Written by Corpseed ITES Pvt Ltd » Updated on: October 22nd, 2024
International trade has dual-use products, so their handling becomes more sensitive. These products are known as SCOMET, which stands for Special Chemicals, Organisms, Materials, Equipment, and Technologies, and therefore it requires a SCOMET export license as allowed by the Directorate General of Foreign Trade (DGFT) of India.
A few products in India need a SCOMET Export License. The SCOMET license issue occurs in the name of the Directorate General of Foreign Trade. This license stops the exploiting of the malpractices of the people, and then there will not be any kind of national security threat. Exporters will have to apply through online media, and some documents have to be submitted online. A license issued under this license has a validity of 24 months, which can be further extended if needed. Exportation without a license will have severe fines and penalties or even lead to imprisonment. This ensures responsible international trade practices.
• National Security: Removal of dual-use item abuse.
• Rules Compliance: Compliancy to the national as well as international legislation.
• Access to the Market: Export of dual-use items from legal aspects
• Risk Management: Diminishment of illegal proliferation risk
• Reputation: India enhances its reputation in international trade.
• Tracking: Authority traceability of sensitive exports
• Legal Protection: Exporters are protected against legal tussles
• Efficiency in Business Operations: Simplification of export procedures
• International Relations: Non-proliferation commitment of India in the world arena becomes smooth
• Business Development: A new door opens up the gates for new markets for compliant exporters.
• Quality Assurance: Ensuring exports meet the highest standards
• Transparency: Support for transparent and accountable export practices.
SCOMET Category Description
Category 0 | Nuclear material, equipment, technology, and nuclear-related other materials |
Category 1 | Toxic chemical agents and other chemicals |
Category 2 | Microorganisms and toxins |
Category 3 | Materials, Materials Processing Equipment, and related technologies |
Category 4 | Nuclear-related equipment, test, and production types of equipment; assemblies and components of nuclear; and related technology, not controlled under Category 0. |
Category 5 | Aerospace system, equipment including productions and test types of equipment, related technology, and specially designed components and accessories. |
Category 6 | Munitions List |
Category 7 | Computers, electronics, and information technology, including information security. |
Category 8 | Special Materials and Related Types of equipment, Electronics, Computers, Material Processing, Information Security, Sensors, Telecommunications and Lasers, Avionics, Marine, Aerospace Navigation, and Propulsion. |
A SCOMET license is valid for 24 months. It can be extended up to six months, adding up to one year with revalidation from the DGFT.
Export of SCOMET items without a license has very serious consequences:
• IEC Suspension: Import Export Code can be suspended at any time.
• Imprisonment: At least five years to life imprisonment.
• Fine: You would be liable to a minimum fine of INR 3 lakhs, up to INR 20 lakhs or five times the value of the item.
1. Access DGFT Portal: Log on to the DGFT site and click on "Export Management System."
2. Login: Login through Digital Certificate, and select SCOMET Application Module.
3. Form application: Once you click on it, a 20-digit reference shall be posted to your email
4. Fill in Business Details: Insert telephone, fax no, email, shipping details, and jurisdiction.
5. Enter Item Details: Fill ITC (HS) code, SCOMET category, and Item number with its description.
6. Bank Details: Provide the bank address of the destination country and its International Bank Account Number, SWIFT Code, and IFSC Code.
7. Declaration: Tap the declaration button and fill in your name official address and contact number
8. Attach Documents: Attach all supporting documents and submit them.
9. Mail Hard Copy: Mail the application form and its supporting documents to the DGFT headquarters in New Delhi.
10. Application Scrutiny: The Inter-Ministerial Working Group scrutinizes your application on various parameters.
11. Grant of License: In case penalized, obtain your SCOMET export authorization from the zonal or regional DGFT office.
Conclusion
Having a SCOMET export license is that it would ensure the responsible dealing of sensitive dual-use items in India. It is done by ensuring there would be no misuse and, more importantly, compliance with international regulations. The whole process is really simple but calls for extreme care regarding details. For that, an exporter needs to fulfill various demands to avoid severe penalties, including a hefty fine, detentions, etc. Thus, they will be in a position to make contributions to a good image of India concerning responsible participation in international trade while creating new opportunities for market entrance. In general, SCOMET provides for the main elements of international trade practice transparency and efficiency along with legal protection.
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