What is SCOMET?
Exports of some goods are restricted wherein a special permit or license is required.The following are some of those goods and are included in SCOMET. SCOMET is an abbreviation used to denote "Special Chemicals, Organisms, Materials, Equipment, and Technology" which find both civilian and military use and their export is controlled under India's Foreign Trade Policy. For an exporter of these items, the first requirement is a license from the Ministry of Commerce's Directorate General of Foreign Trade. What are the categories of products in the SCOMET list, who are the issuing authorities, and why the SCOMET Exports License is a must to export SCOMET Items? Let's find out!
The SCOMET items are referred to in Appendix 3 of Schedule 2 of the ITC (HS). The product referred to in SCOMET are products that are mandated to obtain a SCOMET license from the DGFT Head Quarter or the National Authorities.
Products Referred to in SCOMET License
The 9 categories of products referred to in the SCOMET List are mentioned below:
• Category 0: Nuclear material, technology, equipment, and nuclear-related other materials
• Category 1: Toxic chemical agent and other chemicals.
• Category 2: Toxins and Microorganisms
• Category 3: Material, Materials Processing Equipment and other technologies of the material
• Category 4: Nuclear-related equipment, test, and production of type equipment, component and assemblies of nuclear, and related technology, not controlled by Category 0
• Category 5: Aerospace system, equipment including test and production of type equipment, related technology, and specially designed component and accessories
• Category 6: Munitions List
• Category 7: Reserved
• Category 8: Special Materials and Related Technology, Electronics, Computers, Material Processing, Sensors, Information Security, Avionics, Telecommunications and Lasers, Aerospace Navigation, Marine and Propulsion.
SCOMET License items Export Control Licensing Agencies
SCOMET goods authorisations are done 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 grant an export SCOMET license in categories 1, 2, 3, 4, 5, 7, and 8. The license can be granted by DDP under category 6 and DAE under Category 0.
Then why do we need a SCOMET License to ship SCOMET items?
It is the responsibility of government in India, along with import-export industry, not to allow its export to be characterized by any terrorist groups, non-state actors, or proliferators. Export in the wrong hands can certainly bring about consequences in our national security and create a negative image in the international market. SCOMET is hence a major step in this direction.
Further, International supply chains are networked our Import-Export partners would like to have an assurance that Indian's regulations are benchmarked with the best. Implementation of these Indian regulations is likely to enable a more significant role for the Indian industry in international supply chains for high technology, strategic sector items and value-added items.
SCOMET License Validity
Validity of SCOMET license: SCOMET license shall be valid from the date of its issuance for 24 months. However, it can be further extended for a period of 6 months, and the maximum extension that can be given is up to 1 year through revalidation by the DGFT regional office after approval of the DGFT headquarters.
• Imprisonment for a term not less than 5 years, but which may extend to imprisonment for life with fine.
• Fine up to a minimum of Rs 3 lakhs and a maximum of Rs 20 lakhs, or five times the value of the export of the goods.
The analysis of this SCOMET license in India will be taken a step further. Please contact the Aradhya Exim in case there arises any need for help in getting any kind of SCOMET license.
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