Export Control Update: NASSCOM’s Webinar on SCOMET Category 8 and Intangible Technology Transfers

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Export Control Update: NASSCOM’s Webinar on SCOMET Category 8 and Intangible Technology Transfers

Garima Prakash

@GarimaP

July 30, 2021

Public Policy

370

On July 27, 2021, NASSCOM organised a webinar on various aspects of export control matters, including SCOMET Category 8, Intangible Technology Transfers (ITT) and the Global Authorisation for Intra-Company Transfers (GAICT).

The webinar saw extensive participation from the industry as well as relevant government departments. In the inaugural session, the ‘Booklet on SCOMET Category 8 and Intangible Technology Transfers’, published by NASSCOM, was launched by senior government officials including, Joint Secretary, Ministry of External Affairs; Additional DG, Directorate General of Foreign Trade; and Scientist F, Electronics Materials & Components Division, Ministry of Electronics and Information Technology. This Booklet can be accessed from here.

Some of the key takeaways from the webinar included:

1. India’s SCOMET list is based on the control lists of existing multilateral regimes, including, the Wassenaar Arrangement (WA), the Australia Group, Missile Technology Control Regime etc. Similarly, most countries base their national control lists on the multilateral regimes. However, there may be variations in terms of manner of implementation, nomenclature, and categorization of goods/technology etc.

2. There is appetite from the industry to contribute to export control discussions at the multilateral level, for example at the WA Expert Group meetings, by partnering with the government through public consultations and other engagement.

3. As of today, India’s export control laws apply to all transfers of controlled items, technology, data, or software irrespective of the mode of transfer. The industry requested for a clarification from the government with respect to the manner of compliance with export control obligations when transfer of controlled technology occurs via cloud-based storefronts.

4. The following was highlighted by the government for the benefit of the industry:

The list of essential documents for filing a SCOMET application include: the application form, profile of exporter, end-user certificate, documentary proof of export, technical specifications, undertaking by the exporter (if applicable) and copy of Internal Compliance Program of the exporter (if applicable). The prescribed formats for some of these documents are prescribed by the DGFT from time to time and are made available on the DGFT website.
Real time status of processing of SCOMET applications can be checked from the DGFT Web Portal.
Exporters are eligible to apply for a SCOMET authorisation for a period beyond 24 months upon submitting appropriate reasons for the same, which is subject to approval of the concerned authorities.
An independent revalidation process for SCOMET authorisations has been notified by the DGFT vide Public Notice 27/2015-20 dated July 27, 2021.
Proposed amendments to the GAICT policy have been published by the DGFT and are open for stakeholder suggestions until August 1, 2021. Important proposed amendments include -- applicability of GAICT to exports in addition to re-exports of SOCMET Category 8 only, original import to be via a licence exception no longer a pre-requisite, destination countries are limited to WA Participating States etc.

5. The following is being considered by the government as the way forward in India’s export control regime:

An online system for amendment/revalidation of authorisation and post-reporting requirements is proposed to be introduced from August 5, 2021.
A dedicated chapter on SCOMET authorisations under India’s Foreign Trade Policy. The revised Foreign Trade Policy is expected to be come into force in October 2021.
Formulating a policy for bulk-licenses to be utilized for multiple end-users and destinations, beyond the restrictions of intra-company transfers. For this, the industry is invited to give suggestions for the formulation of this policy.
A Handbook on Intangible Technology Transfers proposed to be released in few months.

The speakers’ presentations are attached below.

As NASSCOM continues to create awareness and enhance the dialogue between the industry and the government on matters related to export control, the following next steps emerged from the webinar:

Additional recommendations on the revised draft of GAICT policy, to be sent by August 1, 2021.
Prepare a model Internal Compliance Program, tailored for the IT industry.
Conduct deep-dive sessions with industry segments on export control matters.

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

SCOMET GAICT exportcontrol DGFT MeitY MEA ITT technologytransfer

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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