DGFT issues Trade Notice seeking inputs on draft Management System Requirements for Internal Compliance Programme for export of dual-use (SCOMET) items

• Scope: The ICP MSRs provide a strong framework to guide organizations in developing, implementing, maintaining, and continually improving effective ICPs.
• Normative References: The ICP MSRs refer to norms contained in the Foreign Trade (Development & Regulation) Act, 1992, the FTP, the DGFT’s SCOMET policy, the Best Practice Guidelines (2011) issued under the Wassenaar Arrangement, guidelines issued under the Missile Technology Control Regime (MTCR) and relevant ISO standards.
• Terms and Definitions: The ICP MSRs provides an explanation of terms commonly used in ICPs, in plain language and by relying on ISO standards, adapted for Indian export controls.
• Context of the Organization: The ICP MSRs recognise that the development of an organization’s ICP is influenced by features of the organization itself and the needs of the government regulator. Moreover, it is recognised that when developing their internal Compliance Management Systems, organizations may consider and build on existing guidance under the Wassenaar Arrangement, United States Department of Commerce and the European Commission.
• Leadership: The ICP MSRs recognise the importance of strong leadership through an organization’s top management’s formal commitment, clear understanding of roles and responsibilities, a documented service quality policy, and training to ensure adherence to export control regulations.
• Planning the Service Deliver: The ICP MSRs note that each organization can plan its service delivery by instituting measures to identify and mitigate export control risks by screening, setting measurable compliance goals, managing changes to ICPs effectively, and recognising that implementing robust ICPs aligns with the UN Sustainable Development Goals.
• Support: The ICP MSRs state that organizations must support its ICP by allocating adequate resources, ensuring staff competence and awareness through training, maintaining clear communication, and establishing robust systems for creating, managing, and controlling export control documentation.
• Operation: The ICP MSRs recognise that organizations must plan, implement, and control compliance operations by integrating security measures, monitoring logistics, and establishing a transparent system for handling complaints and incidents related to export control compliance.
• Performance Evaluation and Improvement: The ICP MSRs note that organizations must evaluate ICP performance through periodic reviews, audits and management assessments to ensure ICP effectiveness, identify non-compliance and implement corrective actions.

The DGFT has also provided a case study in implementation of an ICP by a technology manufacturing company in Annex A of the ICP MSRs.