The Ministry of Commerce & Industry, Department of Commerce, Directorate General of Foreign Trade (DGFT) has released a public notice, No. 15/2023, dated June 19, 2023. The notice pertains to the amendment of Paragraph 10.16(A) in the Handbook of Procedures 2023, specifically related to the General Authorization for Export of Chemicals and related Equipment (GAEC).
Analysis: The amendment modifies the existing Paragraph 10.16(A) in the Handbook of Procedures 2023. It introduces changes to the declaration made by the applicant exporter regarding the use and modification of exported items without prior consent from the Government of India. The revised paragraph also specifies that the transfer/export/re-export under GAEC to the countries mentioned in Appendix 10(N) will be allowed only for civilian end use.
Additionally, the amendment adds a new entry, Para 10.16.A.(II)c.(iv), stating that any subsequent transfer/export/re-export under GAEC to the countries specified in Appendix 10(N) should be exclusively for civilian end use.
Two new entries, Para 10.16.A.(II)d and 10.16.A.(II)e, are included in the amendment. These entries require the exporter to submit a declaration on letterhead, stating that the export will only be done for civilian end use. Furthermore, a declaration from the Indian exporter is required, confirming that transfers/exports/re-exports in the entire supply chain will only be made to eligible countries listed in Appendix 10(N).
The amendment also includes Appendix 10(N), which lists specific SCOMET items and applicable countries for export. It outlines the categories, item names, and the relevant countries for each category.
Conclusion: The DGFT’s public notice introduces amendments to Paragraph 10.16(A) of the Handbook of Procedures 2023 regarding the General Authorization for Export of Chemicals and related Equipment (GAEC). The amendments specify the purpose of use, restrict modifications without prior consent, and emphasize that transfers/exports/re-exports under GAEC should be for civilian end use only. Exporters are required to comply with the amended procedures and declarations mentioned in the notice.
Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Vanijya Bhawan
Public Notice No. 15/2023 Dated:19th June, 2023
Subject:- Amendment in Paragraph 10.16 (A) in the Handbook of Procedures 2023 to amend the procedure for General Authorisation for Export of Chemicals and related Equipments (GAEC).
F. No. 01/91/180/01/AM22/EC(S).- In exercise of the powers conferred under Paragraph 1.03 and Paragraph 2.01 of the Foreign Trade Policy (FTP) 2023. the Director General of Foreign Trade (DGFT’) hereby makes amendment to Handbook of Procedures (HBP) 2023 amending the paragraph 10.I 6(A) as mentioned below with immediate effect.
10.16 A.(II) b. (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 he changed nor the items modified or replicated without the prior consent of the Government of India.:
10.16 A.(II) b. (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. Further transfer/export/re-export under GAEC to the list of applicable countries specified in the Appendix 10(N) will be for civilian end use only:
|
Existing Paragraph |
Revised Paragraph |
| 10.16 General Authorisation for Export of Chemicals and related Equipment (GAEC) of SCOMET items
A. Procedure for grant of General Authorisation for Export of Chemicals and related equipment (GAEC) I. In respect of export/re-export of SCOMET items under the Categories /Sub Categories of 1C. 1D.IE. 3D001 and 3D004 (excluding software and technology), the applicant exporter shall submit an application for GAEC through online SCOMET portal and attach information in proforma -ANF 10 A; 10.16 A.(II) b. (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.; |
10.16 General Authorisation for Export of Chemicals and related Equipment (GAEC) of SCOMET items A. Procedure for grant of General Authorisation for Export of Chemicals and related equipment (GAEC) I. In respect of export/re-export of SCOMET items under the Categories / Sub Categories of 1C. ID,IE. 3D001 and 3D004 (excluding software and technology), and those chemicals specified in the Appendix 10(N). to the specified countries mentioned in the Appendix 10(N). the applicant exporter shall submit an application for GAEC through online SCOMET portal and attach information in proforma-ANF-10A; 10.16 A.(II) b. (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. Further transfer/ex port/re-ex port under GAEC to the list of applicable countries specified in the Appendix 10(N) will be for civilian end use only; |
2. A new entry as Para 10.16.A.(II)c.(iv) is added as below :
(iv) Any subsequent transfer/export/re-export under GAEC to the list of applicable countries specified in the Appendix 10(N) is only for civilian end use.
3. Two new entries as Para 10.16.A.(II)d and 10.16.A.(I1)e are added as below :
d. A declaration is to be submitted by the exporter on Letter Head duly signed and stamped stating that export shall only be done for civilian end use.
e. A declaration from the Indian exporter stating that that the transfers/exports/re-exports in the entire supply chain would be only for eligible list of countries as provided in Appendix 10(N).
Effect of this Public Notice : Para 10.16(A) of HBP 2023 has been amended to add more chemicals (Appendix ION) under General Authorisation of Export of Chemicals (GAEC).
(Santosh Kumar Sarangi)
Director General of Foreign Trade
Ex-officio Additional Secretary to the Government of India
E-mail: dgft@inic.in
Issued from File No. 01/91/180/01/AM22/EC(S)
Appendix 10 (N)
| Description | SCOMET Category | Item Name | List of applicable countries for export |
| Mixture of Chemicals containing 1% or less of chemicals 1B0107 1B011. 1B012 and 1B040 under SCOMET List. | 1B010 | As per updated SCOMET List | Please refer to Table 1 below at Note 1. |
| 1B011 | |||
| 1B012 | |||
| 1B040 | |||
| Mixture of Chemicals containing 30% or less of chemicals listed under 1B (except 1B010, 1B011 1B012and 1B040). | 1B (except 1B010, 1B011, 1b012 and 1B040 | ||
| In addition to existing procedure under 1C, mixture of Chemicals containing 30% or less of chemicals listed under 1C in SCOMET List. | 1C | As per Updated SCOMET List | Please refer to Table 1 below at Note 1. |
| In addition to existing procedure under 1E, mixture of Chemicals containing 30% or less of chemicals listed under 1E in SCOMET List. | 1E | As per Updated SCOMET List | • States party to the Chemical Weapons Convention.
• List of States Parties can be found at the official website of the Organization for the Prohibition of Chemical Weapons at www.opcw.org. Note: For more details, please refer Category 1E under updated SCOMET List. |
| Sodium Perchlorate | 3A306 | Sodium Perchlorate | Note: Please refer to Table 2 below. |
Note 1:
Export of chemicals/Mixture of Chemicals (excluding Software and Technology) listed above is allowed to the countries specified in the relevant column above on the basis of a one-time General Authorization for Export of Chemicals and related equipment (GAEC) issued by DGFT. subject to the following conditions (in addition to the existing procedure) and the procedure as prescribed from time to time:
I. The exporter is required to register and obtain General Authorization for Export of Chemicals/Mixture of Chemicals and related equipment only once during the validity period. Subsequent transfer/export/re-export to the countries specified below is subject to post reporting(s) on quarterly basis to relevant Government authorities:
II. General Authorization for Export of Chemicals/Mixture of Chemicals and related equipment 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 General Authorization for Export of Chemicals and related equipment subject to subsequent post reporting(s) on quarterly basis to be reported within 30 days from the last
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.
Table 2
Argentina, Australia. Austria, Belgium, Brazil. Bulgaria. Canada. Czech Republic. Denmark. Finland, France, Germany, Greece, Hungary. Ice/and, Ireland, Ital. Japan. Luxembourg. Netherlands, New Zealand, Norway, Poland, Portugal, Republic of Korea. Russian Federation, South Africa, Spain. Sweden, Switzerland, Turkey. Ukraine. United Kingdom. United States of America.
