[Update] DGFT Relaxes Procedural Requirements for SCOMET Applications

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[Update] DGFT Relaxes Procedural Requirements for SCOMET Applications

Devika Agarwal

@DevikaAgarwal

May 25, 2020

Public Policy

572

The Directorate General of Foreign Trade (DGFT) has relaxed some procedural requirements for SCOMET export applications given the challenges which the industry is facing in export compliance due to the SARS-CoV-2 pandemic. The following clarifications were intimated to NASSCOM by the DGFT over email, and are temporary measures to ease export compliance requirements on the industry.

DGFT to accept scanned signed copies of EUC & PO for SCOMET Export Licence applications:

The DGFT has relaxed the requirement of original End Use Cum End User Certificate (EUC)/Purchase Order (PO), and allowed scanned signed copies of the same for SCOMET export licence applications. This is subject to the condition that each such document submitted before DGFT for consideration is duly authenticated by the applicant firm and onus of the genuineness would lie on the applicant firm only. In cases where submission of forged, duplicate or repetition of same document in multiple applications is proved in future, the export authorisation shall be cancelled without notice and appropriate penal action in terms of the amended Foreign Trade (Development & Regulation) Act, 1990 would be taken.

Please note that this is only a relaxation in the procedure and not an exemption from submission of original physical copy of EUC. The export authorisation shall be issued by the DGFT, subject to the condition that original copy of EUC would be submitted by the licensee in due course soon after the overseas transport services are resumed and offices are functional.

The above is a general relaxation available to all applicant exporters without referring each case. The industry need not wait for original documents to file online SCOMET application. The exporters just need to authenticate the documents and upload on the DGFT portal. The DGFT will not insist on original documents before issuing export authorisations. The above relaxation also covers Public Notice 63 cases.

2. DGFT to allow applicants to submit undertaking on their letterhead instead of the legal undertaking under Public Notice No. 63

In the Inter Ministerial Working Group (IMWG) meeting held on 20^th May, certain relaxation has been provided w.r.t. requirement under DGFT Public Notice No. 63 (dated 18.02.2020) for submission of legal undertaking on Rs. 200/- stamp paper on prescribed proforma. The DGFT has decided that the applicant firms may submit such undertaking in prescribed proforma on their letterhead duly signed and authenticated by the authorised signatory, for consideration by the DGFT. The legal undertaking may be furnished subsequently once the courts are functional.

(Please read our representation to DGFT on extending the SCOMET authorisation period here. Contact dagarwal[at]nasscom[dot]in for further details.)

DGFT SCOMET export control dual use Public Notice 63

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Devika Agarwal