Alerts & Updates 1st Aug 2025
Dear Reader,
We are writing to you with an important update concerning the SCOMET policy concerning the General Authorization for Export of Chemicals and related Equipment.
| 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 paragraph 10.16 of the Handbook of Procedures (HBP), sets out the process for obtaining General Authorization for Export of Chemicals and related Equipment (GAEC) for the SCOMET items under categories or sub-categories 1C, 1D, 1E, 3D001 and 3D004 (excluding software and technology), as well as chemicals listed in Appendix 10(N) to countries identified under Note 1 of Appendix 10(N). Exporters of items covered by these categories are required to submit applications in the prescribed format along with supporting documents. |
| Pre-amendment status |
Prior to the DGFT’s amendment, authorization applications could be filed for the export or re-export of SCOMET items listed in GAEC only to countries listed against them in under Note 1 of Appendix 10(N). |
| Scope of the Amendment |
The DGFT, vide Public Notice No. 17/2025-2026 dated July 30, 2025, amended paragraph 10.16 of the HBP to give effect to the following:
To this end, Indian exporters have been permitted to submit a copy of an Authorised Economic Operator (AEO) Certification or Status Holder Certificate, if available. |
| Way Forward/What should companies do? | The DGFT’s amendment is a welcome step as it opens the possibility for Indian exporters to avail the benefits of a GAEC general authorization to make exports of chemicals and related equipment to destinations beyond those which were previously permitted.
Applicants must now follow the revised policy under paragraph 10.16 of the HBP to obtain general authorizations under the GAEC framework, including by submitting applications along with supporting documentation, as now prescribed. For further details on the process, applicable formats/documentation, please refer to the link here. |
For any queries or comments on this update, please feel free to contact us at elptrade@elp-in.com or the authors: sanjaynotani@elp-in.com, ambarishsathianathan@elp-in.com, harikabakaraju@elp-in.com and shantanusingh@elp-in.com.
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