DG of Foreign Trade Updates Export Control List with 2024 SCOMET Amendments

The latest update integrates changes from multilateral export control regimes and introduces national policy amendments based on inputs from relevant government bodies and stakeholders.

The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce & Industry, has released the updated SCOMET list for 2024, marking significant revisions to India's export control regulations. The latest update integrates changes from multilateral export control regimes and introduces national policy amendments based on inputs from relevant government bodies and stakeholders.

A key development in the update is the designation of the Department of Defence Production (DDP) within the Ministry of Defence as the licensing authority for exporting all items under Category 6 of the SCOMET list, specifically for military end-use. This change aims to streamline the previously existing exclusions and simplify the export licensing process for military goods.

India's strategic trade and non-proliferation framework is robust, featuring an inter-ministerial SCOMET licensing process, risk assessment mechanisms, and consistent outreach to industry stakeholders. As a member of major multilateral export control regimes, including the Missile Technology Control Regime, the Wassenaar Arrangement, and the Australia Group, India aligns its export control guidelines with these international standards.

The SCOMET list, which stands for Special Chemicals, Organisms, Materials, Equipment, and Technologies, regulates the export of dual-use items, nuclear-related materials, military goods, and associated software and technology. The list is notified by DGFT under the Foreign Trade Policy (FTP) and is essential for ensuring compliance with international trade and security norms.

Acknowledging the growing importance of Strategic Trade Controls, the Foreign Trade Policy 2023 has consolidated SCOMET processes and procedures for better industry understanding and compliance. With the significant increase in exports under the SCOMET list over the past three years, DGFT has introduced several initiatives to facilitate responsible and authorized exports. These initiatives include enhancing DGFT’s e-platform for licensing, liberalizing the General Authorization policy for items such as drones, dual-use chemicals, and telecommunication equipment, and implementing policies for Repairs in India, Repeat Orders for Stock & Sale, and Intra Company Transfers (GAICT).

The updated SCOMET List is notified under Appendix 3 to Schedule 2 of the ITC (HS) Classification of Export and Import Items, with its policies and procedures outlined in Chapter 10 of the Foreign Trade Policy (FTP) and the Handbook of Procedures (HBP) 2023. The list is regulated under Chapter IVA of the Foreign Trade (Development & Regulation) Act, 1992, as amended in 2010.