Background |
The Directorate General of Foreign Trade (DGFT) maintains the SCOMET list, which includes dual-use items – goods, software, and technologies that can be used for both civilian and military applications, including weapons of mass destruction. The list is organized into eight (8) categories. Export of SCOMET items is permitted only with export authorization, unless the item is specifically exempted or prohibited.
Currently, the Foreign Trade Policy (FTP), read with para 10.13 of the Handbook of Procedures (HBP), prescribes the process for obtaining export authorizations for SCOMET items (excluding those under Categories 0, 1, 2, and 6, or for ‘Technology’ or ‘Software’ in any category) intended for demo, display, exhibition, tenders, RFPs, RFQs, or NITs. Exporters are required to submit applications in the prescribed format along with supporting documents. |
| Scope of Proposed Amendment |
The DGFT, vide Trade Notice No. 03/2025-2026 dated 23 April 2025 has proposed the following changes to the existing policy governing export of SCOMET items for demo/display/exhibition/tender/RFP/RFQ/NIT:
- Legal Undertaking Format: Legal undertakings must now be executed on stamp paper, as prescribed by the state from which the undertaking is submitted.
- Extended Re-import Timeline: Exported items must be brought back to India within 120 days of the conclusion of the overseas event, as opposed to the earlier 90-day period (extensions may be granted).
- Expanded Scope of Purpose: The policy will now include testing and evaluation, in addition to demo/display/exhibition/tender/RFP/RFQ/NIT, as permissible purposes for export.
- New Conditions: New conditions will apply to the export of indigenous or imported SCOMET items for demonstration, testing, and evaluation abroad.
- Prohibition on Value Addition: No technical value addition is permitted to the exported items during the testing and evaluation period.
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| Way Forward/What should companies do? |
Stakeholders have 10 days (i.e., until 3 May 2025) from the date of the Trade Notice to submit their comments. These may be emailed to scomet-dgft@gov.in.
Until the proposed amendments are officially notified, the current procedures under the FTP and HBP remain in force. Exporters must continue to follow the existing process to obtain export authorizations, including submitting applications in the prescribed format to the DGFT. The applicable procedure is available here. |
