INDIA’S EXPORT CONTROL SYSTEM

SCOMET GUIDELINES AND PROCEDURES

a) Frequently asked questions

b) Guidelines for applicants
c) Commonly made mistakes in the EUC
d) Contacts in DGFT
Frequently asked questions

1. What is the meaning of SCOMET?

SCOMET is an acronym for Special Chemicals, Organisms, Materials, Equipment and

Technologies.

2. What are dual-use goods and technologies?

Dual-use items are goods, software, technology, chemicals etc. which can be used for both civil
and military applications. Such items require an authorization for exporting out of the country.
India’s list of items which need an export license is known as the SCOMET list.

3. Is export of SCOMET items regulated?

Yes, export of items in the SCOMET list is regulated as per India’s Foreign Trade Policy. Export
is either prohibited or is permitted under an authorization.

4. Where can I find the list of SCOMET items?

Appendix 3 of Schedule 2 of ITC (HS) Classification contains the control list of India which is
also referred to as the SCOMET list. You can go to the DGFT website to see the complete list.

In the list as appearing in Appendix 3 of Schedule 2 of ITC (HS) Classification, SCOMET items
are listed under eight (9) categories as follows:

 Category 0: Nuclear material, nuclear-related other materials, equipment and

technology.
 Category 1: Toxic chemical agents and other chemicals
 Category 2: Micro-organisms, toxins
 Category 3: Material, Materials Processing Equipment, and related technologies
 Category 4: Nuclear-related other equipment, assemblies and components; test and
production equipment; and related technology, not controlled under Category 0
 Category 5: Aerospace systems, equipment including production and test equipment,
related technology and specially designed components and accessories thereof.
 Category 6: Munitions List
 Category 7: Electronics, computers, and information technology including information
security.
 Category 8: Special Materials and Related Equipment, Material Processing, Electronics,
Computers, Telecommunications, Information Security, Sensors and Lasers, Navigation
and Avionics, Marine, Aerospace and Propulsion
Each category contains exhaustive listing of items covered under that category. Special
conditions applicable to items under different categories are mentioned under each category.

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Relevant Notifications/Public Notices/Circulars for SCOMET are:_

Notifications/Publ Date Subject Link

ic Notices
Notification no. 5 24.4.2017 Amendment in Table A Available on DGFT website on
of Schedule 2 and page:
Appendix 3 of ITC(HS) http://dgft.gov.in/exim/2000/
Classification of Export scomet2017.htm
and Import Items
Public Notice no. 4 24.4.2017 Amendments in Paras Available on DGFT website on
2.72, 2.73, 2.74, 2.81 & page:
2.82 and Appendix 2S of http://dgft.gov.in/exim/2000/
the Handbook of scomet2017.htm
Procedures, 2015-2020
Notification no. 41 21.03.201 Para 2.17 of FTP on http://dgft.gov.in/Exim/2000/NO
7 Imports and Exports to T/NOT16/Notification%20no.%2
Democratic People`s 041%20English.pdf
Republic of Korea
Notification no. 19 4.8.2016 Import/export policy for http://dgft.gov.in/Exim/2000/
Human Biological NOT/NOT16/noti1916.pdf
Samples for commercial
purposes
Notification no. 13 29.6.2016 Exports and Imports to http://dgft.gov.in/Exim/2000/
Iran NOT/NOT16/noti1316.pdf
Public notice no. 19 29.6.2016 Exports and Imports to http://dgft.gov.in/Exim/2000/
Iran PN/PN16/pn1916.pdf
Public notice no. 60 03.2.2016 Export permission for http://dgft.gov.in/Exim/2000/
'Stock & Sale' purpose PN/PN15/pn6016.pdf
and for export of spare
parts

5. What is the purpose of Notification No. 5 dated 24th April 2017 issued by DGFT?

DGFT has amended SCOMET from time to time in order to implement India’s international
commitments and obligations in the field of non-proliferation while simultaneously ensuring
that trade facilitation is accorded the highest priority.

This notification to update SCOMET is part of India’s continuing obligations as a member of the
Missile Technology Control Regime (MTCR) and as an adherent to the Nuclear Suppliers Group
(NSG) Guidelines. Importantly, a significant number of changes to SCOMET have been carried
out to adopt the regulations and lists of the Wassenaar Arrangement and the Australia Group,
two multilateral export control regimes that India wishes to join.

6. How will industry benefit by the adoption of these additional regulations?

Government and industry have a responsibility to ensure that Indian exports are not accessed
by proliferators, terrorist groups and non-state actors. Any export that inadvertently lands up
in the wrong hands may have implications for our national security and affect Brand India.
These regulations are an important step to address such concerns.

Further, global supply chains are increasingly interconnected. India’s trading partners would
like to be assured that India’s regulations are in line with the highest standards. Adoption of
these regulations is expected to act as an enabler for a greater role for Indian industry in global
supply chains for high technology and value added items and strategic sector items.

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7. What is the licensing jurisdiction of DGFT in the SCOMET list?

Export of items specified in Categories 1, 2, 3, 4, 5, 7 and 8 of the SCOMET list may be permitted
against an authorization issued by the DGFT.

8. Who gives license for Category 0 items in the SCOMET list?

Licensing authority for items in Category 0 in Appendix 3 to Schedule 2 of ITC (HS) is

Department of Atomic Energy. Applicable guidelines are notified by the Department of Atomic
Energy under Atomic Energy Act, 1962. For certain items in Category 0, formal assurances
from the recipient State will include non-use in any nuclear explosive device. Authorizations
for export of certain items in Category 0 will not be granted unless transfer is additionally
under adequate physical protection and is covered by appropriate International Atomic Energy
Agency (IAEA) safeguards, or any other mutually agreed controls on transferred items.

Export of items specified under the Note 2 of the ‘Commodity Identification Note’ of the
SCOMET list would also be permitted against an authorization granted by the Department of
Atomic Energy.

9. What are the guidelines for Nuclear Exports?

• Guidelines for Nuclear Transfers (Exports) are available at
http://www.dae.nic.in/?q=node/147
• List of "Prescribed Substances, Prescribed Equipments and Technology" can be seen at
http://www.dae.nic.in/writereaddata/pres_subs_0516.pdf

10. What is the new category 6 of SCOMET list?

SCOMET Category 6 titled ‘Munitions List’ that was hitherto ‘Reserved’ has been populated. The
Military Stores list notified vide Notification No. 115(RE-2013/2009-2014 dated 13th March
2015 stands rescinded. It

11. Who is the licensing authority for ‘Munitions List’ i.e. Category 6 items in the SCOMET list?
Export of items specified in Category 6 of SCOMET list (Munitions List), (except those covered
under Note 2 and 3 of Commodity Identification Note of the SCOMET list) is governed by the
extant Standard Operating Procedure issued by the Department of Defence Production in the
Ministry of Defence. Unless prohibited, export may be permitted against an authorization
issued by the Department of Defence Production.

12. What is the new category 8 of SCOMET?

The new Category 8 of SCOMET is titled ‘Special Materials And Related Equipment, Material
Processing, Electronics, Computers, Telecommunications, Information Security, Sensors And
Lasers, Navigation And Avionics, Marine, Aerospace And Propulsion’. It has been populated
with Wassenaar Arrangement(WA) Dual use list items to harmonize India’s export control list
with the WA.

13. How do I know whether my item now falls in the ambit of the amended SCOMET?

(1) Trade and industry members are requested to study the Notification No. 5 dated 24th April
2017 carefully and in particular the following:

 Categories 1D, 3D, 6 and 8 of SCOMET and the exemptions and exclusions set out for
relevant items;
 Commodity Identification Note of SCOMET (for arriving at the proper classification and
licensing jurisdiction)

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  SCOMET Glossary (for the definitions of terms)

(2) Please contact DGFT/DDP to seek any clarification whether your item falls in the SCOMET
list.

14. What are the specific facilitation measures that have been announced in April 2017?

(1) The time for processing SCOMET applications is being brought down further from 45 days
to 30 days. (Please refer to para 2.82 of the Handbook of Procedures, as amended vide
Public Notice No. 4 dated 24th April 2017)

(2) For chemicals covered in the new Category 1D, prior authorisation will not be required if
the export is to forty-one notified countries. (Please refer to Category 1D of SCOMET)

15. What are the changes brought in the SCOMET list vide Notification no. 5 dated 24.4.2017?
SCOMET Categories in which amendments have been made are as follows:-
a. SCOMET Category 6 titled ‘Munitions List’ that was hitherto ‘Reserved’ has been
populated. The Military Stores list notified vide Notification No. 115(RE-
2013/2009-2014 dated 13th March 2015 stands rescinded.
b. A new SCOMET Category 8 titled ‘Special Materials and Related Equipment, Material
Processing, Electronics, Computers, Telecommunications, Information Security,
Sensors and Lasers, Navigation and Avionics, Marine, Aerospace and Propulsion’
has been added.
c. In SCOMET Category 1B and 1C, amendments have been made. SCOMET Category
1D titled ‘Other Chemicals’ has been added.
d. SCOMET Category 2 has been substituted with amended and new entries.
e. SCOMET Categories 3D001 to 3D005 have been substituted by entries 3D001 to
3D015.
f. Categories 3A201, 3A303, 3A309, 4A003, 4A007, 4A017, 4B006, 5A102, 5A205
have been substituted with amended and new entries.
g. SCOMET Category 7C has been deleted.

16. Where can I find a consolidated list of changes brought in the SCOMET list vide Notification
no. 5 dated 24.4.2017?

You can download the “FAQs and Amendments” document related to Notification no. 5 dated
24.4.2017. It lists in detail all the changes that have been brought vide the said notification.

17. Do I need to refer to old DGFT notifications regarding the SCOMET list?

No. All the earlier notifications related to the SCOMET list have been superceded by Notification
no. 5 dated 24.4.2017. The revised Appendix 3 containing the SCOMET list has been re-issued.

18. What is the new category 8 of SCOMET?

The new Category 8 of SCOMET is titled ‘Special Materials And Related Equipment, Material
Processing, Electronics, Computers, Telecommunications, Information Security, Sensors And
Lasers, Navigation And Avionics, Marine, Aerospace And Propulsion’. It has been populated
with Wassenaar Arrangement (WA) Dual use list items to harmonize India’s export control list
with the WA.

19. What are the specific changes with regard to defence exports?

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 1) The list of Military Stores (Notification No. 115(RE-2013/2009-2014 dated 13th March
2015) has been rescinded. Please refer now to Category 6 of SCOMET (Munitions List) for
the items that would now be under export regulations with effect from 1 May 2017.
2) Department of Defence Production (DDP) would continue to be the licensing authority for
Category 6 items, subject to some exceptions.
3) DDP would be issuing a revised Standard Operating Procedure to clarify the implications

20. There appear to be many changes with regard to the IT sector. Is it true that the IT sector
will be affected?

At first glance, it may appear that there are many new regulations for the IT sector. But if you go
through the provisions carefully, it may be noted that:

(a) Software and Technology in the public domain is excluded from the purview of regulations.
(b) There are specific exemptions and exclusions set forth in Category 8 of SCOMET.

DGFT is planning specific industry outreach for the IT sector. All concerns of the IT sector would be
addressed.

21. How do I apply for an authorization to export SCOMET items?

Application for grant of Export Authorisation has to be made to DGFT through an online
system. Please visit the DGFT website at http://dgft.gov.in. Firstly, you should read the detailed
guidelines and get all the required documents before making the application.

22. What are the documents to be submitted for the application for SCOMET Authorization?
The following documents need to be uploaded online while making the application.

(i) End Use-cum-End User Certificate(s)(EUC) from all the firms/entities involved in the
supply chain of the product(s) (to be furnished on their letter head duly signed by the
authorised signatory);
(ii) Copy(ies) of Purchase Order(s) of firm(s) involved in the supply chain of the
item/product;
(iii) Aayat Niryat Form (ANF)-1 (Profile of Exporter);
(iv) Elaborate technical specification relating to item of export;
(v) Copy(ies) of supply contract/agreement {if documents are bulky only the relevant portion
containing contract reference and parties to the contract and the portion indicating the
item(s) to be supplied and quantity thereof not exceeding 10 pages shall be uploaded);
(vi) Copy of DGFT authorization letter for the same product, if any in case of application for
repeat orders;

Hard copy (Paper copy) of the following documents are required to be submitted to DGFT
(HQ):

(i) Original End Use-cum-End User Certificate (EUC);

(ii) Copies of Bills of Entry into the destination country for items exported during the
last one year.

23. Is there a specified format for the End Use-cum-End User Certificate (EUC)?
Depending on the kind of product and the authorization, please use specific format provided in
the Handbook of Procedures.
a) Appendix- 2S (i) is required for applying for a Specific SCOMET authorization for export of
SCOMET items in Categories 2,3,4,5,7 & 8. It is also to be used while applying for re-
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 export/re-transfer of stocked items by the Stockist to the final end-user when a ‘Stock and
Sale’ SCOMET authorization has been obtained.
b) Appendix- 2S (ii) is required for applying for a Specific SCOMET authorization for export of
SCOMET items in Category 1. It is also to be used while applying for re-export/re-transfer
of stocked items by the Stockist to the final end-user when a ‘Stock and Sale’ SCOMET
authorization has been obtained for Category 1 items.
c) Appendix- 2S (iii) is required for applying for a ‘Stock and Sale’ SCOMET authorization for
export of all SCOMET items

24. What is the process to obtain the license?

You need to first make an application to DGFT, Headquarters for obtaining the approval for
issuance of license. All applications for licence for export of SCOMET items are considered on
case-by-case basis by an Inter-Ministerial Working Group (IMWG) in the DGFT under the
Chairmanship of Additional Director General of Foreign Trade as per guidelines and criteria
laid down in Para 2.49 of the Handbook of Procedure Vol. 1. Once the case is approved by the
IMWG, the concerned Regional Office of DGFT issues the authorization to the exporter.

25. Is an authorization required even for export of SCOMET items for display or exhibition
purposes?

 Yes, an authorization is required.

 Licences for export of items in this List for display or exhibition abroad are subject to a
condition of re-import within a period not exceeding six months.
 Exporters are entitled to apply for an export licence for such items exhibited abroad if
exhibitor intends to offer that item for sale during exhibition abroad. Such sale shall
not take place without a valid licence.
 The export of items in SCOMET List (other than those under Category 0, 1 and 2) solely
for purposes of display or exhibition shall not require any end-use or end-user
certification.
 However, no export Authorisation for display or exhibition shall be issued for
‘Technology’ in any category.

26. Do I need a license to supply SCOMET Items from DTA to SEZ?

 No export authorisation is required for supply of SCOMET items from DTA to SEZ. However,
all supplies of SCOMET items from DTA to SEZ will be reported to the Development
Commissioner of the respective SEZ by the supplier.
 Export authorisation is, however, required if the SCOMET items are to be physically
exported outside the country from SEZ i.e. to another country (Refer Rule 26 of the SEZ
Rules, 2006).

27. Do I need an authorization to supply SCOMET Items from SEZ to any other country?

Export permission is required if the SCOMET items are to be physically exported outside
the country from SEZ i.e. to another country (Refer Rule 26 of the SEZ Rules, 2006).
(Inserted vide Notification No.93(RE-2010)/2009-14 dated 6.1.2012)

28. What is the procedure for Applications for entering into an arrangement or
understanding for Site Visits, On-site Verification and Access to Records /
Documentation?

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 An application shall be made in ANF 2P to DGFT (Hqrs.), New Delhi along with documents
prescribed therein. These applications shall be considered by an Inter-Ministerial Working
Group (IMWG) in DGFT (Hqrs.) for grant of approval.

29. Do I need an authorization for repeat orders of same product?

Applications for grant of authorisations for repeat orders for export of SCOMET items shall be
considered by IMWG on automatic basis. However, only the applications submitted within two
years from the date of approval by IMWG of the original SCOMET authorisation will be eligible
for repeat authorisation.

It is also subject to other conditions i.e All of the following should be the same i.e. (a) the
product along with the technical specification (b) the exporter (c) the foreign buyer (d) the
consignee or the intermediaries, if any (e) the end user (f) the end use and (g) the country of
destination.
Moreover, the permitted quantity against repeat export authorisations shall not be more than
two times of the quantity in original authorisation, subject to the annual manufacturing
capacity of the end user in respect of the relevant product, as certified by the end user.

30. What are the restrictions on export of chemicals as per SCOMET list?

 Export of Category 1A chemical is prohibited.

 Export of chemicals listed in Category 1B is permitted only to States party to the Chemical
Weapons Convention after obtaining an authorization from DGFT. The list of State Parties
to the Chemicals Weapons Convention (CWC) and countries which are not State Parties is
available on the OPCW website http://www.opcw.org.
 Export of Chemicals in Category 1C is allowed to State Parties to the CWC without an
export licence subject to the condition that the exporter shall notify within 30 days of
export to the National Authority, Chemicals Weapons Convention, Cabinet Secretariat; the
Ministry of External Affairs (D&ISA); the Department of Chemicals & Petro-chemicals, and
the DGFT of such exports in the prescribed format (Aayat Niryat Form ) along with the End-
Use Certificate and submit to the DGFT a copy of the bill of entry into the destination State
Party within 30 days of delivery. Export of chemicals in Category 1C to states not party to
the Chemical Weapons Convention shall continue to be restricted and shall continue to be
restricted and will be allowed only against an export licence and a Government signed End-
Use-Certificate, and in that case also exporters shall submit to the DGFT a copy of the bill of
entry into the destination country within 30 days of delivery.
 The sub-category 1D of SCOMET titled ‘Other Chemicals’ contains 25 AG controlled
chemical precursors.
o Export of chemicals in this category is allowed to countries specified in Table 1 (
given in category 1D) without an export licence subject to the condition that the
exporter shall notify within 30 days to specified departments
o Export of chemicals in this category to other countries shall be restricted and will be
allowed only against an export licence, and in that case the exporter shall submit to
the DGFT a copy of the bill of entry into the destination country within 30 days of
delivery.
o Countries in Table 1 include 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.
 Notification no. 56(RE-2013)/2009-14 dated 12.12.2013 has been rescinded since the
three chemicals covered in the notification are now included in Category 1D.

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31. Can I get an advance authorization where the export item is a SCOMET item?
Yes. As per para 4.27 of the HBP 2015-20, the export of SCOMET items shall not be
permitted against an Authorisation until and unless the requisite SCOMET Authorisation is
obtained by the applicant.

32. Can I get export permission for “stock and sale” purpose?

Yes, but Export shall be permitted only from the principal company/the wholly owned
subsidiary in India to their subsidiaries/principal company/warehouse abroad on the basis of
an EUC from the latter for ‘stock & sale’ purposes, when considered appropriate from the point
of view of security and other critical consideration.

Please go through Public notice no. 60 dated 03.2.2016 regarding “Export permission for 'Stock
& Sale' purpose”. The link is http://dgft.gov.in/Exim/2000/PN/PN15/pn6016.pdf

33. What is the requirement for export for spare parts for SCOMET items?

Request for export permission for spare parts covered under SCOMET may be considered by
IMWG along with the application for the main item/ equipment. Applicant may indicate the
requirement of spares after judicious and reasonable assessment thereof, and provide the
justification for the same.

34. Is there is a validity period of the license? Can it be extended?

Yes, there is a validity period of the license of 24 months. It can be extended for six months at a
time and maximum upto 12 months through revalidation by DGFT regional office on the
approval of DGFT Headquarters.

35. Where can I find the Standard Operating Procedure (SOP) for issue of Authorization for
‘Munitions List’ items in SCOMET category 6?

The SOP for the ‘Munitions List’ items in SCOMET category 6 would be issued by Department of
Defence Production shortly.
Please keep checking the website http://ddpmod.gov.in/ for details.

36. What is the provision regarding maintenance of records for a SCOMET authorization
holder?

Every SCOMET authorisation holder shall maintain the specified records in manual or electronic
form for a period of 5 years. Please refer to para 2.73(c) of the Handbook of Procedures as
amended vide Public Notice No. 4 dated 24th April 2017.

37. Where can I find the detailed guidelines for filling up the online application?

The guidelines can be read on page 13 of this document. The details on how to use and navigate
through the software are also available on the DGFT website.

38. What are the penalties for exporting SCOMET items without an authorization?

Section 14E of the Foreign Trade (Development & Regulations) Amendment Act, 2010
delineates the offences and penalties:-
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 14E. Offences and penalties.—

(1) In case of a contravention relating to specified goods, services or technologies, the penalty
shall be in accordance with the provisions of the Weapons of Mass Destruction and their
Delivery Systems (Prohibition of Unlawful Activities) Act, 2005 (21 of 2005).

(2) Where any person contravenes or attempts to contravene or abets, any of the provision(s)
of this Chapter in relation to import or export of any specified goods or services or technology,
he shall, without prejudice to any penalty which may be imposed on him, be punishable with
imprisonment for a term stipulated in the Weapons of Mass Destruction and their Delivery
Systems (Prohibition of Unlawful Activities) Act, 2005 (21 of 2005).

(3) No court shall take cognizance of any offence punishable under this Chapter without the
previous sanction of the Central Government or any officer authorised in this behalf by the
Central Government by general or special order.]

In addition, Section 8 of the FTDR Act specifies suspension or cancellation of IE Code

of the person who imports or exports specified goods services or technology in
contravention of any provision of the Act or any rule or orders made thereunder.

39. What are the penalties specified in the WMD Act, 2005?
Sections 14 to 22 are relevant for understanding penalties and offences under the WMD
Act, 2005. They can be briefly summarized as follows. For the legal version, see the WMD
Act, 2005.

 Offences and penalties.-Any person who contravenes, or attempts to contravene or

abets, the provisions of section 8 or section 10 of the WMD Act, shall be punishable with
imprisonment for a term which shall not be less than five years but which may extend
to imprisonment for life, and shall also be liable to fine.
 Punishment for aiding non-State actor or terrorist.- Any person who, with intent to aid
any non-State actor or terrorist, contravenes the provisions of section 9 of this Act, shall
be punishable with imprisonment for a term which shall not be less than five years but
which may extend to imprisonment for life, and shall also be liable to fine.
 Punishment for unauthorized export:-
 Any person who knowingly contravenes, abets or attempts to
contravene, the provisions of subsection (4) of section 13 of this Act,
shall be punishable with fine which shall not be less than three lakh
rupees and which may extend to twenty lakh rupees.
 If any person is again convicted of the same offence under subsection
(1), then he shall be punishable for the second and every subsequent
offence with imprisonment for a term which shall not be less than six
months but which may extend to five years and shall also be liable to
fine.
 Punishment for violation of other provisions of the Act.-
o Where any person contravenes, or abets or attempts to contravene, any
provision of this Act other than the provisions under sections 8, 9, 10 and 13(4)
of this Act, he shall be punishable with imprisonment for a term which shall not
be less than six months but which may extend to five years and shall also be
liable to fine.
o For the second and every subsequent offence with imprisonment for a term
which shall not be less than one year but which may extend to seven years and
shall also be liable to fine.

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  Penalty for using false or making forged documents, etc. Punishable with fine which
shall not be less than five lakh rupees or five times the value of the materials,
equipment, technology or services, whichever is more.
 Punishment for offences with respect to which no provision has been made. Punishable
with imprisonment for a term which may extend to one year, or with fine, or with both.

40. In the case of offences by a company, who is liable?

Section 20 of the WMD Act, 2005 clarifies this. It says that where an offence has been
committed by a company, every person who at the time the offence was committed was in
charge of, and was responsible to, the company for the conduct of the business of the
company as well as the company, shall be deemed to be guilty of the offence and shall be
liable to be proceeded against and punished accordingly. For the legal version, see WMD
Act, 2005

41. What are catch-all controls?

Section 14C of the FTDR Act, 1992 as amended deal with Catch-all controls. It says that no
person shall export any material, equipment or technology knowing that such material,
equipment or technology is intended to be used in the design or manufacture of a biological
weapon, chemical weapon, nuclear weapon or other nuclear explosive device, or in their
missile delivery systems.

Para 2.72(b) of the Handbook of Procedures, as amended provides that an export can be
regulated if the exporter has been notified in writing by DGFT or he knows or has reason to
believe that an item not covered in the SCOMET list has a potential risk of use in or
diversion to weapons of mass destruction or in their missile system or military end use
(including by terrorists and non-state actors). In such a case, the process for authorising
export would be similar to the one for SCOMET.

42. What is the meaning of Technology?

Para 2(m) of the Foreign Trade (Development & Regulations) Amendment Act, 2010
defines technology as follows:-

(m) “Technology” means any information (including information embodied in software),

other than information in the public domain, that is capable of being used in—

(i) the development, production or use of any goods or software;

(ii) the development of, or the carrying out of, an industrial or commercial
activity or the provision of service of any kind.

Explanation.—For the purpose of this clause—

(a) when technology is described wholly or partly by reference to the uses to which it (or
the goods to which it relates) may be put, it shall include services which are provided
or used, or which are capable of being used in the development, production or use of
such technology or goods;
(b) “public domain” shall have the same meaning as assigned to it in clause (i) of section 4
of the Weapons of Mass Destruction and their Delivery System (Prohibition of
Unlawful Activities) Act, 2005 (21 of 2005).]

Note:- Clause (i) of section 4 of WMD Act, 2005 defines Public Domain as

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 "Public domain" means domain that has no restrictions upon dissemination of
information within or from it; the existence of any legal rights to intellectual property in
that information does not remove such information from being in public domain;”

43. Is there a prohibition on transfer of Technology related to SCOMET items?

Section 13(2) and 13(3) of the WMD Act, 2005 provide restrictions on transfer of
technology. Section 13(2) clarifies that any transfer of technology of an item whose export
is prohibited under this Act or any other relevant Act relating to relevant activity shall be
prohibited. Note that it talks about “transfer of technology” and not “export of technology”.
Section 13(3) specifies that when any technology is notified under this Act or any other
relevant Act, as being subject to transfer controls, the transfer of such technology shall be
restricted to the extent notified thereunder.

Transfer of technology may take place through either or both of the following modes of
transfer, namely:-

a) by a person or from a place within India to a person or place outside India;

b) by a person or from a place outside India to a person, or a place, which is
also outside India (but only where the transfer is by, or within the control of,
person, who is a citizen of India, or any person who is a resident in India).

44. What are the restrictions on transfer of technology to foreign nationals?

Transfer of any controlled technology is not allowed from

a) by a person or from a place within India to a person or place outside India;

b) by a person or from a place outside India to a person, or a place, which is also
outside India. (but only where the transfer is by, or within the control of, person,
who is a citizen of India, or any person who is a resident in India).

Hence, transfer of controlled technology to foreign nationals is barred by any person who is
a citizen of India, or any person who is a resident in India even if it happens outside India.

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GUIDELINES FOR FILLING ONLINE APPLICATION

1. The following documents are to be uploaded along with online application to enable
electronic processing of such applications:
(i) End Use-cum-End User Certificate(s)(EUC) from all the firm/entities involved in the
supply chain of the product(s) (to be furnished on their letter head(s) duly signed by
the authorised signatory);
(ii) Copy(ies) of Purchase Order(s) of firm(s) involved in the supply chain of the
item/product;
(iii) Aayat Niryat Form (ANF)-1 (profile of Exporter);
(iv) Elaborate technical specification relating to item of export;
(v) Copy(ies) of supply contract/agreement {if documents are bulky only the relevant
portion containing contract reference and parties to the contract and the portion
indicating the item(s) to be supplied and quantity thereof not exceeding 10 pages shall
be uploaded);
(vi) Copy of DGFT authorization letter for the same product, if any in case of repeat
application;

2. Hard copy of the following documents are required to be submitted to DGFT (HQ):
(i) Original End Use-cum-End User Certificate (EUC);
(ii) Copies of Bills of Entry into the destination country for items exported during the
last one year.

3. End User Certificate

Original End User certificate (in the prescribed format as per Appendix 2S(i),2S(ii) or
2S(iii) on letter head of all entities in the chain of supply viz. the foreign buyer, the end user
and intermediaries/consignee (if they are different from the foreign buyer and end user)
indicating complete details of the export product, end product, end purpose for which the
item of export will be used by end user and complete address and telephone no. of end user
must be furnished along with original application.
Following must be kept in mind:
a) End User Certificate from the following must also be submitted:

(i) The Foreign Buyer, if different from the End User.

(ii) The Consignee, if different from the Foreign Buyer & End User.
(iii) Other intermediary/ies, if any.
b) End User Certificates from Foreign Buyer, Consignee and End User must reflect the logical
flow of items.
c) Original End Use-cum-End User Certificate need to be submitted to DGFT.
d) In case of export of Chemicals, End use cum end user certificate as per format provided in
Appendix- 2S (ii) needs to be filled. For Export of chemicals specified in Category 1C to a
country that is not a State Party to the Chemical Weapons Convention a Government signed
End-Use Certificate is required.

4. Bills of Entry(BEs)
(i) Bills of Entry(BEs) into the destination country for items exported during the last
one year as per information in column No. 3 of the application. In Col. 3 details of
exports are to be given for last 3 years. However, BEs for the last 1 year only are to
be submitted.

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 (ii) BEs are to be submitted with the 1st application of the financial year only. From the
2nd application onwards, the exporter shall make a reference in the forwarding
letter that the BEs have been submitted with the 1st application giving DGFT’s File
No. of 1st application. Copy of the forwarding letter of 1st application to be attached
with every subsequent application.

5. While filing ANF 2O in the online application, care should be taken to ensure the
following:-

(i) Category of the items proposed to be exported as per Appendix 3 of ITC (HS)
Classifications of Export and Import Items should be clearly mentioned.
(ii) Port of discharge and route must be clearly defined. Route/mode of transport
cannot be changed after export licence has been issued.
(iii) Against column 6A, 6B & 6C, complete address should be given.
(iv) All columns must be filled correctly and completely.
(v) Details of the item(s) given in ANF 2O, End User Certificate(s) and Purchase
Order(s) must match completely.
(vi) If a third party or contractor is involved, details of Contract or Agreement between
the Foreign Buyer and End User with third party must be submitted, along with
copy of contract or agreement.
(vii) IEC must not be in Denied Entity List

6. Guidelines for online filing of Application for Export of SCOMET Items

A detailed step by step guide for filling the online SCOMET application is available on the
DGFT website (dgft.gov.in) under the ‘Help’ option which can be accessed as follows:-
1. Go to DGFT website. On the LHS menu, click on ‘Help’.
2. Click on option ‘Licensing Schemes’ and then ‘SCOMET Help’. Screen by screen help will
open.
3. Go through this entire guide before proceeding to fill in the application.

Link: http://dgft.gov.in/ecommerce/scomet/scomet%20help.htm

On the DGFT website, application form ANF 2O is available under the icon ‘ECOM
Application’ and can be accessed as follows:

o Click on ‘ECOM Application’.

o Sign in with IEC and Digital signature. Click on ‘SCOMET’.
o Main screen ‘SCOMET’ will open.
o Click on option ‘File’. Click on option ‘Create’.
o ANF 2O will open. Fill in the information as directed
While filling the online application, following need to be kept in mind:-

i. All columns must be filled correctly and completely. No column is to be left blank. If
information is not applicable, ‘Not Applicable’ may be filled in the space provided.
ii. Where FOB value has to be filled, if the export does not have a commercial value,
‘00.00’ may be filled.
iii. Drop down lists have been provided wherever possible. Where no drop down list
has been provided, requisite details must be filled in correctly in the space
provided.

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A check list for ‘Uploaded documents’ has been provided at the end of the application.
Please tick whichever document has been uploaded.

‘Master’ screen:

(I) Port of Loading/Shipment must be selected from the drop-down list

provided. Correct port must be selected. No change of route/mode of transport will
be allowed after export licence has been issued. Port of discharge must be filled in
the space provided (No drop-down menu provided for this).

(II) FOB in Rupees and in relevant currency need not be filled in the ‘Master’
screen. This detail in ‘Master’ screen will get automatically populated once the same
is filled in the ‘Item of Export’ screen.

(III) Fill in details in all columns on this screen. Then click on buttons/options
given on the right side of this screen. Relevant screens will open. Proceed to fill each
one.

‘Item of Export’ screen:

(IV) SCOMET Categories have been provided as a drop-down list. Correct

category must be selected. SCOMET item number must be filled in correctly in the
space provided.

(V) Space has been provided to fill in the details of maximum of six (6) items of
export. If items are more than six (6), details must be uploaded as extra sheet
in the same format as on the screen.

‘Previous Export’ screen:

(VI) For Previous Exports, drop-down menu for year has been provided. Select
the respective year and fill in details.

‘Foreign Buyer/Consignee/End-User’ screen:

(VII) A drop down list has been provided for Foreign Buyer/Consignee/End-
User. Choose each one from the drop-down list and fill details of each separately.

(VIII) Complete address should be given in respect of the Foreign Buyer, the
Consignee and the End User.

‘Bank Details’ screen:

(IX) Filling ‘Bank details’ is mandatory. For applications where the consignment
has no commercial value. ‘Not Applicable’ must be filled in all columns under ‘Bank
Details’.

(X) Giving details of IBAN, SWIFT Code and IFSC Code is mandatory. If IBAN is
not used in the country to which item is to be exported i.e. IBAN is not available, this
may be mentioned. For example, if items are to be exported to South Korea and
IBAN is not used in that country ‘IBAN not used in South Korea’ must be filled.

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Commonly made mistakes in the applications

Mistakes in the EUC

a) EUC must be in the format provided by DGFT as per Appendix 2S(i), 2S(ii) or 2S(iii)
b) EUC must be on the letter head of the entity giving it and duly stamped by authorized signatory.
c) All entities in the supply chain including the buyer, consignee and any other intermediaries
need to give the EUC
d) The reference of the supply chain with which each entity is dealing should be mentioned. For
eg: The EUC submitted by the consignee should mention which end-user would it send it to and
what is the end-use. Also, if the consignee is sending it to someone else, the complete linkage till
the end-user should be clearly mentioned.
e) All items should be clearly mentioned in the EUC along with their end-use.
f) End User Certificates from Foreign Buyer, Consignee and End User must reflect the logical flow
of items.
g) The purchase order number and the date should be indicated
h) In case of repeat order, the existence of capacity of the end-user should be mentioned in the
EUC.

Mistakes in filling Application form

a) The details in column 3 i.e details of exports of SCOMET items in past 3 years are incompletely
filled or not filled.
b) In column 4, in section(iii) mention the destination of the consignee while in section (iv)
mention the country of the final end-user.
c) In column 6, the details in 6A, 6B and 6C all need to be filled even if they are the same i.e. buyer,
consignee and end-user are the same. In case the item is not being supplied directly from the
consignee to the end-user, all such entities need to be mentioned in column 6C.
d) Against column 6A, 6B & 6C, complete address should be given.
e) In case of repeat order applications, in column 8 all the details need to be filled clearly.
f) Sometimes Technical specifications mentioned are too generic and do not have requisite
details. Please provide detailed technical specifications.
g) Details of export items given in the online application (ANF 2E), End User Certificates and
Purchase Orders must match completely.

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Contact Information:

Exporters wishing to apply for licence for export of SCOMET items are advised to go through the
provisions of Foreign Trade Policy as detailed above. However, in case of any further
information/clarification please contact:

Shri Nikunj Srivastava

Additional Director General of Foreign Trade,
Directorate General of Foreign Trade,
Room No. 110B, H-Wing, Udyog Bhawan,
New Delhi-110011
Phone: (011) 23063466 Ext 210
E-mail – adgpers.dgft@nic.in

Shri Gagandeep Singh

Deputy Director General of Foreign Trade,
Directorate General of Foreign Trade,
Room No. 301, H-Wing, Udyog Bhawan,
New Delhi-110011
Phone: (011) 23061562, Extn. 222
E-mail – s.gagandeep@nic.in

You can also email queries to scomet-dgft@nic.in

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