SCOMET Update: DGFT issues the first order imposing penalties pursuant to voluntary self-disclosure of export control violations

Recently, the DGFT imposed penalties on an Indian company pursuant to a voluntary self-disclosure (VSD) of export control violations. Notably, while the violations involved high-value unauthorized exports, the DGFT imposed a significantly reduced penalty, highlighting that:

• Export control compliance is a strict liability obligation
• Voluntary disclosure can substantially mitigate penalties

This landmark DGFT order underscores the importance of proactive compliance and signals the growing role of VSD in India’s export control regime.

Read the detailed update