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Policy Update: DGFT issues an independent revalidation process for SCOMET authorisations
Policy Update: DGFT issues an independent revalidation process for SCOMET authorisations

July 30, 2021

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On July 27, 2021, the Directorate General of Foreign Trade (DGFT), vide Public Notice No. 27/2015-20 issued an independent procedure for revalidation of SCOMET authorisations. This benefits the industry in terms of a streamlined and simple procedure for revalidation of export control authorisations, which was earlier cumbersome and required unnecessary information. 

We had also asked for a mechanism of automatic revalidation in certain cases. This is not been accepted by the DGFT. 

 

Background: 

On 9 December 2020, NASSCOM submitted a representation to DGFT requesting for the establishment of a separate re-validation procedure for export authorisation of SCOMET items.

The earlier re-validation scheme aimed at addressing the schemes/authorisations issued under Chapter 4 (Advance Authorisation, Duty Free Import Authorisation) and Chapter 5 (Export Promotion Capital Goods Scheme). These schemes are in the nature of prescribing export performance obligations over authorisation holders. However, grant of authorisation to export SCOMET items is based on a different set of considerations. Companies that obtain an export authorisation under SCOMET provisions, are under an obligation to track the end-use and end-user of the exports they would carry out. They do not have an export performance obligation to fulfil as part of the export authorisation.  A SCOMET authorisation represents an approval or permission by the DGFT for a class of goods/technologies.

Accordingly, we asked for the establishment of a separate re-validation procedure for export authorisation of SCOMET items. 

For more information, kindly write to garima@nasscom.in.  


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Garima Prakash
Deputy 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

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