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12. INDIAN EXPORT CONTROL REGIME REVAMPED; OVERHAUL OF
SCOMET LIST
Globally, export control regimes are designed Some of the significant items covered under
to control the export of dual-use goods and Category 8 include items employing cryptographic
technologies which can be used in both - civilian as information security and related “technology”,
well as military applications. Among other things, which is very widely defined.
export control regulations involve subjecting ex-
ports of specified items to prior authorization / The SCOMET Category 6 which was earlier
licensing. The objective is to prevent illegitimate ‘Reserved’ has been populated with a ‘Munitions
trade in such dual-use items and control the ex- List’. The Munitions List completely replaces the
port of products to countries that are considered earlier Military Stores List. Amendments have
as a national threat. been made in Category 1C / 1D which relate to
the export of chemicals and Category 2 which
Recent overhaul of Indian SCOMET list relates to micro-organisms has been widened and
numerous entries have been incorporated therein.
The Indian Export Control regulations have been
significantly overhauled by the Directorate General Regulation of export of non- SCOMET items having
of Foreign Trade (DGFT) with effect from May 1, a potential risk of use in or diversion Weapons of
2017. The amendments seek to revise the Special Mass Destruction/ missile/ military end use has
Chemical, Organisms, Materials, Equipment and been provided for.
Technologies category (SCOMET) list relating to
dual-use goods and technologies. A ‘Commodity Identification Note’ has been
introduced in the SCOMET List to aid Companies in
These changes have been brought about as part arriving at a proper classification and identification
of India’s continuing obligations as a member of the licensing jurisdiction procedures of their
of the Missile Technology Control Regime and goods.
as an adherent to the Nuclear Suppliers Group
Guidelines. It also seeks to align with the guidelines New ‘General Technology Note’ and ‘General
and control lists of the Wassenaar Arrangement Software Note’ introduced
and the Australia Group, two multilateral
export control regimes that India wishes to join. The General Technology Note seeks to bring
The amendments have been introduced vide clarity on which technology is covered under the
Notification No. 5/2015-2020 dated 24.04.2017, and SCOMET list. It provides that Technology which is
are already in force w.e.f. 1st May, 2017. “required” for development, production or use
of the specified items covered under Category 8
The amendments could potentially have a far will also be treated as controlled. Such technology
reaching impact on Indian exporters of goods/ will remain controlled even if it is made applicable
technology (including R&D) which is covered to uncontrolled items, barring certain exclusions.
under the SCOMET. General Software Note provides clarity on
exclusion of software which is available in public
Key changes domain.
A new Category 8 has been introduced under Procedural changes for trade facilitation
the SCOMET for “Special Materials and Related
Equipment, Material Processing, Electronics, The time period for processing SCOMET
Computers, Telecommunications, Information applications has been reduced from 45 days to
Security, Sensors, and Lasers, Navigation and 30 days. Every SCOMET authorization holder is
Avionics, Marine, Aerospace and Propulsion”. required to retain specified records in manual
33 August-September-2017
