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Dated: 24.04.2025

The Directorate General of Foreign Trade (DGFT) has issued Trade Notice No. 03/2025-2026, dated 23rd April 2025, inviting suggestions from industry stakeholders regarding proposed amendments to the Foreign Trade Policy (FTP) 2023 and the Handbook of Procedures (HBP) 2023 concerning the temporary export of SCOMET items for ‘Testing and Evaluation’.

This marks a proactive step by the government to align export controls with operational needs in the defence, aerospace, and strategic electronics sectors, while maintaining national security protocols.

What Are SCOMET Items?

SCOMET stands for Special Chemicals, Organisms, Materials, Equipment and Technologies—a classification of dual-use items which can be used for both civilian and military purposes. These exports are regulated to ensure India’s international non-proliferation commitments.

Background and Objective

  • FTP Para 10.08(vi) currently permits temporary export of SCOMET items for purposes like demo, display, exhibition, tenders, etc.
  • However, testing and evaluation was not explicitly included, leading to practical challenges for exporters and R&D institutions.
  • In line with Para 1.07A of FTP 2023, which mandates stakeholder consultation, the DGFT has prepared draft amendments to Para 10.08(vi) and Para 10.13 of the HBP.

What the Trade Notice Proposes

  • A new provision will be included in the FTP and HBP to allow temporary export of SCOMET items for the specific purpose of testing and evaluation abroad.
  • The amendment aims to cover cases where items are sent abroad for performance validation, quality benchmarking, or technical assessment.
  • Stakeholders are encouraged to submit suggestions, concerns, or recommendations on the draft language of these amendments.

How to Participate

  • Stakeholders—including exporters, EPCs, industry bodies, and domain experts—are requested to send their inputs by email to: scomet-dgft@gov.in
  • Deadline for submission: within 10 days of the Trade Notice (i.e., by 3rd May 2025)

Legal Reference

  • Issued under Para 1.07A of FTP 2023
  • Relates to Para 10.08(vi) of FTP 2023 and Para 10.13 of the HBP 2023
  • File Reference: F.NO. 01/77/171/51/AM25/EC(S)

Significance for Exporters

  • Opens up regulatory clarity for companies needing to send controlled items overseas for test trials.
  • Supports R&D collaborations with international partners.
  • Ensures compliance with SCOMET regulations while facilitating innovation and business development.

In case you face any issues related to Indirect Tax-Customs, GST, Foreign Trade Policy (FTP), Arbitration matters and Central Licensing and related advisory matters in India then please feel free to get in touch with SJ EXIM Services.

We offer Legal advice and litigation support in matters related to Indirect Tax-Customs, FTP, other Indirect Tax matters & Arbitration law, all sorts of Central licensing and related matters. Come and explore the new way of doing business with us!


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