Nasscom Representation to DGFT on Implementing GAICT for Re-Export of SCOMET items

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.

Nasscom Representation to DGFT on Implementing GAICT for Re-Export of SCOMET items

Devika Agarwal

@DevikaAgarwal

February 26, 2020

Public Policy

952

On 6^th February, Nasscom submitted a representation to DGFT, requesting DGFT to issue relevant guidelines at the earliest so that the industry can take benefit of the ‘Global Authorisation for Intra-Company Transfer (GAICT) of SCOMET Items/Software/Technology’, and ensure compliance with all the necessary requirements under Public Notice 20/2015-20 (Public Notice 20). In the absence of necessary guidelines, the industry is unable to apply for GAICT, causing companies to lose out on many short-lease projects and opportunities.

Additionally, we requested that DGFT provide an off-line mechanism for an intermediate period till the online facility for GAICT is operationalised.

Context/Background of GAICT

On July 24, 2019 the DGFT vide Public Notice 20 inserted Para 2.79F to the Handbook of Procedures of the Foreign Trade Policy (FTP) 2015-20 which introduced the GAICT scheme.

Under the GAICT scheme, eligible exporters do not require pre-export authorisation for re-export of imported SCOMET items, software and technology (excluding items under SCOMET categories 0, 1B, 1C, 3A401, 5 and 6).

The conditions (‘Scope and Eligibility’) to avail of the benefits under GAICT scheme are:

The re-export must involve an intra-company transfer from an Indian subsidiary (applicant exporter) to its foreign parent company and/or to the subsidiaries of the foreign parent company for re-export of imported SCOMET items from India; and the following conditions must also be fulfilled:
The item to be re-exported under the GAICT scheme has been imported under a licence exception in the country of the parent company abroad or from subsidiaries of the foreign company abroad;
The item to be re-exported is based on a Master Service Agreement/Contract between the parent company and the Indian subsidiary for carrying out certain services including design/encryption/research/development/delivery/validation/testing. An important condition here is that the item should not have undergone any change in functionality and classification as a result of the service carried out by the Indian exporter;
The item must be intended to be re-exported to the foreign parent company and/or its subsidiaries;
The applicant exporter must furnish a declaration that the re-exported item would be used for the purposes for which it is intended by the foreign parent company and/or its subsidiaries;
A certified/approved Internal Compliance Programme (ICP), or demonstration of compliance to the ICP of the foreign company (by the applicant exporter);
Applicant exporter to agree to on-site inspection, if required by DGFT or authorised government representatives;
Grant of GAICT to the exporter as per the procedure mentioned in Public Notice 20.

Public Notice 20 also outlines the procedure for grant of GAICT along with post reporting and record keeping obligations.

While Public Notice 20 has been issued with immediate effect, the relevant application form for GAICT and the relevant documents needed to give effect to the Public Notice (including Aryat Niryat Forms (ANF) 2O (b), ANF 2O (c) and End Use Certificate Proforma Appendix 2S (iv)) have not yet been notified.

In case, you have any additional comments/inputs on this matter, please write to dagarwal@nasscom.in.

DGFT SCOMET GAICT export control Global Authorisation for Intra-Company Transfer

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.

Devika Agarwal

Call for Inputs: SEBI's consul...

Swapnil