DGFT amended the procedure for issue of export authorization for “Stock and Sale” of SCOMET items

DGFT amended the procedure for issue of export authorization for “Stock and Sale” of SCOMET items

November 20, 2018 Fiscal, Industries, states 0

Directorate General of Foreign Trade (DGFT) has issued Public Notice No. 46/2015-20 dated 15th November, 2018 to amend Para 2.79 A and 2.79 B of Handbook of Procedure of the Foreign Trade Policy, 2015-20 for issue of export authorization for “Stock and Sale” of SCOMET items and for spare parts of SCOMET Items under stock and sale.

Key points of the Public Notice are:

  1. Application for grant of authorization for bulk export of SCOMET items (excluding Category 0, Category 3A4001, Category 6 and transfer of technology under any category) from an Indian exporter to an entity abroad (hereinafter referred to as ‘stockist’) for subsequent transfer to the ultimate end users shall be considered by Inter Ministerial Working Group(IMWG), on the fulfillment of the following conditions-
  • For ‘stock & sale’ purpose export shall be permitted only from the principal company/the wholly owned subsidiary in India (exporter) to their subsidiaries/principal company abroad (stockist) on the basis of an End Use declaration from the stockist, through the specified End User Certificate (EUC).
  • The exporter shall submit application in prescribed proforma (ANF-2 0) along with specified documents from the stockiest
  • The application would be assessed for grant of authorization for export to the stockist, and, for grant of in-principle approval for re-export to specified countries of ultimate end use approved by the IMWG
  • No authorization would be required for transfer from the stockist to the ultimate end user(s) within the country of the stockist and for re-export to end users in such approved countries
  • Re-export to such approved countries would be subject to the export control regulations of the country of the stockiest
  • Country would denote an independent sovereign entity which is a distinct national entity in political geography. Hence, transfers within an economic union or a customs union would not qualify as “same country transfers”
  • In case of sale/transfer by the stockist within the same country and for re-export/re-transfer to the end users in countries, for which, in-principle approval has been granted, the Indian exporter/licensee shall submit details of all such transfers to SCOMET Division of DGFT(Hqrs) in ANF-20(a), including EUCs [Appendix-2S (i) /2S(ii), as applicable] from all ultimate end users and Bill of Entry into the ultimate destination countries(for export outside the country of stockist), within 3 months of every such transfer.
  • In respect of re-export/re-transfer of items from the stockist entity to the end users outside the country of the stockist, for which, in-principle approval has not been granted at the initial stage, the Indian exporter (stock and sale authorization holder) shall submit application for re-export/re-transfer to SCOMET Division in DGFT (Hqrs), in ANF 20(a), through email (scomet-dgft@nic.in), after obtaining specified documents from the stockist entity.
  • Applications for re-export/re-transfer of SCOMET items from the stockist entity to the end-users for repeat orders shall be considered by IMWG in accordance with paragraph 2.79 of Handbook of procedures, 2015-20.
  • The Indian exporter (Stock & Sale Authorization holder) shall submit a statement of exports made from India to the stockist, transfers made by the stockist to the final end-users and inventory with the stockist, as on 31st December of each calendar year, by 31st January of the following year. A failure to do so may entail imposition of penalty and /or cancellation of authorization under the stock and sale policy.
  1. At the request of the applicant, export permission for spare parts covered under SCOMET may be considered by IMWG along with the application for the main item/ equipment which shall be considered on the same conditions, as applicable for the main item/component.

This Public Notice shall come into force with immediate effect.

For further details please refer the attached document.

SourceDirectorate General of Foreign Trade

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