Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

[pib] SCOMET List

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From UPSC perspective, the following things are important :

Prelims level: SCOMET List

Why in the News?

The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce & Industry, has released the updated SCOMET (Special Chemicals, Organisms, Materials, Equipment, and Technologies) list for the year 2024.

What is the SCOMET List?

Details
Purpose To regulate the export of dual-use items that can be used for both civilian and military applications, particularly those that could contribute to the development of weapons of mass destruction (WMDs) and their delivery systems.
Regulatory Authority Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, Government of India.
Notification Notified by DGFT under Appendix 3 to Schedule 2 of the ITC (HS) Classification of Export and Import Items.
Legal Framework Governed by Chapter IVA of the Foreign Trade (Development & Regulation) Act, 1992, as amended in 2010.

This chapter provides the legal basis for export control of dual-use items and outlines penalties for non-compliance.

Policy and Procedures Outlined in Chapter 10 of the Foreign Trade Policy (FTP) and the Handbook of Procedures (HBP) 2023.

These documents provide the detailed procedure for licensing, application, and compliance for exporting SCOMET items.

Categories The SCOMET List includes multiple categories:
1. Category 0: Nuclear materials and nuclear-related dual-use items.
2. Category 1: Toxic chemical agents and precursors.
3. Category 2: Materials and materials processing equipment.
4. Category 3: Electronics.
5. Category 4: Computers.
6. Category 5: Telecommunications and information security.
7. Category 6: Sensors and lasers.
8. Category 7: Navigation and avionics.
9. Category 8: Marine.
10. Category 9: Aerospace and propulsion.
New Licensing Authority for Category 6 Department of Defence Production (DDP), Ministry of Defence is the new licensing authority for the export of items under Category 6 (Sensors and Lasers).
Export Licensing Exporters must obtain a specific license from DGFT (or DDP for Category 6) to export SCOMET items.

The licensing process includes a comprehensive review to ensure that exports do not contribute to the proliferation of WMDs or unauthorized military use.

 

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