Everything That You Need To Know About The SCOMET Policy in FTP 2023
The government of India released its new Foreign Trade Policy on Friday, 31st March 2023. The policy came into effect on 1st April 2023. This time the FTP is based on the principle of trust and partnership with our Indian exporters. It aims to promote more and more Indian exports in the international market.
India’s new Foreign Trade Policy comes with a lot of new changes for trade businesses. It also encourages the internalization of the Indian rupee. There are also some major key highlights of this new policy. One of them is the streamlining of the SCOMET Policy. But, what is this policy about? How is it going to benefit the exporters? Here, in this blog, we will guide you through everything that you need to know about the SCOMET Policy in FTP 2023.
What is the SCOMET Policy?
India’s new Foreign Trade Policy focuses on streamlining the SCOMET Policy. The SCOMET policy covers all the special chemicals, organisms, materials, equipment, and technologies altogether. In the new FTP, this policy for the export of dual items under SCOMET has been brought together in a single place for easier understanding and subordination by the industry.
This policy will regulate the export of all dual-use items. It includes technologies that come with both civilian and industrial applications. It also regulates weapons of mass destruction.
Classification of SCOMET Categories
The SCOMET list has been divided into 9 different categories.
|SCOMET Category||Items under the SCOMET Policy||Jurisdictional Licensing Authority||Remarks|
|1||Nuclear materials, nuclear-related other materials, equipment, and technology||Department of Atomic Energy (DAE)||Including the items mentioned in Note 2 of CIN of the SCOMET List|
|2||Toxic chemical elements and other chemicals||Directorate General of Foreign Trade|
|3||Microorganisms and toxins||DGFT|
|4||Materials, material processing equipment, and related technologies||DGFT|
|5||Nuclear-related other equipment and technology, are not controlled under the ‘0’ category||DGFT|
|6||Aerospace systems, and equipment, which includes the production and test equipment, related technology, and specially designed components and accessories thereof.||DGFT|
|7||Munitions list||Department of Defence Production (DDP)/Ministry of Defence||Excluding those covered under Note 2 and 3 of CIN, and subcategories 6A007 and 6A008|
|9||Special materials and related equipment, material processing, electronics, computers, telecommunication, information security, sensors and lasers, navigation and avionics, marine, aerospace, and propulsion.||DGFT|
Streamlining the SCOMET Policy in FTP 2023
Within the new Foreign Trade Policy 2023, the Indian government is focusing more on the ‘export control regime’. This has been done because it will make our integration better with the export control authorised countries.
It has been mentioned by the government that a powerful Indian export system will provide exporters access to dual-use items and technologies while facilitating the Indian exports of items under the control of SCOMET policy.
The DGFT also mentioned that they will conduct various outreach programmes in association with the administrative departments and trade associations to spread awareness among the traders especially dealing with SCOMET items. Also, the export authorization for all SCOMET items will be issued by the Directorate General of Foreign Trade (DGFT).
Validity of SCOMET Export License
The validity period of the export license for SCOMET items is 24 months. However, an exporter may extend it for six months and also a year through revalidation by DGFT regional office once it is approved by DGFT Headquarters.