Creating awareness on Export Control Framework Related to Technology Transfer including Intangible Technology Transfer

Terms of use

Terms of Use

The use of this site and the content contained therein is governed by the Terms of Use. When you use this site you acknowledge that you have read the Terms of Use and that you accept and will be bound by the terms hereof and such terms as may be modified from time to time.

All text, graphics, audio, design and other works on the site are the copyrighted works of nasscom unless otherwise indicated. All rights reserved.
Content on the site is for personal use only and may be downloaded provided the material is kept intact and there is no violation of the copyrights, trademarks, and other proprietary rights. Any alteration of the material or use of the material contained in the site for any other purpose is a violation of the copyright of nasscom and / or its affiliates or associates or of its third-party information providers. This material cannot be copied, reproduced, republished, uploaded, posted, transmitted or distributed in any way for non-personal use without obtaining the prior permission from nasscom.
The nasscom Members login is for the reference of only registered nasscom Member Companies.
nasscom reserves the right to modify the terms of use of any service without any liability. nasscom reserves the right to take all measures necessary to prevent access to any service or termination of service if the terms of use are not complied with or are contravened or there is any violation of copyright, trademark or other proprietary right.
From time to time nasscom may supplement these terms of use with additional terms pertaining to specific content (additional terms). Such additional terms are hereby incorporated by reference into these Terms of Use.

Disclaimer

The Company information provided on the nasscom web site is as per data collected by companies. nasscom is not liable on the authenticity of such data.
nasscom has exercised due diligence in checking the correctness and authenticity of the information contained in the site, but nasscom or any of its affiliates or associates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this site. The information from or through this site is provided "as is" and all warranties express or implied of any kind, regarding any matter pertaining to any service or channel, including without limitation the implied warranties of merchantability, fitness for a particular purpose, and non-infringement are disclaimed. nasscom and its affiliates and associates shall not be liable, at any time, for any failure of performance, error, omission, interruption, deletion, defect, delay in operation or transmission, computer virus, communications line failure, theft or destruction or unauthorised access to, alteration of, or use of information contained on the site. No representations, warranties or guarantees whatsoever are made as to the accuracy, adequacy, reliability, completeness, suitability or applicability of the information to a particular situation.
nasscom or its affiliates or associates or its employees do not provide any judgments or warranty in respect of the authenticity or correctness of the content of other services or sites to which links are provided. A link to another service or site is not an endorsement of any products or services on such site or the site.
The content provided is for information purposes alone and does not substitute for specific advice whether investment, legal, taxation or otherwise. nasscom disclaims all liability for damages caused by use of content on the site.
All responsibility and liability for any damages caused by downloading of any data is disclaimed.
nasscom reserves the right to modify, suspend / cancel, or discontinue any or all sections, or service at any time without notice.

For any grievances under the Information Technology Act 2000, please get in touch with Grievance Officer, Mr. Anirban Mandal at data-query@nasscom.in.

New

See all

No notification found.

Creating awareness on Export Control Framework Related to Technology Transfer including Intangible Technology Transfer

Garima Prakash

@GarimaP

April 22, 2021

Public Policy

317

Many countries impose export control measures to restrict the export of dual-use items, software and technology. The dual use nature of technology is what gives rise to the need for controlling it. ‘Dual use’ refers to the ability of technology to be used for both military and civilian purposes. Due to concerns around national security and arms proliferation, the export of such technology and software is regulated under export control laws. For the export of such technology and software from India, an export licence from the government is required by the exporter. If you are a company that exports Indian-origin dual-use technology or items that incorporate such technology, for example, encryption technology, then the export control laws in India are relevant for you. Depending on the type of technology being exported, you may be under an obligation to require an export licence from the government of India.

Transfer of technology includes intangible technology. Intangible technology transfer (ITT) refers to the export of technology from one country to another via non-physical (intangible) means. Even when transfer happens from one local entity to a foreign entity locally domiciled, it is considered as export. For example, if a foreign Company A situated in India gets access to controlled technology owned by Indian Company B. ITT includes the ‘know-how’ needed to effectively use an item. ITT can occur in many ways, such as, exposure to technical data as part of research and development activities; transfer of technical data such as blueprints/formulae/diagrams; visual inspection of hardware and software; meetings/discussion/presentations/trainings/working knowledge etc. This ITT is export controlled if the technology being transferred is export controlled. Technology as per Indian export control rules is defined as information that is capable of being used in the development, production or use of any goods or software; and the development or carrying out of an industrial or commercial activity or provision of a service. When such technology is required for the development, production or use of controlled items, it becomes a controlled technology. For example: technology used in the development of an unmanned aircraft (drone). The technology remains under control even when applicable to any uncontrolled item. For example, an IoT device such as a smart bulb which contains encryption technology to securely store data. This smart bulb does not itself perform any encryption functionality and therefore may be an uncontrolled item. However, the encryption technology for data confidentiality that it incorporates, remains under control.

What is export controlled and therefore requires an export licence is referenced in the Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) List. The SCOMET List enumerates dual-use items which are regulated in India as well as exceptions for basic scientific research and items which are in the public domain. An exporter does not require a licence for dual-use items which are not regulated under SCOMET unless the exporter knows or has reasons to believe that such item will be used for military end-use (also known as ‘catch-all provision’).

Last year, NASSCOM and DSCI had organised a webinar on Export Control Framework Related to Intangible Technology Transfer (ITT), aiming to create awareness about export compliance obligations. Now, NASSCOM is preparing a document to bring awareness among companies and start-ups on export control framework related to Intangible Technology Transfer (ITT). This document will aim to present a ready-reference to the industry on aspects which require clarifications with regard to export controls on ITT. The document will cover topics like:

Examples of when a licence may or may not be required (for example, transfer of technology that is in public domain does not require a license)
Examples of what is or is not covered under ITT within Category 8A5 Part II of the SCOMET List (for example, delivering an online presentation from India to a university in the US about technology that performs cryptographic function, is included in the scope of category 8A502)
Any other clarifications relating to export control regime as it applies to technology transfer including ITT (for example, applicability of SCOMET to cloud-based storefronts).

For us to make this document more valuable, we are engaging with the industry to understand their concerns regarding SCOMET licensing for technology transfers including ITT. For this purpose, I request you to share your queries relating to export control regime as applicable to ITT exports, that we should cover in this document. Kindly write to garima@nasscom.in.

#scomet #exportcontrol #DGFT #ITT #intangibletechnology

Disclaimer

That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.

Garima Prakash

Manager, Public Policy and Government Affairs

Reach out to me for all things policy about e-commerce, international trade, export controls, start-ups and fintech