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Directorate General of Foreign Trade (DGFT) has authorised the Defence Ministry’s Department of Defence Production (DDP) to be the licencing authority for export of all ammunition items falling under Category 6 of Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) meant for military use.

The DGFT, which comes under Ministry of Commerce and Industry, has notified and updated SCOMET list for 2024.

The SCOMET list has been notified under Appendix 3 to Schedule 2 of ITC (HS) Classification of Export and Import Items, said the Ministry of Commerce and Industry in a statement on Tuesday.

The policy and procedures under SCOMET are outlined in Chapter 10 of FTP and HBP 2023, and the list is regulated under Chapter IVA of Foreign Trade (Development & Regulation) Act, 1992, as amended in 2010, it pointed out.

The updated export control list incorporates the recent changes in the multilateral export control regimes, and certain policy amendments in the national system, on the basis of inputs from relevant government organisations and stakeholders, the Ministry stated.

Framework for strategic trade

The emergence of Strategic Trade Controls as an important area has been acknowledged in the Foreign Trade Policy 2023, where SCOMET processes and procedures have been consolidated in one place for better understanding of the Industry, for effective compliance.

By making the DDP licencing authority, the Ministry said it has streamlined certain exclusions that existed earlier. India regulates the exports of dual use items, nuclear related items, and military items, including software and technology under the SCOMET.

This is part of a robust legal and regulatory framework the country has on strategic trade and related non-proliferation matters, which includes the inter-ministerial SCOMET licencing process, effective enforcement and risk assessment mechanisms, regular outreach to industry and other stakeholders, said the Ministry.

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