Event Details
Foreign Trade Policy 2023: Emphasis on Streamlining SCOMET Policy
India launched the Foreign Trade Policy 2023, which is a dynamic and open ended policy to accommodate the emerging needs of the time; and which seeks to take India's merchandise and services exports to 2 trillion dollars by 2030. One of the key pillars of the Foreign Trade Policy 2023 is the streamlining of India's Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) policy for export of dual use items, which has been consolidated at one place (with an exclusive Chapter) for ease of understanding and compliance by industry.
SCOMET policy emphasizes India's export control in line with its national commitments on non-proliferation and its international obligations, including the multilateral export control regimes of the Wassenaar Arrangement, Australia Group, Missile Technology Control Regime and Nuclear Suppliers Group, to regulate trade in sensitive and dual use items including software and technology. Recent policy changes introduced such as general authorizations for export of certain SCOMET items to streamline their licensing process, are towards making the export of SCOMET items globally competitive.
Importance and Overview of Export Control & SCOMET Workshop in East
The increasing globalization of supply chains, efficient export controls will be more effective on the basis of an intensified international co-operation. India is the 42nd participating state in the Wassenaar Arrangement, a multilateral export control regime (MECR) for Conventional Arms and Dual-Use Goods and Technologies. The Wassenaar Arrangement (WA) was established to contribute to regional and international security and stability by promoting transparency and greater responsibility in transfers of conventional arms and dual-use goods and technologies. Other multilateral export control regimes are the Australia Group (AG), which controls chemical and biological items and related dual-use technologies; Missile Technology Control Regime (MTCR), which controls delivery systems capable of delivering weapons of mass destruction over the range of 300 kms; and the Nuclear Suppliers Group (NSG) which controls nuclear materials, equipment and technology.
India became a member of MTCR in June 2016, WA in December 2017 and AG in January 2018.The Foreign Trade (Development and Regulation) Act 1992 (FTDR Act) empowers the Government of India to formulate the export policy and to issue orders prohibiting, restricting or otherwise regulating the export of goods. As per the Foreign Trade Policy of India, exports and imports shall be 'free' except when regulated by way of 'prohibition', 'restriction' or 'exclusive trading through State Trading Enterprises (STEs)' as laid down in the Indian Trade Classification (Harmonized System) (ITC (HS)) of Exports and Imports. As per the guidelines of the FTP, list of certain goods are restricted from Export, whereas restricted items can be permitted for export only in accordance with an authorization, permission or license granted by the Government of India or in accordance with the procedure as prescribed by the government.
At present, the SCOMET list contains dual-use & military goods and technologies within 8 categories, in line with India's non-proliferation commitments.
Indian Manufacturers / Exporters working in the Defence, Aerospace, Bio-Tech, Chemicals, Nuclear, IT, Electronics, Engineering and allied sectors play a major role in India's economic growth and exports. However, as they also export dual-use goods, software and technology, awareness about their export control obligations and compliance with them by the Industry is integral to success of India's national export control system.
Indian Chamber of Commerce as the premier body of business and industry in Eastern and North-Eastern India and one of the nodal agencies for the MSME Sector, is committed to improving the industry's awareness on security and non-proliferation controls, and contributing to realize the potential of the Make in India initiative.
