export and Import Items): Approval of export of an item on the SCOMET List also authorizes the export to same end-user of minimum ‘technology’ required for installation, operation, maintenance and repair of the item.
7. Supply of SCOMET Items from DTA to SEZ.
8. No export authorisation is required for supply of SCOMET items from DTA to SEZ. However, all supplies of SCOMET items from DTA to SEZ will be reported to the Development Commissioner of the respective SEZ by the supplier in the prescribed pro forma [Annexure 1 to Appendix-3 to Schedule 2 of ITC (HS) Classifications of Export and Import Items] within one week of the supplies getting affected. An annual report  of  such  supplies from DTA to SEZ shall be sent to SCOMET Section, DGFT (Hqrs), Department of Commerce, Udyog Bhawan, Maulana Azad Road, New Delhi- 110011, by the Development Commissioner (DC), SEZ in the prescribed pro forma [Annexure 2 to Appendix-3 to Schedule 2 of ITC (HS) Classifications of Export and Import Items]. Report by the DC, SEZ is to be filed by 15th May of every financial year for the supplies affected during the preceding financial year. Export Authorisation is, however, required if the SCOMET items are to be physically exported outside the country from SEZ
9. I.e. to another country (Refer Rule 26 of the SEZ Rules, 2006).

Outreach Programmes on SCOMET Export Control System
DGFT in association with Administrative Ministries/ Departments and Trade Associations will organize Industry Outreach Programme on regular basis for an effective awareness among the exporters/ importers dealing with trade, in particular, in SCOMET items.