SCOMET License

Items classified as "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 acronym SCOMET stands for Special Chemicals, Organisms, Materials, Equipment, and Technologies, and these are dual-use goods with civilian and military applications. 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.

• Category 1: Nuclear material, equipment, technology, and nuclear-related other materials
• Category 2: Toxic chemical agent and other chemicals toxicants.
• Category 3: Micro-organisms and toxins.
• Category 4: Material, Materials Processing Equipment, and other material-related technologies.    
• Category 5: Nuclear-related equipment, including test and production equipment; nuclear assemblies and components; and related technology not covered by Category 0.
• Category 6: Aerospace system, equipment including productions and test types of equipment, related technology, and specially designed components and accessories.
• Category 7: Munitions List
• Category 8: Computers, electronic, and information technology including information security.
• Category 9: Electronics, computers, material processing, information security, sensors, telecommunications, lasers, avionics, marine, and aerospace navigation, and propulsion are all examples of special materials and related equipment.

(Note that each category has an extensive list of products covered, as well as particular conditions that apply to each category)

The exporter needs to furnish an application for a grant of Export Authorization to DGFT through an online system as explained below.

Export of SCOMET items for Exhibition

Exporting products from the SCOMET List (other than Category 0,1 and 2) solely for the purpose of show or exhibition does not require endues or end-user certificates. Any category or item in Categories 0, 1, or 2 will not be granted an export license.

Export licenses for SCOMET items for exhibition in a foreign nation are subject to a six-month re-import requirement. If the exhibitor plans to sell the item during the show abroad, the trader must apply for an export license. A valid license is required to sell SCOMET items in this manner.

Export of SCOMET items:

The SCOMET items can supply from the Domestic Tariff Area (DTA) to the Special economic zone (SEZ) without authorization. However, the suppliers need to report all supplies of SCOMET items from the Domestic Tariff Area to the Special economic zone to the Development Commissioner of the respective SEZ.

Export of SCOMET Items from SEZ to other nations

Export authorization is mandatory for the export of items outside India from the Special economic zone to another country SCOMET items physically.

Licensing Authority

Directorate General of Foreign Trade issues licenses for the export of items specified in Categories 1, 2, 3, 4, 5, 7, and 8 of the SCOMET list.

Licensing authority for items in Category 0 is the Department of Atomic Energy. Department of Defence Production, the Ministry of Defence is the prescribed authority for the export of items specified in Category 6 of the SCOMET list.

The validity period of the export license is 24 months; it can extend for six months and a maximum Upto 1 year through revalidation by DGFT regional office on the approval of DGFT Headquarters.

When submitting an application for SCOMET authorization, you must upload the following documents:

• Your user profile must be linked with an IEC.
• End-to-End User Certificate (EUC) from all companies engaged in the product supply chain (EUC needs to furnish on the letterhead with an authorized signatory)
• Purchase Orders from companies engaged in the product's supply chain
• Aayat Niryat Form (ANF)-1 (Aayat Niryat Form)
• Detailed technical specifications for SCOMET export items
• Provide a contract document (If documents are bulky, the relevant portion containing the contract reference and parties to the contract can upload)
• Letter of permission from the DGFT for the SCOMET product
• The following documents must be submitted in a physical copy to the DGFT Headquarters:
• End-to-end user certificate (original) (EUC)
• Bills of Entry for SCOMET products shipped in the previous year into the destination country

Specified format for the End User Certificate (EUC)

The exporter must utilize a specific EUC format supplied in the Handbook of Procedures depending on the type of product and the permission.

• Appendix- 2S (i) - For the export of SCOMET items in Categories 2, 3,4,5,7, and 8.
• Appendix- 2S (ii) - For applying for a Specific SCOMET authorization for the export of SCOMET items in Category 1
• Appendix- 2S (iii) - For applying for a ‘Stock and Sale’ SCOMET authorization for the export of all SCOMET items
• End-User Certificate (EUC) from the Foreign Buyer, if different from the End User.
• End-User Certificate (EUC) from the Consignee, if different from the Foreign Buyer and End User.
• End-User Certificate (EUC) from the Other intermediaries, if any
• End-User Certificates from Foreign Buyer, Consignee, and End User must reflect the logical flow of items.

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 – Upload Document

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.

The basic application fee is INR 1000 for application and INR 200 for amendment/ correction in the Authorization.