Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Udyog Bhawan, New Delhi
Dated: 25 October, 2021
Subject:- Circulation of General Authorization for Export of Chemicals and related equipment (GAEC) of SCOMET items for public/Industry comments.
With the aim to simplify the process for post reporting in case of export of certain chemicals under SCOMET list and to reduce the compliance burden on exporters, a draft policy on General Authorization for Export of Chemicals and related equipment (Excluding Software and Technology) is proposed. The same is being circulated for the public/Industry comments and feedback.
The comments on the draft Policy are invited and may be sent to scomet-dgft@nic.in by 05.11.2021
(Nitish Suri)
Deputy DGFT
nitish.suri@nic.in
011-23061536
General Authorization for Export of Chemicals and related Equipment (GAEC) of SCOMET items
A. Scope and Eligibility: SCOMET authorization will not be required, for export and/or re-export of SCOMET items (excluding software and technology) under SCOMET categories/ sub-categories 1C, 1D, 1E, 3D001, 3D004, subject to the following conditions:
(i) The items under the above categories/sub-categories (excluding sub-category 1E and software and technology in these categories), are to be exported/re-exported to only the countries listed in Table 1 below (entire supply chain including buyer / consignee or any third party should be in the countries listed in table below :
Table 1
Argentina, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Republic of Korea, Latvia, Lithuania, Luxembourg, Malta, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine, United Kingdom, United States.
Note 1: List of CWC State parties can be found on www.opcw.org
Note 2: Export of items under the above Categories / Sub Categories to the countries other than those specified in Table 1 or the countries not party to CWC (in case of Category 1E), as the case may be, shall be allowed only against an export authorisation and in compliance to the conditions and documentation specified under the respective Categories of SCOMET List.
(ii) The items under Category 1E (excluding software and technology), are to be exported / re-exported to only the countries / State Parties to the Chemical Weapons Convention (CWC) (entire supply chain including buyer / consignee or any third party should be in these countries / State Parties to the CWC).
(iii) The applicant exporter declares that the items that are intended to be exported shall not be used for any purpose other than the purpose(s) stated in the End User Certificate (EUC) and
that such use shall not be changed nor the items modified or replicated without the prior consent of the Government of India.
(iv) The applicant exporter agrees to allow on-site inspection, if required by the DGFT or authorized representatives of Government of India;
(v) No authorization would be granted for UNSC sanctioned destinations or countries.
(vii) The exporter is required to register and obtain GAEC authorisation only once during the validity period. Subsequent export/re-export is subject to post reporting(s) on quarterly basis to relevant Govt. authorities;
(vi) The applicant exporter is granted a General Authorization for Export of Chemicals and related equipment (GAEC) as per procedure mentioned in para 2B below.
B. Procedure for grant of General Authorization for Export of Chemicals and related equipment (GAEC)
I. In respect of export/re-export of SCOMET items under the above Categories / Sub Categories (excluding software and technology), the applicant exporter shall submit an application for GAEC through online SCOMET portal and attach information in proforma -ANF 20(b);
II. The application would be reviewed/examined for the issuance of GAEC by Inter-Ministerial Working Group (IMWG) based on the submitted application and other supporting documents submitted by the applicant exporter in the prescribed proforma;
a. Detailed description of the items that are intended to be exported under this authorization with relevant technical details / specifications7 such as model, part number, etc. to be provided (as applicable);In case of first intended export of items under the above Categories / Sub Categories, details of the entire supply chain (buyer, consignee, end user, etc.) of an intended export is to be provided. In case of previous exports of items under the above Categories / Sub Categories having been carried out, details of past exports including the EUC is to be provided.
b. Undertaking on the letterhead of the firm duly signed and stamped by the authorised signatory:
i. To allow on-site inspection, if required by the DGFT or authorized representatives of Government of India;
ii. The applicant exporter declares that the items that are intended to be exported shall not be used for any purpose other than the purpose(s) stated in the EUC and that such use shall not be changed nor the items modified or replicated without the prior consent of the Government of India.;
iii. The applicant exporter declares that subsequent to issue of export authorisation, if the licensee has been notified in writing by DGFT or if they know or has reason to believe that an item may be intended for military end use or has a potential risk of use in or diversion to weapons of mass destruction (WMD) or in their missile system, the exporter would not be eligible for GAEC for export of that/those item(s) and would apply separately to DGFT for a fresh authorisation in terms of regular policy.
iv. Action will be taken against the exporter under FTDR Act for any mis-declaration.
c. The Applicant must ensure that:
i. Report is submitted to the relevant government authorities in the online portal of DGFT, on quarterly basis and within 30 days of the last quarter including [Aayat Niryat Form (ANF) – 20], along with the End-Use Certificate (EUC) in the prescribed proforma [Appendix 2S(ii)] and a copy of the bill of entry into the destination country at destination point.
ii. An agreement or a purchase order, excerpt of contract from entity (consignee / end user) receiving the items which states that the export is for a permitted use / an end use as declared in the EUC is available;
iii. Documents include the name, contact number and email id of the authority signing the EUC.
iv. Additional details, if any sought by DGFT
C. Post reporting for export / re-export of items under GAEC
a. The Indian exporter shall submit post-shipment details of each export/ re-export of SCOMET items under the above Categories/ sub-categories under GAEC, as mentioned above at II.c. (i) and within the timelines specified therein;
b. Failure to do so may entail imposition of penalty and / or suspension/revocation of GAEC.
D. Record Keeping
The exporter will be required to keep records of all the export documents, in manual of electronic form, in terms of Para 2.73 (c) of HBP, for a period of 5 years from the date of GAEC issued by DGFT.
E. General conditions
a. GAEC would not be issued in case of items to be used to design, develop, acquire, manufacture, possess, transport, transfer and / or used for chemical, biological, nuclear weapons or for missiles capable of delivering weapons of mass destruction and their delivery system;
b. GAEC would not be issued for countries or entities covered under UNSC embargo or sanctions list or on assessment of proliferation concerns, or national security and foreign policy considerations, etc.;
c. IMWG shall reserve the right to deny issue of GAEC without assigning any reason(s).
F. Validity
a. GAEC issued for export / re-export of SCOMET items under the above Categories / Sub Categories (excluding software and technology) shall be valid for a period of five years from the date of issue of GAEC subject to subsequent post reporting(s) on quarterly basis to be reported within 30 days from the last quarter;
b. GAEC cannot be revalidated in terms of Paragraph 2.80 of HBP of FTP 2015-20.
G. Suspension / Revocation
GAEC issued shall be liable to be suspended / revoked by the DGFT on receipt of an adverse report on proliferation concern or for non-submission of mandatory post-shipment details/ reports/documents within the prescribed timelines or for non-compliance with the conditions of the proposed policy.
