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!
Overview of SCOMET
Special Chemicals, Organisms, Materials, Equipment, and Technologies (SCOMET)" have the potential to be used in both civilian and military applications. India is a signatory to the Missile Technology Control Regime (MTCR), the Wassenaar Arrangement (WA), and the Australia Group (AG), as well as a member of the Nuclear Supply Group (NSG). India has also signed international non-proliferation treaties such as the Chemical Weapons Convention (CWC) and the Biological and Toxic Weapons Convention (BTWC) (BWC). As a result, the SCOMET control list is harmonized with all international export control regimes and conventions' control lists. In 2010, Chapter IVA of the Foreign Trade (Development & Regulation) Act, 1992 was amended to regulate the brokering, transshipment, and export of specified goods, services, and technology that could be used as weapons of mass destruction, aligning it with the provisions of the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005.
SCOMET License
The export of commodities on the SCOMET list is governed by India's Foreign Trade Policy. To export SCOMET, the exporter must first get a license from the Ministry of Commerce's Directorate General of Foreign Trade. Export of Special Chemicals, Organisms, Materials, Equipment, and Technologies (SCOMET) listed below shall be permitted only against an export authorization issued on this behalf unless the export is prohibited or is permitted without authorization subject to fulfillment of conditions if any, as indicated under/against any specific category or item. The items, services, and technology listed below are subject to the provisions of Chapter IV-A of the FT (D&R) Act, 1992, as revised in 2010.
Benefits of SCOMET
With SCOMET license exporter can export restricted Special Chemicals, Organisms, Materials, Equipment, and Technologies. India’s Foreign Trade Policy regulates the export of items on the SCOMET List.
What if the SCOMET products list is exported without having a SCOMET License?
- IEC Suspension
- Imprisonment for a period of at least 5 years, which may extend to lifetime imprisonment along with a fine.
- Fine of minimum INR 3 Lakhs which may extend up to INR 20 Lakhs or five times the value of the items exported.
Types of SCOMET
- Category 0: Nuclear material, technology, equipment, and nuclear-related other materials
- Category 1: Toxic chemical agent and other chemicals.
- Category 2: Microorganisms and toxins.
- Category 3: Material, Materials Processing Equipment, and other technologies related to the material.
- Category 4: Nuclear-related equipment, test, and production types of equipment; components and assemblies of nuclear; and related technology, not controlled under Category 0.
- Category 5: Aerospace system, equipment including test and production types of equipment, related technology, and specially designed components and accessories.
- Category 6: Munitions List
- Category 7: Reserved
- Category 8: Special Materials and Related Types of equipment, Electronics, Computers, Material Processing, Sensors, Information Security, Avionics, Telecommunications and Lasers, Aerospace Navigation, Marine, and Propulsion.
SCOMET License items Export Control Licensing Agencies
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.
Documents for SCOMET
(i). Item should be chemical .under "Category 1: Toxic chemical agents and other chemicals" of SCOMET List.
(ii). Intended use of chemical should be clearly stated for which application has been submitted.
(iii). End-Use Certificate from exporter
(iv). Quantity and Amount values to be clearly stated
(v). Declaration that the chemical for which application has been submitted shall not be used for any purpose that relate to development of Weapons of Mass Destruction.
Fees and Timeline
Fees
For a customized and attractive quotation, please contact us with your product details to Rekha Atri (+91 98118 03136) or Manju Laur (+91 9711994042).
Timeline
To be discussed.
Validity
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.
Process for SCOMET
The exporter must go to the DGFT home page and select the ECOM option from the service menu. The link will take you to the ECOM application module's new page.
The exporter must pick the SCOMET Application Module after logging into the DGFT site with the ECOM application module through Digital Certificate. When you select the Create option, a message box containing a 20-digit ECOM Reference number will display; click the OK button to continue.
Business Details
On the master screen, fill in the following information before clicking the save button to store the information.
* Phone number, fax number, and email address Supply shipping facts such as the port of shipment and the details of the port of discharge, the country of export, the ultimate Destination country, and the Purpose of export in the next tab, and provide the from and to date details in the following tab.
*From the dropdown box, choose the relevant Jurisdictional Regional Authority.
Provide the ITC (HS) code, SCOMET category, SCOMET Item Number Name, and Description of the Item in the Item of the Export screen.
If the exporter has already applied for export on a Repeat Basis for the same product, same end-use, and to the same end-user in the same licensing year, he or she can check the repeated basis checkbox, and provide the File number, File the date, License number, Quantity allowed for the export, and the number of items exported and its UOM.
Bank Details
The exporter must submit the destination country's bank address, international bank account number, SWIFT Code (Society for Worldwide Interbank Financial Telecommunication Code), and IFSC Code (International Financial Services Code) (Indian Financial System Code).
Export of SCOMET Items
After filling in all the details exporter needs to press the declaration button and provide the Name, Official Address, and Telephone details.
Upload the documents
The exporter must include the bank address of the destination country, the international bank account number, the SWIFT Code (Society for Worldwide Interbank Financial Telecommunication Code), and the IFSC Code (International Financial Services Code) in the shipment (Indian Financial System Code).
Processing of Application
All requests for export of SCOMET items will be reviewed by the DGFT's Inter-Ministerial Working Group (IMWG), which is chaired by the Additional Director General of Foreign Trade.
Evaluation of application
For the purposes of evaluating the application for the export of items on the SCOMET List, the following elements will be considered:
* End-user credentials, the veracity of end-use declarations, the integrity of the SCOMET item's transmission from supplier to end-user, and the item's or technology's potential
* The probability that exported items will end up in the hands of terrorists, terrorist organizations, or non-state actors.
* Export controls imposed by the receiving country
* The capabilities and aims of the recipient state's weapons and delivery programs.
* Evaluation of the item's end-uses
* Applicability of necessary India-signed agreements to an export licensing application.
Get License
After the Inter-Ministerial Working Group approves the request, the exporter will receive a licence letter to secure SCOMET export authorization from the Director-General of Foreign Trade's zonal or regional office. The exporter can obtain a licence from the relevant Zonal/Regional authority.