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Nasscom's Participation in Industry outreach event on export control regulations and compliances
Nasscom's Participation in Industry outreach event on export control regulations and compliances

July 28, 2023

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Nasscom was invited to participate and speak at the outreach event on export controls, organised by the Directorate General of Foreign Trade (DGFT) in Pune, Maharashtra. The overall aim of the event was to spread awareness and strengthen compliance with export control regulations. Senior officials from the DGFT, Ministry of External Affairs, Ministry of Defence, Customs, Directorate of Revenue Intelligence and Mahratta Chamber of Commerce, Industries and Agriculture also spoke at the event.

Nasscom's inputs in the event:

We emphasised the efforts being undertaken for effective collaboration between industry and government, led by nasscom, to enhance the export control regulations and compliance in India. Specifically, we spoke on the elements of an effective Internal Compliance Programme (ICP) for export of dual-use items that was published in December 2022 (available here).

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Key points highlighted by the government:

·       Introduction of a new Chapter on SCOMET and export controls under India’s Foreign Trade Policy is an indication on the emphasis that government is placing on export controls and its relevance for India.

·       The government has already published various bulk licencing schemes, such as The global authorisation for intra-company transfers (GAICT), The Global Authorisation for Export after Repair (GAER) and the Global Authorisation for Export of Drones (GAED). Bulk licencing schemes are with the aim to facilitate easy compliance for the industry.

·       All companies must formulate and implement an ICP. It helps in minimising the risk of non-compliance for the industry and helps the government in building more trust and ultimately liberalising compliance obligations. The government acknowledged nasscom’s efforts in formulating guidance material on ICP for the industry.

·       Going forward, the government will continue to focus on reducing the turn around time for licences, encourage industry to establish ICPs, adopt more bulk licencing policies, and encourage industry to make voluntary disclosure in case of default.

Next steps:

While we continue to engage with the industry and the government on export control matters, we would specifically focus on:

·       expanding the use and availability of bulk-licencing schemes in India:  bulk-licensing schemes are a way to streamline the export control process for the industry. By issuing a single license, the government can allow a company to export a certain quantity of goods without having to apply for a separate license for each shipment. This can save companies time and money, and it can also help to reduce the risk of errors.

·       Spreading awareness of export control obligations: It is important for companies to understand their export control obligations. These obligations are designed to prevent the proliferation of weapons of mass destruction and other sensitive items. Companies that violate export control laws can face serious penalties.

·       Providing a forum for the industry to share best practices and feedback with the government: The government can benefit from the input of the industry when it comes to export control policy. This can ultimately ensure that export control regimes remain effective and efficient.

For more information, kindly write to Garima Prakash (garima@nasscom.in) and Priyanshi Dixit (priyanshi@nasscom.in) with a copy to policy@nasscom.in.


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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

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