Exports of a few other commodities are subject to special approval or license. The following is a list of some of the items subject to such restraint: SCOMET is an abbreviation for Special Chemicals, Organisms, Materials, Equipment, and Technology with end uses meant for both civil and military purposes. As a result, the export of these has to be duly covered by the Foreign Trade policy of India. An exporter of these articles has to seek a license from the Director General of Foreign Trade under the Ministry of Commerce. What are the categories of products under the SCOMET list, who are the issuing authorities, and why the SCOMET Export License is compulsory to export SCOMET Items? Find out!

The SCOMET items are included in the Schedule 2 of ITC(HS) under Appendix 3. The product listed under SNCOMET are the items that need to obtain an SCOMET license from DGFT Head Quarter or the National Authorities.

Products Listed Under SNCOMET License

Following are the list of 9 categories of products under the SNCOMET List:

• Category 0: Nuclear material, technology, equipment, and nuclear-related other materials
• Category 1: Toxic chemical agent and other chemicals.
• Category 2: Microorganisms and toxins.
• Category 3: Material, Materials Processing Equipment, and other technologies related with material.
• Category 4: Nuclear-related equipment, test and production types of equipment; components and assemblies of nuclear; and related technology, not controlled under Category 0.
• Category 5: Aerospace system, equipment including test and production types of equipment, related technology, and specially designed components and accessories.
• Categroy 6: Munitions List
• Category 7: Reserved
• Category 8: Special Materials and Related, Special Materials, Related Equipment and Components, Test, Calibration Equipment, Electronics, and Computers, Material Processing, Sensors, Information Security, Avionics, Telecommunications, and Lasers, Aerospace Navigation, Marine, and Propulsion

SCOMET License items Export Control Licensing Agencies

SCOMET items authorizations are issued by the following three agencies i.e. Directorate General of Foreign Trade (DGFT), the Department of Defence Production (DDP), Department of Atomic Energy (DAE).

Here, DGFT is an authorized officer to do the issue of the SCOMET license in the cases its categories 1, 2, 3, 4, 5, 7 and 8. The license can be issued by the DDP in the case of category 6 and in Category 0 by DAE.

Why the SCOMET License is compulsory to export SCOMET items?

The Export-Import industry, in conjunction with the Government of India, owes a responsibility to prevent exports from being diverted into the wrong hands, such as terrorist groups, other non-state actors, or proliferators. Once the export reaches the wrong hand, it may have a ramification on our national security and result in a poor image in the international market. SCOMET assumes special importance in addressing such issues.

Moreover, International supply chains are integrated our Import-Export partners would be looking to an assurance that India's rules are benchmarked to the best practices. Implementation of the Indian rules would also become a facilitator for a larger role for the Indian industry in the global supply chain of high-tech, strategic sector products, and value-added products.

SCOMET License Legitimizing

SCOMET license is valid for a period of 24 months. However, it can be extended for a period of 6 months and the maximum extension that can be provided is up to 1 year through revalidation by the DGFT regional office after approval of the DGFT headquarters.

What happens if you export the SCOMET product list without having a SCOMET License?

• IEC Suspension
• The punishment shall be imprisonment for a term not less than 5 years, and which may extend to imprisonment for life, besides a fine.
• A fine not less than INR 3 lakhs, which may extend to INR 20 lakhs, or even five times the value of the items exported.

Following is the detailed analysis of SCOMET license of India. In case you need any assistance in obtaining a SCOMET license feel free to get in touch with the Aradhya Exim.

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